01 March 2010
Published in: Capital - models
Hannover Re raises $500m from Deutsche Bank
Hannover Re announced today the conclusion of a $500m long-term letter of credit facility with Deutsche Bank. The facility will enable the reinsurer to make the most of growth opportunities in the US reinsurance market.
The reinsurer said it intends to expand its life business and will use the line of credit to put up the collateral required by regulators for assumed technical liabilities.
The facility has a maturity of 30 years, with an early termination option exercisable by Hannover Re at specified times. Hannover Re has the option to increase the size of the facility above the initial $500m to support additional business.