Hannover Re denies involvement in corporate bond guarantee market

Hannover Re has issued a statement denying that the German reinsurance group was involved in the issuing of insurance cover to the corporate bond offerings organised by investment banks. The statement was prompted by an article in the German edition of the Financial Times which named Hannover Re as one of the reinsurers involved “in business with investment banks in order to secure corporate bonds and loans.” The paper identifies Hannover Re as an active participant “in these new risks which could mean latent liabilities of billions of Euros” for the reinsurers.