Hannover Re had its issuer credit 'A' rating upgraded from stable to positive by AM Best Co.

At the same time, Best affirmed Hannover Re Bermuda's financial strength rating of A (excellent), which remains stable.

The positive outlook on the issuer credit rating of Hannover Re Bermuda acknowledges the same rating and outlook on the issuer credit rating of its parent, Hannover Rueckversicherung AG (Hannover Re) (Germany).

Hannover Re Bermuda's ratings reflects its strong capitalisation, its underwriting performance in 2007 and the continued reinsurance protection and investment management support the company receives from Hannover Re.

Offsetting these strengths is Hannover Re Bermuda's risk concentration in property catastrophe whose earnings are subject to substantial volatility resulting from severe catastrophic events.