2010-08-27

By Editor, CIR

Swiss reinsurer Glacier Re is to be placed in to run-off. The company said in a statement that it believes its move to be "the most beneficial course of action for shareholders given the current underwriting conditions".

This decision was made after its subsidiary, Glacier Insurance, was sold to Torus Insurance in May this year.

Todd Hart, CEO of Glacier Re, said: “After several months of effort and strategic review, Glacier’s Board has decided to cease underwriting and to seek the orderly wind down of its operations. This unfortunate step will best achieve our investors’ objectives within a reasonable time frame. Glacier Re’s current excess capital and high liquidity will allow the Company to meet its valid obligations while simultaneously returning the excess capital to shareholders over the course of this process. We intend to work closely and responsibly with all of our business constituents to manage Glacier’s exit in an orderly manner.

“The management team would like to thank Glacier’s clients, brokers and business partners for their support, commitment and loyalty since the Company was established in late 2004. Importantly, we would also like to thank our staff for their constant enthusiasm and dedication through this challenging period. We are pleased that so many of them will be continuing to work for Glacier Re as we carry out our new objective - a thoroughly professional run-off of the company’s operations.

The company discontinues underwriting immediately, after six years in the market.