Glacier Reinsurance Ceases Underwriting, Begins Orderly Runoff

Glacier Reinsurance AG, formed just six years ago, announced that it will stop accepting clients, cease underwriting operations and will place its existing portfolio into a self-managed, orderly run-off.

“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,” Chief Executive Officer Todd Hart said in a statement. “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.”

A spokeswoman said Hart wasn’t available for immediate comment, but would comment next week.

Glacier Re said it has devised a “multiyear” run-off plan, and it is working with Switzerland's financial supervisor, Finma. News that Glacier Re will wind down operations follows the recent sale of its wholly owned subsidiary Glacier Insurance AG to Torus Insurance Holdings Ltd. (BestWire, July 1, 2010)

Before becoming CEO, Hart had led the insurance group at HBK Capital Management, one of the founding shareholders of Glacier (BestWire, Nov. 24, 2009). Glacier was established in December 2004 in Switzerland with $300 million of equity capital.

A.M. Best Co. downgraded the current financial strength rating of Glacier Reinsurance to B++ (Good) from A- (Excellent).

(By Diana Rosenberg, senior associate editor, BestWeek)