Glacier Group Press Release

PRESS RELEASE
2008-09-09
Glacier Group

Half Year Results 2008

Pfäffikon, Switzerland: Glacier Group (‘Glacier’, ‘the Company’) the European insurer and reinsurer, is pleased to announce its consolidated US GAAP financial results for the six months ended 30 June 2008.

Financial highlights:

Gross written premiums (including reinstatements) of $372.0 million, an increase of 17.9% on a comparable basis over the prior year (H1 2007: $315.6 million). Premiums written increased across most business lines with the majority of the growth coming from the insurance and facultative areas. All premiums written were at acceptable margins, in-line with Glacier’s ongoing expansion plans;
Net income after tax for the six months ended 30 June 2008 was $22.0 million, a decrease over the prior period (H1 2007: $33.0 million);
The gross combined ratio was 72.8%, reflecting solid underwriting and focus on business quality. After reinsurance expenditure this translates to a net combined ratio of 93.4% (H1 2007: 80.4%), as Glacier improved overall security through the purchase of additional reinsurance;
Investment income increased to $14.1 million (H1 2007: $13.3 million) with the portfolio yielding 3.9% (excluding unrealised gains) on an annualised basis. At 30 June 2008 the investment portfolio consisted of cash, short-duration bonds and fixed-income investments with a minimum A (or equivalent) rating reflecting the conservative investment philosophy of the Company;
The Company has no investment or underwriting exposure to the “sub-prime” crisis, and achieved unrealised investment and foreign exchange gains of $5.5 million in the first half;
Net underwriting capital has almost doubled since the company began underwriting operations in January 2005 and now stands at nearly $600.0 million.

Written premiums for the period reflect a balance of geography and business lines and are distributed as follows:

Reinsurance
By territory: Europe 26.1%; USA 25.7%; United Kingdom 21.3%; Japan 7.6%; Asia 5.8%; Bermuda 5.7%; Latin America 2.6%; Other 5.2%.
By class: Property & Casualty 57.2%; Marine & Energy 29.4%; Aviation 8.9%; Cat Retro 1.2%; War & Terror 3.3%.

Insurance and facultative By territory: Europe 31.1%; USA 31.1%; United Kingdom 14.6%; Latin America 5.5%; Asia 4.4%; Japan 1.0%; Other 12.3%.
By class: Aviation 33.8%; Property & Casualty 33.6%; Marine & Energy 27.8%; War & Terror 4.8%.

Operational highlights during the period include:

In May 2008, Nelson Re Ltd issued three bonds totalling $180 million under its $1.5 billion catastrophe bond shelf programme sponsored by Glacier Re, demonstrating Glacier’s continued ability to use financial markets creatively. The bonds provide increased security for our policyholders and investors by further limiting the impact of claims from natural catastrophes;
Our insurance and facultative operations have continued their planned expansion and diversification. Richard Etridge has been promoted to Chief Executive Officer of Glacier Insurance, effective 1 September 2008. He is mandated to continue the impressive expansion he has already achieved as its Chief Underwriting Officer;
Glacier Insurance commenced underwriting operations in London in March 2008, recruiting former QBE European MD Steven Price as Managing Director, and building up a team of well-respected London Market underwriting professionals;
Glacier Re expanded into Latin America with the opening of a representative office in Buenos Aires in February 2008 headed by Uwe Fischer, former Underwriting Manager for Converium in Central & South America. The team already comprises a number of the leading reinsurance professionals in the region.

Robbie Klaus, Chief Executive Officer, Glacier Group commented:
“Glacier has performed well in the first half and I am particularly pleased with our impressive investment return, given current market conditions. We remain on track to deliver another good result for the full year. These results confirm our strategy of pursuing profitable, sustainable growth across multiple platforms and geographies.”

Glenn Campbell, Chief Financial Officer, Glacier Group said:
“Glacier has been making long term investments in its financial strength and security. The placement, during May 2008, of Nelson Re II, the second issuance from our catastrophe bond programme, reflects this commitment to security. I am pleased that AM Best recognised this with its recent confirmation of our A- rating.”

Further information

Media

Haggie Financial
David Haggie / Juliet Tilley
Tel: +44 20 7417 8989

Notes to Editors:

About the Glacier Group

Glacier Insurance AG
Glacier Insurance was incorporated in Liechtenstein in November 2006 and is licenced by the Financial Market Authority in Liechtenstein. It operates from Liechtenstein, Germany and the UK. It is a wholly-owned subsidiary of Glacier Reinsurance AG.

Glacier Reinsurance AG (Glacier Re)
Glacier Re was established in December 2004 in the canton of Schwyz in Switzerland to create a strong platform to deliver innovative reinsurance solutions to global customers. It has a rating of A- (Excellent) with a stable outlook from A.M.Best and is regulated by the Swiss Federal Department of Finance.

www.glaciergroup.com