Glacier Group Press Release
PRESS RELEASE
2008-11-17
Glacier Group
Glacier Group
- Hurricane impact, trading and investment performance and outlook -
Pfäffikon, Switzerland: Glacier Group (‘Glacier’ or ‘the Group’) the
European insurer and reinsurer operating as Glacier Reinsurance AG and Glacier
Insurance AG, is pleased to provide details of the impact of recent hurricanes,
an update on its trading and investment performance and an outlook for the full
year.
Impact of Hurricanes Gustav and Ike
The Group’s current best estimate of the claims incurred from Hurricanes Ike and
Gustav are USD 65.0 million and USD 6.0 million respectively (gross before
reinsurance). These estimates are based on estimated industry losses of USD 16
billion (onshore) and USD 3 billion (offshore)1 for Ike and USD 5 billion for Gustav and are in line with Glacier’s
expectations for events of this size and nature.
Trading and investment performance
Glacier has continued to perform well in 2008 and expects premium income growth
of some 15% ahead of last year. Despite an active loss year in general the Group
is expecting to produce a net underwriting profit for 2008.
Glacier’s conservative investment strategy has served the Group very well during
the current global financial turmoil. Total invested assets at 31st October 2008
were USD 780.6 million, an increase of USD 69.3 million from 31 December 2007.
At 31st October 2008 the investment portfolio market value exceeds the book
value, reflecting an underlying net unrealized gain position and highlighting
the secure nature of the portfolio. Glacier does not have any exposure to
equities or other types of investments that have led to recent significant
investment losses.
The annualised investment return for the 10 month period ended 31 October 2008
was 3.4% and is reflective of the underlying securities held within the
investment portfolio (cash, sovereign and non-financial corporate bonds rated A-
and above). With an average portfolio duration of one year and a modest level of
leverage (less than 20%) Glacier maintains a highly liquid balance sheet.
The Group maintained an underwriting capital base of USD 599 million at 30 June
2008 and its A- (Excellent) financial strength rating from A.M. Best was
affirmed in August 2008.
Current trading and Outlook
Robbie Klaus, Chief Executive Officer of the Glacier Group, commented:
"Our performance to date in 2008 has been very good, despite the unprecedented
turbulence in global financial markets. We have continued to develop our
international infrastructure and underwriting talent and we are particularly
pleased with the progress of Glacier Insurance’s UK operations and the positive
reception we have received from the London Market."
"We have no exposure to the credit crisis – either in our investment or
underwriting portfolio. Our strong balance sheet presents us with significant
opportunities to take advantage of the expected pricing improvements following
the current market dislocation."
1Amended
Further information
Media
Haggie Financial
David Haggie / Juliet Tilley
Tel: +44 20 7417 8989
Notes to Editors:
About the Glacier Group
Glacier is an international insurance and reinsurance group, founded in December 2004 and headquartered in Pfäffikon, Canton Schwyz, Switzerland. The Glacier Group had underwriting capital of USD 599 million as of 30 June 2008 and is rated A- (Excellent) by A.M. Best.
Glacier Insurance
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 and is regulated by the Federal Office of Private Insurance in Switzerland. It operates from Switzerland.
www.glaciergroup.com