Glacierre Press Release
PRESS RELEASE
2004-12-14
Glacier Reinsurance AG Announces Launch
Start Up Reinsurance Company in Switzerland
Glacier Reinsurance AG (“Glacier Re” or the “Company”), a Swiss start up reinsurance company is pleased to announce its launch. The Company has successfully raised CHF 347.5 million (US$300 million) in equity capital. Subject to receiving its reinsurance license from the Swiss Federal Office of Private Insurance, Glacier Re will commence underwriting from January 1, 2005. It is anticipated that on receipt of its reinsurance license, Glacier Re will be assigned a financial strength rating that will enable it to compete in the global reinsurance markets.
Glacier Re has been formed in response to prevailing favourable market conditions within the specialty lines market. The Company has been capitalised, via its Luxembourg-domiciled holding company, Glacier Re Holdings s.à r.l., by a consortium of investors including funds advised by HBK Investments L.P. (“HBK”) and Soros Fund Management LLC (“SFM”), Benfield Investment Holdings Ltd (“BIHL”) and certain members of Glacier Re’s senior management team. All institutional investor groups, with the exception of BIHL, will have representation on Glacier Re’s board of directors.
Robbie Klaus, previously head of GE Frankona Re’s global specialty reinsurance unit, will serve as Chief Executive Officer and Chief Underwriting Officer for the Company.
Glacier Re will focus on underwriting niche, global specialty reinsurance risks, constructing a balanced and diversified portfolio across five key lines of business including aerospace, catastrophe reinsurance, European property and casualty, marine and energy and war and terrorism. The Company will pursue a conservative investment strategy by investing primarily in liquid high quality fixed income securities of short duration.
Robbie Klaus, Chief Executive Officer and Chief Underwriting Officer of Glacier Re said:
“In the current environment where counterparty security has become a major concern among cedants, we are pleased to offer our clients a clean and unencumbered balance sheet. Our long term commitment to the underwriting of specialty reinsurance and our team’s outstanding reputation will offer innovative and timely reinsurance solutions”.
Further information
The Company
Glacier Reinsurance AG
Robbie Klaus / Glenn Campbell
Tel: +41 55 417 3401 / 3402
Media
Haggie Financial
David Haggie / Peter Rigby
Tel: +44 20 7417 8989
Financial Advisor to the Company
Benfield Advisory Inc.
Rob Bredahl / Dan Brookman
Tel: +1 917 320 4510 / 4515
Ross Milburn
Tel: +44 20 7578 7431
Notes to Editors:
Glacier Reinsurance AG
Glacier Re was recently established in the canton of Schwyz in Switzerland to create a strong platform to deliver innovative reinsurance solutions to global customers. The Company has been capitalised by funds advised by HBK Investments L.P. and Soros Fund Management LLC, Benfield Investment Holdings Ltd and certain members of Glacier Re’s senior management team.
Mr. Robbie Klaus has been appointed Chief Executive Officer and Chief Underwriting Officer for Glacier Re. Mr. Klaus is a highly respected reinsurance lead underwriter within the global specialty reinsurance market with a successful career spanning over 18 years. Mr. Klaus began his career in 1986 as an underwriter for Frankona Re in Munich, Germany. Between 1986 and 2004, Mr. Klaus developed his knowledge and understanding of the insurance and reinsurance industry, with particular focus on the global specialty market. In February 2002, Mr. Klaus was appointed head of GE Frankona Re’s Global Specialty division, where he assumed responsibility for the underwriting of specialty insurance and reinsurance business with gross written premiums in excess of US$1.2 billion, managing a workforce of over 50 professionals across offices in Munich, London and New York. Mr. Klaus left his former employer in May this year to pursue the establishment of Glacier Re.
Mr. Klaus is accompanied by Mr. Glenn Campbell as Chief Financial Officer, who has gained considerable experience for this position having served as CFO for both Catlin (Bermuda) and GE Frankona Re (UK). Mr. Richard Etridge has joined Glacier Re as a Senior Underwriter with primary responsibilities for Glacier Re’s aerospace and war and terrorism portfolio. Mr. Etridge left Converium Ltd earlier this year to pursue the Glacier Re opportunity. Mr. Jeremy Bloxham, former reinsurance manager for Brit Insurance Holdings PLC and former reinsurance underwriter for Odyssey Re in London has joined Glacier Re as a Senior Underwriter. Mr. Adrian McGarva has joined the Company as Chief Actuary, formerly a member of Benfield Group Limited’s actuarial team in London.
HBK
HBK is a multi-strategy alternative investment firm employing over 200 individuals in offices around the world. Headquartered in Dallas, the firm also maintains branch and subsidiary offices in New York, London, and Tokyo. HBK manages in excess of US$5 billion in equity capital and pursues a variety of absolute return investment strategies.
SFM
SFM has advised Quantum Partners LDC (“Quantum”) in relation to its investment into Glacier Re. Quantum is a private investment fund that pursues a variety of macro, equity and arbitrage strategies. As at December 31, 2003, Quantum had net assets in excess of US$1 billion.
Benfield Group Limited
Benfield Group Limited (“Benfield”) is the world’s leading independent reinsurance intermediary and risk advisory business. Its customers include most of the world’s major insurance and reinsurance companies as well as Government entities and global corporations. Benfield employs over 1,600 people based in more than 30 locations worldwide. The company is listed on the London Stock Exchange under the ticker symbol BFD. www.benfieldgroup.com
Benfield Investment Holdings Ltd
BIHL is a wholly-owned subsidiary of Benfield which is responsible for making investments on behalf of the group.
The investment made by BIHL was on the recommendation of Benfield’s Corporate Investment Group (CIG). CIG was established in 2002 as an investment committee to oversee corporate or non-core investments made by Benfield. Non-core business includes any businesses which are not reinsurance or insurance intermediaries or fully owned by Benfield. No executive directors who are responsible for Benfield’s core broking division serve on CIG.
Benfield Advisory Inc
Benfield Advisory Inc (“Benfield Advisory”) is Benfield’s wholly owned investment banking subsidiary with offices in New York and London. Benfield Advisory has a successful track record of advising companies within the insurance and reinsurance industry. Over the last three years, Benfield Advisory has completed transactions with an aggregate transaction value in excess of US$5.8 billion. Benfield Advisory previously acted as financial advisor in relation to the establishment of Montpelier Re Holdings Limited in Bermuda in December 2001.