Glacierre Press Release

PRESS RELEASE
2006-11-13
Glacier Reinsurance AG

Launch of Glacier Insurance AG

Glacier Reinsurance AG (“Glacier Re”), the European reinsurance company, today announces the establishment of Glacier Insurance AG (“Glacier Insurance”, or “the Company”), a direct insurance company and a wholly-owned subsidiary of Glacier Re.

Glacier Insurance is based in Liechtenstein and is licensed to underwrite insurance policies in Europe. The Company will write marine & energy, property & casualty, aviation, space and war & terrorism insurance. It expects gross written premiums in its first year of business to be in the region of $20 million. Glacier Insurance will be protected by a comprehensive reinsurance program provided by Glacier Re through a whole-account quota share agreement further supplemented by a stop loss reinsurance agreement to cover severity losses. Additional security is provided by a parental guarantee from Glacier Re, allowing the company to fully benefit from the financial strength of the Group.

Robbie Klaus, Chief Executive Officer of Glacier Re and Glacier Insurance, commented:

"Glacier Insurance is the next step in the natural evolution of the Glacier Group. It enables us to extend our product offering to direct insurance customers in Europe and to build upon our successful business franchise. Furthermore it provides us with a platform to diversify our portfolio, further reducing overall Group volatility. The growing Glacier team has well founded expertise in this area, with great customer and broker relationships and a reputation for innovation"

Glacier Insurance was incorporated in Liechtenstein in November 2006 and is licenced by the Financial Market Authority in Liechtenstein. It will write the majority of its business in Europe.

Glacier Re was established in December 2004. Its net underwriting capital as of 30 June 2006 was $465 million.

Further information

Media

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