Glacierre Press Release

PRESS RELEASE
2007-06-12
Glacier Reinsurance AG

Launch of Nelson Re Ltd.

Issue of $75 million catastrophe bond

Glacier Reinsurance AG (“Glacier Re” or “the Company”), the Switzerland-based reinsurer, today announces the successful launch of Nelson Re Ltd. (“Nelson Re”).

Nelson Re is a newly formed Cayman Islands exempted insurance company, set up by Glacier Re as the issuer of catastrophe bonds under a $1.5bn catastrophe bonds shelf programme. The first issuance of the Series 2007-I Notes has been capitalised by raising $75 million in the form of bonds from a group of institutional investors. The bonds have been rated “B” by Standard & Poor’s Rating Services and “b-“ by A.M. Best Company. Nelson Re has entered into a reinsurance agreement with Glacier Re under which it will provide fully collateralised reinsurance protection.

The reinsurance agreement will initially provide Glacier Re with excess of loss protection for three major perils: US Earthquake, US Windstorm and Europe Windstorm. Glacier Re and Nelson Re may enter into reinsurance agreements covering other perils in the future.

Robbie Klaus, Chief Executive Officer and Chief Underwriting Officer at Glacier Re, said:

“This transaction is a significant milestone in Glacier Re’s development. Nelson Re provides us with highly valuable reinsurance protection and broadens Glacier Re’s profile amongst institutional investors. Nelson Re’s shelf programme structure also gives us significant flexibility, to help meet our future risk protection needs.”

Goldman, Sachs & Co. acted as sole financial advisor and placement agent for the transaction.

Further information

Media

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