Glacierre Press Release

PRESS RELEASE
2007-09-10
Glacier Reinsurance AG

Half Year Results 2007

Pfäffikon, Switzerland: Glacier Reinsurance AG, (‘Glacier Re’ or ‘the Group’), the European (re)insurance group is pleased to announce its consolidated US GAAP financial results for the six months ended 30 June 2007.

Financial highlights:

• Net income after tax for the six months ended 30 June 2007 was $33.0 million, this is an increase of 44.7% over the prior period (H1 2006: $22.8 million);

• Gross written premiums (before reinstatements) of $304.9 million an increase of 22.5% on a comparable basis over the prior year (H1 2006: $248.9m). Premiums written increased across all business lines with the exception of retrocessional risk business which declined when compared to the prior period;

• Net combined ratio improved to 80.4% (H1 2006: 81.1%);

• Investment income increased to $13.3 million (H1 2006: $9.2 million) with the portfolio yielding 4.2% on an annualised basis. At 30 June 2007 the investment portfolio consists of cash and bonds with a minimum rating of A (or equivalent) reflecting the conservative investment philosophy of the Company. Glacier Re is not exposed to the US sub-prime mortgage market;

• Net underwriting capital increased to $531.0 million. Glacier commenced underwriting operations in January 2005 with net underwriting capital of $300m.

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

By territory: Asia 8%; Bermuda 5%; Europe 20%; Japan 4%; Latin America 2%; United Kingdom 20%; USA 34%; Other 7%.

By class: Aviation 21%; Cat Retro 4%; Marine & Energy 31%; Property & Casualty 39%; War & Terror 5%.

Operational highlights during the period include:

• Launch of Nelson Re Ltd, a Cayman Islands exempted insurance company set up by Glacier Re as the issuer of catastrophe bonds under a $1.5bn catastrophe bond shelf programme. Nelson Re Ltd issued $75 million of Series 2007 – I Notes in June 2007. The bonds provide multi-peril coverage for US wind and earthquake and European wind risks. The bonds form part of Glacier Re’s retrocessional protection program and carry a credit rating of B from Standard & Poors and B- from A.M. Best;

• Following the establishment of Glacier Insurance in November 2006 the financial results of Glacier Re include written insurance premiums of $14.9 million. The insurance company platform further increases the product line capabilities of Glacier Re;

• Continued employee and infrastructure growth, including a number of senior appointments across all areas of the business.

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

“This is an excellent half year result highlighting the strength of our business as well as our commitment to our customers. We continue to diversify and expand our product capabilities with the addition of Glacier Insurance to the Group. Our multi-platform allows us to pursue a strategy of profitable growth in a softening market. In addition the Group continues to attract the best industry talent allowing us to offer innovative reinsurance solutions and quality service to our customers.”

Further information

Media

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