European small business insurance reinsurer Glacier Re recently announced that it will be selling off its current portfolio in the wake of its subsidiary Glacier Insurance AG.
The executive board of the reinsurer announced its decision after thoroughly reviewing their company’s remaining alternatives in the wake of Torus Insurance’s buyout of the bulk of its public liability insurance arm this past May.
Glacier’s executive board declared that, given the current conditions in regards to underwriting, the course of action it chose is the one that will hold the most benefit for the company’s shareholders.
Glacier Re announced that its plans for run-off will stretch over multiple years and will be managed in such a way to reflect its continuing resolution to provide its services to its clients responsibly, in addition to keeping the highly regulated nature of the reinsurance business.
The company’s regulator, Swiss-based FIMNA, will be working in close conjuction with Glacier Re during the run-off process.
Glacier Re’s chief executive, Todd Hard, released a statement in which he announced that the board of the company is only deciding to cease its underwriting and wind its operations down in an orderly manner after many months of strategic reviews and effort.
While unfortunate, these steps will enable Glacier Re’s investors to achieve their goals within a timeframe that is reasonable, continued Mr Hard, as its valid obligations will be met by its high liquidity and excess capital, while returning that said capital to its shareholders throughout the winding-down process. Mr Hard was quick to point out that Glacier Re intended to work closely and in a responsible manner with all of its business constituents in order to manage the company’s exit in a smooth manner.
Mr Hard concluded his statement by offering thanks on behalf of the company’s management to its brokers, blients, and business partners for their loyalty, commitment, and support since the company’s inception six years ago; Mr Hand also expressed his thanks to Glacier’s staff for not only their enthusiasm but their dedicated attitudes throughout the entire ordeal.