PFÄFFIKON, Switzerland—Glacier Reinsurance A.G. said Friday its existing portfolio will be placed immediately into an orderly runoff, and the company will no longer write or accept new business.

The company, which was founded in late 2004, will manage the runoff process itself, the reinsurer said in a statement. The statement said Glacier Re's board reached this decision after a thorough review of the company's strategic alternatives following the sale of its wholly owned subsidiary, Glacier Insurance A.G., to London-based Torus Insurance Holdings Ltd. in May. Terms of the acquisition were not disclosed.

“This unfortunate step will best achieve our investors' objectives within a reasonable time frame,” Glacier Re CEO Todd Hart said in the statement. “Glacier Re's current excess capital and high liquidity will allow the company to meet its valid obligations while simultaneously returning the excess capital to shareholders over the course of this process. We intend to work closely and responsibly with all our business constituents to manage Glacier's exit in an orderly manner.”

Glacier Re has an A- (Excellent) rating with a negative outlook from Oldwick, N.J.-based A.M. Best Co. Best said in July that the reinsurer reported a $51 million profit in 2009. The rating agency said the company was expected to report a “technical loss” in 2010 because of losses incurred from the Chile earthquake, although overall earnings still were expected to be positive because of net investment income and proceeds from the Glacier Insurance sale.