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Member, Beacon International Group, Ltd.
VADUZ, LiechtensteinGlacier Reinsurance A.G. has launched a primary insurer, Glacier Insurance A.G., to write marine and energy, property, liability, aviation, space and war and terrorism business throughout Europe.
Glacier Insurance is based in Vaduz, Liechtenstein, and is licensed by the country's Financial Market Authority to underwrite insurance policies throughout the European Economic Area, according to Robbie Klaus, chief executive officer of Glacier.
Glacier Re, since it was formed in Pf"ffikon, Switzerland, in 2004, has written coverage for major risk business, such as those lines that Glacier Insurance will write, by providing cover to buyers' captives, among other things, said Mr. Klaus.
Setting up a unit to directly write such business is the "next natural step" for Glacier, he said.
"It enables us to extend our product offering to direct customers in Europe," Mr. Klaus said in a statement.
"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," according to Mr. Klaus.
The company is expected to write gross written premiums of about $20 million in its first year of business, according to Mr. Klaus.
"A lot depends on what the rates are doing," he said.
Certain lines, such as primary aviation business, are softening substantially, he said, so Glacier will probably not write a much of this business.
The new company will be protected by a quota-share reinsurance arrangement provided by Glacier Re and a stop-loss reinsurance agreement.
Setting up the company in Liechtenstein will allow Glacier Insurance to write across the E.E.A. as well as providing a central European location for the company, a spokeswoman said.