Glacier reports $34m growth in net income
Katherine Blackler Postonline
European (re)insurer Glacier has reported an improved net income, increased capital strength and a better investment performance in 2009.
However, total GWP reduced to $469m (2008: $569m), a decline of over 17% from 2008. According to the (re)insurer, the decline in premiums reflects the group's decision to reduce business volumes in the current rating environment and focus on its core specialty insurance and reinsurance lines and European direct P&C and property treaty reinsurance business.
The decline also reflects the non-renewal of its underwriting participation on one Lloyd's syndicate in 2009.
Net underwriting income increased to $92m (2008: $2m) highlighting the strong underwriting performance of the group combined with lower claims occurrence compared to the prior year.
Net technical combined ratio (excluding operating expenses) improved to 77% (2008: 100%).
Total investments and cash increased to $936m (2008: $784m). Liquid assets of cash and bonds now account for 62% of total assets (2008: 56%). Overall net investment return was 3.2% (2008: 3.8%).
Underwriting capital (shareholders equity and long-term trust preferred debt) increased by 13% to $631m (2008: $558m). Shareholders' equity was $557m (2008: $496m) an increase of 12% over 2008.
Todd Hart, CEO of the Glacier Group, commented: "2009 saw a solid performance as the Glacier Group returned 12% to shareholders on our strong capital base. This performance occurred as we selectively managed our risk profile down, with gross written premiums declining by over 17% from 2008. This is consistent with our prudent risk management approach in a slowly softening market. The focus on our core business lines and commitment to disciplined underwriting is key to our strategy going forward. During 2009 the group significantly enhanced its profitability and capital strength, which is a testament to this approach. Profitable underwriting and efficient use of capital are key to building on this success during 2010."
He continued: "As we enter our sixth year of business, we are delighted that our January renewals exceeded expectations. The group's European regional and SME books - a core part of the business - saw considerable double digit growth when compared to our 2009 renewals. This reflects the established and well-respected position that our team has developed in its chosen markets over the past five years. We were also pleased to note that renewals hit our internal rating targets.
"In 2010, we will continue to capitalise on our key strengths and further improve the overall quality of our portfolio. Our focus will be on the key areas that set us apart and in particular building on our presence in important European markets and selectively balancing our cat exposure. Our strong balance sheet, enhanced strategic positioning and the quality of our longstanding relationships with customers and brokers make us well placed to perform in 2010."
The group also announced that Ralph Bothe is taking over responsibility for Glacier's European property treaty team. Since joining Glacier in January 2007, Ralph has been a significant contributor to the growth of the group's European property treaty business and will now be responsible for the team overseeing this key business line and region. Ralph has over 24 years of experience working in the (re)insurance industry as both an underwriter as well as a broker.
European (re)insurer Glacier has reported an improved net income, increased capital strength and a better investment performance in 2009.
However, total GWP reduced to $469m (2008: $569m), a decline of over 17% from 2008. According to the (re)insurer, the decline in premiums reflects the group's decision to reduce business volumes in the current rating environment and focus on its core specialty insurance and reinsurance lines and European direct P&C and property treaty reinsurance business.
The decline also reflects the non-renewal of its underwriting participation on one Lloyd's syndicate in 2009.
Net underwriting income increased to $92m (2008: $2m) highlighting the strong underwriting performance of the group combined with lower claims occurrence compared to the prior year.
Net technical combined ratio (excluding operating expenses) improved to 77% (2008: 100%).
Total investments and cash increased to $936m (2008: $784m). Liquid assets of cash and bonds now account for 62% of total assets (2008: 56%). Overall net investment return was 3.2% (2008: 3.8%).
Underwriting capital (shareholders equity and long-term trust preferred debt) increased by 13% to $631m (2008: $558m). Shareholders' equity was $557m (2008: $496m) an increase of 12% over 2008.
Todd Hart, CEO of the Glacier Group, commented: "2009 saw a solid performance as the Glacier Group returned 12% to shareholders on our strong capital base. This performance occurred as we selectively managed our risk profile down, with gross written premiums declining by over 17% from 2008. This is consistent with our prudent risk management approach in a slowly softening market. The focus on our core business lines and commitment to disciplined underwriting is key to our strategy going forward. During 2009 the group significantly enhanced its profitability and capital strength, which is a testament to this approach. Profitable underwriting and efficient use of capital are key to building on this success during 2010."
He continued: "As we enter our sixth year of business, we are delighted that our January renewals exceeded expectations. The group's European regional and SME books - a core part of the business - saw considerable double digit growth when compared to our 2009 renewals. This reflects the established and well-respected position that our team has developed in its chosen markets over the past five years. We were also pleased to note that renewals hit our internal rating targets.
"In 2010, we will continue to capitalise on our key strengths and further improve the overall quality of our portfolio. Our focus will be on the key areas that set us apart and in particular building on our presence in important European markets and selectively balancing our cat exposure. Our strong balance sheet, enhanced strategic positioning and the quality of our longstanding relationships with customers and brokers make us well placed to perform in 2010."
The group also announced that Ralph Bothe is taking over responsibility for Glacier's European property treaty team. Since joining Glacier in January 2007, Ralph has been a significant contributor to the growth of the group's European property treaty business and will now be responsible for the team overseeing this key business line and region. Ralph has over 24 years of experience working in the (re)insurance industry as both an underwriter as well as a broker.
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