Best Places Glacier Re Ratings under Review – Negative

June 23, 2006

A.M. Best Co. has placed the financial strength rating of “A-” (Excellent) and the issuer credit rating of “a-”of Swiss reinsurer Glacier Reinsurance AG under review with negative implications.

“The rating action is due to Glacier Re’s 2005 year-end net loss, which was in excess of A.M. Best’s expectations as a result of higher than anticipated exposure to 2005 hurricane losses,” the announcement explained. In addition Best said it “believes Glacier Re’s natural catastrophe exposure in 2006 is also higher than previously anticipated.”

The rating agency indicated that the “current ratings will remain under review with negative implications in order to assess the potential impact on Glacier Re’s risk-adjusted capitalization and pending further discussion with the company regarding catastrophe risk management and the restoration of its risk-adjusted capitalization.

“A.M. Best closely monitors new company formations. Any deviations in earnings, capitalization, risk profile or management from the presentations made in the business plans used by A.M. Best to issue initial ratings are analyzed for the effect these have on the company’s ability to meet financial obligations.”

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