Bermuda-based Endurance Specialty Holdings Ltd. has announced the acquisition of part of Glacier Reinsurance AG's international and US property catastrophe and global specialty reinsurance business through a quota share treaty and renewal rights purchase agreement.

Effective immediately, Endurance will reinsure, on a quota share basis, select treaties within Glacier Re's portfolio. Endurance will work with the Swiss company to renew these accounts and pay commissions to Glacier Re based on the premiums written under the quota share treaty and accounts being renewed by Endurance.

Last month, Glacier Re announced that it had placed its entire reinsurance portfolio in run-off. Endurance anticipates the transaction will generate $25 million to $30 million of gross written premiums per annum. Endurance will not assume prior loss reserve liabilities as part of the transaction.

William Jewett, President of Endurance Specialty Holdings Ltd., said: "This agreement is Endurance's fifth successful renewal rights deal and is aligned with our strategic goal of further expanding our reinsurance business globally. The book we are acquiring from Glacier Re complements our own diversified international portfolio and provides a unique opportunity to accelerate the development of our global client base.

"We have worked closely with Glacier Re to review the accounts that we are assuming and these clients and programs fit well with our underwriting strategy. We are looking forward to working with our brokers and clients to make this a successful transition for all parties."

Todd Hart, CEO of Glacier Reinsurance AG, said: "We are very pleased that we can enter into this arrangement with Endurance as it provides our insureds with the ability to renew their business with a highly respected reinsurer who will deliver quality service to them. To maximise the benefits of this transaction to all parties, we are committed to working in partnership with Endurance and our clients over the next year to expediently transfer these accounts to Endurance.

"This arrangement forms an integral part of the run-off business plan we are closely coordinating with the Swiss Financial Market Supervisory Authority (FINMA)."

In May, Glacier Re sold its wholly owned subsidiary Glacier Insurance to another Bermuda-based company, Torus Insurance Holdings Ltd.