Rapidly growing Bermuda re/insurer Torus Insurance Holdigs Ltd. yesterday announced it had acquired Liechtenstein-based Glacier Insurance AG, a subsidiary of the Glacier Group.

The transaction is expected to complete in May, 2010, subject to relevant regulatory approvals.

Glacier Insurance is headquartered in Liechtenstein, has branch offices in Zurich, Cologne and London. It has a well established specialty portfolio of aviation, space, property, energy, war and terrorism and marine risks. As part of the acquisition Glacier Insurance AG's underwriting and operational staff will join Torus and all its branch offices will be retained.

The deal will improve Torus's market presence in Europe.

Torus gave no details on what it paid for Glacier.

Richard Etridge, chief executive of Glacier Insurance, will join the Torus management team, becoming chief operating officer for Continental Europe as well as global head of Aviation.

Torus was launched in Bermuda in June 2007, with initial capital of $720 million provided by private-equity group, the First Reserve Corporation.

Since then it has expanded at a rapid pace and now has offices in five US locations, as well as a substantial operation in London. It also has offices in India, France and the Netherlands.

Commenting on the acquisition, Torus CEO Clive Tobin said: "The insurance operations of Glacier have a strong strategic, technical and cultural fit with Torus and thus present a unique opportunity to accelerate our growth strategy in Europe, following the recent establishment of our offices in Amsterdam and Paris.

"Along with additional products and capacity from Torus we look forward to expanding the strong client and market relationships which Glacier Insurance has established."

Todd Hart, CEO of Glacier Group, said: "Glacier Insurance and Torus' operations are extremely complementary and we believe this transaction will be beneficial for the Glacier Group's clients, staff and shareholders. The Glacier Group will focus on the growth and development of its reinsurance business, which has a strong operating platform and is well-established in its chosen markets."

Credit rating agency AM Best Co. yesterday said Torus's ratings would remain unchanged after the deal was announced.

Best said the acquisition was "likely to improve Torus' competitive position within the European insurance market".

And the agency added that business written by Glacier would replace the group's planned organic growth for certain insurance lines.