Frontier buys $800m in aggregate reinsurance

NEW YORK - Troubled Frontier Insurance Group has exercised its option topurchase $800m in aggregate reinsurance from the National Indemnity Company,a subsidiary of Berkshire Hathaway. Frontier also announced theimplementation of salary reductions for senior management and a reduction ofstaff. Most of the cuts will be within underwriting and informationtechnology. "Although the implementation of salary cuts and additionallay-offs are difficult, these actions are necessary to reach appropriatestaffing and related expense levels to support Frontier's current andforecasted volume of business," said president and chief executive officerHarry Rhulen.