Blue Capital reports positive results in Q1
Blue Capital Reinsurance Holdings, a Bermuda-based company that offers collateralised reinsurance in the property catastrophe market, reported net income and operating income for Q1 of $6.1 million ($0.70 per share), following its formation in June 2013.
A lack of catastrophe losses left the company with a healthy 41 percent combined ratio, while the company earned $10.2 million of reinsurance premiums, representing approximately 25 percent of the expected total annual premium associated with its in-force reinsurance contracts.
The company deployed 40 percent of its underwriting capital in support of first event reinsurance coverages, 40 percent in support of a catastrophe quota share and the balance was deployed in support of second and subsequent event reinsurance coverages.
Loss and loss adjustment expenses for the quarter were $0.9 million, while acquisition costs were $2.2 million, which included $0.6 million of accrued profit commissions.
The company, headed by William Pollett, bound indemnity reinsurance contracts with expected total annual premiums of $41 million and wrote $21.8 million in premium. The business generated by the Company since its inception collectively represents $181.9 million in total reinsurance contract limit.
Blue Capital Re expects to close on a $20 million revolving credit facility during the second quarter of 2014, which will allow it to more effectively meet its short-term liquidity demands. Such a facility would permit the company to fully deploy all of the net proceeds it raised in its Initial Public Offering during the initial year of its operations.
Pollett, president and CEO, said: “I am pleased to report that we generated a 3.5 percent increase in book value per share during our first full quarter of operations. Our underwriting team executed well during the key January renewal period, enabling us to construct a diversified portfolio of risks in-line with our expectations.”
The company quarterly dividend of $0.30 per share is payable on April 30, 2014 to all shareholders.
