Blue Capital continues ‘orderly’ run off in anticipation of de-listing

Blue Capital Reinsurance, which offered collateralized reinsurance solutions in the property catastrophe market and invested in various ILS products, has continued what its CEO called its “orderly” run off in the fourth quarter of 2019.

Its net assets in liquidation declined by $4.6 million dollars in the current quarter largely driven by the special distribution to shareholders of $5 million. Partially offsetting the dividend was a benefit of approximately $0.4 million related to positive adjustments to premiums and acquisition expenses coupled with losses that were lower than anticipated.

The company’s fully converted book value per common share was $7.65 at December 31, 2019, reflecting a 0.6 percent increase for the quarter and a 2.8 percent decrease for full year 2019, each inclusive of dividends declared in such periods.

During the fourth quarter of 2019, the company declared a special distribution of $0.57 per common share, which was paid on December 20, 2019.

Michael McGuire, chairman and CEO, said: "During the fourth quarter, the Company's orderly runoff continued with the payment of an additional special distribution that increased our total 2019 special distributions to over 20% of the June 30, 2019 fully converted book value per share. We continue to efficiently manage the run-off of the business and anticipate de-listing from the NYSE in March to reduce our operating expenses."