Blue Capital posts Q3 YOY net income drop, combined ratio deterioration
Blue Capital, a Bermuda-based holding company which offers collateralized reinsurance in the property catastrophe market and invests in various insurance-linked securities posted net income of $3.3 million for the third quarter of 2016, compared to $4.4 million for the same period in 2015.
The company reported reinsurance premiums written for the three-month period ending September 30 of $7.8 million, up $1.9 million year-over-year.
The company attributed the revenue growth to a greater level of quota share premium.
The combined ratio for the third quarter was 63.5 percent compared to 50.8 percent in the same period last year.
Blue Capital attributed the combined ratio deterioration to higher loss and loss adjustment expenses and higher reinsurance acquisition costs partially offset by lower general and administrative expenses.
Adam Szakmary, president and CEO, commented: "Our third quarter and year to date results reflect our effective underwriting and risk management capabilities as we generated strong profitability despite a greater frequency of global loss events in 2016.
“Our strategy of exclusively focusing on catastrophe exposures to create a portfolio of risks diversified across global geographies, products and insurers continues to generate attractive shareholder returns."
