Blue Capital issues portfolio update

Blue Capital Reinsurance Holdings, a Bermuda holding company that offers collateralised reinsurance in the property catastrophe market and invests in various insurance-linked securities through its operating subsidiaries, has provided a portfolio update.

“We are pleased to report strong portfolio execution during the June renewal period,” said Mike McGuire, chairman and CEO of Blue Capital. “Overall market price reductions were larger than initially anticipated, with the Florida market being 5 percent - 7.5 percent down year on year. However, due to the strength of our established long term relationships, the high quality of our underwriting and portfolio management teams and our strategic alignment with Sompo International, we were able to construct an attractive portfolio with risk adjusted pricing down 3 percent.”

The company stated that as of June 1, 2017 the company bound indemnity reinsurance contracts with expected total annual premiums of $4.7 million, an increase of $2 million when compared to the same period in 2016. The business underwritten by the Company is expected to produce a net rate on line for the portfolio of 17.7 percent, which is an increase of 170 basis points when compared to the same period in 2016. The higher rate on line is a result of increased deployment in the June renewal period, which was primarily focused on Florida exposed accounts that have a higher rate on line than the portfolio average.

Blue Capital’s in-force portfolio deployed as of June 1, 2017 consisted of approximately 30.2 percent in support of first event reinsurance coverages, 46.2 percent in support of catastrophe quota share coverages and the balance in support of second and subsequent event coverages.