Blue Capital Re announces 2017 loss
Blue Capital Reinsurance Holdings has reported break-even results of $0.0 million for the fourth quarter of 2017 and a net loss of $43.2 million for the twelve months ended December 31, 2017.
The company said that reinsurance premiums written for the quarter were $6.7 million, a fall of $2.0 million over the same period in 2016 while reinsurance premiums written for the full year 2017 were $46.1 million, increasing by $2.9 million over the comparable period. The decrease in the current quarter's reinsurance premium was predominantly driven by the timing of premium recognition.
The combined ratios for the current quarter and year-to-date were 102.3 percent and 201.3 percent compared to 61.1 percent and 65.0 percent in the same periods in 2016. The company said that the increase was due to significantly higher loss and loss adjustment expense ratios. The fourth quarter's loss and loss adjustment expenses of $7.3 million reflected fourth quarter losses related to the California wildfires and additional estimated losses related to the third quarter hurricanes.
In addition reinsurance acquisition costs for fourth quarter totalled $1.9 million compared to $2.4 million a year ago, reflecting lower profit commissions driven by the reduced profitability. General and administrative expenses for the current quarter of $0.9 million were modestly lower than a year ago due to lower management and performance fees.
“Our 2017 results were driven by the significant catastrophe losses which included a record setting three Category 4 hurricanes hitting the United States, earthquakes in Mexico and wildfires in California,” said Michael J. McGuire, chairman and chief executive officer. “Collectively, the 2017 events are estimated to have generated insurance industry losses in excess of $100 billion. Our portfolio performed in line with our modelled expectations and our teams are fully engaged in efficiently settling claims for our customers. Looking forward, pricing improvements are expected through 2018, particularly in loss affected areas. At January 1st renewals, pricing reflected the impact of these events as our renewing business experienced an overall price increase of 12 percent -- a reversal of pricing declines experienced in recent years. We remain well positioned to participate in the improving market for the benefit of our shareholders.”
