Blue Capital Reinsurance, which is currently winding down its operations, saw net assets in liquidation decline $4.6 million dollars in Q4 2019.
This was largely driven by a special distribution to shareholders of $5 million, or $0.57 per common share, paid on December 20.
This dividend was partially offset by 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 the end of 2019, a 0.6 percent increase for the quarter and a 2.8 percent decrease over the course of the year.
Through its operating subsidiaries, Blue Capital previously offered collateralised reinsurance in the property catastrophe market and invested in various ILS.
Michael McGuire, chairman and CEO, described Blue Capital’s runoff as “orderly”. The December dividend took its special distributions to over 20 percent of its June 30, 2019 fully converted book value per share, he said.
“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,” McGuire added.
Blue Capital, Michael McGuire