Blue Capital Re announces $3.1m loss related to Hurricane Irma

Blue Capital Reinsurance Holdings has announced the notification of an aggregate catastrophe loss related to Hurricane Irma in 2017.

In August 2020, ISO’s Property Claims Service increased its industry loss estimate for Hurricane Irma, triggering an industry loss warranty (ILW) issued that year.  The purchaser of the ILW notified Blue Capital Re of the claim and subsequently withdrew funds from the related trust account.

Blue Capital Re’s loss related to the ILW was $3.1 million and will be fully recognised as a reduction in net assets in liquidation when it reports its September 30, 2020 financial position, it said.

Blue Capital Re previously offered collateralised reinsurance in the property catastrophe market and invested in ILS, but is currently winding up its operations and is in liquidation.

While the loss represents a significant portion of the remaining net assets in liquidation as of June 30, 2020, it represented only 1.7 percent of shareholder equity when the contract was written, Blue Capital Re said.