Blue Capital Re issues portfolio update

Blue Capital Reinsurance Holdings, which offers collateralised reinsurance in the property catastrophe market and invests in various insurance-linked securities, has given the market a portfolio update.

"Following the significant industry losses experienced in 2017, we are pleased to report improved market conditions during the January renewal period,” said Mike McGuire, chairman and chief executive officer of Blue Capital.  “On average, loss affected business benefited from renewing rate increases of 15-20 percent while non-loss affected agreements benefited from rate increases of 3-5 percent (in each case compared to 2017 and net of expenses). The company anticipates generating an 8.0 percent increase of fully converted book value per common share on a mean loss basis and 13.0 percent on a median loss basis, inclusive of dividends paid in 2018.”

As of January 2018, Blue Capital bound indemnity reinsurance contracts with expected total annual premiums of $27.8 million. The business underwritten by the company is expected to produce a net rate on line for the portfolio of 23.7 percent, which is an increase of 190 basis points when compared to the same period in 2017. The increase is due to an average risk adjusted price increase of 12 percent during the January renewals.

The Company’s in-force portfolio deployed as of January 1, 2018 consisted of approximately 46.5 percent in support of first event reinsurance coverages, 45.7 percent in support of catastrophe quota share coverages and the balance in support of second and subsequent event coverages.