Blue Capital Management, a subsidiary of Bermuda-based Endurance, has reported strong portfolio execution following the June 2016 renewal period.
The re/insurance manager explained that the stabilising pricing environment was influenced by technical pricing discipline and a continuing trend of increasing demand for open market reinsurance.
Adam Szakmary, chief executive officer and portfolio manager of Blue Capital Management, said: "We are pleased to report strong portfolio execution and promising market dynamics following the June renewal period. Overall price reductions have begun to moderate and we have witnessed a market showing continued signs of nearing a bottom with risk adjusted pricing down only 2 percent when compared to last year.
“We believe the stabilising pricing environment was influenced in part by technical pricing discipline, and a continuing trend of increasing demand for open market reinsurance limit replacing the Florida Hurricane Catastrophe Fund. Blue Capital was well positioned to take advantage of these market dynamics, constructing an attractive portfolio."
Blue Capital’s net asset value (NAV) included estimated losses related to the recent catastrophe events in Japan, the US, and Canada reducing the portfolio projected return range for the year to 5-9 percent.
Blue Capital's total investments after the June 2016 renewals grew by $4.9 million year over year, resulting in a total investment of $191.1 million in Blue Capital Global Reinsurance SA-1, the company's 'master fund'.
Blue Capital Management, Bermuda, Insurance, Reinsurance, Blue Capital, Adam Szakmary, North America, Asia Pacific, Cat Risk