Blue Capital results continue to see hurricane impact
Blue Capital Reinsurance Holdings has recorded net losses of $6.7 million for the third quarter of 2018 and $3.7 million for the nine months ended September 30, 2018.
The results were up on the previous year’s figures, when it made a $51.9 million loss in the third quarter of 2017, and a $43.2 million loss for the first nine months of 2017.
Reinsurance premiums written for the current quarter and year-to-date were $4.2 million and $24.1 million, decreasing by $6.1 million and $15.3 million over the same periods a year ago. The reduced writings were driven by a smaller capital base, lower reinstatement premiums and greater cessions to third party reinsurers, partially offset by price improvements during the January and June renewals.
The combined ratio for the current quarter was 212.6 percent and 124.7 percent year-to-date compared to 455.7 percent and 228.7 percent in the same periods a year ago. The higher combined ratios for the comparable periods in 2017 were driven by significant losses and loss adjustment expenses from Hurricane Harvey, Hurricane Irma and Hurricane Maria. As previously announced, the current quarter's loss and loss adjustment expenses were impacted by an increase in estimated losses related to Hurricane Irma and from third quarter 2018 losses stemming from Typhoon Jebi and Hurricane Florence. Reinsurance acquisition costs for the current quarter were $2.0 million compared to $1.6 million a year ago when negative profit commission adjustments were reflected. General and administrative expenses for the current quarter were $1.2 million compared to $1.3 million a year ago.
Michael McGuire, chairman and chief executive officer commented: "While our 3rd quarter results have been impacted by increased loss estimates related to 2017's Hurricane Irma and from losses incurred on Hurricane Florence and Typhoon Jebi and other smaller events, the price increases we achieved during this year's renewals have helped to partially offset these impacts.
"As we look forward to the January renewals we expect a stabilising pricing environment and are confident in our ability to continue building an attractive portfolio of business which should enable us to generate value for our shareholders."
