Blue Capital results match expectations
Blue Capital Re, a Bermuda-based provider of collateralised reinsurance in the property cat market, and a wholly-owned subsidiary of Montpelier Re, has released its first set of half year results.
Net income and operating income for the quarter hit £1.2 million, and the company’s fully converted book value per common share was $20.02 at June 30th, 2014, an increase of 6 percent for the quarter and a 4.1 percent increase for the first half.
Blue Capital Re bound indemnity reinsurance contracts with expected total annual premiums of $45.4 million and wrote $32.6 million in premium in the first half of 2014.
In the second quarter, the reinsurer earned $11.1 million of reinsurance premiums, representing approximately 25 percent of the expected total annual premium associated with its in-force reinsurance contracts at June 30th, 2014.
Combined ratio hit 89.2 percent for the second quarter of 2014, and 66.1 percent for the first half of 2014.
“Loss and loss adjustment expenses for the quarter were $7.3 million, which included a provision for losses that are believed to have occurred but for which no claims have been reported. The losses recorded during the period resulted largely from severe tornadoes in the US, as well as Windstorm Ela in Western Europe,” says the reinsurer.
William Pollett, president and CEO, adds: “Our second quarter results were impacted by a series of smaller industry catastrophe events. However, our underwriting team executed well during the key June 1st renewal period, successfully deploying our available capital to construct a diversified portfolio of risks and expanding our client base.”