Blue Capital Reinsurance Holdings, a Bermuda-based collateralised reinsurance provider and subsidiary of Sompo International, has updated its fourth quarter catastrophe loss impact to $30 million, net of reinsurance and reinstatement premiums.
The previous figure provided on December 11 was $17 million, which included losses related to Hurricane Michael, which made landfall in Florida in October 2018, as well as the 2018 California wildfires.
Blue Capital explained that the increase in loss estimates was driven by increased client specific and industry wide loss reports, which primarily related to Typhoon Jebi and the California wildfires (which occurred in the third and fourth quarters of 2018) and Hurricane Irma (which made landfall in the third quarter of 2017).
The year-end 2018 fully converted book value per common share is expected to be between $10.00 and $10.50, down from $11.25 and $12.00 in the December estimates.
Blue Capital's loss estimates have been derived from the utilisation of proprietary catastrophe modeling, standard industry models, an in-depth review of in-force contracts and initial indications from clients and brokers.
The company expects to release its fourth quarter 2018 results after the market close on January 30, 2019.
Blue Capital, Sompo International, Catastrophe, Loss estimates, Bermuda