Szakmary quits Blue Capital Re
Endurance Specialty subsidiary Blue Capital Reinsurance Holdings’ 2016 net income came to $14.3 million, down 31 percent on the $20.7 billion it made in 2015.
Reinsurance premiums written for 2016 came to $43.2 million, an increase of $4.6 million compared with its 2015 figure of $38.6 million, primarily due to increased participation in quota share contracts, but also partially offset by a decrease in direct written premiums.
Its combined ratio for 2016 was 65 percent, up on the 45.3 percent it reported for 2015. The company said that this increase was driven by higher loss and loss adjustment expense ratios partially offset by lower acquisition and general and administrative expense ratios.
Loss and loss adjustment expenses came to $13.7 million for 2016, up substantially on the 2015 figure of $2.6 million. Blue Capital said that the increase was predominantly driven by a higher level of 2016 global loss activity, including Hurricane Matthew and the New Zealand earthquake in the fourth quarter and the Canadian wildfires, the Japanese earthquake, and US severe weather activity, which occurred earlier in the year.
Adam Szakmary, president and CEO, said: "2016 was a solid year for Blue Capital as we generated growth in book value of 7.6 percent inclusive of dividends and a combined ratio of 65 percent against a backdrop of the costliest year for industry losses within the last five years.
“2016 was also the first full year of the company's operations since Blue Capital Management was purchased by Endurance Specialty Holdings, resulting in greater access by the company to a larger more diversified catastrophe portfolio, thereby enhancing our ability to effectively select risks and build a higher quality portfolio designed to generate shareholder value."
Blue Capital Reinsurance, Results 2016, Endurance Specialty, Bermuda