Blue Capital 2017 Q3: Net Loss Of $51.9M

November 1, 2017

Bermuda-based Blue Capital Reinsurance Holdings Ltd.reported its financial results for the third quarter of 2017.

The Company recorded a net loss of $51.9 million [$5.93 per share] for the third quarter of 2017 and a net loss of $43.2 million [$4.94 per share] for the nine months ended September 30, 2017.

The Company’s fully converted book value per common share was $14.48 at September 30, 2017, reflecting a 28.6% decrease for the quarter and a 22.5% decrease over the past twelve months, each inclusive of dividends declared in such periods.

Reinsurance premiums written for the current quarter and year-to-date were $10.3 million and $39.4 million, increasing by $2.5 million and $4.9 million over the same periods a year ago. The current quarter’s reinsurance premium increase was predominantly driven by increased reinstatement premiums recorded in association with the significant catastrophe losses that occurred in the period.

The current quarter’s loss and loss adjustment expenses of $68.1 million compared unfavorably to the $2.6 million reported a year ago, reflecting the losses related to Hurricanes Harvey, Irma, and Maria and to a lesser extent the two September earthquakes in Mexico, partially offset by $5.0 million of ILW recoveries

During the third quarter of 2017, the Company declared a regular dividend of $0.30 per common share, which was paid on October 12, 2017.

Michael J. McGuire, Chairman and CEO, commented: “The financial impact to the insurance industry from the third quarter catastrophe events is estimated to collectively be above $100 billion and these catastrophe events had a meaningful impact on our results.

“Due to our strong risk management practices, active portfolio management and the leveraging of our partnership with Sompo International our losses from these catastrophe events were within our risk thresholds and our overall portfolio performed as expected given the magnitude of these events.

“Looking forward, we expect market pricing to improve during upcoming renewals and we have positioned the Company appropriately in recognition of the changed market conditions.”

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