Blue Capital Reinsurance Holdings Results
Blue Capital Reinsurance Holdings Ltd., a newly-formed Bermuda holding company that offers collateralized reinsurance in the property catastrophe market and invests in various insurance-linked securities, reported its financial results for 2013.
The Company was formed on June 24, 2013 and began trading on the New York Stock Exchange on November 6, 2013.
The Company’s book value per common share was $19.80 at December 31, 2013, a decrease of $0.20 from its initial public offering price. The Company’s net loss for the period from June 24, 2013 to December 31, 2013 was $0.7 million [$0.31 per average common share].
The Company initially retained $14 million of the $174 million of total offering proceeds raised which will be used to fund its anticipated cash obligations, including its first three regular quarterly dividend payments, for the initial year of its operations. The Company expects to deploy substantially all of the $160 million of remaining net proceeds during 2014.
As of January 31, 2014, the Company had deployed approximately $144 million, or 90% of the capital it expects to deploy during 2014
William Pollett, President and CEO, commented: “We were encouraged by the market reception to the launch of the Company and are pleased to report that we have already constructed a diversified portfolio of property catastrophe risks with attractive risk-adjusted return characteristics.”
