Blue Capital Reports 2014 Q3 Financial Results
Blue Capital Reinsurance Holdings Ltd., a Bermuda holding company that offers collateralized reinsurance in the property catastrophe market and invests in various insurance-linked securities, today reported its financial results for the third quarter of 2014.
The Company’s net income and operating income for the quarter was $3.2 million [$0.37 per share]. The Company’s fully converted book value per common share [FCBVPS] was $20.09 at September 30, 2014, reflecting a 1.8% increase for the quarter and a 6.0% increase for the first nine months, each inclusive of dividends declared in such periods.
William Pollett, President and CEO, commented: “We had another solid quarter in Q3. We have successfully deployed our available capital and are pleased with the diversified portfolio of risks that we have constructed.”
During the first nine months of 2014, the Company earned $32.7 million of reinsurance premiums, representing approximately 72% of the expected total annual premium associated with its in-force reinsurance contracts at September 30, 2014. The Company also earned $0.4 million from reinsurance derivative contracts during the year-to-date period.
Loss and loss adjustment expenses for the quarter were $5.3 million, the majority of which represented net losses from catastrophe events that occurred in June.
Acquisition costs were $1.9 million for the quarter, which included $0.2 million of accrued profit commissions.
General and administration expenses were $1.2 million, which consisted of management fees of $0.7 million, public company expenses of $0.4 million and administrative fees of $0.1 million.
As of September 30, 2014, the Company had $4.0 million of outstanding borrowings under its $20 million revolving credit facility. These borrowings must be repaid no later than January 26, 2015, and are subject to an annual interest rate of 1.33%.
On September 12, 2014, the Company declared a regular quarterly dividend of $0.30 per share, which was paid on October 15, 2014 to all shareholders of record as of September 30, 2014.
