Blue Capital ‘Breaks Even’ In Fourth Quarter
Blue Capital Reinsurance Holdings Ltd., a Bermuda holding company, reported its financial results for the fourth quarter of 2017, with break-even results of $0.0 million [$0.00 per share] for the fourth quarter of 2017 and a net loss of $43.2 million [$4.94 per share] for the twelve months ended December 31, 2017.
The Company’s fully converted book value per common share was $14.48 at December 31, 2017, reflecting no change during the current quarter and a 23.6% decrease over the past twelve months, each inclusive of dividends declared in such periods.
Reinsurance premiums written for the current quarter were $6.7 million decreasing by $2.0 million over the same period a year ago while reinsurance premiums written for the full year 2017 were $46.1 million, increasing by $2.9 million over the comparable period. The decrease in the current quarter’s reinsurance premium was predominantly driven by the timing of premium recognition.
Michael J. McGuire, Chairman and CEO, commented, “Our 2017 results were driven by the significant catastrophe losses which included a record setting three Category 4 hurricanes hitting the United States, earthquakes in Mexico and wildfires in California.
“Collectively, the 2017 events are estimated to have generated insurance industry losses in excess of $100 billion. Our portfolio performed in line with our modeled expectations and our teams are fully engaged in efficiently settling claims for our customers. Looking forward, pricing improvements are expected through 2018, particularly in loss affected areas.
“At January 1st renewals, pricing reflected the impact of these events as our renewing business experienced an overall price increase of 12% — a reversal of pricing declines experienced in recent years. We remain well positioned to participate in the improving market for the benefit of our shareholders.”
