Bermuda-based Blue Capital Reinsurance Holdings posted a $5.5 million profit in the second quarter.

The figure broke down to 63 cents per share. The firm ended June with a book value per share of $20.59 — a 3 per cent increase for the quarter and a 6 per cent gain for the year to date.

Reinsurance premiums written for the quarter were $7.6 million and net reinsurance premiums earned totalled $9.7 million.

Blue Capital president and CEO William Pollett said: “We had a strong second quarter and first half with an annualised year to date return of 12 per cent and the portfolio remains well positioned.”

Mr Pollett added that the midyear renewals saw an average price decrease of 5 per cent.

But he said: “However, price decreases moderated versus the prior year as we saw increased market demand coming from both new buyers as well as existing clients.

“Our underwriting team executed well in a dynamic market and the company was successful in constructing an attractive portfolio.”

Blue Capital is a holding company offering collateralised reinsurance in the property catastrophe market and also invests in insurance lined securities (ILS).

Loss and loss adjustment expenses for the quarter were $0.1 million, which included $0.4 million of favourable prior year loss reserve development.

General and administrative expenses totalled $2.2 million for the three months, which included $0.6 million in management fees, performance fees of $0.5 million, public company expenses of $0.5 million and administrative fees of $0.2 million.

Interest and financing expenses for the quarter amounted to $0.1 million, which reflected fees in connection with the renewal in May of the firm’s renewal and amendment of its $20 million revolving credit facility.

The company had $9 million in outstanding borrowings midyear from the credit line.