Investment manager Blue Capital yesterday said the firm had nearly $174 million in Blue Capital Global Reinsurance after the June renewal period.

The company’s total investment after the renewals is down $17.3 million year on year.

Mike McGuire, chief executive officer of Blue Capital, now part of Japanese giant Sompo, said: “We are pleased to report strong portfolio execution during the June renewal period.

“Overall market price reductions were larger than initially anticipated, with the Florida market being 5 to 7 per cent down year on year.

“However, due to the strength of our established long-term relationships, the high quality of our underwriting and portfolio management teams and our strategic alignment with Sompo International, we were able to construct an attractive portfolio with risk adjusted pricing down 3 per cent.”

Mr McGuire said total investment at fair value of $173.8 million in the Blue Capital Global reinsurance — the master fund — was represented as collateral plus net earned premium less losses paid and reserved.

He added: “The decrease in fair value is primarily attributable to the non-renewal of certain agreements with less favourable terms.

“The company intends to reinvest such assets in the latter half of the year.”

The master fund has invested “substantially all its assets” in preferred shares of Blue Water Re and industry loss warranty derivatives.

The combined investments represent collateral deployment of $167.2 million across 98 different positions and 40 different clients generating $41.1 million of reinsurance premium written and fixed industry loss warranty derivatives, an increase of $0.7 million from the previous year.