Blue Capital reports no profit or loss
Blue Capital Reinsurance Holdings broke even making neither a profit nor loss for the last three months of the year.
Losses related to wildfires in California, and additional estimated losses from hurricanes in the third quarter, resulted in loss and loss adjustment expenses of $7.3 million.
However, expenses for the quarter, including those losses, exactly matched the $10.1 million of revenue generated through premiums and investments in the quarter.
During the last three months of 2017, the company wrote $6.7 million of reinsurance premiums, down $2 million on the same period a year ago.
For the year, premiums were $46.1 million, up $2.9 million, while net loss was $43.2 million.
Michael McGuire, chairman and chief executive officer, said: “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 modelled expectations and our teams are fully engaged in efficiently settling claims for our customers.”
Blue Capital’s combined ratio, the proportion of premium dollars spent on claims and expenses, for the fourth quarter was 102.3 per cent and for the year was 201.3 per cent.
There was no change during the quarter to the company’s book value, a measure of assets minus liabilities, of $14.48 per share, however for the year book value fell 23.6 per cent.
In New York, the company’s shares were trading at $12.22 at noon today.
Mr McGuire said: “Looking forward, pricing improvements are expected through 2018, particularly in loss affected areas. At January renewals, pricing reflected the impact of these events as our renewing business experienced an overall price increase of 12 per cent — 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.”
The reinsurer is managed by Blue Capital Management Ltd, a subsidiary of Bermudian-based Sompo International Holdings Ltd, which is in turn a subsidiary of Japanese insurance giant Sompo Holdings.
Paget man ‘stable’ after stabbing incident
Gangs are recruiting children, says activist
Motorcyclist three times over alcohol limit
Atelerie prepares for new store with pop-up
No 2 police job opened to chief inspectors
Escaping more prolonged recession
Plan needed to look after ageing population
Kandice’s story ends tragically
Lawyer recalls having ‘no ability to eat’
Call for paramedics to save lives on island
Burt brokers talks to end Belco dispute
Fourteen arrested for impaired driving
Crypto business banking remains a challenge
Bermuda handed second chance at World Cup
Take Our Poll