Blue Capital profit hit by Irma losses

Make text smaller Make text larger

  • Rate increases: Michael McGuire, CEO of Blue Capital

    Rate increases: Michael McGuire, CEO of Blue Capital


Greater-than-expected losses from last year’s Hurricane Irma hit Blue Capital Reinsurance Holdings’ first-quarter earnings.

The Bermuda collateralised reinsurance provider made net income of $0.5 million, compared to $4.1 million in the first quarter of 2017.

The company reported rate increases averaging 12 per cent at January renewals, but revenues slumped by almost one third to $12.5 million from $17 million a year earlier.

Michael McGuire, Blue Capital’s chairman and CEO, said: “The first-quarter results were adversely impacted by an increase in reported losses related to Hurricane Irma as claim settlements and related loss adjustment expenses were greater than originally expected.

“Pricing continues to show positive momentum, and as we previously reported, we achieved improved pricing during January renewals

“The market improvements coupled with our strategic alignment with Sompo International Holdings has enabled us to construct an improved portfolio year over year with higher return expectations and a lower risk profile.”

Combined ratio for the quarter was 98 per cent compared with 56.5 per cent in the same period a year ago. Blue Capital said the deterioration in the period’s combined ratio was driven by higher loss and loss adjustment expense ratios.

Loss and loss adjustment expenses of $4.5 million rose from $1.8 million reported a year ago, stemming from an increase in estimated losses related to Hurricane Irma which made landfall in Florida in September 2017.

Reinsurance acquisition costs for the current quarter were $1.9 million compared to $2.7 million a year ago, reflecting lower premium earnings and profit commissions. General and administrative expenses for the current quarter were $1.1 million compared to $1.3 million a year ago due to lower performance fees in the current quarter.

You must be registered or signed-in to post comment or to vote.

Published May 1, 2018 at 12:55 pm (Updated May 1, 2018 at 12:55 pm)

Blue Capital profit hit by Irma losses

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    • "What are your views on stop-and-search in today's Bermuda?"
    • Inconvenient but necessary
    • 69%
    • Wholly unproductive
    • 10%
    • Unfair targeting of young black males
    • 21%
    • Total Votes: 4697
    • Poll Archive

    Today's Obituaries

    eMoo Posts