A new reinsurance firm lost $700,000 in its first months of operations, its figures to the end of 2013 revealed yesterday.

Blue Capital Re’s shares at the start of this year stood at $19.80 — a drop of 20 cents on its price at its initial public offering.

Blue Capital, which was formed in June last year and started trading on the New York Stock Exchange in November,

Blue Capital president and CEO William Pollett said: “We were encouraged by the market reception to the launch of the company and are pleased to report that we have already constructed a diversified portfolio of property catastrophe risks with attractive risk-adjusted return characteristics.”

The firm offers collateralised reinsurance in the property catastrophe market and invests in various insurance-linked securities.

The report said that Blue Capital retained $14 million of the $174 million of total offering proceeds raised, to be used to fund anticipated cash obligations, including its first three regular quarterly dividend payments for its first year of operations.

The report added: “The company expects to deploy substantially all of the $160 million of remaining net proceeds during 2014.” And it said that by the end of January this year, around $144 million, 90 percent of the capital it expects to deploy this year, in property and casualty indemnity reinsurance contracts and related instruments.

The firm’s investment managers are Blue Capital Management, while its reinsurance management is handled by Blue Capital Insurance Managers, both owned by Montpelier Re.

Montpelier Re is a global reinsurer with more than $3.5 billion in assets.