Blue Capital fund launches buyback
Blue Capital Global Reinsurance Fund Ltd is to start buying back its own shares because they have been trading below their net asset value, the fund said yesterday.
The company, which is a subsidiary of Bermudian-based Endurance Specialty Holdings Ltd, provides collateralised reinsurance.
Blue Capital said in a filing with the Bermuda Stock Exchange yesterday that the buyback plan stemmed from the board of directors' belief that the company's shares were undervalued.
The statement read: “Since launch of the company, the annualised net asset value return (adjusted for dividends) to May 31, 2016 has been 8.6 per cent. However, over the past 15 months the company's ordinary shares have been trading at a discount to the reported net asset value per share.”
Blue Capital has hired Jeffries International Ltd to carry out the buybacks and added: “Any repurchases pursuant to the engagement will be accretive to NAV per share.”
The fund did not specify the scale of the buyback but said it planned to complete the repurchase of shares for cancellation over a three-month period.