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Blue Capital Reinsurance profit falls to $2m

Blue Capital Reinsurance Holdings has posted profits of $2 million, or 22 cents per share, for the second quarter of the year, compared with $5.5 million during the same period in 2015.

Blue Capital's earnings beat analysts' estimates, as collated on Yahoo Finance, by one cent per share.

Reinsurance premiums written for the quarter were $9.3 million, up $1.7 million on the same quarter last year. The second quarter's premiums written benefited from $0.7 million of reinstatement premiums, compared to no reinstatement premiums in the second quarter of last year.

Loss and loss adjustment expenses for the period were $6 million, compared to $0.1 million for the second quarter in 2015.

Blue Capital said that was driven by a higher frequency of global catastrophe events, which included the Fort McMurray wildfires in Canada, storms in Texas and Europe and the Kumamoto earthquake in Japan.

Adam Szakmary, CEO of Blue Capital, said: “The second quarter included a greater frequency of global catastrophe events and Blue Capital's ability to generate a profit reflects our strong risk management and the benefits of maintaining a portfolio of diverse catastrophe risks.

“During midyear renewals, our portfolio's average price decline of approximately three per cent moderated compared to the five per cent decline experienced a year ago.

“Through our advantageous partnership with Endurance and the leveraging of our experienced underwriters, we were able to assemble an attractive portfolio during the midyear renewals.”

General and administrative expenses for the quarter amounted to $1.2 million — $0.7 million less than the same period last year.

That was attributed to lower performance fees based on reduced profitability.

Net income falls: Blue Capital Reinsurance Holdings' second quarter profit was hit by insured losses from wildfires, storms and an earthquake

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Published August 02, 2016 at 9:00 am (Updated August 01, 2016 at 9:09 pm)

Blue Capital Reinsurance profit falls to $2m

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