Blue Capital Reinsurance Holdings closes IPO

Blue Capital Reinsurance Holdings, the third-party capital financed collateralized reinsurance subsidiary, has completed its initial public offering (IPO) of shares on the New York Stock Exchange, according to parent company Montpelier Re Holdings.

Montpelier Re Holdings Ltd. and Blue Capital Reinsurance Holdings Ltd. announced that Blue Capital Reinsurance has closed the IPO of 6,250,000 common shares at a price of $20.00 per share, for gross proceeds of $125 million.

Concurrently with the completion of the IPO, parent reinsurance company Montpelier Reinsurance Ltd., a wholly owned subsidiary of Montpelier, purchased another 2,500,000 common shares at a price of $20.00 per share in a private placement for gross proceeds of $50 million.

That gives Blue Capital Re an initial market cap of $175m at launch.

That number could rise a little as the IPO’s underwriters have a 30-day option to purchase up to another 937,500 shares at the public offering price, less an underwriting discount.

The common shares of Blue Capital Reinsurance began trading on the New York Stock Exchange on November 6, 2013, under the symbol “BCRH”. The 8,750,000 shares were admitted as a secondary listing to the Bermuda Stock Exchange yesterday.

Other articles on the launch and IPO of Blue Capital Reinsurance Holdings:

– Blue Capital Re prices IPO at $20 per share, with market cap of $175m

– Blue Capital Re establishes dividend policy, targets 8% RoE

– Blue Capital Reinsurance Holdings to target $125m in IPO

– More details on the forthcoming launch of Blue Capital Reinsurance Holdings can be found in this article.

– Read our recent article on Blue Capital’s contribution to Montpelier Re Q3 results.