Blue Capital Reinsurance Holdings

Blue Capital Reinsurance Holdings Ltd., the stock exchange listed, collateralized reinsurer owned by Sompo International Holdings Ltd., has reported a loss for the third-quarter of 2018 but forecasts a more stable market pricing environment ahead.

Blue Capital Reinsurance Holdings Ltd., the listed, collateralized reinsurance vehicle owned by Sompo International Holdings Ltd., has revealed that it continued to feel the effects of hurricane Irma during the third-quarter with loss creep from the storm set to outweigh the costs of any catastrophe activity that occurred during the period.

Blue Capital Reinsurance Holdings Ltd., a unit of Sompo International Holdings Ltd., continued to feel the effects of hurricane Irma losses in Q2, but anticipates its underwritten portfolio producing a 100 basis point higher rate-on-line thanks to price improvements.

Shareholders have voted to approve the liquidation and running off of the London exchange listed Blue Capital Alternative Income Fund insurance and reinsurance linked investment strategy, at a special general meeting held today.

The London exchange listed Blue Capital Alternative Income Fund insurance and reinsurance linked investment strategy has stopped making any new investments pending a vote to decide whether it should be put into run-off or not.

The London-listed Blue Capital Alternative Income Fund, the stock exchange listed insurance and reinsurance linked investment strategy run by Blue Capital Management, a division of global re/insurer Sompo International, delivered an impressive 0.61% return in April 2018, a clear demonstration of post-event ILS return potential.

The Board of the London-listed insurance and reinsurance linked investment strategy, the Blue Capital Alternative Income Fund, is set to make a recommendation that the fund is put into an orderly run-off, after shareholders representing 39% of the ILS fund voted not to continue the company.

An increase in estimated losses from last year’s hurricane Irma has dented the first-quarter results of Blue Capital Reinsurance Holdings Ltd., but the manager of the vehicle is confident in the portfolio underwritten at renewals this year and expects higher rates to deliver stronger returns.

Stock exchange listed ILS and collateralized reinsurance investment strategy the Blue Capital Alternative Income Fund, suffered a -2.62% loss in March 2018, as hurricane Irma loss estimates were increased by counterparties, a factor that has negatively affected a number of ILS funds for the month.

Insurance-linked securities (ILS) and collateralized reinsurance investment fund manager Blue Capital Management, a subsidiary of Sompo International Holdings Ltd., may seek to raise more funds as it looks to grow its London-listed strategy, the Blue Capital Alternative Income Fund.