Bermuda reinsurer Montpelier Re announced its Q1 2013 financial results today and revealed the contribution that its Blue Capital Management third-party reinsurance capital and reinsurance-linked fund management arm has made to its premiums written for the quarter. Blue Capital accounted for $14.6m of added property catastrophe treaty reinsurance premiums of the total $226m premiums written for the quarter by the reinsurer.
For the quarter, Montpelier Re’s premiums written were up by 3%, meaning that Blue Capital made the difference in this quarter for the firm.
Net premiums earned for the reinsurer as a whole were down slightly year-on-year from $160.5 in Q1 2012 to $159.7m in Q1 2013. Again here Blue Capital made a decent enough contribution of $3.8m net earned premiums for the quarter.
This shows the contribution that managing others capital can make to a firms premiums written and earned and we expect that as Blue Capital becomes more established and its latest round of fundraising completes the numbers it contributes to Montpelier Re’s profits will grow.
It’s also worth remembering that Montpelier Re seeded Blue Capital with $50m when it launched the Blue Capital Global Reinsurance Fund.