Blue Capital Management, the third-party capital and reinsurance-linked fund management arm of Bermuda based reinsurer Montpelier Re, will complete the latest capital raise for its listed Blue Capital Global Reinsurance Fund on the 26th March.
The insurance linked investment manager revealed its timetable for what will be the third placing of new shares in the fund under the terms of the Placing Programme announced on 17th April 2013 this morning. The last date for commitments to be received is the 25th of March and the results of the placing will be announced on the 26th.
The new shares issued will rank equally with the existing ordinary shares of the Blue Capital Global Reinsurance Fund. The placing price for the new shares will be at a premium to the net asset value as at 28th February 2014, after adjustments to take into account placing costs.
Proceeds of the third placing of shares will be invested in fully collateralised reinsurance contracts and other insurance linked investments carrying exposures to similar event-linked risks in accordance with the fund’s investment policy. The majority of the net proceeds raised are expected to be invested in catastrophe reinsurance contracts at the June and July reinsurance renewals.
The fund achieved a total net asset value return including dividends to investors of 11.8% in 2013. The target return for the Blue Capital Global Reinsurance Fund is LIBOR plus 6% per annum on the original issue price of its shares and a net return to its shareholders of LIBOR plus 10% per annum, net of fees.
We will update you once details of the price and amount raised during this third placing for the Blue Capital Global Reinsurance Fund emerge.