The shares issued as part of the successful initial offering from newly established reinsurance-linked investment fund the Blue Capital Global Reinsurance Fund have been admitted for trading on the London Stock Exchange’s Specialist Fund Market (SFM) this morning. The 100,100,000 of Ordinary shares (worth $1 each) are to be dual listed in Bermuda and are scheduled to also be listed for trading on the Bermuda Stock Exchange (BSX) today.
The initial offering raised $100.1m, with $50m coming from Bermudian reinsurer Montpelier Re, the parent company to the Blue Capital Management investment management subsidiary who manage the Blue Capital Global Reinsurance Fund.
It’s expected that Blue Capital will follow on with further share offerings in 2013. They want to aggressively target the reinsurance-linked investment space as a way to attract new underwriting capital and see a huge opportunity by taking the third-party capital management approach to reinsurance. Bill Pollett, the President of Blue Capital Management Ltd., said that they see this as a $500m to $1 billion opportunity over the longer term and would like to reach that capacity in a years time.
Blue Capital are now in a position to begin negotiating reinsurance and retrocession contracts for the January renewals and will likely deploy all of their initial offering capital over the coming renewal season. If they have a successful renewal we’d expect them to seek to issue more shares early in 2013.
Read our coverage of Blue Capital’s launch in these articles:
– Blue Capital Global Reinsurance Fund raises targeted $100m (4th December)
– Blue Capital Global Reinsurance Fund launch details emerge (30th November)