The Montpelier Re backed Blue Capital Global Reinsurance Fund will look to pursue a series of placings of new shares in the company to accommodate new investor inflows as part of a fund-raising push. The fund, which invests in catastrophe exposed fully collateralised reinsurance-linked contracts and other ILS type investments, launched in December having raised $100.1m. Now the fund seeks to increase that and expects the share placements to begin in Q2 2013.
Managed by Montpelier Re’s investment management subsidiary Blue Capital Management, the fund was one of a number of high-profile collateralised reinsurance plays that launched towards the end of 2012. The fund invests in a diversified portfolio of fully collateralised reinsurance-linked contracts and other instruments carrying exposure to insured catastrophe event risks such as Industry Loss Warranties (ILWs), Catastrophe Bonds and other Insurance-Linked Securities. It’s investment are made via preference shares issued by Blue Water Re Ltd., and a segregated account of the Blue Water Master Fund Ltd., a reinsurer which in turn writes the reinsurance contracts with the ceding companies.
It is the intention of the Blue Capital Global Reinsurance Fund to proceed with a proposal for a series of new share placements, with the first of these placements expected during Q2. This signifies that the fund is preparing the way for accepting new inflows of capital from investors. Further details on the placing programme will be released in April according to release.
Blue Capital is a long-term part of the Montpelier Re strategy to leverage third-party capital for fee income and underwriting of catastrophe reinsurance and retrocession risks. The firm said last December that it saw a $1 billion opportunity in this space and would, over the longer term, aim to target both institutional and retail investors with a range of products.
We’ll update you when more information on the share placements and the amount of capital raised become available.