Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Blue Capital listed fund returns 8.8% despite challenging market


London and Bermuda listed, reinsurance and insurance linked investment fund the Blue Capital Global Reinsurance Fund, reported a total net asset value return for 2014 of 8.8%, a result it is pleased with despite the softening reinsurance market conditions.

“We are pleased with our 2014 results in spite of the challenging market conditions, posting a total NAV return (including dividends) of 8.8 per cent,” commented William Pollett, President and CEO of the investment manager Blue Capital Management Ltd., a subsidiary of Bermudian reinsurance firm Montpelier Re.

Blue Capital also provided an update on the January renewals which, despite continued high levels of competition in the reinsurance market, it felt went well for the firm as it leveraged its strategy of targeting less pressured areas of the market.

“Overall, we witnessed a competitive underwriting environment with healthy competition from traditional and alternative markets over the important January 2015 renewal period. Blue Capital’s differentiated product focus on collateralized reinsurance transactions with smaller, regional insurance companies enabled it to sidestep the most competitive market segments,” Pollett explained.

However Blue Capital is not immune to the rate declines seen across catastrophe reinsurance pricing, naturally, and the firm noticed a decline in average rates across its renewal portfolio.

Pollett continued; “Overall, the January trades were executed with an average risk adjusted rate decrease of approximately 13 per cent. compared to last year. Despite these rate decreases, we remain confident that we can deliver attractive returns for our Shareholders.”

Also read:

Blue Capital hits $790m, collateralized business grows at Montpelier Re.

Blue Capital Global Reinsurance Fund adds $21.2m.

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