Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Shareholders vote in favour of Blue Capital ILS fund changes


A majority of shareholders in the London and Bermuda stock exchange listed reinsurance and insurance linked securities (ILS) investment fund, the Blue Capital Global Reinsurance Fund, have voted in favour of a new investment policy and performance fee modification.

The fund’s investment manager, Blue Capital Management Ltd., a subsidiary of Bermudian insurance and reinsurance firm Endurance, proposed some changes to the investment policy, the target return and also the performance fee structure a few weeks ago.

The reason for the proposed changes was to bring the Blue Capital Global Reinsurance Fund up to speed with the state of the reinsurance market, as the manager expected that the available returns are likely to remain depressed for the foreseeable future.

94.49% of the shareholders in the fund voted in favour of the revised investment policy, while 92.41% voted in favour of the modification to the ILS fund performance fee.

The approved changes to the funds investment policy will provider the manager with more flexibility, the ability to introduce some new lines of business and enable the Blue Capital fund to enter into larger quota shares with its parent Endurance, all useful in the current market climate.

Now approved, the new investment policy which will come into force in January 2016 will enable Blue Capital to better navigate reinsurance market conditions, avoid the worst priced business, access more of the better priced risks and also to better utilise its relationship with parent reinsurer Endurance.

More details of the now approved changes can be found in our previous article.

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