Blue Capital Reinsurance Holdings Provides Company Outlook
01 December 2017 - 8:30AM
Blue Capital Reinsurance Holdings Ltd. (NYSE:BCRH) (the "Company"),
a Bermuda holding company that, through its operating subsidiaries,
offers collateralized reinsurance in the property catastrophe
market and invests in various insurance-linked securities, today
provided its outlook for 2018 projected returns.
The negative financial impact to the insurance industry from the
third quarter catastrophe events is estimated to collectively be
above $100 billion which is expected to have a positive impact on
the pricing of catastrophe risks during upcoming renewals. Based on
this view of expected pricing improvement, the Company is providing
the following outlook for the return on the 2018 underwritten
portfolio.
Company Outlook
The Company today announces its projected growth
in fully converted book value per common share for 2018 as
follows:
Loss Scenario |
Return |
Mean |
9.1 |
% |
Median |
14.9 |
% |
The projected growth in fully converted book value per common
share is based on the planned 2018 portfolio and assumes loss
affected ceded and quota share agreements will benefit from rate
increases ranging from estimates of 15% to 25% in 2018 with other
agreements expected to benefit from an estimated rate increase of
2.5% in 2018 (in each case compared to 2017 and net of expenses).
The projected growth in fully converted book value per common share
also reflects the collateral expected to be available for
redeployment during 2018 taking into account loss events in 2017
and associated buffer loss provisions. The projected growth in
fully converted book value per common share is inclusive of any
projected declared dividends, does not comprise a profit forecast
and has been provided for illustrative and comparative purposes
only. The projected growth in fully converted book value per common
share is derived by reference to the collateral held, the contracts
written to date and expected to be written at future renewal dates
and takes into account the modeled mean and median catastrophe
losses. As such, the projected growth in fully converted book value
per common share set out above should not in any way be construed
as forecasting the Company’s actual change in fully converted book
value per common share should the Company’s actual losses differ
from the modeled mean and median catastrophe losses or contract
renewals differ from current expectations.
About the Company
Blue Capital Reinsurance Holdings Ltd., through its operating
subsidiaries, offers collateralized reinsurance in the property
catastrophe market, leveraging underwriting expertise and
infrastructure from established resources. Underwriting decisions,
operations and other management services are provided to the
Company by Blue Capital Management Ltd., a subsidiary of Sompo
International Holdings Ltd. (a wholly owned subsidiary of Sompo
Holdings, Inc.), a recognized global specialty provider of property
and casualty insurance and reinsurance and a leading property
catastrophe and short tail reinsurer since 2001. Additional
information can be found in the Company's public filings with the
U.S. Securities and Exchange Commission or at www.bcapre.bm.
ContactsInvestor RelationsPhone: +1 441 278 0988Email:
investorrelations@Sompo-Intl.com
Safe Harbor for Forward-Looking Statements
Some of the statements in this press release may include, and
the Company may make related oral forward-looking statements which
reflect our current views with respect to future events and
financial performance. Such statements may include forward-looking
statements both with respect to us in general and the insurance and
reinsurance sectors specifically, both as to underwriting and
investment matters. Statements that include the words "should,"
"would," "expect," "estimates", "intend," "plan," "believe,"
"project," "target," "anticipate," "seek," "will," "deliver," and
similar statements of a future or forward-looking nature identify
forward-looking statements in this press release for purposes of
the U.S. federal securities laws or otherwise. We intend these
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in the Private Securities
Litigation Reform Act of 1995. All forward-looking statements
address matters that involve risks and uncertainties. Accordingly,
there are or may be important factors that could cause actual
results to differ materially from those indicated in the
forward-looking statements. These factors include, but are not
limited to, the effects of competitors’ pricing policies, greater
frequency or severity of claims and loss activity, changes in
market conditions, decreased demand for property and casualty
reinsurance, changes in the availability, cost or quality of
reinsurance or retrocessional coverage, our inability to renew
business previously underwritten or acquired, uncertainties in our
reserving process, changes to our tax status, reduced acceptance of
our existing or new products and services, a loss of business from
and credit risk related to our broker counterparties, assessments
for high risk or otherwise uninsured individuals, possible
terrorism or the outbreak of war, a loss of key personnel,
political conditions, changes in insurance regulation, operational
risk, including the risk of fraud and errors and omissions, as well
as technology breaches or failure, changes in accounting policies,
our investment performance, the valuation of our invested assets, a
breach of our investment guidelines, potential treatment of us as
an investment company or a passive foreign investment company for
purposes of U.S. securities laws or U.S. federal taxation,
respectively, our dependence as a holding company upon dividends or
distributions from our operating subsidiaries, the unavailability
of capital in the future, developments in the world’s financial and
capital markets and our access to such markets, government
intervention in the insurance and reinsurance industry, illiquidity
in the credit markets, changes in general economic conditions and
other factors described in our Annual Report on Form 10-K for the
year ended December 31, 2016. The foregoing review
of important factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements
that are included herein and elsewhere, including the risk factors
included in the Company's most recent report on Form 10-K and other
documents of the Company on file with the Securities and Exchange
Commission. Any forward-looking statements made in this material
are qualified by these cautionary statements, and there can be no
assurance that the actual results or developments anticipated by
the Company will be realized or, even if substantially realized,
that they will have the expected consequences to, or effects on,
the Company or its business or operations. Except as required by
law, the Company undertakes no obligation to update publicly or
revise any forward-looking statement, whether as a result of new
information, future developments or otherwise. The contents
of any website referenced in this press release are not
incorporated by reference herein.
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