News Column

Blue Capital Global Reinsurance Fund Reports NAV Growth

May 19, 2014

Samuel Agini

LONDON (Alliance News) - Blue Capital Global Reinsurance Fund Ltd, which invests in a portfolio of fully collateralised reinsurance-linked contracts and other investments carrying exposures to insured catastrophe event risks, Monday said its net asset value for the three months of the year increased by 0.47%.

The fund, which is listed on the London Stock Exchange and managed by Blue Capital Management, owned by property catastrophe reinsurer Montpelier Re Holdings Ltd, said its net asset value increased to USD1.0362 in the three months ended March 31, 2014.

The performance figures include the USD0.019 dividend declared and paid in August 2013 and the USD0.044 dividend declared in January 2014 and paid in February 2014.

On May 15 2014, the company entered into a credit agreement with Barclays Bank PLC for the provision of a USD20.0 million unsecured 364-day term loan facility for managing working capital requirements. Montpelier Re Holdings Ltd has agreed to serve as a guarantor for the credit agreement.

"The January 2014 underwriting period was a competitive one, marked by pressure to reduce prices and offer more generous contractual terms and conditions," Blue Capital Global Reinsurance said in a statement.

"From a pricing standpoint, the company benefited from its continued focus on regionally-exposed traditional reinsurance business," the fund said.

"While prices in the retrocessional and Cat Bond markets decreased in excess of 20%, observed risk-adjusted price changes on the Company's contract renewals were 12% lower compared to the January 2013 renewals," the fund said.

"Additionally, contractual terms and conditions on regionally-exposed traditional business remained consistent with market best practice. The January 2014 portfolio also incorporates the addition of a quota-share participation of a traditional property catastrophe book of business, which further increases the company's access to its preferred client base," the fund added.

The company was admitted to trading on the specialist fund market of the London Stock Exchange on December 6, 2012, raising USD100.1 million under its initial public offering. It issued a further 72.4 million shares under a placing programme initiated on April 16 2013, with the gross proceeds coming to USD75.3 million upon completion on April 9 2014.

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Source: Alliance News

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