Blue Capital Global Reinsurance Fund Limited - Publication of Prospectus and Circular

Hamilton, Bermuda – 17 April, 2013 – The Board of Blue Capital Global Reinsurance Fund Limited (the "Company" or "BCGR") has announced that, further to the announcement on 21 March 2013, BCGR is pleased to announce the publication of a Prospectus in connection with the Company’s proposed Placing Programme. The net proceeds raised pursuant to the Placing Programme will be invested in fully collateralised reinsurance-linked contracts and other investments carrying exposures to insured catastrophe event risks in accordance with the Company’s investment policy.

New Shares issued pursuant to the Placing Programme will be admitted to trading on the London Stock Exchange’s Specialist Fund Market (“SFM”) and on the Bermuda Stock Exchange ("BSX").

The First Closing under the Placing Programme will comprise an issue of new Ordinary Shares which will rank equally with existing Ordinary Shares. The Placing Price for Ordinary Shares to be issued in the First Closing is US$1.02 per Ordinary Share. It is anticipated that the latest date for receipt of placing commitments in respect of the First Closing will be on 2 May 2013.

Key Highlights

•               The Company is a closed ended mutual fund which was admitted to trading on the SFM and the BSX on 6 December 2012, raising US$100.1 million under its Initial Public Offer.

•               The Company is established as a feeder fund and will invest in a diversified portfolio of fully collateralised reinsurance-linked contracts and other investments carrying exposures to insured catastrophe event risks via the segregated account of Blue Water Master Fund Ltd., identified as Blue Capital Global Reinsurance SA-I (the "Master Fund”).

•               The Company provides investors with the opportunity to access the global catastrophe reinsurance market, and to invest in an alternative asset class whose returns have historically been largely uncorrelated to those of other asset classes including global equities, bonds and hedge funds.

•               The Company targets an annualised dividend yield of LIBOR plus 6 per cent per annum on the original issue price of the Ordinary Shares at launch and a net return to Shareholders (comprised of dividends and other distributions to Shareholders together with increases in the Company’s Net Asset Value) of LIBOR plus 10 per cent per annum to be achieved over the longer term, net of fees.1

•               The Company has deployed US$66.9 million to date through investment in the Master Fund, representing 68 per cent. of the net proceeds of the Initial Public Offer. The balance of the net proceeds of the Initial Public Offer is being held by the Company in cash pending investment in the Master Fund in connection with the June and July 2013 reinsurance renewals and the Directors believe that the Company remains on track for the proceeds, together with the proceeds of the First Closing, to be fully invested by 1 July 2013, subject to the then prevailing market conditions.

•               Blue Capital Management Ltd. (“Blue Capital”), which serves as the investment manager for both the Company and Blue Water Master Fund Ltd., is wholly owned by Montpelier Re Holdings Ltd. (NYSE: MRH, “Montpelier”), a leading global provider of property catastrophe and short tail reinsurance solutions with over US$3.5 billion of assets. Blue Capital therefore benefits from Montpelier’s industry leading proprietary reinsurance modelling tools, underwriting expertise and broker/client relationships. 

•               Jefferies International Limited (“Jefferies”) is acting as financial adviser and bookrunner.

Availability of the Prospectus

The Prospectus has been approved by the UK Listing Authority. A copy of the Prospectus will be available for inspection at the National Storage Mechanism which is located at www.morningstar.co.uk/uk/NSM. Copies of this document are also available on the Company's website at www.bluecapital.bm and for collection, free of charge during normal business hours from the offices of Hogan Lovells International LLP, Atlantic House, Holborn Viaduct, London, EC1A 2FG and at the registered office of the Company up to and including the date of Admission.

Special General Meeting

The Company has also posted a circular to Existing Shareholders seeking their approval for the disapplication of pre-emption rights in connection with the Placing Programme by way of special resolution at a Special General Meeting of the Company to be held on 3 May 2013.

Note 1: These are targets only and not profit forecasts.  There can be no assurance that these targets will be met or that the Company will make any returns or distributions whatsoever or that investors will recover all or any of their investment. Prospective investors should decide for themselves whether or not the target returns and distributions are reasonable or achievable in deciding whether to invest in the Company.

Contacts

For investor enquiries please contact:

William Pollett, President, Blue Capital           +1 441-299-7576

Jeannine Menzies, Montpelier                        +1 441-299-7570

Gary Gould/Mark James/ Alex Collins           +44 20 7029 8000

Jefferies

For media enquiries please contact:

Ed Orlebar/Anastasia Shiach                         +44 20 7353 4200

Tulchan