Blue Capital Global Reinsurance Fund Limited – Proposed Second Placing Update

Hamilton, Bermuda – 20 September, 2013 – The Board of Blue Capital Global Reinsurance Fund Limited (the "Company" or "BCGR") has issued an update regarding the proposed ‘second placing’. The update reads:

Further to the announcement by the Company on 12 September 2013, the second placing of new shares in the Company pursuant to the Placing Programme announced on 17 April 2013 (the “Second Placing”), is expected to comprise an issue of new Ordinary Shares which will rank equally with existing Ordinary Shares. The issue size for the Second Placing will be subject to a maximum of US$100 million which, net of expenses, reflects the maximum net proceeds which the Directors believe can be deployed in a reasonable timeframe following issuance in accordance with the Company’s investment policy.

The Placing Price for Ordinary Shares to be issued in the Second Placing will be at a premium to the Net Asset Value per Ordinary Share as at 30 September 2013 (which is expected to be published on or around 14 October 2013) after making an adjustment for, inter alia, the Placing Costs per Share.  An announcement detailing the applicable Placing Price will be released via a Regulatory Information Service.

The new Ordinary Shares issued pursuant to the Second Placing will rank equally with existing Ordinary Shares for the second distribution by the Company in respect of the six months ended 31 December 2013. It is the Directors' intention that, save for unforeseen circumstances, the second distribution will be US$0.044 per Ordinary Share.1

The net proceeds raised pursuant to the Second Placing are expected to 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.  It is expected that the majority of the net proceeds will be invested in the January 2014 reinsurance renewals.

Expected timetable for Second Placing                                         2013

Latest time and date of receipt of Placing

commitments in respect of the Second Placing                    3.00 p.m. on 22 October

Announcement of results of the Second Placing                   23 October

Admission to trading of the new Ordinary Shares

to be issued in the Second Placing and commencement

of dealings on the London Stock Exchange’s Specialist

 Fund Market and the Bermuda Stock Exchange                 8.00 a.m. on 28 October

Ordinary Shares issued and CREST accounts credited

 in respect of Depository Interests in connection

with the Second Placing                                                         8.00 a.m. on 28 October

Dispatch of definitive share certificates in

connection with the Second Placing                          Week commencing 28 October

The Company's Ordinary Shares were admitted to trading on the London Stock Exchange's Specialist Fund Market ("SFM") (ticker: BCGR) and were listed on the Bermuda Stock Exchange with a secondary listing on 6 December 2012, raising US$100.1 million. The Company subsequently raised US$52.3 million pursuant to the First Closing under the Placing Programme in May 2013. 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 is targeting an annualised dividend yield of LIBOR plus 6 per cent. per annum on the original issue price of its Ordinary Shares in December 2012 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)

Blue Capital Management Ltd. ("Blue Capital"), which serves as the investment manager for both the Company and Blue Water Master Fund Ltd., through a variety of different products, provides institutional and retail investors with the opportunity to access the global catastrophe reinsurance market.

Blue Capital 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$3.9 billion of assets. Blue Capital therefore benefits from Montpelier's industry leading proprietary reinsurance modelling tools, underwriting and risk management expertise and strong broker/client relationships. Additional information regarding Blue Capital can be found at www.bluecapital.bm

Terms used and not defined in this announcement bear the meaning given to them in the Prospectus.

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." 

For further information please contact:

William Pollett,

President, Blue Capital Management Ltd.      +1 441 299 7576

Bill.pollett@bluecapital.bm

Gary Gould/Alex Collins         +44 20 7029 8000

Jefferies International Limited