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Blue Capital Global Reinsurance Fund Limited announces final results for period ended 31 December 2014
Hamilton, Bermuda: 13 April 2015 - Blue Capital Global Reinsurance Fund Limited (the "Company" or "BCGR"), today announced final results for the period ended 31 December 2014. The Annual Report will shortly be available from the Company's website www.bcgr.bm. The Chairman, John R. Weale reported:
“On behalf of the Company’s Board, I am pleased to present the Company’s annual report for the year ended 31 December 2014 (the “Annual Report”), which includes the Company’s annual audited financial statements for the year ended 31 December 2014. As at 31 December 2014 the Company had net assets of $217 million compared to $185 million at the beginning of the year. During the year, the Company raised an additional $29 million of capital, earned $16 million and distributed $13 million as dividends to Shareholders.
Performance
The Company increased NAV per share by 8.8 per cent. inclusive of dividends to Shareholders, and the Ordinary Shares traded at an average premium to their NAV of 1.5 per cent. during 2014. Since inception the Company has increased NAV per share inclusive of dividends to Shareholders by 22 per cent., representing an annualised return of 10 per cent. Returns by month for the first two years of operations are shown in the table below. Further details relating to the performance of the Company are set out in the Manager’s report.
|
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
Year |
|
|
2013 |
0.3% |
0.4% |
0.5% |
0.7% |
0.1% |
0.8% |
1.0% |
2.4% |
3.2% |
1.9% |
0.1% |
0.0% |
11.8% |
|
2014 |
0.2% |
0.3% |
0.0% |
-0.1% |
0.3% |
0.4% |
1.3% |
1.9% |
2.4% |
1.1% |
0.3% |
0.5% |
8.8% |
Dividend
The Company continues to target an annualised dividend of LIBOR plus 6 per cent. on the original issue price of its Ordinary Shares in December 2012.3 In July 2014, the Company declared dividends of $0.032 per share for the period from 1 January 2014 to 30 June 2014, and in January 2015 declared a further $0.033 per share for the second half of 2014, which was paid in March 2015. The combined dividends declared during 2014 were slightly above the Company’s target.
Outlook
The continuing convergence of traditional reinsurance and capacity from capital markets provides insurance companies with additional flexibility in their risk transfer solutions and establishes the capital market as a sustainable complement to traditional reinsurance. However, this convergence has also created challenges for the Manager. The January 2015 underwriting period was another competitive one, characterised by pressure to reduce prices and offer more generous contractual terms and conditions. The Company’s differentiated product focus on collateralised reinsurance transactions with smaller, regional insurance companies enabled it to sidestep the most competitive market segments. Overall, the January trades were executed with an average risk adjusted rate decrease of approximately 13 per cent. compared to last year. The January 2015 portfolio incorporates an increase in the quota-share participation of a traditional property catastrophe book of business, which further increases the Company’s access to its preferred client base.
The Company remains pleased with the diversified portfolio that the Manager has created, which has attractive risk adjusted return characteristics, consistent with the Company’s investment objectives. I am pleased with the performance achieved by this portfolio in our first two years of operations, and I would like to thank our Shareholders for their support. If you have any questions regarding your Company, please do not hesitate to contact the Company or the Manager.”
For further information please contact:
William Pollett,
President and CEO, Blue Capital Management Ltd. +1 441-299-7576
bill.pollett@bluecapital.bm