HAMILTON, Bermuda, Aug. 14, 2020 (GLOBE NEWSWIRE) -- Blue Capital Reinsurance Holdings Ltd. (in liquidation) (OTC:BCRHF) (the "Company"), a Bermuda holding company, today announced the notification of an aggregate catastrophe loss related to 2017 catastrophe events. The Company, through its operating subsidiaries, previously offered collateralized reinsurance in the property catastrophe market and invested in various insurance-linked securities. The Company is currently winding up its operations and is in liquidation.
In August 2020, ISO’s Property Claims Service revised upwards their industry loss estimate for Hurricane Irma, which occurred in 2017. The increase in the Hurricane Irma industry loss estimate, when aggregated with other 2017 loss events, triggered an Industry Loss Warranty (“ILW”) issued by the Company in 2017. The purchaser of the ILW notified the Company of the claim and subsequently withdrew funds from the related trust account. The Company’s loss related to the ILW was $3.1 million, or $0.35 per diluted share, and will be fully recognized as a reduction in net assets in liquidation when the Company reports its September 30, 2020 financial position. While the loss represents a significant portion of the remaining net assets in liquidation as of June 30, 2020, the loss represented only 1.7% of the Company’s shareholders’ equity as of January 1, 2017 when the contract was written.
About the Company
Blue Capital Reinsurance Holdings Ltd. (in liquidation), is currently winding up its operations. The Company, through its operating subsidiaries, previously offered 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 at www.bcapre.bm.
Contacts
Investor Relations
Phone: +1 441 278 0988
Email: investorrelations@Sompo-Intl.com
KPMG Advisory Limited
Phone: +1 441 295 5063
Email: investorrelations@Sompo-Intl.com
Mark Allitt – Joint Liquidator
Mike Morrison – Joint Liquidator
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.
All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or may be important factors that could cause the Company's run-off performance and the timing and amount of special distributions to differ materially from those indicated in the forward-looking statements. These factors include, but are not limited to, greater frequency or severity of claims and loss activity, uncertainties in our reserving process, changes to our tax status, 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, government intervention in the insurance and reinsurance industry, illiquidity in the credit markets, changes in general economic conditions and other factors.
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 annual financial statements posted on the Company's website. 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.