Blue Capital Reinsurance Holdings Ltd
Blue Capital Reinsurance — Investor Presentation (May 2018)
19 slides from Blue Capital Reinsurance's investor presentation, May 31, 2018
Slide 1: Blue Capital Reinsurance Holdings Ltd. (BCRH) Investor Update 1Q18
Blue Capital Reinsurance Holdings Ltd. (BCRH) Investor Update 1Q18 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Some of the statements in this presentation may include, and Blue Capital Reinsurance Holdings Ltd. (the “Company” or “BCRH”) and the Company’s manager, Blue Capital Management Ltd. (“Blue Capital”), may make related oral forward-looking statements which reflect our current vie
Slide 3: Blue Capital Reinsurance Holdings Ltd. Overview
Blue Capital Reinsurance Holdings Ltd. Overview Blue Capital Management Ltd. is a wholly owned subsidiary of Sompo International, a leading global insurer and reinsurer. Sompo International holds a 33% strategic investment in BCRH, provides infrastructure and underwriting support services and is a s
Slide 4: Attractive Market With Appropriate Risk/Reward Dynamics
Attractive Market With Appropriate Risk/Reward Dynamics Global Index Return vs. Volatility (December 2005 – March 2018)1,2 Property Catastrophe: Swiss Re Cat Bond Total Return Index; Insurance-linked Securities: Eureka ILS Advisors Index; US Corporate High Yield: Barclays U.S. Corporate High Yield T
Slide 5: BCRH Has Attractive Yield and Earnings Distribution History
BCRH Has Attractive Yield and Earnings Distribution History Fully Converted Book Value Per Common Share From December 31, 2013 – March 31, 2018 Dividend yield calculated by dividing dividends paid during the year by the beginning of the year share price. The company intends to continue to distribute
Slide 6: Successful Strategy Leveraging the strength and expertise of Sompo International
Successful Strategy Leveraging the strength and expertise of Sompo International Sompo International has a successful multi-year track record in global insurance and reinsurance Strategic relationship with Sompo International provides BCRH access to Sompo International’s expansive global footprint,
Slide 7: Experienced Team and Strong Oversight
Mike McGuire Chairman of The Board D. Andrew Cook Audit Committee Chairman Experienced Team and Strong Oversight BCRH Board Of Directors John Del Col Director John Weale Compensation & Nominating Committee Chairman Eric Lemieux Lead Director CFO of Endurance/Sompo International since 2006 Extensive
Slide 8: BCRH Leverages Strong Support Provided by Sompo International
BCRH Leverages Strong Support Provided by Sompo International A significant number of Sompo International professionals (including several executive team members) are actively involved in the support of BCRH. Sompo International has maintained a long term strategic investment in Blue Capital. Manage
Slide 9: What Differentiates BCRH from a Traditional Reinsurer?
What Differentiates BCRH from a Traditional Reinsurer? Blue Capital Reinsurance Holdings Ltd. Traditional Reinsurer Business Focus Collateralized reinsurance Diversified portfolio of short-tail and long-tail reinsurance and other specialty insurance and reinsurance lines Security Offered Clients Cas
Slide 10: 2017 Events Leading to Rate Increases
2017 Events Leading to Rate Increases Source: Statista 2017 and Guy Carpenter *Estimated industry losses 2017 was one of the most costly catastrophe loss years in industry history Hurricane Harvey (highest wind of 130 mph, insured loss of $25-$35 billion, largest auto loss in U.S. history and wettes
Slide 11: BCRH's Performance Impacted by 2017 Events
BCRH’s Performance Impacted by 2017 Events BCAI’s 2017 event losses to date were within expected levels given the magnitude of the events Hurricane Harvey $6.2 million in estimated losses Hurricane Irma $30.5 million in estimated losses Hurricane Maria $4.1 million in estimated losses 2nd event/Aggr
Slide 12: Geographic Distribution of Premiums
Geographic Distribution of Premiums Portfolio of risks globally diversified by over 1,400 underlying contracts* BCRH maintains a diversified portfolio of global risks Successfully bound indemnity reinsurance contracts at January 1, 2018 with expected total premiums of $27.8M Inforce portfolio as of
Slide 13: Financial Highlights
Financial Highlights First quarter 2018 results: Experienced an increase in estimated losses related to Hurricane Irma which made landfall in Florida in September 2017 Acquisition costs and general and administrative expenses were lower reflecting lower profit commissions and performance fees Histor
Slide 14: Risk Management: Single Event Loss Exposure Maintained Within Underwriting Guidelines
Risk Management: Single Event Loss Exposure Maintained Within Underwriting Guidelines Our single event loss estimates represent snapshots as of January 1, 2018 and January 1, 2017. The composition of our in-force portfolio may change materially at any time due to the acceptance of new policies, loss
Slide 15: Conclusion
Conclusion BCRH offers an attractive return from direct investments in reinsurance contracts. Returns are largely uncorrelated to other financial market risks. BCRH benefits from relationship with Sompo International, a market recognized leading global specialty insurer and reinsurer Provides access
Slide 16: Appendix
YA BLUE Dy CAPITAL Appendix
Slide 17: Introduction to Reinsurance
Introduction to Reinsurance Risk Transfer Liquidity Risk Distribution Chain Households buy insurance from Insurance Companies Reinsurers opportunistically hedge against the risk of infrequent large losses Traditional Insurance Companies purchase Catastrophe Reinsurance to protect against infrequent
Slide 18: Glossary
Glossary Catastrophe Bonds Bonds issued by an insurance company with funding tied to the company's losses from disasters, or acts of God. A loss exceeding a certain size triggers a reduction in the bond value or a change in the bond structure as loss payments are paid out of bond funds. Collateraliz
Slide 19: Contact: Investor Relations
CONTACT: Investor Relations +1-441-278-0988 [email protected] BLUE CAPITAL MANAGEMENT LTD. Waterloo House 100 Pitts Bay Road Pembroke HM 08 Bermuda
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