Blue Capital Reinsurance Holdings Ltd
Blue Capital Reinsurance — Q4 2017 Earnings Presentation
19 slides from Blue Capital Reinsurance's earnings presentation, Feb 16, 2018
Slide 1: Blue Capital Reinsurance Holdings Ltd. (BCRH) Investor Update 4Q17
Blue Capital Reinsurance Holdings Ltd. (BCRH) Investor Update 4Q17 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 – December 2017)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 Yiel
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 – December 31, 2017 Dividend yield calculated by dividing dividends paid during the year by the beginning of the year share price. The company intends to distribute through
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: Sompo International – Providing Strong Support to BCRH
Sompo International – Providing Strong Support to BCRH A significant number of Sompo International professionals are actively involved in the functions of BCRH and Blue Capital. Sompo International has a stated commitment of supporting its asset management division as an important component of the f
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: BCRH's Performance Related to 2017 Events
BCRH’s Performance Related to 2017 Events BCRH’s 2017 losses were within expected levels given the magnitude of the events Hurricane Harvey $6.0 million in estimated losses Hurricane Irma $29.0 million in estimated losses Hurricane Maria $3.7 million in estimated losses 2nd event/Aggregate losses tr
Slide 11: 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 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 Full year 2017 results: Experienced significant catastrophe losses related to Hurricanes Harvey, Irma and Maria and the California wildfires Losses from these events were $62.4 million net of reinsurance and reinstatement premiums Historically, strong results were achieved in BC
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
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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