Blue Capital Management

The Sompo International company was placed into run-off in June 2019.

The $3.9mn claim followed an August revision to the PCS Irma loss estimate.

The move comes amid a planned wind-down that began last August.

The firm’s wind-down was 85 percent complete as of 31 March, a financial report shows.

The company will delist from the New York Stock Exchange as the listed ILS fund sector heads for closure.

The New York-listed Blue Capital Reinsurance Holdings posted a net income of $1.7mn for the first seven months of 2019, as the run-off process continued.

The company will pay out another $13mn to shareholders but made a Q3 loss.

The New York-listed carrier had stopped writing business in the quarter before its planned shut-down was announced.

The Sompo International-owned company said it expected to return most capital by the end of 2020.

The company’s liquidators have opted not to make a distribution to shareholders this quarter, having paid out $56mn in April.

The reinsurer is pitching its listed fund as a shell acquisition opportunity, according to sources.

Premiums written by the Sompo International-owned vehicle were down 56.8 percent on the same quarter a year ago.

The Sompo International manager will consider share buybacks, CEO Michael McGuire said.

The fund incurred most of its losses in the fourth quarter.

The New York-listed company said in December it expected $17mn catastrophe losses in its Q4 results.

The losses relate to Hurricane Michael and the 2018 California wildfires, the Sompo International subsidiary said.

The Sompo International-managed fund’s written premium base shrank to $4.2mn.

The asset manager said that expected losses from Hurricane Typhoon and Hurricane Florence, as well as escalating Irma losses had led to the drop in Q3 NAV.

The typhoon is said to have hit third layers of some occurrence covers.

Blue Capital Reinsurance Holdings expects $10.2mn of losses in Q3 resulting from Irma loss creep, Florence and Jebi.

The Bermuda-based company said a smaller capital base and greater cessions to third-party reinsurers led to the decrease.

Some 78.6 percent of investor votes were cast, of which 97.7 percent were in favour of the wind-up.

The fund has made a 0.7 percent loss in the first half.

A vote over winding up the London-listed fund is due to be held in July.

The fund makes a 1.38 percent loss in the first five months of the year.

The London-listed Blue Capital Alternative Income Fund reported a 0.61 percent increase in net asset value (NAV) for the month of April, following Sompo International’s decision to put the fund into run-off.

Sompo International’s chief financial officer Mike McGuire said the firm remained committed to its Blue Capital platform after deciding to put its London-listed fund into run-off this week.

The Sompo International subsidiary will recommend the listed fund be wound down.

Blue Capital Reinsurance Holdings reported a $0.5mn profit for the first quarter.

The London-listed Blue Capital Alternative Income Fund reported a 2.62 percent drop in net asset value (NAV) for the month of March, due to spiralling Hurricane Irma losses.

Blue Capital reported a 0.03 percent loss in February for its London-listed Alternative Income fund, as an ILS industry benchmark is also showing negative returns for the month based on current data.