In the June 1st renewals Blue Capital updated its portfolio to nearly double its indemnity reinsurance contracts to an expected total annual premium of $4.7 million, up by $2 million from the same period last year.
The firm said it expects to underwrite business to produce a net rate on-line for the portfolio of 17.7%, an increase of 170 basis points from last year – the result of increased deployment in the June renewals which focused on Florida exposed accounts that have a higher rate on-line than the portfolio average.
Mike McGuire, Chairman and CEO of Blue Capital, commented, “we are pleased to report strong portfolio execution during the June renewal period. Overall market price reductions were larger than initially anticipated, with the Florida market being 5% – 7.5% down year on year.
“However, due to the strength of our established long-term relationships, the high quality of our underwriting and portfolio management teams and our strategic alignment with Sompo International, we were able to construct an attractive portfolio with risk adjusted pricing down 3%.”
As of June 1st, the firm’s updated portfolio is distributed by about 30.2% in support of first event reinsurance coverages, and 46.2% in support of catastrophe quota share coverages, the remainder is a cushion for second and subsequent event coverages.
