Blue Capital Reinsurance Holdings Ltd., a Bermuda-based holding company currently winding up its operations, has announced the notification of an aggregate catastrophe loss related to 2017’s hurricane Irma.
The collateralised reinsurer, which is owned by Sompo International Holdings, Ltd., has been in the process of being run-off and its shares liquidated for roughly a year now.
Previously, through its operating subsidiaries, the reinsurer offered collateralised reinsurance in the property cat space and invested in numerous insurance-linked securities (ILS).
Now, the company, which is in liquidation, has announced an aggregate catastrophe loss related to 2017 catastrophe events. Blue Capital Re notes that in August 2020, PCS revised upwards its industry loss estimate for 2017’s hurricane Irma.
This increase, when aggregated with other 2017 events, has triggered an industry loss warranty (ILW) issued by the firm in 2017. The company notes that the purchaser of the ILW notified the firm of the claim and subsequently withdrew funds from the related trust account.
According to the reinsurer, its loss related to the ILW was $3.1 million, and will be fully recognised as a reduction in net assets in liquidation when Blue Capital Re announces its financial position as at September 30th, 2020.
“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,” explains the company.
