The Company, through its operating subsidiaries, previously offered collateralized reinsurance in the property catastrophe market and invested in various insurance-linked securities
Blue Capital Reinsurance Holdings (in liquidation), a Bermuda holding company, today announced the notification of an aggregate catastrophe loss related to 2017 catastrophe events. The Company, through its operating subsidiaries, previously offered collateralized reinsurance in the property catastrophe market and invested in various insurance-linked securities. The Company is currently winding up its operations and is in liquidation.
In August 2020, ISO’s Property Claims Service revised upwards their industry loss estimate for Hurricane Irma, which occurred in 2017. The increase in the Hurricane Irma industry loss estimate, when aggregated with other 2017 loss events, triggered an Industry Loss Warranty (“ILW”) issued by the Company in 2017. The purchaser of the ILW notified the Company of the claim and subsequently withdrew funds from the related trust account. The Company’s loss related to the ILW was $3.1 million, or $0.35 per diluted share, and will be fully recognized as a reduction in net assets in liquidation when the Company reports its September 30, 2020 financial position. 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.
Source: Company Press Release