Over the course of 2016, Blue Capital Global Reinsurance produced a total return on NAV of 8.3%, ahead of its 8% per annum target. As at 31 December 2016, they had net assets of $226.9 million compared to $223.3 million at the beginning of the year. During the year, they earned $17.2 million of which $13.1 million was distributed in dividends and $0.5 million was used to fund share repurchases during the year.
Blue Capital Global Reinsurance continues to target an annualised dividend of LIBOR plus 6 per cent. on the original issue price. two dividends of $0.033 were declared for 2016. They intend to move to quarterly dividends commencing with the first quarter of 2017.
Loss activity during 2016 was higher than in previous years. The 2016 loss activity contributed to a 3.4 per cent. reduction in return related primarily to a series of earthquakes in Japan (0.1 per cent.), hailstorms throughout the Southeast and Plains regions in the United States (0.5 per cent.), Canadian wildfires (0.7 per cent.), Netherlands Hail (0.3 per cent.), Typhoon Meranti (0.2 per cent.) and Hurricane Matthew (1.6 per cent.).
BCGR : Blue Capital Global Reinsurance hits objective in difficult year