Blue Capital Alternative takes 26% hit from catastrophes – Blue Capital Alternative Income has announced its NAV estimate for 30 September 2017. they reckon it was 82.27cents per share, a 26% hit relative to the last published NAV and contributing to a 23.7% loss so far in 2017.
The net asset value of the ordinary shares at 30 September 2017 reflects the impact of two major hurricanes which made landfall in September and two earthquakes in Mexico. On 10 September 2017, Hurricane Irma made initial U.S. landfall near the Florida Keys, Florida and on 20 September 2017, Hurricane Maria made landfall in Puerto Rico. Additionally, the Southern Coast of Mexico was impacted by an earthquake on 8 September 2017 while Central Mexico was impacted by an earthquake on 19 September 2017.
The estimates for the Company’s incurred losses in 2017, net of reinsurance and reinstatement premiums, have driven the year-to-date performance to (23.69%). Their loss estimates have been derived from the utilization of proprietary catastrophe modeling, standard industry models, an in-depth review of in-force contracts and initial indications from clients and brokers. The company’s actual losses may ultimately differ materially from estimated losses due to the nature of the risks assumed, the complexity of the assessment of damages and the limited number of reported claims received to date.
The share price has fallen sharply this morning and is now 85 cents, a premium to asset value of 3.3%. What we don’t know yet is if there is a further hit to come from events such as the Californian wildfires.
BCAI : Blue Capital Alternative takes 26% hit from catastrophes