Blue Capital Reinsurance Holdings (BCRH) has reported 25.93 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $4 million in the quarter, compared with $5.40 million for the same period last year.
Revenue during the quarter grew 17.02 percent to $11 million from $9.40 million in the previous year period. Net premium earned for the quarter increased 23.66 percent or $2.20 million to $11.50 million.
Total expenses increase substantiallyBenefits, losses and expenses for the quarter were at $7 million, or 60.87 percent of premium earned from $4 million or 43.01 percent of premium earned in the last year period. Operating income for the quarter was $4 million, compared with $5.40 million in the previous year period. The company has booked a loss on investments of $0.50 million in the quarter compared with a gain of $0.10 million for the previous year period.
Adam Szakmary, president and chief executive officer, commented: "2016 was a solid year for Blue Capital as we generated growth in book value of 7.6% inclusive of dividends and a combined ratio of 65.0% against a backdrop of the costliest year for industry losses within the last five years. These results led to our declaring a special dividend for the third year in a row which, when combined with our previous 2016 regular quarterly dividends, represents a return of over 90% of total annual earnings. 2016 was also the first full year of the Company's operations since Blue Capital Management Ltd. was purchased by Endurance Specialty Holdings Ltd., resulting in greater access by the Company to a larger more diversified catastrophe portfolio, thereby enhancing our ability to effectively select risks and build a higher quality portfolio designed to generate shareholder value."
Assets, liabilities fallTotal assets decreased 5.93 percent or $12.90 million to $204.70 million on Dec. 31, 2016. On the other hand, total liabilities were at $21.40 million as on Dec. 31, 2016, down 28.67 percent or $8.60 million from year-ago. Return on assets stood at 1.95 percent in the quarter, down 0.57 from 2.53 percent in the last year period. At the same time, return on equity was at 2.18 percent in the quarter, down 0.70 from 2.88 percent in the last year period.
Shareholders equity stood at $183.30 million as on Dec. 31, 2016, down 2.29 percent or $4.30 million from year-ago.
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