Blue Capital reports Q4 EPS ($2.84), consensus ($3.01)
Reinsurance premiums written for the current quarter were $9.1 million increasing by $2.4 million over the same period a year ago while reinsurance premiums written for the full year 2018 were $33.2 million, decreasing by $12.9 million over the comparable period a year ago. The increase in the current quarter's reinsurance premium was predominantly driven by increased reinstatement premiums recorded in association with catastrophe losses occurring in the period while the decline in full year premiums was driven by a lower capital base in the current year. "Looking forward, market conditions remain competitive. While loss exposed contracts saw some pricing increases, the January renewals were relatively flat overall. As a result, we non-renewed several underperforming contracts and focused our capital deployment on quota share contracts which have historically generated better returns with lower volatility. We are closely monitoring market conditions for the upcoming April and June renewal periods where opportunities could emerge as more loss exposed contracts will be up for renewal during those periods. Lastly, we are cognizant of the current discount in the valuation of our stock and will be considering appropriate measures, including the potential commencement of a share repurchase program under the Company's existing 500,000 share authorization."