Executive Summary
On Jan. 30, 2018, Blue Capital Reinsurance Holding (BCRH) reported its fourth quarter results. As announced, the company suffered from an increase in catastrophe losses leading to a drop-in book value. No special dividend was declared, and the regular dividend remained uncovered on a full-year basis.
Even if the management executive team argued that the situation should improve in 2019, I remain skeptical about the ability of the company to maintain the current dividend without further deterioration in the company’s book value.
2018, Annus Horribilis, Part II
In 2017, the company