|[December 04, 2012]
Montpelier Launches Asset Management Platform For Institutional and Retail Investors
HAMILTON, Bermuda --(Business Wire)--
Montpelier Re Holdings Ltd. (NYSE: MRH), ("Montpelier", or the
"Company"), a leading global provider of property catastrophe and short
tail reinsurance solutions, today announced the launch of Blue Capital
("Blue Capital"), an asset management platform offering a range of
innovative catastrophe reinsurance-linked investment products to
institutional and retail investors.
Chris Harris, President and CEO of Montpelier, said, "Montpelier has
been successfully managing third-party capital since 2004, and Blue
Capital represents the latest step in the expansion of our underwriting
partnership business. Blue Capital broadens the product mix we can offer
clients, and investors benefit from Montpelier's long-established
underwriting expertise and relationships."
William Pollett, Montpelier's Chief Corporate Strategy and Development
Officer, has been named President of Blue Capital Management Ltd.
("BCML"). Jason Pratt, Montpelier's Chief Investment Officer, has been
named President of Blue Capital Advisors Ltd., the U.S.-based investor
marketing arm of Blue Capital. Both individuals will retain their
existing Montpelier roles in addition to jointly leading Blue Capital.
Adam Szakmary, previously Vice President, Underwriting and Risk
Management and an underwriter with Montpelier since 2004, has been
appointed Portfolio Manager of BCML, subject to the approval of the
Bermuda Department of Immigration.
The Company also announced the completion of its initial public offering
of the Blue Capital Global Reinsurance Fund Limited (the "Fund"), a
closed-ended feeder fund which is expected to be admitted to trading on
the Specialist Fund Market of the London Stock Exchange and listed on
the Bermuda Stock Exchange on December 6, 2012. The Fund will invest in
a diversified portfolio of fully collateralised reinsurance-linked
contracts and other investments carrying exposures to insured
catastrophe event risks via a segregated account and will be backed by
Montpelier's dedicated analytics, risk management, claims and actuarial
teams. Montpelier received final allocations to the Fund of just over
$100 million pursuant to the offering, of which $50 million was provided
by the Company.
Mr. Pollett said, "Blue Capital is delighted to launch this listed fund
which will provide targeted exposure to the reinsurance market via a
partnership with Montpelier's global property catastrophe franchise. We
believe Montpelier's reach and expertise will allow Blue Capital to
construct a diversified portfolio with attractive risk-adjusted return
BCML has engaged Prime Management Ltd. ("Prime") to perform fund
administration services, including maintaining the books and records for
the platform's Master Fund (the "Master Fund"), calculating the net
asset value of the Master Fund's shares and providing certain other
administration services. Prime has been servicing the specialized
requirements of investment structures, sponsors and managers in the
collateralized reinsurance and rik-linked securities market since 2002.
Prime is an independent fund administrator, is licensed and regulated as
a fund administrator by the Bermuda Monetary Authority under the Investment
Funds Act 2006 and has successfully completed a SSAE 16 Type II
Review Certification (formerly called SAS (News - Alert) 70).
Blue Capital provides innovative catastrophe reinsurance-linked products
for institutional and retail investors. By leveraging Montpelier's
industry-leading proprietary reinsurance modelling tools, underwriting
expertise, and deep broker and client relationships, Blue Capital
provides investors access to the entire catastrophe reinsurance market.
Additional information regarding Blue Capital can be found at www.bluecapital.bm.
Montpelier, through its operating subsidiaries, is a premier provider of
global property and casualty reinsurance and insurance products.
Additional information regarding Montpelier can be found at www.montpelierre.bm.
Shares of the Fund have not been registered under the Securities
Act of 1933, as amended (the "Securities Act"), and may not be offered
or sold in the United States or to, or for the account or benefit of,
U.S. persons without registration or an applicable exemption from the
requirements of the Securities Act. This press release
shall not constitute an offer to sell or the solicitation of an offer to
buy shares of the Fund.
Application of the Safe Harbor of the Private Securities
Reform Act of 1995:
This press release contains forward-looking statements within the
meaning of the United States federal securities laws, pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995, that are not historical facts, including statements about our
beliefs and expectations. These statements are based upon current plans,
estimates and projections. Forward-looking statements rely on a number
of assumptions concerning future events and are subject to a number of
uncertainties and various risk factors, many of which are outside the
Company's control, that could cause actual results to differ materially
from such statements. See Item 1A "Risk Factors" contained in our
Annual Report on Form 10-K for the fiscal year ended December 31, 2011,
as filed with the Securities and Exchange Commission. In particular,
statements using words such as "may," "should," "estimate," "expect,"
"anticipate," "intend," "believe," "predict," "potential," or words of
similar meaning generally involve forward-looking statements.
Important events and uncertainties that could cause our actual
results, future dividends on, or repurchases of, common shares or
preferred shares to differ include, but are not necessarily limited to:
market conditions affecting the prices of our common shares or preferred
shares; the possibility of severe or unanticipated losses from natural
or man-made catastrophes, including those that may result from changes
in climate conditions, including, but not limited to, global
temperatures and expected sea levels; the effectiveness of our loss
limitation methods; our dependence on principal employees; our ability
to execute the business plans of the Company and its subsidiaries
effectively; the cyclical nature of the insurance and reinsurance
business; the levels of new and renewal business achieved; opportunities
to increase writings in our core property and specialty insurance and
reinsurance lines of business and in specific areas of the casualty
reinsurance market and our ability to capitalize on those opportunities;
the sensitivity of our business to financial strength ratings
established by independent rating agencies; the inherent uncertainty of
our risk management process, which is subject to, among other things,
industry loss estimates and estimates generated by modeling techniques;
the accuracy of written premium estimates reported by cedants and
brokers on pro-rata contracts and certain excess-of-loss contracts where
a deposit or minimum premium is not specified in the contract; the
inherent uncertainties of establishing reserves for loss and loss
adjustment expenses, unanticipated adjustments to premium estimates;
changes in the availability, cost or quality of reinsurance or
retrocessional coverage; changes in general economic and financial
market conditions; changes in and the impact of governmental legislation
or regulation, including changes in tax laws in the jurisdictions where
we conduct business; the amount and timing of reinsurance recoverables
and reimbursements we actually receive from our reinsurers; the overall
level of competition, and the related demand and supply dynamics in our
markets relating to growing capital levels in our industry; declining
demand due to increased retentions by cedants and other factors; the
impact of terrorist activities on the economy; rating agency policies
and practices; unexpected developments concerning the small number of
insurance and reinsurance brokers upon whom we rely for a large portion
of revenues; our dependence as a holding company upon dividends or
distributions from our operating subsidiaries; and the impact of foreign
We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
dates on which they are made.
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