Blue Capital Alternative Income Fd Discount Management Policy and Company Outlook (1555X)
November 21 2017 - 12:03PM
UK Regulatory
TIDMBCAI
RNS Number : 1555X
Blue Capital Alternative Income Fd
21 November 2017
Blue Capital Alternative Income Company Limited (the "Company")
(Ticker: "BCAI")
21 November 2017
Discount Management Policy and Company Outlook
As previously announced, the Company's Ordinary Shares traded at
an average discount of more than 5 per cent to the net asset value
per Ordinary Share over the three month period ending on 31 August
2017. As result, in accordance with the discount management policy
of the Company implemented at the inception of the Company, the
Directors considered various options available to it, including
offering the Shareholders the opportunity to tender shares (the
"Discount Tender Offer").
The Board, having received views from certain major shareholders
and in light of the expected improvement in market conditions, does
not believe it is the right time to reduce the capital base of the
Company. The Board also believes that a reduction in the scale of
the Company will further reduce the liquidity of the Ordinary
Shares and result in the Company's fixed costs being borne by a
smaller net asset base. The Board has therefore decided not to
implement a Discount Tender Offer at this time.
The Chairman stated, "The negative financial impact to the
insurance industry from the third quarter catastrophe events is
estimated to collectively be above $100 billion. Looking forward,
we think it is prudent to retain our full capacity as we expect
market pricing to improve during upcoming renewals and we will
position the Company appropriately in recognition of changing
market conditions."
The Board continues to consider strategic opportunities
available to the Company, including options for increasing the
attractiveness of the Company to investors.
Company Outlook(1)
The Company today also announces its projections for 2018 as
follows:
Loss Scenario Return
--------------- -------
Mean 10.0%
--------------- -------
Median 15.0%
--------------- -------
The Company (through its investment in the Master Fund) does not
expect to pay a Performance Fee for 2017 or 2018.
For more information about the Company, including access to the
Company's monthly Fact Sheets and Investor Presentations, please
visit our website at www.bcai.bm.
Important notices and disclaimers
The decision not to implement a Discount Tender Offer
constitutes Inside Information as defined under the Market Abuse
Regulation (EU) No. 596/2014.
This announcement is for general information only and does not
constitute or form part of, and should not be construed as, an
offer for sale or subscription of, or a solicitation of any offer
to buy or exchange or subscribe for, any securities.
This announcement may include "forward-looking statements". All
statements other than statements of historical facts included in
this announcement, including, without limitation, those regarding
the Company's financial position, strategy, plans, proposed
acquisitions and objectives are forward-looking statements.
Forward-looking statements are subject to risks and uncertainties
and accordingly the Company's actual future financial results and
operational performance may differ materially from the results and
performance expressed in, or implied by, the statements. These
forward-looking statements speak only as at the date of this
announcement. The Company, Blue Capital Management Ltd. and Stifel
Nicolaus Europe Limited expressly disclaim any obligation or
undertaking to update or revise any forward-looking statements
contained herein to reflect actual results or any change in the
assumptions, conditions or circumstances on which any such
statements are based unless required to do so by the Financial
Services and Markets Act 2000, the Prospectus Rules of the
Financial Conduct Authority or other applicable laws, regulations
or rules.
Enquiries:
Blue Capital Management Ltd.
Michael J. McGuire +1 441 278 0988
Email: investorrelations@Sompo-Intl.com
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Neil Winward
Mark Bloomfield
Tunga Chigovanyika
(1) The projections are based on the planned 2018 portfolio and
assume loss affected ceded and quota share agreements will benefit
from rate increases ranging from estimates of 15 to 25 per cent in
2018 with other agreements expected to benefit from an estimated
rate increase of 2.5 per cent. in 2018 (in each case compared to
2017 and net of expenses). The Projections also reflect the
collateral expected to be available for redeployment during 2018
taking into account loss events in 2017 and associated buffer loss
provisions. The estimated 2018 projected net asset value ("NAV")
return projections do not comprise a profit forecast and have been
provided for illustrative and comparative purposes only. The
projections are derived by reference to the collateral held, the
contracts written to date and take into account the modelled mean
and median catastrophe losses. As such, the projections set out
above should not in any way be construed as forecasting the
Company's actual NAV growth or returns should the losses not occur.
Past performance cannot be relied on as a guide to future
performance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCPGGPUGUPMGMG
(END) Dow Jones Newswires
November 21, 2017 12:03 ET (17:03 GMT)
Blue Capital (LSE:BCAI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Blue Capital (LSE:BCAI)
Historical Stock Chart
From Jul 2023 to Jul 2024