NYSE:BCRH

Stock Analysis Report

Blue Capital Reinsurance Holdings

Executive Summary

Blue Capital Reinsurance Holdings Ltd., through its subsidiaries, provides collateralized reinsurance in the property catastrophe market in the United States and internationally.


Snowflake Analysis

Unattractive dividend payer and overvalued.


Similar Companies

Share Price & News

How has Blue Capital Reinsurance Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BCRH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

BCRH

-6.7%

US Insurance

-7.6%

US Market


1 Year Return

-3.5%

BCRH

9.3%

US Insurance

10.2%

US Market

Return vs Industry: BCRH underperformed the US Insurance industry which returned 10.2% over the past year.

Return vs Market: BCRH underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

BCRHIndustryMarket
7 Day-0.2%-6.7%-7.6%
30 Day0.9%-2.8%-4.5%
90 Day-4.8%-2.1%-0.6%
1 Year31.6%-3.5%11.8%9.3%12.5%10.2%
3 Year-45.0%-64.5%25.3%15.8%37.1%28.3%
5 Year-24.9%-60.2%61.6%42.5%60.8%43.2%

Price Volatility Vs. Market

How volatile is Blue Capital Reinsurance Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Blue Capital Reinsurance Holdings undervalued compared to its fair value and its price relative to the market?

0.67x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BCRH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BCRH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BCRH is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: BCRH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BCRH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BCRH is good value based on its PB Ratio (0.7x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

How is Blue Capital Reinsurance Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.1%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Blue Capital Reinsurance Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Blue Capital Reinsurance Holdings performed over the past 5 years?

-62.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCRH is currently unprofitable.

Growing Profit Margin: BCRH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BCRH is unprofitable, and losses have increased over the past 5 years at a rate of -62.1% per year.

Accelerating Growth: Unable to compare BCRH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BCRH is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (34.8%).


Return on Equity

High ROE: BCRH has a negative Return on Equity (-31.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Blue Capital Reinsurance Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BCRH has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BCRH's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BCRH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BCRH is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 53.3% per year.


Financial Institutions Analysis

Asset Level: BCRH's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BCRH has a sufficient allowance for bad loans.

Low Risk Liabilities: BCRH reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BCRH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BCRH has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BCRH has an appropriate level of bad loans.


Next Steps

Dividend

What is Blue Capital Reinsurance Holdings's current dividend yield, its reliability and sustainability?

8.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BCRH's dividend (8.6%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: BCRH's dividend (8.6%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

Stable Dividend: BCRH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BCRH has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: BCRH is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Mike McGuire (46yo)

2.8yrs

Tenure

US$80,138

Compensation

Mr. Michael James McGuire, also known as Mike has been the Chairman of the Board at Blue Capital Reinsurance Holdings Ltd. since August 14, 2015 and as its Chief Executive Officer since April 2016. He serv ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael McGuire
Chairman of the Board2.8yrsUS$80.14kno data
Greg Garside
CFO & Treasurer4.3yrsUS$375.00kno data
John Del Col
Company Secretary & Director2.8yrsUS$74.43kno data
Gregory Schroeter
SVP, Investor Relations & Corporate Development0yrsno datano data

4.3yrs

Average Tenure

47yo

Average Age

Experienced Management: BCRH's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael McGuire
Chairman of the Board2.8yrsUS$80.14kno data
John Del Col
Company Secretary & Director2.8yrsUS$74.43kno data
John Weale
Independent Director6.5yrsUS$80.14k0.098% $60.1k
D. Cook
Independent Director6.4yrsUS$90.14k0.066% $40.5k
Eric Lemieux
Lead Director6.3yrsUS$80.14k0.095% $58.0k

6.3yrs

Average Tenure

57yo

Average Age

Experienced Board: BCRH's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Blue Capital Reinsurance Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Blue Capital Reinsurance Holdings Ltd.
  • Ticker: BCRH
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$61.337m
  • Shares outstanding: 8.78m
  • Website: https://bcrhbluecapital.gcs-web.com

Location

  • Blue Capital Reinsurance Holdings Ltd.
  • Waterloo House
  • 100 Pitts Bay Road
  • Pembroke
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCRHNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 2013

Biography

Blue Capital Reinsurance Holdings Ltd., through its subsidiaries, provides collateralized reinsurance in the property catastrophe market in the United States and internationally. It also invests in various insurance-linked securities. The company was founded in 2013 and is headquartered in Pembroke, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:02
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.