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2016-10-31

Endurance Specialty Holdings Ltd: Blue Capital Reinsurance Holdings Reports Third Quarter 2016 Financial Results

HAMILTON, Bermuda - October 31, 2016 - Blue Capital Reinsurance Holdings Ltd.
(NYSE:BCRH) ("Blue Capital"), a Bermuda holding company that, through its
operating subsidiaries, offers collateralized reinsurance in the property
catastrophe market and invests in various insurance-linked securities, today
reported its financial results for the third quarter of 2016.

The Company's net income and operating income was $3.3 million ($0.38 per
share) for the third quarter of 2016 and $10.3 million ($1.17 per share) for
the nine months ended September 30, 2016. The Company's fully converted book
value per common share was $20.44 at September 30, 2016, reflecting a 1.9%
increase for the quarter and a 5.5% increase year-to-date, each inclusive of
dividends declared in such periods.

Reinsurance premiums written for the current quarter were $7.8 million
increasing $1.9 million compared to the same period in 2015. The current
quarter's reinsurance premium growth resulted from a greater level of quota
share premium in the current period which is recognized more evenly
throughout the year compared to a year ago when a greater percentage of
premiums related to excess of loss contracts which were recognized at
contract inception. On a year to date basis, the current period's
reinsurance premiums written of $34.5 million were 2.6% or $0.9 million
higher than the prior year.

The combined ratio for the current quarter was 63.5% compared to 50.8% in the
same period a year ago. The increase in the combined ratio was driven by
higher loss and loss adjustment expenses and higher reinsurance acquisition
costs partially offset by lower general and administrative expenses. Loss and
loss adjustment expenses for the current quarter were $2.6 million compared
to $1.4 million in the same period a year ago as a result of a higher
frequency of losses from smaller events. Reinsurance acquisition costs were
$2.9 million in the current period compared to $2.0 million a year ago due to
the larger concentration of quota share business which maintains a higher
acquisition cost. General and administrative expenses for the current
quarter were $1.1 million, or $0.2 million lower than a year ago due to lower
performance fees based on reduced profitability. On a year to date basis, the
combined ratio was 66.4% in the current period compared to 46.1% in the prior
period. The deterioration in the current period's year to date combined
ratio was largely driven by a significantly higher level of industry global
catastrophe losses compared to a year ago, partially offset by reduced
general and administrative expenses, reflecting lower performance fees.

During the third quarter of 2016, the Company declared a regular dividend of
$0.30 per common share, which was paid on October 14, 2016.

Adam Szakmary, President and CEO, commented: "Our third quarter and year to
date results reflect our effective underwriting and risk management
capabilities as we generated strong profitability despite a greater frequency
of global loss events in 2016. Our strategy of exclusively focusing on
catastrophe exposures to create a portfolio of risks diversified across
global geographies, products and insurers continues to generate attractive
shareholder returns."

About Blue Capital

Blue Capital Reinsurance Holdings Ltd., through its operating subsidiaries,
offers collateralized reinsurance in the property catastrophe market,
leveraging underwriting expertise and infrastructure from established
resources. Underwriting decisions, operations and other management services
are provided to Blue Capital by Blue Capital Management Ltd., a subsidiary
of Endurance Specialty Holdings Ltd. (NYSE: ENH), a recognized global
specialty provider of property and casualty insurance and reinsurance and a
leading property catastrophe and short tail reinsurer since 2001. Additional
information can be found in Blue Capital's public filings with the U.S.
Securities and Exchange Commission or at www.bcapre.bm.

Contacts
Investor Relations
Phone: +1 441 278 0988
Email: investorrelations@endurance.bm

Safe Harbor for Forward-Looking Statements

Some of the statements in this press release may include, and Blue Capital may
make related oral forward-looking statements which reflect our current views
with respect to future events and financial performance. Such statements may
include forward-looking statements both with respect to us in general and the
insurance and reinsurance sectors specifically, both as to underwriting and
investment matters. Statements that include the words "should," "would,"
"expect," "estimates", "intend," "plan," "believe," "project," "target,"
"anticipate," "seek," "will," "deliver," and similar statements of a future
or forward-looking nature identify forward-looking statements in this press
release for purposes of the U.S. federal securities laws or otherwise. We
intend these forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in the Private Securities
Litigation Reform Act of 1995.
All forward-looking statements address matters that involve risks and
uncertainties. Accordingly, there are or may be important factors that could
cause actual results to differ materially from those indicated in the
forward-looking statements. These factors include, but are not limited to,
the effects of competitors' pricing policies, greater frequency or severity
of claims and loss activity, changes in market conditions, decreased demand
for property and casualty reinsurance, changes in the availability, cost or
quality of reinsurance or retrocessional coverage, our inability to renew
business previously underwritten or acquired, uncertainties in our reserving
process, changes to our tax status, reduced acceptance of our existing or new
products and services, a loss of business from and credit risk related to our
broker counterparties, assessments for high risk or otherwise uninsured
individuals, possible terrorism or the outbreak of war, a loss of key
personnel, political conditions, changes in insurance regulation, operational
risk, including the risk of fraud and errors and omissions, as well as
technology breaches or failure, changes in accounting policies, our
investment performance, the valuation of our invested assets, a breach of our
investment guidelines, potential treatment of us as an investment company or
a passive foreign investment company for purposes of U.S. securities laws or
U.S. federal taxation, respectively, our dependence as a holding company upon
dividends or distributions from our operating subsidiaries, the
unavailability of capital in the future, developments in the world's
financial and capital markets and our access to such markets, government
intervention in the insurance and reinsurance industry, illiquidity in the
credit markets, changes in general economic conditions and other factors
described in our Annual Report on Form 10-K for the year ended December 31,
2015 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.
The foregoing review of important factors should not be construed as
exhaustive and should be read in conjunction with the other cautionary
statements that are included herein and elsewhere, including the risk factors
included in Blue Capital's most recent reports on Form 10-K and Form 10-Q and
other documents of Blue Capital on file with the Securities and Exchange
Commission. Any forward-looking statements made in this material are
qualified by these cautionary statements, and there can be no assurance that
the actual results or developments anticipated by Blue Capital will be
realized or, even if substantially realized, that they will have the expected
consequences to, or effects on, Blue Capital or its business or operations.
Except as required by law, Blue Capital undertakes no obligation to update
publicly or revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.
The contents of any website referenced in this press release are not
incorporated by reference herein.
BLUE CAPITAL REINSURANCE HOLDINGS LTD.

CONSOLIDATED BALANCE SHEETS

(In millions of U.S. dollars, except share amounts)

-----------------------------------------------------------------------------------------------------
| September 30, 2016 December 31, 2015 |
| Assets (Unaudited) |
| Cash and cash equivalents $ 4.7 $ 1.0 |
| Cash and cash equivalents pledged as collateral 3.1 5.1 |
| Reinsurance premiums receivable 14.2 15.9 |
| Deferred reinsurance acquisition costs 0.5 0.1 |
| Funds held by reinsured companies as collateral 180.8 195.3 |
| Other assets 1.3 0.2 |
| Total Assets $ 204.6 $ 217.6 |
| Liabilities |
| Loss and loss adjustment expense reserves $ 10.3 $ 4.0 |
| Unearned reinsurance premiums 3.7 1.3 |
| Debt - 13.0 |
| Reinsurance balances payable 7.1 7.6 |
| Other liabilities 4.3 4.1 |
| Total Liabilities 25.4 30.0 |
| Shareholders' Equity |
| Common Shares and additional paid-in capital 8.8 8.8 |
| Additional paid-in capital 165.4 165.3 |
| Retained earnings 5.0 13.5 |
| Total Shareholders' Equity 179.2 187.6 |
| Total Liabilities and Shareholders' Equity $ 204.6 $ 217.6 |
| Common shares outstanding (000s) 8,756 8,752 |
| Common and common equivalent shares outstanding (000s) 8,769 8,762 |
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BLUE CAPITAL REINSURANCE HOLDINGS LTD.

CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME

(In millions of U.S. dollars...

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