Blue Capital Reinsurance (BCRHF) 10-Q8 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2014	Aug. 01, 2014
Document and Entity Information	'	'
Entity Registrant Name	'BLUE CAPITAL REINSURANCE HOLDINGS LTD.	'
Entity Central Index Key	'0001582086	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	8,750,000
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Assets	'	'
Cash and cash equivalents	$25.20	$173.80
Reinsurance premiums receivable	11.1	'
Deferred reinsurance acquisition costs	0.9	'
Funds held by ceding companies	163.9	'
Other assets	0.8	1.7
Total Assets	201.9	175.5
Liabilities	'	'
Loss and loss adjustment expense reserves	7.9	'
Unearned reinsurance premiums	11.2	'
Accounts payable and accrued expenses (See Note 10)	5.5	0.7
Other liabilities	2	1.5
Total Liabilities	26.6	2.2
Commitments and Contingent Liabilities (See Note 11)	'	'
Shareholders' Equity	'	'
Common Shares, at par value - 8,750,000 shares issued and outstanding	8.8	8.8
Additional paid-in capital	165.2	165.2
Retained earnings (deficit)	1.3	-0.7
Total Shareholders' Equity	175.3	173.3
Total Liabilities and Shareholders' Equity	$201.90	$175.50

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical)	Jun. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Common shares issued (in shares)	8,750,000	8,750,000
Common shares outstanding	8,750,000	8,750,000

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $)	3 Months Ended	6 Months Ended
In Millions, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014
Revenues	'	'
Reinsurance premiums written	$10.70	$32.50
Change in net unearned reinsurance premiums	0.4	-11.2
Net reinsurance premiums earned	11.1	21.3
Net income from derivative instruments	0.1	0.2
Total revenues	11.2	21.5
Underwriting expenses:	'	'
Loss and loss adjustment expenses	7.3	8.2
Reinsurance acquisition costs	1.5	3.7
General and administrative expenses	1.1	2.2
Non-underwriting expenses:	'	'
Interest and financing expenses	0.1	0.1
Total expenses	10	14.2
Net income	1.2	7.3
Comprehensive income	$1.20	$7.30
Per share data:	'	'
Basic and diluted earnings per Common Share (in dollars per share)	$0.13	$0.83
Dividends declared per Common Share (in dollars per share)	$0.30	$0.60

CONSOLIDATED_STATEMENTS_OF_SHA

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Total	Common Shares, at par value	Additional paid-in capital	Retained earnings (deficit)
In Millions, unless otherwise specified	Total	Common Shares, at par value	Additional paid-in capital	Retained earnings (deficit)
Balance at the start of the period at Dec. 31, 2013	$173.30	$8.80	$165.20	($0.70)
Increase Decrease in Shareholder's Equity	'	'	'	'
Net income	7.3	'	'	7.3
Dividends declared on Common Shares	-5.3	'	'	-5.3
Balance at the end of the period at Jun. 30, 2014	$175.30	$8.80	$165.20	$1.30

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014
Cash flows from operations:	'
Net income	$7.30
Net change in:	'
Loss and loss adjustment expense reserves	7.9
Unearned reinsurance premiums	11.2
Deferred reinsurance acquisition costs	-0.9
Reinsurance premiums receivable	-11.1
Funds held by ceding companies	-163.9
Accounts payable and accrued expenses	2.1
Other assets	0.9
Other liabilities	0.5
Net cash and cash equivalents used for operations	-146
Cash flows from financing activities:	'
Dividends paid to common shareholders	-2.6
Net cash and cash equivalents used for financing activities	-2.6
Net decrease in cash and cash equivalents during the period	-148.6
Cash and cash equivalents - beginning of period	173.8
Cash and cash equivalents - end of period	$25.20

Basis_of_Presentation_and_Summ

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Basis of Presentation and Summary of Significant Accounting Policies	'
Basis of Presentation and Summary of Significant Accounting Policies	'
	NOTE 1. Basis of Presentation and Summary of Significant Accounting Policies

	Basis of Presentation

	Blue Capital Reinsurance Holdings Ltd. (the “Company” or the “Registrant”) is a Bermuda exempted limited liability company that, through its subsidiaries (collectively “Blue Capital”), offers collateralized reinsurance in the property catastrophe market and invests in various insurance-linked securities. The Company was incorporated under the laws of Bermuda on June 24, 2013, commenced its operations on November 12, 2013, and does not have any material operating history. The Company’s headquarters and principal executive offices are located at 94 Pitts Bay Road, Pembroke, Bermuda HM 08.

	The unaudited consolidated financial statements incorporated in this report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”), as filed with the Securities and Exchange Commission (the “SEC”). In the opinion of management, these interim consolidated financial statements include all normally recurring adjustments considered necessary to fairly present the Company’s financial position, results of operations and cash flows. All significant intercompany accounts and transactions have been eliminated in consolidation. These interim consolidated financial statements may not be indicative of financial results for the full year. The December 31, 2013 condensed balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by GAAP.

	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues earned and expenses incurred during the period. Actual results could differ materially from those estimates. The significant estimates reflected in these interim consolidated financial statements include, but are not limited to, loss and loss adjustment expense (“LAE”) reserves and written and earned reinsurance premiums.

	For the period from June 24, 2013 through June 30, 2013, the Company had no operating revenues or expenses and the Company’s sole shareholder at that time, Montpelier Re Holdings Ltd. (“Montpelier”), incurred all of the fees and expenses related to the Company’s formation, which totaled less than $0.1 million. The Company was not required to reimburse Montpelier for any such fees and expenses related to its formation. In addition, on June 24, 2013, Montpelier provided the Company with its initial capital contribution, which also totaled less than $0.1 million.

	Overview

	On November 5, 2013, the Company’s registration statement on Form S-1 was declared effective, pursuant to which it sold 6,250,000 Common Shares to the public at a price of $20.00 per share (the “IPO”). Concurrent with the IPO, the Company completed a private placement with Montpelier Reinsurance Ltd. (“Montpelier Re”), a wholly-owned subsidiary of Montpelier, pursuant to which it sold an additional 2,500,000 Common Shares at a price of $20.00 per share (the “Private Placement”). The Company’s total gross proceeds from the IPO and the Private Placement were $175.0 million, and its total net proceeds (expressed after its net expenses associated with the IPO) were $174.0 million. The Company’s Common Shares began trading on the New York Stock Exchange on November 6, 2013 under the symbol “BCRH” and were subsequently listed on the Bermuda Stock Exchange under the symbol “BCRH.BH.”

	The Company operates as a single business segment through its wholly-owned subsidiaries: (i) Blue Capital Re Ltd. (“Blue Capital Re”), a Bermuda Class 3A insurer which offers collateralized reinsurance; and (ii) Blue Capital Re ILS Ltd. (“Blue Capital Re ILS”), a Bermuda exempted limited liability company which conducts hedging and other investment activities, including entering into industry loss warranties and purchasing catastrophe bonds, in support of Blue Capital Re’s operations.

	The Company’s business strategy is to build a diversified portfolio of reinsurance risks that will generate underwriting profits, which it intends to principally distribute through the payment of dividends, with returns commensurate with the amount of risk assumed. The Company seeks to provide its shareholders with the opportunity to own an alternative asset class whose returns are believed to have historically been largely uncorrelated to those of other asset classes, such as global equities, bonds and hedge funds. Subject to the discretion of the Company’s board of directors (the “Board”), the Company currently intends to distribute a minimum of 90% of its Distributable Income in the form of cash dividends to its holders of Common Shares. “Distributable Income,” a non-GAAP measure, means the Company’s net income excluding any non-cash compensation expense, unrealized gains and losses and other non-cash items recorded in its net income for the period. Subject to the discretion of the Board, the Company intends to make regular quarterly dividend payments for each of the first three quarters of each year, followed by a fourth “special” dividend after the end of the year to meet its dividend payout target for each calendar year.

	Through each of the following roles and relationships, the Company leverages Montpelier’s reinsurance underwriting expertise and infrastructure to conduct its business: (i) Blue Capital Management Ltd. (the “Investment Manager”) and Blue Capital Insurance Managers Ltd. (the “Reinsurance Manager”), each wholly-owned subsidiaries of Montpelier (collectively referred to herein as the “Managers”), manage Blue Capital Re’s and Blue Capital Re ILS’s reinsurance underwriting decisions; (ii) Blue Water Re Ltd. (“Blue Water Re”), Montpelier’s wholly-owned special purpose insurance vehicle, is a significant source of reinsurance business for Blue Capital Re; and (iii) certain officers of Montpelier also serve as the Company’s Chief Executive Officer, the Company’s interim Chief Financial Officer, and as two of the Company’s five directors, including the role of Chairman. See Note 10.

	The Company qualifies as an “emerging growth company” as defined in Section 2(a)(19) of the Securities Act of 1933, as amended, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As a result, the Company is eligible to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies. The Company intends to continue to take advantage of some, but not all, of the exemptions available to emerging growth companies until such time that it is no longer an emerging growth company. The Company has, however, irrevocably elected not to take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies.

	Cash and Cash Equivalents

	Blue Capital’s cash and cash equivalents of $25.2 million and $173.8 million at June 30, 2014 and December 31, 2013, respectively, consist of cash and fixed income investments with maturities of less than three months, as measured from the date of purchase. For all periods presented, the amortized cost of each of Blue Capital’s cash equivalents approximated their fair value.

	Net investment income is recorded net of investment management, custody and other investment-related expenses. During the three and six month periods ended June 30, 2014, the amount of net investment income that Blue Capital earned on its cash and cash equivalents totaled less than $0.1 million.

	Amounts Held in Trust for the Benefit of Ceding Companies

	Blue Capital Re does not operate with a financial strength rating and, instead, fully collateralizes its reinsurance obligations through cash and cash equivalents held in various trust funds established for the benefit of ceding companies.

	As of June 30, 2014, Blue Capital had pledged $20.6 million of cash and cash equivalents to trust accounts established for the benefit of Blue Water Re (in support of the BW Retrocessional Agreement - see Note 10) and third parties. These funds are presented on the Company’s Consolidated Balance Sheets as “cash and cash equivalents.”

	As of June 30, 2014, Blue Capital had transferred $163.9 million of cash and cash equivalents to a trust account established by Blue Water Re for its benefit (in support of the BW Retrocessional Agreement - see Note 10). These funds are presented on the Company’s Consolidated Balance Sheets as “funds held by ceding companies.”

	As of December 31, 2013, Blue Capital was not required to establish any trust accounts for the benefit of Blue Water Re or third-parties.

	Reinsurance Premiums and Acquisition Costs

	Blue Capital Re writes reinsurance contracts on both an excess-of-loss and a pro-rata basis. For excess-of-loss contracts, written premiums are typically based on the deposit or minimum premium specified in the reinsurance contract. For pro-rata contracts, written premiums are recognized based on estimates of ultimate premiums provided by either the ceding companies or the Managers.

	All of Blue Capital Re’s reinsurance contracts are currently being written on a losses-occurring basis, which means that all claims occurring during the period of the contract are covered, regardless of the inception dates of the underlying policies. Any claims occurring after the expiration of a losses-occurring contract are not covered.

	For reinsurance contracts which incorporate minimum premium amounts, Blue Capital Re typically writes the entire ultimate premium at inception, and earns the associated premium after the premium is written over the term of the contract. For reinsurance contracts which do not incorporate minimum premium amounts, Blue Capital Re typically writes the premium over the term of the contract, and earns the associated premium in the same periods that the premium is written.

	Subsequent adjustments of written premium, based on reports of actual premium by the ceding companies, or revisions in estimates of ultimate premium, are recorded in the period in which they are determined. Such adjustments are generally determined after the associated risk periods have expired, in which case the premium adjustments are fully written when earned.

	Unearned reinsurance premiums represent the portion of premiums written that are applicable to future reinsurance coverage provided by in-force contracts.

	Reinsurance premiums receivable are recorded at amounts due less any provision for doubtful accounts. As of June 30, 2014 and December 31, 2013, Blue Capital Re did not require a provision for doubtful accounts.

	When a reinsurance contract provides for a reinstatement of coverage following a covered loss, the associated reinstatement premiums are recorded as both written and earned when Blue Capital Re determines that such a loss event has occurred.

	Deferred reinsurance acquisition costs are comprised of commissions, brokerage costs, premium taxes and excise taxes, each of which relates directly to the writing of reinsurance contracts. Deferred acquisition costs are typically amortized over the underlying risk period of the related contracts. However, if the sum of a contract’s expected losses and LAE and deferred acquisition costs exceeds related unearned premiums and any projected investment income, a premium deficiency is determined to exist. In this event, deferred acquisition costs are immediately expensed to the extent necessary to eliminate the premium deficiency. If the premium deficiency exceeds deferred acquisition costs then a liability is accrued for the excess deficiency. There were no premium deficiency adjustments recognized during the three or six month periods ended June 30, 2014.

	Deferred reinsurance acquisition costs also include incurred profit commissions.

	Ceded Reinsurance

	In the normal course of business, Blue Capital Re may purchase reinsurance in order to manage its exposures. The amount of reinsurance that Blue Capital Re may buy will vary from year to year depending on its risk appetite, as well as the availability and cost of the reinsurance coverage. Ceded reinsurance premiums will be accounted for on a basis consistent with those used in accounting for the underlying reinsurance premiums assumed and will be reported as a reduction of net reinsurance premiums written and earned.

Under Blue Capital Re’s reinsurance security policy, reinsurers are typically required to be rated “A-” (Excellent) or better by A.M. Best (or an equivalent rating with another recognized rating agency) at the time the policy is written. Blue Capital Re also considers reinsurers that are not rated or do not fall within this threshold on a case-by-case basis, if adequately collateralized.

As of June 30, 2014 and December 31, 2013, Blue Capital Re had not purchased any reinsurance.

Fair Value Hierarchy

GAAP establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value of certain assets and liabilities into the three broad levels described below. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date, Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, and Level 3 inputs are unobservable inputs (i.e., on the basis of pricing models with significant unobservable inputs or non-binding broker quotes) for the asset or liability.

Recent Accounting Pronouncements

There have been no recent accounting pronouncements that are expected to have a material impact on the presentation of either the Company’s Consolidated Statements of Operations and Comprehensive Income or its Consolidated Balance Sheets.

Loss_and_LAE_Reserve_Movements

Loss and LAE Reserve Movements	6 Months Ended
	Jun. 30, 2014
Loss and LAE Reserve Movements	'
Loss and LAE Reserve Movements	'
	NOTE 2. Loss and LAE Reserve Movements

	The following table summarizes Blue Capital Re’s loss and LAE reserve movements for the three and six month periods ended June 30, 2014 and 2013:

		Three Month Periods					Six Month Periods
		Ended June 30,					Ended June 30,
		2014			2013		2014			2013
	Gross unpaid loss and LAE reserves - beginning	$	0.9		$	—	$	—		$	—
	Reinsurance recoverable on unpaid losses - beginning	—			—		—			—
	Net unpaid loss and LAE reserves - beginning	0.9			—		—			—
	Losses and LAE incurred	7.3			—		8.2			—
	Losses and LAE paid and approved for payment	(0.3		)	—		(0.3		)	—
	Movement in net unpaid loss and LAE reserves	7			—		7.9			—
	Net unpaid loss and LAE reserves - ending	7.9			—		7.9			—
	Reinsurance recoverable on unpaid losses - ending	—			—		—			—
	Gross unpaid loss and LAE reserves - ending	$	7.9		$	—	$	7.9		$	—

	Loss and LAE reserves are comprised of case reserves (which are based on claims that have been reported) and IBNR reserves (which are based on losses that are believed to have occurred but for which claims have not yet been reported and may include a provision for expected future development on existing case reserves). Case reserves are set on the basis of loss reports received from third parties. IBNR reserves are estimated by management using various actuarial methods as well as a combination of the Manager’s own loss experience, historical industry loss experience and management and the Manager’s professional judgment.

	The uncertainties inherent in the reserving process, potential delays by cedants and brokers in the reporting of loss information, together with the potential for unforeseen adverse developments, may result in loss and LAE reserves ultimately being significantly greater or less than the reserve provided at the end of any given reporting period. The degree of uncertainty is further increased when a significant loss event takes place near the end of a reporting period. Loss and LAE reserve estimates are regularly reviewed and updated as new information becomes known. Any resulting adjustments are reflected in income in the period in which they become known.

	Blue Capital Re’s reserving process is highly dependent on loss information received from its cedants and the Managers.

	During the three and six month periods ended June 30, 2014, Blue Capital Re established $7.3 million and $8.2 million of loss and LAE reserves, respectively, for estimated losses incurred during such periods. As of December 31, 2013, Blue Capital Re had not yet established any loss and LAE reserves.

Derivative_Instruments

Derivative Instruments	6 Months Ended
Derivative Instruments	Jun. 30, 2014
Derivative Instruments	'
Derivative Instruments	'
	NOTE 3. Derivative Instruments

	Inward ILW Swap

	In December 2013 Blue Capital Re ILS entered into an ILW swap (the “Inward ILW Swap”) with a third-party under which qualifying loss payments are triggered by reference to the level of losses incurred by the insurance industry as a whole, rather than by losses incurred by the insured. In return for a fixed payment of $1.5 million, Blue Capital Re ILS is required to make a floating-rate payment in the event of certain losses incurred from specified natural catastrophes in the U.S., Europe, Japan, Australia and New Zealand from November 2013 to December 2014. Blue Capital Re ILS’s maximum payment obligation under the Inward ILW Swap is $10.0 million. Through June 30, 2014, Blue Capital Re ILS was not aware of any industry loss event occurring that would have triggered a payment obligation under the Inward ILW Swap.

	The Inward ILW Swap is valued on the basis of models developed by the Managers, which represent unobservable (Level 3) inputs. See Note 1. As of June 30, 2014 and December 31, 2013, the fair value of the Inward ILW Swap was $1.3 million and $1.5 million, respectively, and was recorded as an other liability on the Company’s Consolidated Balance Sheets.

	Outward ILW Swap

	In June 2014 Blue Capital Re ILS entered into an ILW swap (the “Outward ILW Swap”) with a third-party in order to purchase protection against U.S. wind exposures from June 2014 to December 2014. In return for a fixed payment of $0.7 million, Blue Capital Re ILS is entitled to receive a floating payment in the event of certain losses incurred by the insurance industry as a whole. The maximum recovery to Blue Capital Re ILS under the Outward ILW Swap is $3.7 million. Through June 30, 2014, Blue Capital Re ILS was not aware of any industry loss event occurring that would have triggered a recovery under the Outward ILW Swap.

	The Outward ILW Swap is valued on the basis of models developed by the Managers, which represent unobservable (Level 3) inputs. See Note 1. As of June 30, 2014, the fair value of the Outward ILW Swap was $0.7 million, which was recorded as an other asset on the Company’s Consolidated Balance Sheets.

	During the three and six month periods ended June 30, 2014, Blue Capital Re ILS recognized net income from derivative instruments of $0.1 million and $0.2 million, respectively, pursuant to the Inward and Outward ILW Swaps.

Shareholders_Equity

Shareholders' Equity	6 Months Ended
Shareholders' Equity	Jun. 30, 2014
Shareholders' Equity	'
Shareholders' Equity	'
	NOTE 4. Shareholders’ Equity

	Common Shares

	The Company’s share capital consists of Common Shares with a $1.00 par value per share. Holders of Common Shares are entitled to one vote for each share held, subject to any voting limitations imposed by the Company’s Bye-Laws. As of June 30, 2014 and December 31, 2013, the Company had 8,750,000 Common Shares outstanding.

	Common Share Dividends

	The Company declared cash dividends per Common Share of $0.30 and $0.60 during the three and six month periods ended June 30, 2014, respectively. The total amount of dividends paid to holders of Common Shares during the six month period ended June 30, 2014 was $2.6 million. As of June 30, 2014, the Company had $2.7 million of dividends payable to holders of Common Shares, which is included within accounts payable and accrued expenses on its Consolidated Balance Sheet at June 30, 2014.

	There are restrictions on the payment of dividends to the Company from Blue Capital Re. See Note 9. Any future determination to pay dividends to holders of Common Shares will be at the discretion of the Board and will be dependent upon many factors, including the Company’s results of operations, cash flows, financial position, capital requirements, general business opportunities, and legal, regulatory and contractual restrictions.

	Common Share Repurchase Authorization

	As of June 30, 2014, the Company had no Common Share repurchase authorization as part of publicly announced plans or programs.

Basic_and_Diluted_Earnings_Per

Basic and Diluted Earnings Per Common Share	6 Months Ended
	Jun. 30, 2014
Basic and Diluted Earnings Per Common Share	'
Basic and Diluted Earnings Per Common Share	'
	NOTE 5. Basic and Diluted Earnings Per Common Share

	The Company applies the two-class method of calculating its earnings per Common Share. In applying the two-class method, any outstanding Restricted Share Units (“RSUs”) are considered to be participating securities. See Note 7. For all periods presented in which RSUs were outstanding, the two-class method was used to determine basic and diluted earnings per Common Share since this method yielded a more dilutive result than the treasury stock method.

	For purposes of determining basic and diluted earnings per Common Share, a portion of net income is allocated to outstanding RSUs which serves to reduce the Company’s earnings per Common Share numerators. Net losses are not allocated to outstanding RSUs and, therefore, do not impact the Company’s loss per Common Share numerators in the event of a loss per Common Share.

	The following table outlines the Company’s computation of its basic and diluted earnings per Common Share for the three and six month periods ended June 30, 2014 and 2013:

		Three Month Periods				Six Month Periods
		Ended June 30,				Ended June 30,
		2014		2013		2014		2013
	Net income	$	1.2	$	—	$	7.3	$	—
	Less: net earnings allocated to participating securities (1)	—		—		—		—
	Earnings per Common Share numerator	$	1.2	$	—	$	7.3	$	—

	Average Common Shares outstanding (in thousands of shares)	8,750		1		8,750		1

	Basic and diluted earnings per Common Share	$	0.13	$	—	$	0.83	$	—

	(1) For the three and six month periods ended June 30, 2014, the net earnings allocated to participating securities totaled less than $0.1 million.

Credit_Facility

Credit Facility	6 Months Ended
Credit Facility	Jun. 30, 2014
Credit Facility	'
Credit Facility	'
	NOTE 6. Credit Facility

	On May 2, 2014, the Company entered into a 364-day unsecured credit agreement (the “Credit Agreement”) which permits it to borrow up to $20.0 million on a revolving basis for working capital and general corporate purposes. Montpelier serves as a guarantor for the Credit Agreement and is entitled to receive an annual guarantee fee from the Company equal to 0.125% of the total capacity of the Credit Facility. See Note 10.

	The Credit Agreement contains covenants that limits the Company’s and, to a lesser extent, Montpelier’s ability, among other things, to grant liens on its assets, sell assets, merge or consolidate, incur debt and enter into certain transactions with affiliates. If the Company or Montpelier were to fail to comply with any of these covenants, the issuer of the Credit Agreement could revoke the facility and exercise remedies against the Company or Montpelier.

	As of June 30, 2014, the Company and Montpelier were in compliance with each of the covenants associated with the Credit Agreement.

	The Company incurred $0.1 million in non-recurring fees in establishing the Credit Facility and is subject to an ongoing annual commitment and administrative fee of 0.375% of the total capacity of the Credit Facility. As of June 30, 2014, there were no borrowings made under the Credit Agreement.

ShareBased_Compensation

Share-Based Compensation	6 Months Ended
Share-Based Compensation	Jun. 30, 2014
Share-Based Compensation	'
Share-Based Compensation	'
	NOTE 7. Share-Based Compensation

	At the discretion of the Board’s Compensation and Nominating Committee, incentive awards, the value of which are based on Common Shares, may be made to the Company’s directors, future employees and consultants.

	The Company’s 2013 Long-Term Incentive Plan (the “2013 LTIP”), which was adopted by the Board on September 27, 2013, permits the issuance of up to one percent of the aggregate Common Shares outstanding (at the time of grant) to participants.

	Incentive awards that may be granted under the 2013 LTIP include RSUs, restricted Common Shares, incentive share options (on a limited basis), non-qualified share options, share appreciation rights, deferred share units, performance compensation awards, performance units, cash incentive awards and other equity-based and equity-related awards.

	In June 2014, the Company awarded a total of 7,000 RSUs to its directors. The RSUs awarded earn ratably each year based on continued service as a director over a three-year vesting period. The grant date fair value of the RSUs awarded was $0.1 million. In determining the grant date fair value associated with the RSUs awarded, the Company assumed a forfeiture rate of zero. This forfeiture assumption may be adjusted, if necessary, based on future experience.

	During the three and six month periods ended June 30, 2014, the Company recognized less than $0.1 million of RSU expense. The Company expects to incur future RSU expense associated with its currently outstanding RSUs of less than $0.1 million during each of 2014, 2015, 2016 and 2017.

	As of December 31, 2013, there were no incentive awards outstanding under the 2013 LTIP.

Income_Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2014
Income Taxes	'
Income Taxes	'
	NOTE 8. Income Taxes

	The Company and its subsidiaries are domiciled in Bermuda and each have received an assurance from the Bermuda government exempting them from all local income, withholding and capital gains taxes until March 31, 2035. At the present time, no such taxes are levied in Bermuda.

	The Company and its subsidiaries currently intend to conduct substantially all of their operations in Bermuda in a manner such that they will not be engaged in a trade or business in the U.S. However, because there is no definitive authority regarding activities that constitute being engaged in a trade or business in the U.S. for federal income tax purposes, the Company cannot assure that the U.S. Internal Revenue Service will not contend, perhaps successfully, that the Company or any of its subsidiaries is engaged in a trade or business in the U.S. A foreign corporation deemed to be so engaged would be subject to U.S. federal income tax, as well as branch profits tax, on its income that is treated as effectively connected with the conduct of that trade or business unless the corporation is entitled to relief under an applicable tax treaty.

Regulation_and_Capital_Require

Regulation and Capital Requirements	6 Months Ended
Regulation and Capital Requirements	Jun. 30, 2014
Regulation and Capital Requirements	'
Regulation and Capital Requirements	'
	NOTE 9. Regulation and Capital Requirements

	Blue Capital Re is registered under The Insurance Act 1978 of Bermuda and related regulations, as amended (the “Insurance Act”), as a Class 3A insurer. Class 3A insurers benefit from an expedited application process, less regulatory stringency and minimal capital and surplus requirements. As a result of the approvals received from the Bermuda Monetary Authority (the “BMA”) and the terms of Blue Capital Re’s business plan, Blue Capital Re’s reinsurance contracts must be fully-collateralized. Further, Blue Capital Re is not required to prepare and file statutory financial statements or statutory financial returns annually with the BMA. However, beginning in 2014, Blue Capital Re is required to prepare and file annual audited GAAP financial statements with the BMA.

	The Insurance Act limits the maximum amount of annual dividends and distributions that may be paid by Blue Capital Re and provides that the value of the assets of an insurer must exceed the value of its liabilities by an amount greater than its prescribed minimum solvency margin. If Blue Capital Re were to fail to meet its minimum solvency margin on the last day of any financial year, it would be prohibited from declaring or paying any dividends during the next financial year without the approval of the BMA. Blue Capital Re’s minimum solvency margin has been set by the BMA to be $1.0 million at all times.

	The Insurance Act also provides a minimum liquidity ratio and requires general business insurers and reinsurers to maintain the value of their relevant assets at not less than 75% of the amount of their relevant liabilities.

	As of June 30, 2014 and December 31, 2013, the value of Blue Capital Re’s assets exceeded the value of its liabilities and its minimum solvency margin by $168.4 million and $159.0 million, respectively, and it comfortably met its minimum liquidity ratio requirements at such dates.

	Blue Capital Re may dividend all of its retained earnings to its parent at any time without BMA approval. As of June 30, 2014 and December 31, 2013, Blue Capital Re had retained earnings of $9.4 million and less than $0.1 million, respectively.

	Blue Capital Re may not reduce its total capital by 15% or more, as set out in its previous year’s financial statements, unless it has received the prior approval of the BMA. Total capital consists of the insurer’s paid in share capital, its contributed surplus (sometimes called additional paid in capital) and any other fixed capital designated by the BMA as capital. With respect to the year ended December 31, 2014, Blue Capital Re has the ability to distribute up to $24.0 million of its total capital to its parent without BMA approval.

	Blue Capital Re has not distributed any of its total capital or declared or paid any dividends since its inception.

	The Bermuda Companies Act 1981 also limits the Company’s and Blue Capital Re’s ability to pay dividends and distributions to its shareholders. Neither the Company nor Blue Capital Re is permitted to declare or pay a dividend, or make a distribution out of contributed surplus, if it is, or would after the payment be, unable to pay its liabilities as they become due, or if the realizable value of its assets would be less than its liabilities.

Related_Party_Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2014
Related Party Transactions	'
Related Party Transactions	'
	NOTE 10. Related Party Transactions

	Through each of the following roles and relationships, the Company leverages Montpelier’s reinsurance underwriting expertise and infrastructure to conduct its business: (i) the Managers, each a wholly-owned subsidiary of Montpelier, manage Blue Capital Re’s and Blue Capital Re ILS’s reinsurance underwriting decisions; (ii) Blue Water Re, Montpelier’s wholly-owned special purpose insurance vehicle, is a significant source of reinsurance business for Blue Capital Re; (iii) Mr. William Pollett, Montpelier’s Chief Corporate Development and Strategy Officer and Treasurer, serves as a director of the Company and the Chief Executive Officer of the Company; (iv) Mr. Michael Paquette, Montpelier’s Chief Financial Officer, serves as the Company’s interim Chief Financial Officer; and (v) Mr. Christopher Harris, Montpelier’s Chief Executive Officer, serves as Chairman of the Company.

	As of June 30, 2014 and December 31, 2013, Montpelier owned 29.6% and 28.6% of the Company’s outstanding Common Shares, respectively.

	Services Provided to the Company and its Subsidiaries by Montpelier

	Montpelier provides services to the Company and its subsidiaries through the following arrangements:

	BW Retrocessional Agreement. Through a retrocessional contract dated December 31, 2013 (the “BW Retrocessional Agreement”), between Blue Capital Re and Blue Water Re, Blue Water Re has the option to cede to Blue Capital Re up to 100% of its participation in the ceded reinsurance business it writes, provided that such business is in accordance with Blue Capital Re’s underwriting guidelines. Pursuant to the BW Retrocessional Agreement, Blue Capital Re may participate in: (i) retrocessional, quota share or other agreements between Blue Water Re and Montpelier Re or other third-party reinsurers, which provide it with the opportunity to participate in a diversified portfolio of risks on a proportional basis; and (ii) fronting agreements between Blue Water Re and Montpelier Re or other well capitalized third-party rated reinsurers, which allow Blue Capital Re to transact business with counterparties who prefer to enter into contracts with rated reinsurers.

	Investment Management Agreement. The Company has entered into an Investment Management Agreement with the Investment Manager. Pursuant to the terms of the Investment Management Agreement, the Investment Manager has full discretionary authority, including the delegation of the provision of its services, to manage the Company’s assets, subject to its underwriting guidelines, the terms of the Investment Management Agreement and the oversight of the Board.

	Underwriting and Insurance Management Agreement. The Company, Blue Capital Re and the Reinsurance Manager have entered into an Underwriting and Insurance Management Agreement (the “Underwriting and Insurance Management Agreement”). Pursuant to the Underwriting and Insurance Management Agreement, the Reinsurance Manager provides underwriting, risk management, claims management, ceded retrocession agreements management, and actuarial and reinsurance accounting services to Blue Capital Re. The Reinsurance Manager has full discretionary authority to manage the underwriting decisions of Blue Capital Re, subject to Blue Capital Re’s underwriting guidelines, the terms of the Underwriting and Insurance Management Agreement and the oversight of the Board.

	Administrative Services Agreement. The Company has entered into an Administrative Services Agreement with Investment Manager (the “Administrative Services Agreement”). Pursuant to the terms of the Administrative Services Agreement, the Investment Manager provides the Company and its subsidiaries with support services, including the services of Messrs. Pollett and Paquette, as well as finance and accounting, claims management and policy wording, modeling software licenses, office space, information technology, human resources and administrative support.

	During the three month and six month periods ended June 30, 2014, all of the reinsurance business of Blue Capital Re was originated pursuant to the BW Retrocessional Agreement.

	During the three and six month periods ended June 30, 2014, the Company incurred general and administrative expenses of $0.6 million and $1.3 million, respectively, pursuant to the Investment Management Agreement, $0.2 million and $0.3 million, respectively, pursuant to the Administrative Services Agreement and zero and less than $0.1 million, respectively, pursuant to the Underwriting and Insurance Management Agreement.

	As of June 30, 2014 and December 31, 2013, the Company owed Montpelier $1.6 million and $0.5 million, respectively, for the services performed pursuant to the Investment Management Agreement, the Underwriting and Insurance Management Agreement and the Administrative Services Agreement.

	In addition to the foregoing, on May 2, 2014, the Company entered into the Credit Agreement which permits it to borrow up to $20.0 million on a revolving basis for working capital and general corporate purposes. Montpelier serves as a guarantor for the Credit Agreement and is entitled to receive an annual guarantee fee from the Company equal to 0.125% of the total capacity of this facility. See Note 6.

Commitments_and_Contingent_Lia

Commitments and Contingent Liabilities	6 Months Ended
Commitments and Contingent Liabilities	Jun. 30, 2014
Commitments and Contingent Liabilities	'
Commitments and Contingent Liabilities	'
	NOTE 11. Commitments and Contingent Liabilities

	Commitments

	As of June 30, 2014 and December 31, 2013, Blue Capital had no commitments for operating leases or capital expenditures and does not expect any material expenditures of this type during the foreseeable future.

	The Company and its subsidiaries may not terminate the Investment Management Agreement, the Underwriting and Insurance Management Agreement or the Administrative Services Agreement for five years after the completion of the IPO, whether or not the Managers’ performance results are satisfactory. Upon any termination or non-renewal of either of the Investment Management Agreement or the Underwriting and Insurance Management Agreement (other than for a material breach by, or the insolvency of, the applicable Manager), the Company must pay a one-time termination fee to either the Investment Manager or the Reinsurance Manager, as applicable, equal to 5% of its GAAP shareholders’ equity, calculated as of the most recently completed quarter prior to the date of termination (approximately $8.8 million as of June 30, 2014).

	Litigation

	Blue Capital, as a reinsurer, is subject to litigation and arbitration proceedings in the normal course of its business. Such proceedings often involve reinsurance contract disputes which are typical for the reinsurance industry. Blue Capital Re’s estimates of possible losses incurred in connection with such legal proceedings are provided for as loss and LAE on its Consolidated Statements of Operations and Comprehensive Income and are included within loss and LAE reserves on its Consolidated Balance Sheets.

	The Company and its subsidiaries had no unresolved legal proceedings at June 30, 2014.

	Concentrations of Credit and Counterparty Risk

	Blue Capital Re ILS’s derivative instruments are subject to counterparty risk. The Company and the Managers routinely monitor this risk.

	Blue Capital Re markets retrocessional and reinsurance policies worldwide through brokers. Credit risk exists to the extent that any of these brokers are unable to fulfill their contractual obligations to Blue Capital Re. For example, Blue Capital Re is required to pay amounts owed on claims under policies to brokers, and these brokers, in turn, pay these amounts to the ceding companies that have reinsured a portion of their liabilities with Blue Capital Re. In some jurisdictions, if a broker fails to make such a payment, Blue Capital Re might remain liable to the ceding company for the deficiency. In addition, in certain jurisdictions, when the ceding company pays premiums for these policies to brokers, these premiums are considered to have been paid and the ceding insurer is no longer liable to Blue Capital Re for those amounts, whether or not the premiums have actually been received.

	Blue Capital Re remains liable for losses it incurs to the extent that any third-party reinsurer is unable or unwilling to make timely payments under reinsurance agreements. Blue Capital Re would also be liable in the event that its ceding companies were unable to collect amounts due from underlying third-party reinsurers.

	Under Blue Capital Re’s reinsurance security policy, reinsurers are typically required to be rated “A-” (Excellent) or better by A.M. Best (or an equivalent rating with another recognized rating agency) at the time the policy is written. Blue Capital Re also considers reinsurers that are not rated or do not fall within this threshold on a case-by-case basis if collateralized up to policy limits, net of any premiums owed. The Managers will monitor the financial condition and ratings of any of its reinsurers on an ongoing basis.

Basis_of_Presentation_and_Summ1

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
Basis of Presentation and Summary of Significant Accounting Policies	'
Basis of Presentation	'
	Basis of Presentation

	Blue Capital Reinsurance Holdings Ltd. (the “Company” or the “Registrant”) is a Bermuda exempted limited liability company that, through its subsidiaries (collectively “Blue Capital”), offers collateralized reinsurance in the property catastrophe market and invests in various insurance-linked securities. The Company was incorporated under the laws of Bermuda on June 24, 2013, commenced its operations on November 12, 2013, and does not have any material operating history. The Company’s headquarters and principal executive offices are located at 94 Pitts Bay Road, Pembroke, Bermuda HM 08.

	The unaudited consolidated financial statements incorporated in this report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”), as filed with the Securities and Exchange Commission (the “SEC”). In the opinion of management, these interim consolidated financial statements include all normally recurring adjustments considered necessary to fairly present the Company’s financial position, results of operations and cash flows. All significant intercompany accounts and transactions have been eliminated in consolidation. These interim consolidated financial statements may not be indicative of financial results for the full year. The December 31, 2013 condensed balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by GAAP.

	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues earned and expenses incurred during the period. Actual results could differ materially from those estimates. The significant estimates reflected in these interim consolidated financial statements include, but are not limited to, loss and loss adjustment expense (“LAE”) reserves and written and earned reinsurance premiums.

	For the period from June 24, 2013 through June 30, 2013, the Company had no operating revenues or expenses and the Company’s sole shareholder at that time, Montpelier Re Holdings Ltd. (“Montpelier”), incurred all of the fees and expenses related to the Company’s formation, which totaled less than $0.1 million. The Company was not required to reimburse Montpelier for any such fees and expenses related to its formation. In addition, on June 24, 2013, Montpelier provided the Company with its initial capital contribution, which also totaled less than $0.1 million.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents

	Blue Capital’s cash and cash equivalents of $25.2 million and $173.8 million at June 30, 2014 and December 31, 2013, respectively, consist of cash and fixed income investments with maturities of less than three months, as measured from the date of purchase. For all periods presented, the amortized cost of each of Blue Capital’s cash equivalents approximated their fair value.

	Net investment income is recorded net of investment management, custody and other investment-related expenses. During the three and six month periods ended June 30, 2014, the amount of net investment income that Blue Capital earned on its cash and cash equivalents totaled less than $0.1 million.
Amounts Held in Trust for the Benefit of Ceding Companies	'
	Amounts Held in Trust for the Benefit of Ceding Companies

	Blue Capital Re does not operate with a financial strength rating and, instead, fully collateralizes its reinsurance obligations through cash and cash equivalents held in various trust funds established for the benefit of ceding companies.

	As of June 30, 2014, Blue Capital had pledged $20.6 million of cash and cash equivalents to trust accounts established for the benefit of Blue Water Re (in support of the BW Retrocessional Agreement - see Note 10) and third parties. These funds are presented on the Company’s Consolidated Balance Sheets as “cash and cash equivalents.”

	As of June 30, 2014, Blue Capital had transferred $163.9 million of cash and cash equivalents to a trust account established by Blue Water Re for its benefit (in support of the BW Retrocessional Agreement - see Note 10). These funds are presented on the Company’s Consolidated Balance Sheets as “funds held by ceding companies.”

	As of December 31, 2013, Blue Capital was not required to establish any trust accounts for the benefit of Blue Water Re or third-parties.
Reinsurance Premiums and Acquisition Costs	'
	Reinsurance Premiums and Acquisition Costs

	Blue Capital Re writes reinsurance contracts on both an excess-of-loss and a pro-rata basis. For excess-of-loss contracts, written premiums are typically based on the deposit or minimum premium specified in the reinsurance contract. For pro-rata contracts, written premiums are recognized based on estimates of ultimate premiums provided by either the ceding companies or the Managers.

	All of Blue Capital Re’s reinsurance contracts are currently being written on a losses-occurring basis, which means that all claims occurring during the period of the contract are covered, regardless of the inception dates of the underlying policies. Any claims occurring after the expiration of a losses-occurring contract are not covered.

	For reinsurance contracts which incorporate minimum premium amounts, Blue Capital Re typically writes the entire ultimate premium at inception, and earns the associated premium after the premium is written over the term of the contract. For reinsurance contracts which do not incorporate minimum premium amounts, Blue Capital Re typically writes the premium over the term of the contract, and earns the associated premium in the same periods that the premium is written.

	Subsequent adjustments of written premium, based on reports of actual premium by the ceding companies, or revisions in estimates of ultimate premium, are recorded in the period in which they are determined. Such adjustments are generally determined after the associated risk periods have expired, in which case the premium adjustments are fully written when earned.

	Unearned reinsurance premiums represent the portion of premiums written that are applicable to future reinsurance coverage provided by in-force contracts.

	Reinsurance premiums receivable are recorded at amounts due less any provision for doubtful accounts. As of June 30, 2014 and December 31, 2013, Blue Capital Re did not require a provision for doubtful accounts.

	When a reinsurance contract provides for a reinstatement of coverage following a covered loss, the associated reinstatement premiums are recorded as both written and earned when Blue Capital Re determines that such a loss event has occurred.

	Deferred reinsurance acquisition costs are comprised of commissions, brokerage costs, premium taxes and excise taxes, each of which relates directly to the writing of reinsurance contracts. Deferred acquisition costs are typically amortized over the underlying risk period of the related contracts. However, if the sum of a contract’s expected losses and LAE and deferred acquisition costs exceeds related unearned premiums and any projected investment income, a premium deficiency is determined to exist. In this event, deferred acquisition costs are immediately expensed to the extent necessary to eliminate the premium deficiency. If the premium deficiency exceeds deferred acquisition costs then a liability is accrued for the excess deficiency. There were no premium deficiency adjustments recognized during the three or six month periods ended June 30, 2014.

	Deferred reinsurance acquisition costs also include incurred profit commissions.
Ceded Reinsurance	'
	Ceded Reinsurance

	In the normal course of business, Blue Capital Re may purchase reinsurance in order to manage its exposures. The amount of reinsurance that Blue Capital Re may buy will vary from year to year depending on its risk appetite, as well as the availability and cost of the reinsurance coverage. Ceded reinsurance premiums will be accounted for on a basis consistent with those used in accounting for the underlying reinsurance premiums assumed and will be reported as a reduction of net reinsurance premiums written and earned.

	Under Blue Capital Re’s reinsurance security policy, reinsurers are typically required to be rated “A-” (Excellent) or better by A.M. Best (or an equivalent rating with another recognized rating agency) at the time the policy is written. Blue Capital Re also considers reinsurers that are not rated or do not fall within this threshold on a case-by-case basis, if adequately collateralized.

	As of June 30, 2014 and December 31, 2013, Blue Capital Re had not purchased any reinsurance.
Fair Value Hierarchy	'
	Fair Value Hierarchy

	GAAP establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value of certain assets and liabilities into the three broad levels described below. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date, Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, and Level 3 inputs are unobservable inputs (i.e., on the basis of pricing models with significant unobservable inputs or non-binding broker quotes) for the asset or liability.

Loss_and_LAE_Reserve_Movements1

Loss and LAE Reserve Movements (Tables)	6 Months Ended
	Jun. 30, 2014
Loss and LAE Reserve Movements	'
Summary of loss and LAE reserve movements	'

		Three Month Periods					Six Month Periods
		Ended June 30,					Ended June 30,
		2014			2013		2014			2013
	Gross unpaid loss and LAE reserves - beginning	$	0.9		$	—	$	—		$	—
	Reinsurance recoverable on unpaid losses - beginning	—			—		—			—
	Net unpaid loss and LAE reserves - beginning	0.9			—		—			—
	Losses and LAE incurred	7.3			—		8.2			—
	Losses and LAE paid and approved for payment	(0.3		)	—		(0.3		)	—
	Movement in net unpaid loss and LAE reserves	7			—		7.9			—
	Net unpaid loss and LAE reserves - ending	7.9			—		7.9			—
	Reinsurance recoverable on unpaid losses - ending	—			—		—			—
	Gross unpaid loss and LAE reserves - ending	$	7.9		$	—	$	7.9		$	—

Basic_and_Diluted_Earnings_Per1

Basic and Diluted Earnings Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2014
Basic and Diluted Earnings Per Common Share	'
Schedule of computation of basic and diluted earnings per Common Share	'

		Three Month Periods				Six Month Periods
		Ended June 30,				Ended June 30,
		2014		2013		2014		2013
	Net income	$	1.2	$	—	$	7.3	$	—
	Less: net earnings allocated to participating securities (1)	—		—		—		—
	Earnings per Common Share numerator	$	1.2	$	—	$	7.3	$	—

	Average Common Shares outstanding (in thousands of shares)	8,750		1		8,750		1

	Basic and diluted earnings per Common Share	$	0.13	$	—	$	0.83	$	—

	(1) For the three and six month periods ended June 30, 2014, the net earnings allocated to participating securities totaled less than $0.1 million.

Basis_of_Presentation_and_Summ2

Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $)

0 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

0 Months Ended

In Millions, except Share data, unless otherwise specified

Jun. 30, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 24, 2013

Nov. 05, 2013

item

Minimum

Blue Capital (subsidiaries of reporting entity)

Montpelier

IPO and Private Placement

IPO

Private Placement

Maximum

Blue Water Re

item

Maximum

Montpelier Re

Basis of Presentation

Operating revenues or expenses

Fees and expenses incurred by related party

0.1

Initial capital contribution

0.1

Number of shares issued

6,250,000

2,500,000

Issue price per share (in dollars per share)

$20

Gross proceeds from issuance of shares

175

Net proceeds from issuance of shares

174

Percentage of distributable income distributed in form of cash dividends

90.00%

Total number of the directors of the company

Total number of the related party directors of the company

Cash and Cash Equivalents

Cash and cash equivalents

25.2

173.8

25.2

173.8

Net investment income on cash and cash equivalents

0.1

Amounts Held in Trust for the Benefit of Ceding Companies

Cash and cash equivalents pledged to trust accounts for the benefit of ceding companies

20.6

Cash and cash equivalents transferred to trust accounts for the benefit of ceding companies

163.9

Premium deficiency adjustments

Loss_and_LAE_Reserve_Movements2

Loss and LAE Reserve Movements (Details) (USD $)	3 Months Ended	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014
Loss and LAE Reserve Movements	'	'
Gross unpaid loss and LAE reserves - ending	$7.90	$7.90
Blue Capital Re	'	'
Loss and LAE Reserve Movements	'	'
Gross unpaid loss and LAE reserves - beginning	0.9	'
Net unpaid loss and LAE reserves - beginning	0.9	'
Losses and LAE incurred	7.3	8.2
Losses and LAE paid and approved for payment	-0.3	-0.3
Movement in net unpaid loss and LAE reserves	7	7.9
Net unpaid loss and LAE reserves - ending	7.9	7.9
Gross unpaid loss and LAE reserves - ending	$7.90	$7.90

Derivative_Instruments_Details

Derivative Instruments (Details) (USD $)	3 Months Ended	6 Months Ended				3 Months Ended	6 Months Ended	12 Months Ended	0 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014
			Inward ILW Swap	Inward ILW Swap	Outward ILW Swap	Blue Capital Re ILS	Blue Capital Re ILS	Blue Capital Re ILS	Blue Capital Re ILS
			Level 3	Level 3	Level 3	ILW Swap	ILW Swap	Inward ILW Swap	Outward ILW Swap
Derivative Instruments	'	'	'	'	'	'	'	'	'
Fixed-rate payment on swap	'	'	'	'	'	'	'	$1.50	$0.70
Maximum recovery under each swap	'	'	'	'	'	'	'	10	3.7
Fair value of ILW Swap recorded as an other asset	'	'	'	'	0.7	'	'	'	'
Fair value of ILW Swap recorded as an other liability	'	'	1.3	1.5	'	'	'	'	'
Net income from derivative instruments	$0.10	$0.20	'	'	'	$0.10	$0.20	'	'

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	3 Months Ended	6 Months Ended
In Millions, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
	Jun. 30, 2014	item	Dec. 31, 2013
Shareholders' Equity	'	'	'
Common shares par value (in dollars per share)	$1	$1	'
Number of votes per share	'	1	'
Common shares outstanding	8,750,000	8,750,000	8,750,000
Dividends declared per Common Share (in dollars per share)	$0.30	$0.60	'
Total amount of dividends paid to holders of Common Shares	'	$2.60	'
Dividends payable	2.7	2.7	'
Common Share authorized for repurchase as part of publicly announced plans or programs	'	$0	'

Basic_and_Diluted_Earnings_Per2

Basic and Diluted Earnings Per Common Share (Details) (USD $)	3 Months Ended		6 Months Ended
In Millions, except Share data in Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Basic and Diluted Earnings Per Common Share	'	'	'	'
Net income	$1.20	'	$7.30	'
Earnings per Common Share numerator	1.2	'	7.3	'
Average Common Shares outstanding (in thousands of shares)	8,750	1	8,750	1
Basic and diluted earnings per Common Share (in dollars per share)	$0.13	'	$0.83	'
Maximum	'	'	'	'
Basic and Diluted Earnings Per Common Share	'	'	'	'
Less: net earnings allocated to participating securities	$0.10	'	$0.10	'

Credit_Facility_Details

Credit Facility (Details) (USD $)	Jun. 30, 2014	2-May-14	2-May-14
In Millions, unless otherwise specified		Revolving credit facility	Revolving credit facility
			Montpelier
Credit facility	'	'	'
Term of facility	'	'	'364 days
Maximum borrowing capacity	'	'	$20
Percentage of annual guarantee fee entitled by guarantor for serving guarantee	'	'	0.13%
Non-recurring fees in establishing the facility	'	0.1	'
Annual commitment and administrative fee (as a percent)	'	0.38%	'
Borrowings outstanding	$0	'	'

ShareBased_Compensation_Detail

Share-Based Compensation (Details) (2013 LTIP, USD $)	Dec. 31, 2013	Jun. 30, 2014	Sep. 27, 2013	Jun. 30, 2014	Jun. 30, 2014
In Millions, except Share data, unless otherwise specified		RSUs,	Maximum	Maximum	Maximum
		Directors		RSUs,	RSUs,
Share-Based Compensation	'	'	'	'	'
Percentage of aggregate common shares outstanding	'	'	1.00%	'	'
RSUs awarded (in shares)	'	7,000	'	'	'
Vesting period	'	'3 years	'	'	'
Total grant date fair value of the RSUs awarded	'	$0.10	'	'	'
Forfeiture rate (as a percent)	'	0.00%	'	'	'
Expenses recognized	'	'	'	0.1	0.1
Estimated future expense	'	'	'	'	'
2014	'	'	'	0.1	0.1
2015	'	'	'	0.1	0.1
2016	'	'	'	0.1	0.1
2017	'	'	'	$0.10	$0.10
Incentive awards outstanding (in shares)	0	'	'	'	'

Regulation_and_Capital_Require1

Regulation and Capital Requirements (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Regulation and Capital Requirements	'	'
Retained earnings	$1.30	($0.70)
Blue Capital Re	'	'
Regulation and Capital Requirements	'	'
Minimum solvency margin	1	'
Minimum liquidity ratio (as a percent)	75.00%	'
Amount by which assets exceed liabilities and minimum solvency margin	168.4	159
Retained earnings	9.4	'
Threshold reduction percentage in total capital with prior statutory approval	15.00%	'
Amount available for dividend payments	24	'
Blue Capital Re \| Maximum	'	'
Regulation and Capital Requirements	'	'
Retained earnings	'	$0.10

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended			0 Months Ended	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	2-May-14	Jun. 30, 2014
	Investment Management Agreement	Investment Management Agreement	Underwriting and Insurance Management Agreement	Underwriting and Insurance Management Agreement	Administrative Services Agreement	Administrative Services Agreement	Montpelier	Montpelier	Montpelier	Blue Capital Re
				Maximum					Revolving credit facility	Blue Water Re
										BW Retrocessional Agreement
										Maximum
Related party transactions	'	'	'	'	'	'	'	'	'	'
Percent of ownership in the company	'	'	'	'	'	'	29.60%	28.60%	'	'
Percentage of participation in the ceded reinsurance business of the related party for which option to cede exists	'	'	'	'	'	'	'	'	'	100.00%
General and administrative expenses	$0.60	$1.30	$0	$0.10	$0.20	$0.30	'	'	'	'
Amount due to for services performed	'	'	'	'	'	'	1.6	0.5	'	'
Maximum borrowing capacity	'	'	'	'	'	'	'	'	$20	'
Percentage of annual guarantee fee entitled by guarantor for serving guarantee	'	'	'	'	'	'	'	'	0.13%	'

Commitments_and_Contingent_Lia1

Commitments and Contingent Liabilities (Details) (USD $)	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
	Jun. 30, 2014	Investment Management Agreement	Underwriting and Insurance Management Agreement	Administrative Services Agreement	Blue Capital (subsidiaries of reporting entity)	Blue Capital (subsidiaries of reporting entity)
Commitments and contingent liabilities	'	'	'	'	'	'
Commitments for operating leases	'	'	'	'	$0	$0
Commitments for capital expenditures	'	'	'	'	0	0
Period after IPO during which contract may not be terminated	'	'5 years	'5 years	'5 years	'	'
One-time termination fee as a percent of shareholders' equity	5.00%	'	'	'	'	'
Amount of one-time termination fee payable	$8.80	'	'	'	'	'