Blue Capital Reinsurance (BCRHF) 10-Q 2 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 29, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	BLUE CAPITAL REINSURANCE HOLDINGS LTD.
Entity Central Index Key	1,582,086
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		8,767,165

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 0.1	$ 6
Reinsurance premiums receivable	6.5	11.1
Deferred reinsurance acquisition costs	0.5	0.1
Funds held by ceding companies	153.5	164.8
Other assets	1.2	0.2
Total Assets	161.8	182.2
Liabilities
Loss and loss adjustment expense reserves	34.7	43.4
Unearned reinsurance premiums	3.8	1
Reinsurance balances payable	3.8	10.1
Other liabilities (See Note 8)	4	0.6
Total Liabilities	46.3	55.1
Commitments and contingent liabilities (See Note 9)	0	0
Shareholders' Equity
Common Shares, at par value - 8,767,165 shares issued and outstanding (2017 - 8,761,229)	8.8	8.8
Additional paid-in capital	165.6	165.6
Retained deficit	(58.9)	(47.3)
Total Shareholders' Equity	115.5	127.1
Total Liabilities and Shareholders' Equity	$ 161.8	$ 182.2

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common shares issued (in shares)	8,767,165	8,761,229
Common shares outstanding (in shares)	8,767,165	8,761,229

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Reinsurance premiums written	$ 4.2	$ 10.3	$ 24.1	$ 39.4
Change in net unearned reinsurance premiums	2.3	5.3	(2.8)	(3.3)
Net reinsurance premiums earned	6.5	15.6	21.3	36.1
Net gain from derivative instruments	0	3.1	0	2.5
Net investment income	0.6	0.4	1.5	0.7
Total revenues	7.1	19.1	22.8	39.3
Expenses
Loss and loss adjustment expenses	10.6	68.1	17.3	71.7
Reinsurance acquisition costs	2	1.6	5.9	6.8
General and administrative expenses	1.2	1.3	3.3	4
Total expenses	13.8	71	26.5	82.5
Net loss	(6.7)	(51.9)	(3.7)	(43.2)
Comprehensive loss	$ (6.7)	$ (51.9)	$ (3.7)	$ (43.2)
Per share amounts:
Basic and diluted losses per Common Share	$ (0.76)	$ (5.93)	$ (0.42)	$ (4.94)
Dividends declared per Common Share and RSU	$ 0.3	$ 0.3	$ 0.9	$ 1.49

UNAUDITED CONSOLIDATED STATEM_2

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Shares, at par value	Additional paid-in capital	Retained (deficit) earnings
Balance at the start of the period at Dec. 31, 2016	$ 183.3	$ 8.8	$ 165.5	$ 9
Increase Decrease in Shareholder's Equity
Net loss	(43.2)	0	0	(43.2)
Dividends declared - Common Shares and RSUs	(13.1)	0	0	(13.1)
Balance at the end of the period at Sep. 30, 2017	127	8.8	165.5	(47.3)
Balance at the start of the period at Dec. 31, 2017	127.1	8.8	165.6	(47.3)
Increase Decrease in Shareholder's Equity
Net loss	(3.7)	0	0	(3.7)
Dividends declared - Common Shares and RSUs	(7.9)	0	0	(7.9)
Balance at the end of the period at Sep. 30, 2018	$ 115.5	$ 8.8	$ 165.6	$ (58.9)

UNAUDITED CONSOLIDATED STATEM_3

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows (used in) provided by operating activities:
Net loss	$ (3.7)	$ (43.2)
Net change in:
Loss and loss adjustment expense reserves	(8.7)	57
Unearned reinsurance premiums	2.8	3.3
Reinsurance balances payable	(6.3)	2.6
Deferred reinsurance acquisition costs	(0.4)	(0.5)
Reinsurance premiums receivable	4.6	(15.4)
Funds held by ceding companies	11.3	11.4
Other liabilities	0.8	(1.2)
Other assets	(1)	(4.1)
Net cash and cash equivalents (used in) provided by operating activities	(0.6)	9.9
Net cash and cash equivalents provided by investing activities	0	0
Cash flows used in financing activities:
Dividends paid - Common Shares and RSUs	(5.3)	(10.5)
Net cash and cash equivalents used in financing activities	(5.3)	(10.5)
Net decrease in cash and cash equivalents during the period	(5.9)	(0.6)
Cash and cash equivalents - beginning of period	6	4.7
Cash and cash equivalents - end of period	$ 0.1	$ 4.1

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	NOTE 1. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Overview 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, and commenced its operations on November 12, 2013. The Company's headquarters and principal executive offices are located at Waterloo House, 100 Pitts Bay Road, Pembroke, Bermuda HM 08, which is also our registered office. 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 unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the 2017 Form 10-K. In the opinion of management, these interim unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to fairly present the Company's financial position, results of operations and cash flows. The unaudited consolidated financial statements include the accounts of the Registrant and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These interim unaudited consolidated financial statements may not be indicative of financial results for the full year. The December 31, 2017 consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all of the disclosures required by GAAP. There were no material changes in the Company's significant accounting and reporting policies subsequent to the filing of the 2017 Form 10-K. 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 unaudited consolidated financial statements include, but are not limited to, loss and LAE reserves and written and earned reinsurance premiums. Estimates and assumptions are periodically reviewed and the effects of revisions are recorded in the consolidated financial statements in the period that they are determined to be necessary. 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 provides 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 related instruments, in support of Blue Capital Re's operations. Blue Capital leverages the reinsurance underwriting expertise and infrastructure of Sompo International and its various subsidiaries to conduct its business. Sompo Holdings, Inc. is the ultimate beneficial owner of 33.2% of the Company's outstanding Common Shares through its ownership of Sompo International. Subject to the discretion of the Company’s board of directors (the "Board"), the Company intends to continue to distribute through dividends or repurchases of Common Shares a minimum of 90% of its annual Distributable Income to its holders of Common Shares and RSUs. "Distributable Income," a non-GAAP measure, means GAAP net income plus (minus) non-cash expenses (revenues) recorded in net income for the period. NOTE 1. Basis of Presentation and Summary of Significant Accounting Policies, cont'd Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-07, "Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). ASU 2018-07 aligns much of the measurement and classification guidance for share-based payments to nonemployees with that for share-based payments to employees. Among the key changes, equity-classified nonemployee awards are to be measured on the grant date, rather than on the earlier of: (i) the performance commitment date; or (ii) the date at which the nonemployee’s performance is complete. Awards to nonemployees are to be measured by estimating the fair value of the equity instruments to be issued, rather than the fair value of the goods or services received or the fair value of the equity instruments issued, whichever can be measured more reliably. Additionally, guidelines related to performance conditions and term of measurement have been aligned. ASU 2018-07 is not expected to impact the Company's Consolidated Financial Statements.

Loss and LAE Reserve Movements

Loss and LAE Reserve Movements	9 Months Ended
	Sep. 30, 2018
Insurance Loss Reserves [Abstract]
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 nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2018 2017 2018 2017 Gross and net unpaid loss and LAE reserves- beginning $ 29.9 $ 11.2 $ 43.4 $ 11.1 Losses and LAE incurred: Current year losses 4.2 67.8 5.6 70.4 Prior year losses 6.4 0.3 11.7 1.3 Total incurred losses and LAE 10.6 68.1 17.3 71.7 Losses and LAE paid and approved for payment: Current year losses 0.3 9.4 0.4 9.3 Prior year losses 5.5 1.8 25.6 5.4 Total losses and LAE paid and approved for payment 5.8 11.2 26.0 14.7 Gross and net unpaid loss and LAE reserves- ending $ 34.7 $ 68.1 $ 34.7 $ 68.1 Loss and LAE reserves are comprised of case reserves (which are based on claims that have been reported) and incurred but not reported ("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 and 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. 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 Manager. NOTE 2. Loss and LAE Reserve Movements, cont'd During the three months ended September 30, 2018 , Blue Capital Re's estimated ultimate loss for prior period accident years was increased by $6.4 million due to the emergence of claims exceeding previous estimates of losses and LAE related to 2017 catastrophe events, primarily Hurricane Irma, which made landfall in the U.S. in September 2017. During the three months ended September 30, 2017 , we recognized $0.3 million of adverse loss and LAE reserve development for estimated losses incurred during 2016 . During the nine months ended September 30, 2018 , Blue Capital Re's estimated ultimate loss for prior period accident years was increased by $11.7 million due to the emergence of claims exceeding previous estimates of losses and LAE related to 2017 catastrophe events, primarily Hurricane Irma. During the nine months ended September 30, 2017 , Blue Capital Re's estimated ultimate loss for prior period accident years was increased by $1.3 million due to the emergence of claims exceeding previous estimates of losses and LAE related to those prior years.

Written and Earned Reinsurance

Written and Earned Reinsurance Premiums	9 Months Ended
	Sep. 30, 2018
Reinsurance Disclosures [Abstract]
Written and Earned Reinsurance Premiums	NOTE 3. Written and Earned Reinsurance Premiums Written premiums represent business bound from ceding companies and net earned premiums represent the portion of net written premiums (gross written premiums less any ceded reinsurance) which is recognized as revenue over the period of time that coverage is provided. Blue Capital seeks to diversify its exposure across geographic zones around the world in order to obtain a prudent spread of risk. The spread of these exposures is also a function of market conditions and opportunities. The following table sets forth a breakdown of Blue Capital's premiums written by geographic area of risks insured during the three and nine month periods ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Worldwide (1) $ 4.0 96 % $ 9.6 93 % $ 17.6 73 % $ 27.4 69 % USA: Nationwide — — % — — % 0.8 3 % 3.4 9 % Florida — — % — — % 4.1 17 % 6.1 15 % Gulf region 0.2 4 % 0.4 4 % 0.5 2 % 0.8 2 % California — — % — — % — — % 0.3 1 % Midwest region and other — — % — — % 0.5 2 % 0.3 1 % Northeast — — % 0.3 3 % — — % 0.3 1 % Mid-Atlantic region — — % — — % — — % 0.3 1 % Worldwide, excluding U.S. (2) — — % — — % 0.6 3 % 0.5 1 % Total premiums written $ 4.2 100 % $ 10.3 100 % $ 24.1 100 % $ 39.4 100 % (1) "Worldwide" comprises reinsurance contracts that cover risks in more than one geographic area and do not specifically exclude the U.S. (2) "Worldwide, excluding U.S." comprises reinsurance contracts that cover risks in more than one geographic area but specifically exclude the U.S. NOTE 3. Written and Earned Reinsurance Premiums, cont'd The following table sets forth a breakdown of Blue Capital's net reinsurance premiums earned by geographic area of risks insured during the three and nine month periods ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Worldwide (1) $ 4.9 75 % $ 10.0 63 % $ 16.8 80 % $ 25.9 71 % USA: Nationwide 0.2 3 % 1.4 9 % 0.6 3 % 2.9 8 % Florida 1.0 15 % 3.1 20 % 2.6 11 % 5.4 15 % Gulf region 0.1 2 % 0.5 3 % 0.3 1 % 0.6 2 % California — — % 0.1 1 % — — % 0.3 1 % Midwest region and other 0.1 2 % 0.1 1 % 0.3 1 % 0.2 1 % Northeast — — % 0.1 1 % 0.1 1 % 0.1 — % Mid-Atlantic region — — % 0.1 1 % — — % 0.3 1 % Worldwide, excluding U.S. (2) 0.2 3 % 0.2 1 % 0.6 3 % 0.4 1 % Total net premiums earned $ 6.5 100 % $ 15.6 100 % $ 21.3 100 % $ 36.1 100 % (1) "Worldwide" comprises reinsurance contracts that cover risks in more than one geographic area and do not specifically exclude the U.S. (2) "Worldwide, excluding U.S." comprises reinsurance contracts that cover risks in more than one geographic area but specifically exclude the U.S.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	NOTE 4. Derivative Instruments Outward ILW Swap s In March 2017 and June 2017, Blue Capital Re ILS entered into various ILW swaps (the "2017 Outward ILW Swaps") with third-parties in order to purchase protection against natural catastrophes across multiple geographic zones from March 2017 to March 2018. In return for fixed payments totaling $2.0 million , Blue Capital Re ILS was entitled to receive floating payments in the event of certain losses incurred by the insurance industry as a whole. The maximum aggregate potential recovery to Blue Capital Re ILS from the 2017 Outward ILW Swaps was $9.0 million . As a result of catastrophe events occurring during 2017, a recovery was triggered on the 2017 Outward ILW Swaps resulting in the settlement of $4.7 million to Blue Capital Re ILS. The 2017 Outward ILW Swaps are valued on the basis of modeling developed by the Manager, which represents unobservable (Level 3) inputs. At expiry there were no additional industry loss events occurring which would have triggered a recovery under the 2017 Outward ILW Swaps. In April 2016, Blue Capital Re ILS entered into various outward ILW swaps (the “2016 Outward ILW Swaps”) with third-parties in order to purchase protection against natural catastrophes across multiple geographic zones from April 2016 to April 2017. In return for fixed payments totaling $ 2.0 million , Blue Capital Re ILS was entitled to receive floating payments in the event of certain losses incurred by the insurance industry as a whole. The maximum aggregate potential recovery to Blue Capital Re ILS from the 2016 Outward ILW Swaps was $9.0 million . At expiry there were no industry loss events occurring which would have triggered a recovery under the 2016 Outward ILW Swaps. The 2016 Outward ILW Swaps were valued on the basis of modeling developed by the Manager, which represents unobservable (Level 3) inputs. NOTE 4. Derivative Instruments, cont'd During the three months ended September 30, 2018 and 2017 , Blue Capital Re ILS recognized a gain from derivative instruments of nil and $3.1 million , respectively, pursuant to the Outward ILW Swaps. During the nine months ended September 30, 2018 and 2017 , Blue Capital Re ILS recognized a gain from derivative instruments of nil and $2.5 million , respectively, pursuant to the Outward ILW Swaps. The Company did not enter into any ILW swap contracts in 2018.

Basic and Diluted Earnings Per

Basic and Diluted Earnings Per Common Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
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 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 per Common Share numerators in any period in which it incurs a net loss. The following table outlines the Company's computation of its basic and diluted losses per Common Share for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net loss $ (6.7 ) $ (51.9 ) $ (3.7 ) $ (43.2 ) Less: net earnings allocated to participating securities (1) — — — — Earnings per Common Share numerator $ (6.7 ) $ (51.9 ) $ (3.7 ) $ (43.2 ) Average Common Shares outstanding (in thousands of shares) 8,767 8,761 8,764 8,758 Basic and diluted losses per Common Share $ (0.76 ) $ (5.93 ) $ (0.42 ) $ (4.94 ) (1) During the three and nine month periods ended September 30, 2018 and 2017 , there were no earnings allocated to participating securities since the Company incurred net losses. Dividends to Holders of Common Shares and RSUs The Company declared regular cash dividends per Common Share and RSU of $0.30 during each of the three month periods ended September 30, 2018 and 2017 . In addition, in February 2017, the Company declared a special dividend with respect to its 2016 Distributable Income of $0.59 , per Common Share and RSU. As of September 30, 2018 , the Company had $2.6 million of dividends payable to holders of Common Shares and RSUs, which is included within "other liabilities" on its Unaudited Consolidated Balance Sheet at that date. As of December 31, 2017 , the Company had nil dividends payable to holders of Common Shares and RSUs. The total amount of dividends paid to holders of Common Shares and RSUs during the nine month periods ended September 30, 2018 and 2017 was $5.3 million and $10.5 million , respectively. There are restrictions on the payment of dividends by the Company, Blue Capital Re and Blue Capital Re ILS. Any future determination to pay dividends to holders of Common Shares and RSUs 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.

Credit Facility

Credit Facility	9 Months Ended
	Sep. 30, 2018
Line of Credit Facility [Abstract]
Credit Facility	NOTE 6. Credit Facility On May 6, 2016, the Company entered into a credit facility (the "2016 Credit Facility") with Endurance Investment Holdings Ltd. (the "Lender"), a wholly-owned subsidiary of Sompo International. The 2016 Credit Facility provides the Company with an unsecured $20.0 million revolving credit facility for working capital and general corporate purposes. Borrowings under the 2016 Credit Facility bear interest, set at the time of the borrowing, at a rate equal to the applicable LIBOR rate plus 150 basis points. A one-time fee of $20,000 was due to the Lender in connection with establishing the 2016 Credit Facility. The 2016 Credit Facility was amended on July 31, 2018 to extend its expiry to September 30, 2020 under identical terms. The 2016 Credit Facility contains covenants that limit the Company’s ability, among other things, to grant liens on its assets, sell assets, merge or consolidate, or incur debt. If the Company fails to comply with any of these covenants, the Lender could revoke the facility and exercise remedies against the Company. In addition, in the event of a default in the performance of any of the agreements or covenants under certain management agreements with the Manager by the Company, the Lender has the right to terminate the 2016 Credit Facility. As of September 30, 2018 , the Company was in compliance with all of its respective covenants associated with the 2016 Credit Facility. As of September 30, 2018 and December 31, 2017 , the Company had no outstanding borrowings under the 2016 Credit Facility. On October 8, 2018 the Company borrowed $3.0 million under the 2016 Credit Facility. During each of the nine month periods ended September 30, 2018 and 2017 , the Company paid no interest under the 2016 Credit Facility. During the three and nine month periods ended September 30, 2018 and 2017 , the Company incurred no facility or structuring fees in connection with the 2016 Credit Facility.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	NOTE 7. Share-Based Compensation The Company's 2013 Long-Term Incentive Plan (the "2013 LTIP"), which was adopted by the Board in September 2013, permits the issuance of up to one percent of the aggregate Common Shares outstanding 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. 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 pursuant to the 2013 LTIP. For all periods presented, the Company's outstanding share-based incentive awards consisted solely of RSUs. RSUs are phantom (as opposed to actual) Common Shares which, depending on the individual award, vest in equal tranches over a one to five -year period subject to the recipient maintaining a continuous relationship with the Company through the applicable vesting date. RSUs are payable in Common Shares upon vesting (the amount of which may be reduced by applicable statutory income tax withholdings at the recipient's option). RSUs do not require the payment of an exercise price and are not entitled to voting rights, but they are entitled to receive payments equivalent to any dividends and distributions declared on the Common Shares underlying the RSUs. During the three and nine months ended September 30, 2018 , the Company awarded a total of 10,640 RSUs ( 2017 - 6,540 ) to directors of its Board. The RSUs 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 was $0.1 million ( 2017 - $0.1 million ). During the nine months ended September 30, 2018 , 5,936 RSUs vested ( 2017 - 5,158 ). The fair value of the vesting RSUs was $0.1 million ( 2017 - $0.1 million ). NOTE 7. Share-Based Compensation, cont'd During the nine months ended September 30, 2018 , no RSUs were forfeited ( 2017 - 2,352 ). During each of the three and nine months ended September 30, 2018 and 2017 , the Company recognized less than $0.1 million of RSU expense. At September 30, 2018 compensation costs not yet recognized related to unvested RSUs was $0.1 million . As of September 30, 2018 and December 31, 2017 , there were 16,892 and 12,188 RSUs outstanding, respectively, under the 2013 LTIP.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 8. Related Party Transactions As of September 30, 2018 and December 31, 2017 , Sompo International and its wholly owned subsidiary, Endurance Specialty Insurance Ltd. ("Endurance Bermuda"), owned 33.2% of the Company's outstanding Common Shares. See Note 1. Through each of the following roles and relationships, Blue Capital leverages Sompo International's reinsurance underwriting expertise and infrastructure to conduct its business: (i) the Manager, a wholly-owned subsidiary of Sompo International, manages Blue Capital Re's and Blue Capital Re ILS's reinsurance underwriting decisions; (ii) Blue Water Re Ltd. ("Blue Water Re") is a significant source of reinsurance business for Blue Capital Re; (iii) Sompo International's General Counsel serves as a director; (iv) the Manager's Treasurer serves as the Company's CFO; and (v) Sompo International's Chief Financial Officer is the Manager's CEO, the CEO of the Company and serves as the Company's Chairman of the Board. All of the compensation that employees of Sompo International are entitled to as directors of the Company is assigned directly to Sompo International. Services Provided to Blue Capital by Sompo International Sompo International provides services to Blue Capital 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 the Company’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 Endurance Bermuda or other third-party reinsurers, which provides 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 Endurance Bermuda or other well capitalized third-party rated reinsurers, which allows Blue Capital Re to transact business with counterparties who prefer to enter into contracts with rated reinsurers. For all periods presented, all of the reinsurance business of Blue Capital Re was originated pursuant to the BW Retrocessional Agreement. Investment Management Agreement . The Company has entered into an Investment Management Agreement (the "Investment Management Agreement") with the Manager. Pursuant to the terms of the Investment Management Agreement, the Manager has full discretionary authority, including the delegation of the provision of its services, to manage the Company's assets, subject to the Company’s 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 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 Manager provides underwriting, risk management, claims management, ceded retrocession agreements management and actuarial and reinsurance accounting services to Blue Capital Re. NOTE 8. Related Party Transactions, cont'd The Manager has full discretionary authority to manage the underwriting decisions of Blue Capital Re, subject to the Company's underwriting guidelines, the terms of the Underwriting and Insurance Management Agreement and the oversight of the Company's and Blue Capital Re's boards of directors. Administrative Services Agreement. The Company has entered into an Administrative Services Agreement with the Manager, as amended on November 13, 2014 (the "Administrative Services Agreement"). Pursuant to the terms of the Administrative Services Agreement, the Manager provides Blue Capital with support services, including the services of our CFO, as well as finance and accounting, internal audit, modeling software licenses, office space, information technology and administrative support. Credit Facility Agreement. The Company entered into the 2016 Credit Facility with the Lender on May 6, 2016. The 2016 Credit Facility provides the Company with an unsecured $20.0 million revolving credit facility for working capital and general corporate purposes and expires on September 30, 2020. As of September 30, 2018 and December 31, 2017 , the Company had no outstanding borrowings under the 2016 Credit Facility. On October 8, 2018 the Company borrowed $3.0 million under the 2016 Credit Facility. Fees Incurred Pursuant to the Aforementioned Agreements During the three and nine months ended September 30, 2018 , the Company incurred general and administrative expenses of: (i) $0.5 million and $1.4 million pursuant to the Investment Management Agreement; (ii) $0.1 million and $0.4 million pursuant to the Administrative Services Agreement; and (iii) nil pursuant to the Underwriting and Insurance Management Agreement. During the three and nine months ended September 30, 2017 , the Company incurred general and administrative expenses of: (i) $0.6 million and $2.0 million pursuant to the Investment Management Agreement; (ii) $0.1 million and $0.4 million pursuant to the Administrative Services Agreement; and (iii) nil and $0.4 million pursuant to the Underwriting and Insurance Management Agreement. During each of the three and nine months ended September 30, 2018 and 2017 , the Company incurred no fees related to the 2016 Credit Facility. See Note 6. As of September 30, 2018 and December 31, 2017 , the Company owed Sompo International $0.8 million and $0.7 million for the services performed pursuant to the aforementioned agreements, respectively, which are a component of "other liabilities" on the Company's Consolidated Balance Sheets at those dates.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	NOTE 9. Commitments and Contingent Liabilities Commitments As of September 30, 2018 and December 31, 2017 , 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 until November 5, 2018, the fifth anniversary of the completion of its initial public offering, whether or not the Manager's 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 Manager), the Company must pay a one-time termination fee to the Manager equal to 5% of its GAAP shareholders' equity (approximately $5.8 million as of September 30, 2018 ). NOTE 9. Commitments and Contingent Liabilities, cont'd 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. Amounts Held in Trust for the Benefit of Ceding Companies As of September 30, 2018 and December 31, 2017 , Blue Capital Re ILS did not have any cash and cash equivalents pledged to trust accounts established for the benefit of third parties. As of September 30, 2018 and December 31, 2017 , Blue Capital had transferred $153.5 million and $164.8 million of its cash and cash equivalents, respectively, to a trust account established by Blue Water Re for its benefit pursuant to the BW Retrocessional Agreement. See Note 8. These amounts are presented on the Company's Consolidated Balance Sheets as "funds held by ceding companies." Litigation Blue Capital Re, pursuant to the BW Retrocessional Agreement, has provided for a reinsurance recovery totaling $5.0 million through its participation in an Industry Loss Warranty protection purchased by Blue Water Re. The counterparty to the Industry Loss Warranty contract has disputed the claim for the recovery, which is based upon the size of an insured industry loss calculated based upon third-party data. Blue Water Re is vigorously pursuing recovery in this action. In June 2018, Blue Capital Re ILS, together with two other vehicles managed by the Manager, commenced legal proceedings against certain parties relating to the purchase by Blue Capital Re ILS of a parametric insurance product called an Industry Parametric Protection that provided coverage if the sustained wind speed during a hurricane or tropical storm exceeded a pre-selected trigger. Blue Capital Re ILS alleges, among its other claims, that it was provided false and misleading information in connection with its purchase of the Industry Parametric Protection. Blue Capital Re ILS is vigorously pursuing recovery in this action. In addition to the litigation and arbitration described above, Blue Capital Re, 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 loss adjustment expenses" on its Unaudited Consolidated Statements of Income and Comprehensive Income and are included within "loss and loss adjustment expense reserves" on its Consolidated Balance Sheets. We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs. Concentrations of Credit and Counterparty Risk Blue Capital Re ILS's derivative instruments are subject to counterparty risk. The Company and the Manager routinely monitor this risk. NOTE 9. Commitments and Contingent Liabilities, cont'd Blue Capital Re markets retrocessional and reinsurance policies worldwide through brokers. Credit risk exists to the extent that any of these brokers may be 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.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	NOTE 10. Fair Value of Financial Instruments GAAP requires disclosure of fair value information for certain financial instruments. For those financial instruments in which quoted market prices are not available, fair values are estimated by discounting future cash flows using current market rates or quoted market prices for similar obligations. These estimates are not necessarily indicative of amounts that could be realized in a current market exchange. Blue Capital carries its assets and liabilities that constitute financial instruments on its Consolidated Balance Sheets at fair value with the exception of its outstanding borrowings under the 2016 Credit Facility. At September 30, 2018 and December 31, 2017 , the Company had no outstanding borrowings under the 2016 Credit Facility. See Note 6.

Subsequent Events (Notes)

Subsequent Events (Notes)	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 11. Subsequent Events On October 10, 2018, Hurricane Michael made landfall in Florida. Preliminary information indicates that this storm has the potential to cause significant losses within the insurance industry generally. To date, reported claims have been limited. Accordingly, while losses emanating cannot be accurately estimated at this time, the Company will need to establish appropriate loss reserves related to Hurricane Michael in the fourth quarter of 2018, which may have a negative impact on its results of operations.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Overview	Basis of Presentation and Overview 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, and commenced its operations on November 12, 2013. The Company's headquarters and principal executive offices are located at Waterloo House, 100 Pitts Bay Road, Pembroke, Bermuda HM 08, which is also our registered office. 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 unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the 2017 Form 10-K. In the opinion of management, these interim unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to fairly present the Company's financial position, results of operations and cash flows. The unaudited consolidated financial statements include the accounts of the Registrant and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These interim unaudited consolidated financial statements may not be indicative of financial results for the full year. The December 31, 2017 consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all of the disclosures required by GAAP. There were no material changes in the Company's significant accounting and reporting policies subsequent to the filing of the 2017 Form 10-K. 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 unaudited consolidated financial statements include, but are not limited to, loss and LAE reserves and written and earned reinsurance premiums. Estimates and assumptions are periodically reviewed and the effects of revisions are recorded in the consolidated financial statements in the period that they are determined to be necessary. 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 provides 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 related instruments, in support of Blue Capital Re's operations. Blue Capital leverages the reinsurance underwriting expertise and infrastructure of Sompo International and its various subsidiaries to conduct its business. Sompo Holdings, Inc. is the ultimate beneficial owner of 33.2% of the Company's outstanding Common Shares through its ownership of Sompo International.

Loss and LAE Reserve Movements

Loss and LAE Reserve Movements (Policies)	9 Months Ended
	Sep. 30, 2018
Insurance Loss Reserves [Abstract]
Unpaid Policy Claims and Claims Adjustment Expense, Policy	Loss and LAE reserves are comprised of case reserves (which are based on claims that have been reported) and incurred but not reported ("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 and 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. 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 Manager.

Written and Earned Reinsuranc_2

Written and Earned Reinsurance Premiums Written and Earned Reinsurance Premiums (Policies)	9 Months Ended
	Sep. 30, 2018
Reinsurance Disclosures [Abstract]
Insurance Premiums Revenue Recognition, Policy	Written premiums represent business bound from ceding companies and net earned premiums represent the portion of net written premiums (gross written premiums less any ceded reinsurance) which is recognized as revenue over the period of time that coverage is provided.

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Policies)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
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.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Policies)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments, Policy	GAAP requires disclosure of fair value information for certain financial instruments. For those financial instruments in which quoted market prices are not available, fair values are estimated by discounting future cash flows using current market rates or quoted market prices for similar obligations. These estimates are not necessarily indicative of amounts that could be realized in a current market exchange. Blue Capital carries its assets and liabilities that constitute financial instruments on its Consolidated Balance Sheets at fair value with the exception of its outstanding borrowings under the 2016 Credit Facility.

Loss and LAE Reserve Movement_2

Loss and LAE Reserve Movements (Tables)	9 Months Ended
	Sep. 30, 2018
Insurance Loss Reserves [Abstract]
Summary of Loss and LAE Reserve Movements	The following table summarizes Blue Capital Re's loss and LAE reserve movements for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2018 2017 2018 2017 Gross and net unpaid loss and LAE reserves- beginning $ 29.9 $ 11.2 $ 43.4 $ 11.1 Losses and LAE incurred: Current year losses 4.2 67.8 5.6 70.4 Prior year losses 6.4 0.3 11.7 1.3 Total incurred losses and LAE 10.6 68.1 17.3 71.7 Losses and LAE paid and approved for payment: Current year losses 0.3 9.4 0.4 9.3 Prior year losses 5.5 1.8 25.6 5.4 Total losses and LAE paid and approved for payment 5.8 11.2 26.0 14.7 Gross and net unpaid loss and LAE reserves- ending $ 34.7 $ 68.1 $ 34.7 $ 68.1

Written and Earned Reinsuranc_3

Written and Earned Reinsurance Premiums (Tables)	9 Months Ended
	Sep. 30, 2018
Reinsurance Disclosures [Abstract]
Schedules of net written and earned reinsurance premiums by geographic area	The following table sets forth a breakdown of Blue Capital's premiums written by geographic area of risks insured during the three and nine month periods ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Worldwide (1) $ 4.0 96 % $ 9.6 93 % $ 17.6 73 % $ 27.4 69 % USA: Nationwide — — % — — % 0.8 3 % 3.4 9 % Florida — — % — — % 4.1 17 % 6.1 15 % Gulf region 0.2 4 % 0.4 4 % 0.5 2 % 0.8 2 % California — — % — — % — — % 0.3 1 % Midwest region and other — — % — — % 0.5 2 % 0.3 1 % Northeast — — % 0.3 3 % — — % 0.3 1 % Mid-Atlantic region — — % — — % — — % 0.3 1 % Worldwide, excluding U.S. (2) — — % — — % 0.6 3 % 0.5 1 % Total premiums written $ 4.2 100 % $ 10.3 100 % $ 24.1 100 % $ 39.4 100 % (1) "Worldwide" comprises reinsurance contracts that cover risks in more than one geographic area and do not specifically exclude the U.S. (2) "Worldwide, excluding U.S." comprises reinsurance contracts that cover risks in more than one geographic area but specifically exclude the U.S. NOTE 3. Written and Earned Reinsurance Premiums, cont'd The following table sets forth a breakdown of Blue Capital's net reinsurance premiums earned by geographic area of risks insured during the three and nine month periods ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Worldwide (1) $ 4.9 75 % $ 10.0 63 % $ 16.8 80 % $ 25.9 71 % USA: Nationwide 0.2 3 % 1.4 9 % 0.6 3 % 2.9 8 % Florida 1.0 15 % 3.1 20 % 2.6 11 % 5.4 15 % Gulf region 0.1 2 % 0.5 3 % 0.3 1 % 0.6 2 % California — — % 0.1 1 % — — % 0.3 1 % Midwest region and other 0.1 2 % 0.1 1 % 0.3 1 % 0.2 1 % Northeast — — % 0.1 1 % 0.1 1 % 0.1 — % Mid-Atlantic region — — % 0.1 1 % — — % 0.3 1 % Worldwide, excluding U.S. (2) 0.2 3 % 0.2 1 % 0.6 3 % 0.4 1 % Total net premiums earned $ 6.5 100 % $ 15.6 100 % $ 21.3 100 % $ 36.1 100 % (1) "Worldwide" comprises reinsurance contracts that cover risks in more than one geographic area and do not specifically exclude the U.S. (2) "Worldwide, excluding U.S." comprises reinsurance contracts that cover risks in more than one geographic area but specifically exclude the U.S.

Basic and Diluted Earnings Pe_2

Basic and Diluted Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted earnings per Common Share	The following table outlines the Company's computation of its basic and diluted losses per Common Share for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net loss $ (6.7 ) $ (51.9 ) $ (3.7 ) $ (43.2 ) Less: net earnings allocated to participating securities (1) — — — — Earnings per Common Share numerator $ (6.7 ) $ (51.9 ) $ (3.7 ) $ (43.2 ) Average Common Shares outstanding (in thousands of shares) 8,767 8,761 8,764 8,758 Basic and diluted losses per Common Share $ (0.76 ) $ (5.93 ) $ (0.42 ) $ (4.94 ) (1) During the three and nine month periods ended September 30, 2018 and 2017 , there were no earnings allocated to participating securities since the Company incurred net losses.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Sompo International [Member]
Related party transactions
Percentage of outstanding common stock	33.20%	33.20%
Minimum
Related party transactions
Percentage of Distributable Income Distributed	90.00%

Loss and LAE Reserve Movement_3

Loss and LAE Reserve Movements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Gross unpaid loss and LAE reserves- beginning			$ 43.4
Gross unpaid loss and LAE reserves- ending	$ 34.7		34.7
Blue Capital Re Ltd [Member]
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Gross unpaid loss and LAE reserves- beginning	29.9	$ 11.2	43.4	$ 11.1
Reinsurance recoverable on unpaid losses - beginning	0	0	0	0
Net unpaid loss and LAE reserves - beginning	29.9	11.2	43.4	11.1
Current year losses and LAE incurred	4.2	67.8	5.6	70.4
Prior year losses and LAE incurred	6.4	0.3	11.7	1.3
Total incurred losses and LAE	10.6	68.1	17.3	71.7
Current year losses and LAE paid and approved for payment	0.3	9.4	0.4	9.3
Prior year losses and LAE paid and approved for payment	5.5	1.8	25.6	5.4
Total losses and LAE paid and approved for payment	5.8	11.2	26	14.7
Net unpaid loss and LAE reserves - ending	34.7	68.1	34.7	68.1
Reinsurance recoverable on unpaid losses - ending	0	0	0	0
Gross unpaid loss and LAE reserves- ending	$ 34.7	$ 68.1	$ 34.7	$ 68.1

Written and Earned Reinsuranc_4

Written and Earned Reinsurance Premiums (Written Premium) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Gross premiums written		$ 4.2	$ 10.3	$ 24.1	$ 39.4
Blue Capital (subsidiaries of reporting entity)
Gross premiums written		$ 4.2	$ 10.3	$ 24.1	$ 39.4
Percentage of gross reinsurance premiums written by geographic area of risks insured		100.00%	100.00%	100.00%	100.00%
Blue Capital (subsidiaries of reporting entity) | Worldwide
Gross premiums written	[1]	$ 4	$ 9.6	$ 17.6	$ 27.4
Percentage of gross reinsurance premiums written by geographic area of risks insured	[1]	96.00%	93.00%	73.00%	69.00%
Blue Capital (subsidiaries of reporting entity) | USA: Nationwide
Gross premiums written		$ 0	$ 0	$ 0.8	$ 3.4
Percentage of gross reinsurance premiums written by geographic area of risks insured		0.00%	0.00%	3.00%	9.00%
Blue Capital (subsidiaries of reporting entity) | USA: Florida
Gross premiums written		$ 0	$ 0	$ 4.1	$ 6.1
Percentage of gross reinsurance premiums written by geographic area of risks insured		0.00%	0.00%	17.00%	15.00%
Blue Capital (subsidiaries of reporting entity) | USA: Gulf Region
Gross premiums written		$ 0.2	$ 0.4	$ 0.5	$ 0.8
Percentage of gross reinsurance premiums written by geographic area of risks insured		4.00%	4.00%	2.00%	2.00%
Blue Capital (subsidiaries of reporting entity) | USA: California
Gross premiums written		$ 0	$ 0	$ 0	$ 0.3
Percentage of gross reinsurance premiums written by geographic area of risks insured		0.00%	0.00%	0.00%	1.00%
Blue Capital (subsidiaries of reporting entity) | USA: Midwest Region and Other
Gross premiums written		$ 0	$ 0	$ 0.5	$ 0.3
Percentage of gross reinsurance premiums written by geographic area of risks insured		0.00%	0.00%	2.00%	1.00%
Blue Capital (subsidiaries of reporting entity) | Northeast
Gross premiums written		$ 0	$ 0.3	$ 0	$ 0.3
Percentage of gross reinsurance premiums written by geographic area of risks insured		0.00%	3.00%	0.00%	1.00%
Blue Capital (subsidiaries of reporting entity) | USA: Mid-Atlantic Region
Gross premiums written		$ 0	$ 0	$ 0	$ 0.3
Percentage of gross reinsurance premiums written by geographic area of risks insured		0.00%	0.00%	0.00%	1.00%
Blue Capital (subsidiaries of reporting entity) | Worldwide, excluding U.S.
Gross premiums written	[2]	$ 0	$ 0	$ 0.6	$ 0.5
Percentage of gross reinsurance premiums written by geographic area of risks insured	[2]	0.00%	0.00%	3.00%	1.00%
[1]	"Worldwide" comprises reinsurance contracts that cover risks in more than one geographic area and do not specifically exclude the U.S.
[2]	"Worldwide, excluding U.S." comprises reinsurance contracts that cover risks in more than one geographic area but specifically exclude the U.S.

Written and Earned Reinsuranc_5

Written and Earned Reinsurance Premiums (Earned Premium) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net premiums earned		$ 6.5	$ 15.6	$ 21.3	$ 36.1
Blue Capital (subsidiaries of reporting entity)
Net premiums earned		$ 6.5	$ 15.6	$ 21.3	$ 36.1
Percentage of net earned reinsurance premiums by geographic area of risks insured		100.00%	100.00%	100.00%	100.00%
Blue Capital (subsidiaries of reporting entity) | Worldwide
Net premiums earned	[1]	$ 4.9	$ 10	$ 16.8	$ 25.9
Percentage of net earned reinsurance premiums by geographic area of risks insured	[1]	75.00%	63.00%	80.00%	71.00%
Blue Capital (subsidiaries of reporting entity) | USA: Nationwide
Net premiums earned		$ 0.2	$ 1.4	$ 0.6	$ 2.9
Percentage of net earned reinsurance premiums by geographic area of risks insured		3.00%	9.00%	3.00%	8.00%
Blue Capital (subsidiaries of reporting entity) | USA: Florida
Net premiums earned		$ 1	$ 3.1	$ 2.6	$ 5.4
Percentage of net earned reinsurance premiums by geographic area of risks insured		15.00%	20.00%	11.00%	15.00%
Blue Capital (subsidiaries of reporting entity) | USA: Gulf Region
Net premiums earned		$ 0.1	$ 0.5	$ 0.3	$ 0.6
Percentage of net earned reinsurance premiums by geographic area of risks insured		2.00%	3.00%	1.00%	2.00%
Blue Capital (subsidiaries of reporting entity) | USA: California
Net premiums earned		$ 0	$ 0.1	$ 0	$ 0.3
Percentage of net earned reinsurance premiums by geographic area of risks insured		0.00%	1.00%	0.00%	1.00%
Blue Capital (subsidiaries of reporting entity) | USA: Midwest Region and Other
Net premiums earned		$ 0.1	$ 0.1	$ 0.3	$ 0.2
Percentage of net earned reinsurance premiums by geographic area of risks insured		2.00%	1.00%	1.00%	1.00%
Blue Capital (subsidiaries of reporting entity) | Northeast
Net premiums earned		$ 0	$ 0.1	$ 0.1	$ 0.1
Percentage of net earned reinsurance premiums by geographic area of risks insured		0.00%	1.00%	1.00%	0.00%
Blue Capital (subsidiaries of reporting entity) | USA: Mid-Atlantic Region
Net premiums earned		$ 0	$ 0.1	$ 0	$ 0.3
Percentage of net earned reinsurance premiums by geographic area of risks insured		0.00%	1.00%	0.00%	1.00%
Blue Capital (subsidiaries of reporting entity) | Worldwide, excluding U.S.
Net premiums earned	[2]	$ 0.2	$ 0.2	$ 0.6	$ 0.4
Percentage of net earned reinsurance premiums by geographic area of risks insured	[2]	3.00%	1.00%	3.00%	1.00%
[1]	"Worldwide" comprises reinsurance contracts that cover risks in more than one geographic area and do not specifically exclude the U.S.
[2]	"Worldwide, excluding U.S." comprises reinsurance contracts that cover risks in more than one geographic area but specifically exclude the U.S.

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended			9 Months Ended
	Apr. 30, 2016	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative Instruments
Gain (Loss) from derivative instruments		$ 0	$ 3.1		$ 0	$ 2.5
Blue Capital Re Ils Ltd [Member] | OutwardsILWSwaps [Member]
Derivative Instruments
Gain (Loss) from derivative instruments		$ 0	3.1		$ 0	2.5
Blue Capital Re Ils Ltd [Member] | Outwards ILW Swaps 2016 [Member]
Derivative Instruments
Fixed-rate payment paid on swap	$ 2
Maximum aggregate recovery under swap	$ 9
Blue Capital Re Ils Ltd [Member] | Outwards ILW Swaps 2017 [Member]
Derivative Instruments
Fixed-rate payment paid on swap				$ 2
Maximum aggregate recovery under swap				$ 9
Derivative Swap Recovery			$ 4.7			$ 4.7

Basic and Diluted Earnings Pe_3

Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		1 Months Ended	3 Months Ended		9 Months Ended
		Feb. 28, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Basic and Diluted Earnings Per Common Share
Net loss			$ (6.7)	$ (51.9)	$ (3.7)	$ (43.2)
Less: net earnings allocated to participating securities(1)	[1]		0	0	0	0
Earnings per Common Share numerator			$ (6.7)	$ (51.9)	$ (3.7)	$ (43.2)
Average Common Shares outstanding (in thousands of shares)			8,767	8,761	8,764	8,758
Basic and diluted losses per Common Share			$ (0.76)	$ (5.93)	$ (0.42)	$ (4.94)
Dividends declared per Common Share and RSU			$ 0.3	$ 0.3	$ 0.9	$ 1.49
Dividends Payable			$ 2.6		$ 2.6		$ 0
Payments of Ordinary Dividends, Common Stock					5.3	$ 10.5
Maximum
Basic and Diluted Earnings Per Common Share
Less: net earnings allocated to participating securities(1)				$ 0.1	$ 0.1	$ 0.1
Regular Dividends Declared
Basic and Diluted Earnings Per Common Share
Dividends declared per Common Share and RSU			$ 0.3	$ 0.3	$ 0.9	$ 0.9
Special Dividends Declared
Basic and Diluted Earnings Per Common Share
Dividends declared per Common Share and RSU		$ 0.59
[1]	During the three and nine month periods ended September 30, 2018 and 2017, there were no earnings allocated to participating securities since the Company incurred net losses.

Credit Facility (Details)

Credit Facility (Details) - 2016 Credit Facility - USD ($)	Oct. 08, 2018	May 06, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Credit Facility
Outstanding borrowings			$ 0		$ 0		$ 0
Interest Paid, Including Capitalized Interest, Operating and Investing Activities					0	$ 0
Facility and structuring fees related to Credit Agreement			$ 0	$ 0	$ 0	$ 0
Endurance Investments Holdings Ltd.
Credit Facility
Maximum borrowing capacity		$ 20,000,000
Facility and structuring fees related to Credit Agreement		$ 20,000
London Interbank Offered Rate (LIBOR) | Endurance Investments Holdings Ltd.
Credit Facility
Basis spread (as a percent)		1.50%
Subsequent Event
Credit Facility
Proceeds from Long-term Lines of Credit	$ 3,000,000

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
RSUs
Share-Based Compensation
Expenses recognized	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Compensation cost not yet recognized	$ 0.1		$ 0.1
2013 LTIP
Share-Based Compensation
Percentage of Aggregate Common Shares Outstanding Authorized for Issuance			1.00%
2013 LTIP | RSUs
Share-Based Compensation
Incentive awards outstanding (in shares)	16,892		16,892		12,188
2013 LTIP | Minimum | RSUs
Share-Based Compensation
Vesting period			1 year
2013 LTIP | Maximum | RSUs
Share-Based Compensation
Vesting period			5 years
Director [Member] | RSUs
Share-Based Compensation
Vesting period			3 years
Number of shares awarded	10,640	6,540	10,640	6,540
FV of awards granted	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Number of shares forfeited			0	2,352
Number of shares vested			5,936	5,158
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value			$ 0.1	$ 0.1

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	Oct. 08, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	May 06, 2016
Investment Management Agreement
Related party transactions
General and administrative expenses		$ 0.5	$ 0.6	$ 1.4	$ 2
Underwriting and Insurance Management Agreement
Related party transactions
General and administrative expenses		0	0		0.4
Administrative Services Agreement
Related party transactions
General and administrative expenses		$ 0.1	0.1	$ 0.4	0.4
Sompo International [Member]
Related party transactions
Percentage of outstanding common stock		33.20%		33.20%		33.20%
Amount due to for services performed		$ 0.8		$ 0.8		$ 0.7
Blue Capital Re Ltd [Member] | Blue Water Re | BW Retrocessional Agreement | Maximum
Related party transactions
Percentage of participation in the ceded reinsurance business of the related party for which option to cede exists				100.00%
2016 Credit Facility
Related party transactions
Outstanding borrowings		0		$ 0		$ 0
2016 Credit Facility | Endurance Investments Holdings Ltd.
Related party transactions
Maximum borrowing capacity							$ 20
Interest and financing expenses incurred with related party		$ 0	$ 0	$ 0	$ 0
Subsequent Event | 2016 Credit Facility
Related party transactions
Proceeds from Long-term Lines of Credit	$ 3

Commitments and Contingent Li_3

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Commitments and contingent liabilities
Funds held by ceding companies	$ 153.5	$ 164.8
Investment Management Agreement
Commitments and contingent liabilities
Period after IPO during which contract may not be terminated	5 years
Underwriting and Insurance Management Agreement
Commitments and contingent liabilities
Period after IPO during which contract may not be terminated	5 years
Administrative Services Agreement
Commitments and contingent liabilities
Period after IPO during which contract may not be terminated	5 years
Investment Management Agreement Or Underwriting and Insurance Management Agreement
Commitments and contingent liabilities
One-time termination fee as a percent of shareholders' equity	5.00%
Amount of one-time termination fee payable	$ 5.8
Blue Capital Re Ltd [Member]
Commitments and contingent liabilities
Loss Contingency, Estimate of Possible Loss	5
Cash and Cash Equivalents [Member] | Blue Capital Re Ils Ltd [Member]
Commitments and contingent liabilities
Cash and cash equivalents pledged as collateral	0
Blue Water Re | Cash and Cash Equivalents [Member] | Blue Capital (subsidiaries of reporting entity)
Commitments and contingent liabilities
Funds held by ceding companies	$ 153.5	$ 164.8

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
2016 Credit Facility
Fair value disclosures
Outstanding borrowings	$ 0	$ 0