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CatCo sale of manager

CatCo Reinsurance Opportunities has announced that its investment manager, CATCo Investment Management Ltd. has agreed to sell substantially all its assets to Markel Corporation, a U.S. based diverse financial holding company whose principal business markets and underwrites specialty insurance products. Listed on the New York Stock Exchange, Markel has a market capitalisation of approximately $11.5 billion and generated operating revenues of over $5 billion for the year ended 31 December 2014.

Markel and CATCo IM have entered into an agreement whereby Markel will acquire substantially all of the assets of CATCo IM, subject to the satisfaction of certain conditions. Upon completion of the acquisition which is expected to occur in the fourth quarter of 2015, the business will operate as Markel CATCo Investment Management Ltd. (“Markel CATCo”). Also upon completion of the acqusition, Markel CATCo will manage the Company.

Prior to completion of the acquisition, the Company will continue to operate and interact with its investment manager as normal, and there will be no changes to management personnel.

Upon completion of the acquisition, the existing CATCo IM management team, led by Chief Executive Officer Tony Belisle, will transition into corresponding roles at Markel CATCo and will continue to operate the business from its Hamilton, Bermuda headquarters, under Markel’s ownership. Responsibility for existing and potential reinsurance market client relationships will remain with the CATCo IM team that will transition to Markel CATCo with the reinsurance business conducted as before. The existing CATCo IM senior management team will remain with the business and are incentivised to stay with the business for a minimum of three to five years.

The Company believes this is a progressive transaction for all stakeholders in that the combined strengths of these companies will further support the development of innovative structures and new products for reinsurance market clients.

CAT : CatCo sale of manager

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