CatCo to raise finance in wake of hurricanes – CATCo Reinsurance Opportunities Fund Ltd has announced today that the Board and Markel CATCo Investment Management Ltd., the investment manager, are proposing to raise further funds via the Markel CATCo Diversified Fund (a segregated account of Markel CATCo Reinsurance Fund Ltd), in which the company invests substantially all of its assets (the “Master Fund”).
They say that recent hurricane events affecting parts of the U.S.A. and the Caribbean have resulted in increased pricing within the retrocessional reinsurance market and in addition a requirement by the company for new capital.
The Board and Markel CATCo believe that it is appropriate to offer this opportunity to investors in the Company, in response to demand from both current shareholders and new investors. To facilitate this fundraise, it is intended that a prospectus will be published in early November with a view to closing the fundraise by the end of November. The fundraise will be by way of a placing of new C-Shares.
Whilst significant uncertainty regarding the market impact of the recent events exists, based on current loss estimates, and assuming no further significant catastrophic events for the remaining part of the year, they currently estimate a NAV return for 2017 of between positive five percent to negative 15 percent.
CAT : CatCo to raise finance in wake of hurricanes