CATCo Reinsurance Opportunities has announced that its investment manager, Markel CATCo Investment Management Ltd, is subject to enquiries, by the US and Bermuda governments, into loss reserves recorded in late 2017 and early 2018. This includes its subsidiaries Markel CATCo Reinsurance Fund Ltd and Markel CATCo Re Ltd
Markel CATCo Reinsurance Fund Ltd is the master fund through which CATCo Reinsurance Opportunities invests. Markel CATCo Re Ltd is the reinsurer through which the master fund invests.
CATCo Reinsurance Opportunities Board says that it understands that these enquiries are at a preliminary stage and says that it continues to support Markel CATCo as the Company’s investment manager.
Markel CATCo Investment Management is under investigation and is fully co-operating with the enquiries
In its press release relating to the matter (click here), Markel Corporation said that, having been contacted on 30 November 2018, it is fully cooperating with enquiries by US and Bermuda authorities. It said that the enquiries relate to loss reserves recorded in late 2017 and early 2018 at Markel CATCo Investment Management Ltd and its subsidiaries. These inquiries are limited to Markel CATCo Investment Management Ltd and its subsidiaries and do not involve other Markel Corporation companies. It sasy atht outside counsel has been retained to conduct an internal review and that the company has no further statement at this time.
About CATCo Reinsurance Opportunities
CATCo Reinsurance Opportunities aims to give its shareholders the opportunity to participate in the returns from investments linked to catastrophe reinsurance risks, principally by investing in fully collateralised reinsurance contracts but also via a variety of insurance-based investments, including insurance-linked swaps and industry loss warranties, insurance-linked securities as well as other financial instruments.
The fund will target an internal rate of return in excess of LIBOR plus 12 percent to 15 percent per annum including a distribution by way of dividend in respect of each Fiscal Year, of an amount equal to LIBOR plus 5 percent of the Net Asset Value at the end of each Fiscal Year.
CATCo Reinsurance Opportunities intends to spread investment risk by seeking exposure to several non-correlated risk categories which limits the amount of capital at risk with respect to a single catastrophic event.
About Markel Corporation
Markel Corporation is a diverse financial holding company serving a variety of niche markets. The Company’s principal business markets and underwrites specialty insurance products. In each of the Company’s businesses, it seeks to provide quality products and excellent customer service so that it can be a market leader. The financial goals of the Company are to earn consistent underwriting and operating profits and superior investment returns to build shareholder value. Visit Markel Corporation on the web at www.markelcorp.com.