CATCo closes side-pocket, converting C Shares to Ordinary Shares

by Artemis on August 8, 2012

Bermuda based CATCo Investment Management, the specialist reinsurance-linked investment business who manage around $2 billion of retrocessional portfolios for their clients, have announced that CATCo Diversified Fund in which the Company invests has closed down its side pocket associated with their New Zealand and Japanese catastrophe exposures. CATCo originally set up the side pocket to segregate the exposure to the NZ and Japan earthquake events from newer investors in their fund.

Now that CATCo has all but dealt with their losses and exposures to these two events, read their last update on these events here, they want to merge the special class of C Shares that were created by the side pocket back into their master fund Ordinary Shares.

A stock exchange announcement states that CATCo closed the side pocket exposures by way of a compulsory redemption of the shares issued in respect of the side pocket, on the 1st August. This redemption triggers the conversion back into Ordinary Shares.

The conversion is made based on the respective net asset values of the C Shares and Ordinary Shares as at close of business today, the 8th August 2012.

This marks the closing of these loss events for CATCo shareholders and means that new investors in the popular reinsurance and retro-linked investment opportunities can deploy capital with CATCo safe in the knowledge that those two massive catastrophe events can have no further impact on CATCo.

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