Markel CATCo looks to raise more capital for mid-year renewals

by Artemis on May 15, 2017

Reinsurance and retrocessional reinsurance linked investment management firm Markel CATCo Investment Management Ltd. is looking to raise new capital from investors to increase its available capacity for deployment at the mid-year renewals, as the manager sees opportunities with both existing and new counterparties.

The mid-year June and July reinsurance renewals see a significant amount of retrocessional contracts renewed, as well as many U.S. focused property catastrophe reinsurance programs.

Following discussions with existing and potential new reinsurance counterparties, Markel CATCo believes that there are attractive underwriting opportunities to be had and so is looking to raise new capital into its Markel CATCo Diversified Fund (a segregated account of the Markel CATCo Reinsurance Fund Ltd), which is the Master Fund to the listed CATCo Reinsurance Opportunities Fund Ltd.

Markel CATCo is inviting investors in the listed fund to participate, or for new investors to take this opportunity to allocate to the fund for the first time.

The reinsurance linked asset manager sees the opportunities as a way to “continue to diversify the Master Fund’s portfolio, while maintaining the indicative maximum net return profile of approximately 16% on invested capital.”

Some of the fund raise is expected to go to new investors, which will further diversify the capital base of the listed CATCo Reinsurance Opportunities Fund.

Retrocessional players have been finding new opportunities at recent renewals, which has helped Markel CATCo to grow its assets under management to $4.3 billion earlier this year.

With the ILS manager seeing a pipeline of attractive new potential opportunities and looking to raise more capital to expand its portfolio at the mid-year 2017 renewals, it looks like Markel CATCo will achieve further growth and continue to position itself as one of the leading retrocession providers in the market.

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