Markel CATCo adds another $3.37m to listed fund, targets $6bn in 2018

by Artemis on December 8, 2017

Markel CATCo Investment Management Ltd. has raised further capital for its stock exchange listed retrocessional ILS investment strategy, adding another small $3.37 million increment, as the manager targets reaching $6 billion in assets under management during 2018.

Markel CATCo has raised a significant haul of fresh capital to position itself to write a new portfolio at the key January reinsurance renewals, having previously announced a huge $1.8 billion capital raise for its private reinsurance and retrocession ILS fund strategies in October and then a significant $543 million capital raise for its stock exchange listed retrocession focused CATCo Reinsurance Opportunities Fund.

Adding to the listed fund raise, Markel CATCo has issued anotherĀ 3,367,863 new C Shares to investors under its current Placing Programme at an issue price of $1 per share, so raising almost $3.37 million for the fund. This is likely a fund raise to support a single investors allocation to this fund.

Once these additional shares have been listed the company will have roughly $965 million of assets within its listed ILS strategy, making it the largest ILS or reinsurance linked investment available on a stock exchange today.

It takes the total fresh capital raised in the last few weeks by Markel CATCo to nearly $2.35 billion, which will enable the manager to ensure it can meet client demand for its products at the key 1/1 renewals, while also bulking up its assets under management to replace collateral lost or trapped from recent major catastrophe loss events.

Looking forward into 2018 Markel CATCo CEO Tony Belisle is bullish about the firms prospects for increasing its assets even further, saying in another announcement that, “Markel CATCo is expected to grow to approximately $6 billion in 2018, an increase of over 30% in a year.”

Further growth will cement Markel CATCo’s position as one of the largest retrocession market’s in the world.

Also yesterday, Markel CATCo also announced that Alissa Fredricks is to be promoted to the newly created role of Chief Executive Officer, Bermuda.

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