Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Bermuda Court orders CATCo creditor meetings be held


At a directions hearing held in a Bermuda Court yesterday, the judge ruled that meetings of buy-out scheme creditors in the Markel CATCo Investment Management operated retrocessional reinsurance funds be held.

Markel CATCo logoThe news on the next stage in the running-off of retrocessional reinsurance investment funds that are managed by Markel CATCo Investment Management comes as the investment manager and parent Markel Corporation seek to speed a resolution to this chapter.

The hearing, held yesterday, gave Markel CATCo a chance to update the court and its creditors on progress made in the proposed buy-out schemes of arrangement.

The terms of the Markel CATCo buyout proposal had been sweetened recently, after a new settlement was reached with some investors that had previously objected to the terms.

As we also reported recently, Markel CATCo gained approval from a majority of investors for the enhanced buy-out terms and pushed back the validity date of Support Undertakings to the end of March.

The Bermuda Court ordered that meetings of Scheme Creditors be convened to consider the schemes of arrangements proposed by Markel CATCo for the public listed CATCo Reinsurance Opportunities Fund Ltd. and the private Markel CATCo Reinsurance Fund Ltd.

These meetings are now expected to occur on March 4th, or soon after and we suspect explaining the further improvement in terms on offer may be the driver here.

Additional information has been provided on the sweetening of buyout terms, which boil down to Markel paying for an increase to the pro rata consideration that will be paid to all investors pursuant to the Buy-Out Transaction, which will be increased by $10 million, as well as the additional contribution made by Markel towards costs being estimated as between $5-10 million.

As we also reported recently, the outlook for the buy-out and creditors to the funds continues to improve, as Markel CATCo Investment Management recovered more value for its investors, thanks to favourable development related to 2017 and 2018 catastrophe loss events.

Also read:

CATCo retro funds head back to Bermuda Court this week.

Markel CATCo gets majority investor support for improved buy-out terms.

CATCo reports favourable development on 2017 & 2018 catastrophes.

Markel CATCo buy-out terms sweetened after settlement reached.

Belisle fraud lawsuit to wait for CATCo insolvency decision in Bermuda.

CATCo retro fund gains again, NAVs now 148% & 231% higher than lows.

Markel CATCo buyout support undertakings extended to end of February 2022.

Markel CATCo says court decision on buyout hoped for in January.

Markel CATCo to “vigorously defend” investor challenges.

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