Swiss Re Insurance-Linked Fund Management

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CATCo buyout schemes sanctioned by Bermuda Court


Gaining closure over the Markel CATCo retrocessional reinsurance investment funds cleared another hurdle for parent Markel today, after a Bermuda Court sanctioned the proposed schemes to implement the buyout process.

Markel CATCo logoAs we explained earlier this week, investors in the Markel CATCo retro reinsurance investment strategies voted overwhelmingly in favour of the proposed and updated buyout terms, putting the process on course for a resolution and completion by the end of the month.

Two hurdles remained, one of which was the sanctioning of the buyout proposal by the Bermuda Court.

That hurdle was cleared today and now the remaining step to be taken is a grant of orders by the U.S. Bankruptcy Court recognising and enforcing the Schemes.

U.S. Bankruptcy Court has scheduled an evidentiary hearing to consider this on March 16th, subject to which the CATCo funds hope the buyout could be implemented by the end of the month.

So the CATCo retro insurance-linked securities (ILS) funds saga draws ever closer to closure, with investors set to receive a boosted buyout on which some more recent allocators are expected to profit.

As we pointed out the other day, some investors have done very well out of the whole process, particularly those that bought into the public fund at the lowest NAV’s, on which they will now be making a tidy profit at the buyout terms.

Also read:

CATCo investors vote “overwhelmingly” in favour of buyout.

Markel CATCo funds seek US bankruptcy support for buyout.

Markel CATCo sets buy-out meeting date. End of process in sight.

Former CATCo CEO Belisle’s fraud lawsuit stayed as settlement negotiated.

Bermuda Court orders CATCo creditor meetings be held.

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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