Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

CATCo investors vote “overwhelmingly” in favour of buyout


Investors in the Markel CATCo retrocessional reinsurance investment funds have 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.

Markel CATCo logoScheme Meetings, in respect of the Schemes of Arrangement of the buy-out offer, were held at which investors holding shares in the CATCo Reinsurance Opportunities Fund Ltd., the listed, retrocession focused insurance-linked securities (ILS) fund strategy managed by Markel CATCo Investment Management, and the private CATCo retro ILS funds voted again.

CATCo said “investors in all classes voted overwhelmingly in favour of the Buy-Out Transaction.”

The Chairman of the listed fund said that a preliminary count of the votes at each meeting indicated that the resolutions to approve the Schemes had passed.

Shares from the public fund are being released from escrow and investors can expect their 2% Early Consent Fee bonuses once the buyout transaction is completed.

A Bermuda Court hearing will seek sanction approval for the schemes on March 11th after which the only remaining hurdle is the US bankruptcy court support, which is also being sought.

“Subject to those orders being granted, the Funds are aiming for the completion date of the Schemes to occur in late March 2022,” Markel CATCo said.

Distributions to investors will happen as soon as possible after the transaction completion date.

With investor support secured, Markel can now look towards the final buying out of shareholders stakes in the CATCo retro reinsurance investment funds, which it is funding.

After that, the subject business underpinning the CATCo ILS funds will still need running off, so the process and responsibilities doesn’t quite end their for Markel.

But it means they no longer have the threat of investor legal action and can proceed to run the funds off in private, while not having to report to the stock exchange for the public fund any more.

That will mean CATCo completely drops out of sight and the saga will end, any further legal process in the states aside.

Some investors have done very well out of the whole process, particularly if you bought into the public fund at the lowest NAV’s, on which you could now be making a tidy profit at the buyout terms.

Also read:

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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