CATCo retro funds head back to Bermuda Court this week

The in run-off retrocessional reinsurance investment funds that are managed by Markel CATCo Investment Management are heading back to the Bermuda Court this week to provide an update on recent developments.

As Markel CATCo seeks to speed the resolution and winding down of the retro reinsurance investment funds, a court directions hearing has been requested and scheduled for February 16th.

The hearing this week will give Markel CATCo a chance to update the court and its creditors on progress made, with it likely to focus on the recent enhancement of the terms offered to investors for the buy-out.

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

As we reported last week, 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.

Following that, the two Markel CATCo funds, the public listed CATCo Reinsurance Opportunities Fund Ltd. and the private Markel CATCo Reinsurance Fund Ltd., have requested this new appearance to update the court as it continues to garner support for the buy-out.

The investment manager and parent Markel will be hoping to get closer to resolving the buy-out disagreement so they can move forwards and close this chapter.

As we also reported last week, the outlook for the buy-out also continued 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:

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.