CATCo, the specialist Bermuda based investment manager who operate the London listed CATCo Reinsurance Opportunities Fund, are to seek additional capital by way of a C-Share issuance. They say that current market conditions offer them attractive investment opportunities with the ability to write a portfolio of risk in May/June including enhanced premiums in excess of those achieved at 1 January 2011.
CATCo said today:
“The reinsurance industry has experienced a number of significant events during the year to date. The Company has performed well and is now in an ideal position to take advantage of the consequent increase in rates.
“The strength of CATCo’s strategy and exposure to the reinsurance market has been tested and properly proven. The significant interest we have from investors is testament to the robust nature of our investment portfolio and we look forward to providing value to our shareholders.”
CATCo says that recent events in Australia, New Zealand and Japan would not result in claims levels above their loss event deductibles meaning that at present they don’t believe that there are any losses to their reinsurance portfolio. They also note that their portfolio does not have any exposure to nuclear power related claims.
Just the other week CATCo raised an additional $7.4m for their reinsurance opportunities fund through the issuance of new shares.