Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

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


Investors in the Markel CATCo retrocession and reinsurance investment funds are being urged to vote in favour of moving the buy-out process forwards at meetings to be held on March 4th, putting the end of this chapter in sight.

Markel CATCo logoScheme Meetings, in respect of the Schemes of Arrangement of the buy-out offer, are now set to be held on March 4th at 8am Bermuda time.

Investors need to have their instructions in respect of votes in by March 1st, 2pm Bermuda time.

Those investors in the CATCo retro and reinsurance funds that have already entered into support undertakings for the buy-out transaction have to vote to approve the schemes in order to receive the Early Consent Fee they were offered for their support.

If support is gained for the Schemes in these votes and at the meetings, then Markel CATCo believes the necessary court hearings and enforcement of the Chapter 15 could be completed and proceedings closed around March 15th, with distributions made to investors as soon as practicable after.

Which would then settle things for the investors in the CATCo retro and reinsurance funds, allowing them recoup the value remaining and the additional payments promised by Markel.

Meaning the end of this process is in sight for both Markel, its Markel CATCo unit and the investors in the retro and reinsurance investment funds.

Litigation is ongoing in US courts against former CATCo CEO Tony Belisle, but as we explained yesterday proceedings have been stayed while settlement negotiations are ongoing, which suggests that chapter could also be closed before too long and perhaps in tandem with this.

The liquidators of the CATCo private and public retro reinsurance funds explained that the buy-out offer provides much greater certainty to investors.

“It is our view that the Buy-Out Transaction provides a substantially better return to Scheme Creditors. It also provides such return much sooner, and with less uncertainty of outcome,” they explained.

Adding, “We support the Boards’ recommendation that Scheme Creditors vote in favour of the Schemes at each of the Scheme Meetings.”

Of course, even if the buy-out goes ahead at pace with investor approval, the Markel CATCo team will continue to run-off the portfolios and attempt to recover whatever additional value they can, before the chapter can be finally closed for parent Markel.

Also read:

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.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.