Markel Corporation has confirmed its commitment to insurance-linked securities (ILS), telling the Board of the exchange listed Markel CATCo managed retrocessional reinsurance investment fund that it remains part of the firms long-term strategy.
The confirmation comes in the wake of the news of the departure of Markel CATCo CEO Tony Belisle and CEO – Bermuda, Alissa Fredricks, who have been let go with immediate effect following the violation of company policies relating to an undisclosed personal relationship.
Markel Corporation told the Board of the CATCo Reinsurance Opportunities Fund Ltd. that participation in the insurance-linked securities (ILS) market remains part of the re/insurers long-term strategy.
Markel is technically the largest manager of ILS and collateralized reinsurance assets, given its ownership of both Markel CATCo and the largest ILS manager in the marketplace Nephila Capital which it acquired last year.
Markel also confirmed its support for the Markel CATCo team, highlighting the “exceptionally talented and experienced team that is in place to run the business,” the Board of the fund said.
With two senior Markel reinsurance executives, Jed Rhoads and Andrew “Barney” Barnard, now having oversight of the Markel CATCo operations, the company has also commenced its search for a new CEO for the investment management unit.
The Board of the CATCo Reinsurance Opportunities Fund also said that it will keep the firm’s investment management arrangements under review, while the eventual transition of its management team takes place.
Additionally, the Board of the retro reinsurance fund noted that the January 2019 portfolio renewal is “substantially complete” and that the end of year audit for 2018 is now underway.
The ongoing internal review of loss reserving practices continues, but so far the firm said no conclusions have been reached.