Markel CATCo Investment Management

Markel CATCo Investment Management’ in run-off retrocession focused investment fund, the CATCo Reinsurance Opportunities Fund Ltd., is expecting another significant release of trapped capital, with another $37.9 million from its side pockets set to be returned to investors.

Markel Corporation is expecting to settle the binding arbitration case between it and the former Markel CATCo CEO Tony Belisle during the third-quarter of the year, putting another piece of the legal saga behind it.

Markel Corporation hopes to see fresh inflows coming into its insurance-linked securities (ILS) business in the second-half of 2020, as the capital markets become less volatile and investor confidence recovers, according to Co-CEO Richie Whitt.

Nephila Capital, the largest dedicated insurance-linked securities (ILS) investment manager in the industry, has continued to drive rising ILS related revenues for parent Markel Corporation in the second-quarter, but its assets under management declined further, ending June at $9.5 billion.

The in run-off CATCo Reinsurance Opportunities Fund Ltd., the exchange listed retrocession focused investment fund strategy managed by Markel CATCo Investment Management, is set to return more trapped capital back to investors as its side pockets continue to prove more than adequate for certain older loss reserves.

As we reported recently, Markel Corporation has invested $90 million of its own capital into an investment strategy managed by its retrocessional reinsurance focused investment manager Markel CATCo, to boost capital available to fund investor redemptions.

Markel Corporation has put some of its own money behind the running-off of its retrocessional reinsurance investment manager Markel CATCo, investing $90 million in one of the CATCo funds in the first-quarter to boost capital available to fund investor redemptions.

Markel Corporation reported its first-quarter 2020 results yesterday and in its report the company warned of the potential hit to its insurance-linked securities (ILS) operations from the Covid-19 pandemic, which is perhaps partly evidenced in a -4% decline in assets under management at Markel’s flagship ILS fund manager Nephila Capital.

The in run-off CATCo Reinsurance Opportunities Fund Ltd., the exchange listed retrocession focused investment fund strategy managed by Markel CATCo Investment Management, is expecting to receive an $18.8 million return of capital from a range of side pockets in May, with the proceeds set to be used to redeem more shares.

The CATCo Reinsurance Opportunities Fund Ltd., the listed retrocession focused investment fund strategy managed by Markel CATCo Investment Management, is set to buy-back almost $30 million of shares in a first compulsory purchase and the purchase is being made at NAV, which is well-above the current listed share prices for the fund.