CatCo Reinsurance Opportunities Fund

As the running-off of the exchange listed CATCo Reinsurance Opportunities Fund, the stock exchange listed retrocessional reinsurance strategy operated by Markel CATCo, completed this year, the company has now revealed that the net asset value of the shares rose 52% just this year as additional positive loss development was experienced.

Investors in the CATCo Reinsurance Opportunities Fund, the stock exchange listed retrocessional reinsurance strategy operated by Markel CATCo, are getting closer still to unlocking the remaining trapped investment collateral, as a partial share redemption completes and the fund nears its run-off.

As the Markel CATCo retrocessional reinsurance investment portfolio story begins to draw towards its natural run-off conclusion, the Board of the London listed fund entity is seeking shareholder approval for a winding up of that specific strategy.

Reflecting the last few year’s recovery of value story in the Markel CATCo retrocessional reinsurance investment portfolio, the London listed fund entity is now set to buy-back the majority of its shares at a much higher net asset value than had previously been achieved in earlier share redemptions.

Markel Group continued to benefit from returns of value due to favourable loss development on the CATCo retrocessional reinsurance portfolio in the second-quarter of 2024, taking the total for the first-half to $24.1 million.

Markel has once again benefited from a return of value due to favourable loss development on the CATCo retrocessional reinsurance portfolio, booking a further $15.7 million in the first-quarter.

The net asset value of the two share classes of the CATCo Reinsurance Opportunities Fund rose by over 61% across the course of 2023, as the investment manager Markel CATCo continued to unlock more value from the fund’s run-off for its investors.

Markel CATCo Investment Management, the retrocessional reinsurance specialist investment manager arm of Markel, is still running-off its portfolio of risk and in the last quarter of record managed to recover additional value as favourable development of its side pocket loss reserves continued.

Having reported favourable development of its side pocket loss reserves through the final quarter of 2022, the CATCo retrocessional reinsurance investment portfolio saw this trend continue in Q1 of 2023 as well, with further gains made.

The running-off of the Markel CATCo Investment Management portfolios of retrocessional reinsurance continues apace, with additional favourable development booked in the first-quarter of 2023, and now just 10 open contracts said remaining at the Markel CATCo Re reinsurance vehicle.