CatCo Reinsurance Opportunities Fund

As part of its efforts to run-off its portfolios of retrocessional reinsurance and return capital to its investors, Markel CATCo Investment Management has executed its first share buyback for the exchange listed ILS fund CATCo Reinsurance Opportunities Fund Ltd.

Retrocessional reinsurance focused investment manager Markel CATCo Investment Management has now established specific loss reserves for recent catastrophes hurricane Dorian and typhoon Faxai.

Markel CATCo Investment Management has begun returning capital to shareholding investors in its listed retrocessional reinsurance investment fund, with almost $16 million set to be returns by way of an interim dividend.

Retrocessional reinsurance focused investment manager Markel CATCo Investment Management has warned that investors in the 2019 portfolios of its listed fund are exposed to potential losses from recent catastrophe events hurricane Dorian and typhoon Faxai.

On a net asset value (NAV) basis, the CATCo Reinsurance Opportunities Fund continued to deliver positive NAV returns in July, but at the same time the share price continues to languish, as much as 135% below their net asset value in the case of one class.

Despite the fact it is set for run-off it is interesting to note that the 2019 portfolio underwritten for the CATCo Reinsurance Opportunities Fund has delivered a 6% net asset value return in the first-half of the year to one class of shareholders.

A schedule has now been set for the beginning of the share buy-backs for the listed retrocessional reinsurance investment fund operated by Markel CATCo Investment Management, with a portion of the shares of the CATCo Reinsurance Opportunities Fund set to be repurchased in September.

Markel Corporation has no intention of emulating the well-known CATCo retrocession products within the new retro insurance-linked securities (ILS) platform the firm intends to launch for the end of the year.

Markel Corporation said it is launching a new retrocessional reinsurance insurance-linked securities (ILS) fund platform, while at the same time announcing a winding down of the existing Markel CATCo fund operations.

After having reported further loss creep that dented the net asset value’s of its listed retrocessional reinsurance fund shares in May, the CATCo Reinsurance Opportunities Fund shows that premiums are still set to flow as its share classes returned up to 1.3% in June.