CatCo Reinsurance Opportunities Fund

Markel Corporation has reached the point where it can put the two lawsuits from the ex-CEO’s of its Markel CATCo Investment Management unit behind it, having agreed terms to settle or close the cases.

The continued loss creep that has affected reinsurance markets this year has hit the listed retrocessional reinsurance investment fund operated by Markel CATCo Investment Management, resulting in a decline of -18% in both share classes of the ILS fund in May.

Markel CATCo Investment Management has increased its specific loss reserves for catastrophe events from both 2017 and 2018 again, further denting the net asset values of the shares of its CATCo Reinsurance Opportunities Fund.

The CATCo Reinsurance Opportunities Fund, Markel CATCo Investment Management’s stock exchange listed retrocession focused investment fund, has experienced a second consecutive month of positive returns for April, but the shares are still discounted well below the latest NAV’s.

Markel Corporation is still unsure when it will be able to begin raising new funds for future investment strategies operated by its Markel CATCo asset management unit, according to the firms Co-CEO Richard Whitt III.

Markel Corporation has requested the dismissal of the lawsuit filed against its Markel CATCo Investment Management subsidiary, claiming that the suit by Tony Belisle fails to state a reasonable claim against the firm.

Markel CATCo Investment Management is committed to the delivery of its 2019 portfolio to shareholders in its listed retrocessional reinsurance fund strategy, signalling an intention to trade forwards once loss affected portfolios are dealt with.

After an internal review conducted by outside legal counsel was completed, Markel Corporation says that the review found no evidence of “bad faith in exercising business judgment” by Markel CATCo personnel when it came to setting loss reserves in late 2017 and early 2018.

Markel CATCo Investment Management’s stock exchange listed retrocession focused investment fund the CATCo Reinsurance Opportunities Fund is set to be run-off, after investors almost unanimously approved the proposal.

Markel Corporation is “incredibly optimistic” about the potential for its insurance-linked securities (ILS) business to drive growth and profits for the firm.