Insurance-linked securities (ILS) fund manager Markel CATCo Investment Management Ltd has revealed a run-off process slated to last for approximately three years.
The Markel Corporation unit announced that it will cease accepting new investments in Markel CATCo Reinsurance Fund Ltd (MCRF) and will also not write any new business through Markel CATCo Re Ltd (MCRe).
Meanwhile, assurances have been offered that the run-off of MCRe’s portfolio will be orderly.
In addition, MCRF will return capital to its investors, including the CATCo Reinsurance Opportunities Fund. Hamilton-headquartered Markel CATCo noted that this will be done as such capital becomes available, which it said will continue to be subject to side pockets.
Separately, parent firm Markel has expressed its intention to establish a new retrocessional ILS fund platform in Bermuda. This will consist of a reinsurance company, fund entity, and investment manager.
“Markel is tremendously optimistic about the future of the ILS market,” stated co-chief executive Richard R. Whitt.
“Over time we expect this new platform to broaden Markel’s capabilities and provide institutional investors access to further opportunities in insurance risk, complementing our existing Nephila and State National operations.”