Last checked at 
10 Sep 2015 07:00
CATCo Reinsurance Opportunities Fund Ltd. ("the Company")
CATCo Investment Management Ltd. Sale of Assets
To: SFM, London Stock Exchange and Bermuda Stock Exchange | Date: 10 September 2015 |
The Company announces that its investment manager, CATCo Investment Management Ltd. ("CATCo IM") has agreed to sell substantially all its assets to Markel Corporation ("Markel"), a U.S. based diverse financial holding company whose principal business markets and underwrites specialty insurance products. Listed on the New York Stock Exchange, Markel has a market capitalisation of approximately $11.5 billion and generated operating revenues of over $5 billion for the year ended 31 December 2014.
Markel and CATCo IM have entered into an agreement whereby Markel will acquire substantially all of the assets of CATCo IM, subject to the satisfaction of certain conditions. Upon completion of the acquisition which is expected to occur in the fourth quarter of 2015, the business will operate as Markel CATCo Investment Management Ltd. ("Markel CATCo"). Also upon completion of the acqusition, Markel CATCo will manage the Company.
Prior to completion of the acquisition, the Company will continue to operate and interact with its investment manager as normal, and there will be no changes to management personnel.
Upon completion of the acquisition, the existing CATCo IM management team, led by Chief Executive Officer Tony Belisle, will transition into corresponding roles at Markel CATCo and will continue to operate the business from its Hamilton, Bermuda headquarters, under Markel's ownership. Responsibility for existing and potential reinsurance market client relationships will remain with the CATCo IM team that will transition to Markel CATCo with the reinsurance business conducted as before. The existing CATCo IM senior management team will remain with the business and are incentivised to stay with the business for a minimum of three to five years.
The Company believes this is a progressive transaction for all stakeholders in that the combined strengths of these companies will further support the development of innovative structures and new products for reinsurance market clients.
Nigel Barton, Chairman, CATCo Reinsurance Opportunities Fund Ltd. said:
"The Board sees this as a very positive development for investors and reinsurance market clients alike. In bringing together the strengths of CATCo IM and Markel, the Board expects this transaction to generate future benefits for the Company's investors."
Tony Belisle, Chief Executive Officer of CATCo Investment Management Ltd. said:
"We are excited to join forces with Markel, a leading global specialty insurer and reinsurer which operates with a strong commitment to its core values and distinguished corporate culture. We felt this partnership offered a rare opportunity for CATCo IM to combine with a culturally similar organization which shares our results-oriented commitment to success and market leadership.
"We are confident that uniting the strength of the Markel brand and its global reach with CATCo IM's differentiated product innovation capabilities will serve to improve our value proposition for investors and cedants. CATCo has grown significantly since its launch in 2010 and the agreement with Markel will allow the same management team to maintain its commitment to both client service and continued product development."
For further information:
Judith Wynne,
Company Secretary and General Counsel
CATCo Investment Management Ltd.
Telephone: +44 7986 205364
Email: judith.wynne@catcoim.com
Mark Way
Investor Relations Director
CATCo Investment Management Ltd.
Telephone: +44 7786 116991
Email: mark.way@catcoim.com
David Benda / Hugh Jonathan
Numis Securities Limited
Telephone: +44 (0) 20 7260 1000
- ends -