Proposed Capital Raising for New Investment Opport

CATCo Reinsurance Opportunities Fund Ltd. ("the Company or CATCo")

Proposed Capital Raising for New Investment Opportunites

The Board of Directors are pleased to advise that the Company is seeking to raise additional capital by way of a C-Share issuance. Current market conditions indicate that the Company has attractive investment opportunities available to it, with the ability to write a May/June portfolio including enhanced premiums in excess of those achieved at 1 January 2011. 

Following discussions with CATCo's existing reinsurance counterparties where protections have been provided and are included in the existing portfolio, claim reserves held for the recent 2011 events in Australia, New Zealand and Japan are below the Company's reinsurance agreement loss event deductibles. Consequently, the Board of Directors currently do not believe that there are any potential losses to CATCo's reinsurance portfolio resulting from recent events in these countries. CATCo's reinsurance portfolio is also not exposed to any nuclear power related claims.

On Admission to the Specialist Fund Market of the London Stock Exchange on 20 December 2010, the Company raised c. $80.39m and has subsequently raised a further c. $7.35m through a placing of new ordinary shares representing c.9% of the issued share capital on 31 March 2011. The Company is structured as a Feeder Fund into a private Master Fund in Bermuda.

-Ends-

For further information, please contact:

CATCo Investment Management Ltd

Jason Bibb/ Mark Way

Telephone: +1 441 531 2227 / +44 7786 116991

Email: jason.bibb@catcoim.com / mark.way@catcoim.com

David Benda / Hugh Jonathan

Numis Securities Limited

Telephone: +44 (0)20 7260 1000