10th Sep 2015 08:43
LONDON (Alliance News) - CATCo Reinsurance Opportunities Fund Ltd on Thursday said that its investment manager has agreed to sell most of its assets to Markel Corp, a US holding company that underwrites specialty insurance products.
Richmond, Virginia-based Markel will acquire substantially all of the assets of CATCo Investment Management Ltd, which manages about USD2.7 billion of retrocession and traditional reinsurance portfolios for clients such as financial institutions, charities, pension funds, family offices, and investment funds, according to the statement.
CATCo Reinsurance Opportunities Fund said it will "operate and interact" with the investment manager as normal until completion of the deal, when CATCO Investment Management Chief Executive Tony Belisle will lead the rest of the management team into corresponding roles at Markel CATCo.
"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," Belisle said.
According to the fund, Belisle and the rest of the senior management team at the investment manager have been given incentives to stay with the acquired business for a minimum of three to five years.
Under Markel's ownership, the business will still be operated from its Hamilton, Bermuda headquarters.
"The board sees this as a very positive development for investors and reinsurance market clients alike," Nigel Barton, chairman, CATCo Reinsurance Opportunities Fund, said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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