Portfolio Update

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

Portfolio Update

Highlights

· The FY15 net asset value ("NAV") return was 11.58%, outperforming the Eurekahedge Insurance Linked Securities Advisors Index of 4.27%

· Side pockets set up at 31 December 2015 amount to approximately 5.5% of Ordinary Share NAV with a significant proportion of this amount related to the late December 2015 UK flooding event. This event is not expected to result in loss payments diluting the value of these side-pockets

· The late December UK flooding and US tornado events also necessitated the need for a conservative reserving approach at year-end, which adversely impacted the NAV by 175 bps. However, the expectation is that a significant proportion of this reserve will be released during 2016

· There are no remaining side pockets associated with calendar years prior to 2014 as Superstorm Sandy has now been fully commuted during Q4 2015 resulting in approximately a 1% increase to the FY15 NAV

· The side pockets related to 2014's US convective storms have reduced to c. 1.5% from the 3.5% established at 31 December 2014

· Increased demand for Markel CATCo Re Ltd (the "Reinsurer") products has led to 100% of available capital deployed at 1 January 2016

· FY16 portfolio provides for an indicative net return of c. 16% on invested capital with a lower risk portfolio versus FY15's portfolio

· Average risk of FY16 portfolio down c. 20% on FY15's portfolio

· Maximum capital exposed to a worst case single event is not more than 10%

· The FY2015 dividend will be announced on 29 January 2016

For further information:

Judith Wynne,

Company Secretary and General Counsel

Markel CATCo Investment Management Ltd

Telephone: +1 441 493 9005

Email: [email protected]

Mark Way

Fund Operations and Investor Relations Director

Markel CATCo Investment Management Ltd

Telephone: +1 441 493 9003

Email: [email protected]

David Benda / Hugh Jonathan

Numis Securities Limited

Telephone: +44 (0) 20 7260 1000