CAT Catco Reinsurance Opportunities Fund Limited

TIDMCAT

RNS Number : 1455W

CATCo Reinsurance Opps Fund Ltd

23 January 2013

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

Hurricane Sandy Update

 
 To: SFM, London Stock Exchange   Date: 23 January 2013 
  and Bermuda Stock Exchange 
 

Property Claims Services ("PCS"), an independent company who investigates reported disasters and determines the extent and type of damage, dates of occurrence, and geographic areas affected, primarily within the US, have published a re-survey of their January 2013 initial loss estimate from affected insurers resulting from the events of Hurricane Sandy which began on 23 October 2012.

The revised loss estimate is $18.75 billion, representing an increase of 70.45% on the original estimate of $11.0 billion.

The existing retrocessional reinsurance loss reserve provision that is included in the Company's Net Asset Value calculation is based on an insured industry loss of $20 billion. The Board of Directors remains of the opinion that there is no need to amend the existing retrocessional reinsurance loss reserve provision that is currently in place. Shareholders should note that this is a loss reserve, and not a crystalised loss, as CATCo-Re's protections are based on the actual paid claims.

The majority of the Company's catastrophic property exposure is through Ultimate Net Loss contracts ("UNLs") and therefore any losses that may be suffered by the Company will be based on actual losses of the insured counterparties rather than industry loss triggers as is the case for Industry Loss Warranty contracts ("ILWs"). However, the magnitude of the industry insured losses provides a reasonable guide as to the expected level of UNL claims.

PCS will conduct a re-survey in approximately 60 days following their new estimate and will update the loss estimate at that time with new data gained from affected insurers. It is the Directors intention to update the Company's shareholders with any additional information when this information is released and whether side pocket investments are required prior to the year end.

For further information, please contact:

Jason Bibb

CATCo Investment Management Ltd

Telephone: +1 (441) 531 2227

Email: jason.bibb@catcoim.com

David Benda / Hugh Jonathan

Numis Securities Limited

Telephone: +44 (0) 20 7260 1000

John Whiley / Matthew Charleson

Prime Management Ltd

Tel: +1 (441) 295 0329

This information is provided by RNS

The company news service from the London Stock Exchange

END

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