CATCo Reinsurance Opps Fund Ltd Net Asset Value(s) & Portfolio Update (1427I)
November 22 2018 - 2:02AM
UK Regulatory
TIDMCAT
RNS Number : 1427I
CATCo Reinsurance Opps Fund Ltd
22 November 2018
FOR IMMEDIATE RELEASE
22 November 2018
To: SFS, London Stock Exchange and Bermuda Stock Exchange
NET ASSET VALUE ("NAV") AND PORTFOLIO UPDATE
Markel CATCo Investment Management Ltd., as Investment Manager,
announces the unaudited net asset value of the Company's Ordinary
Shares and C Shares of $0.6969 and $1.0502 respectively, as at the
close of business on 31 October 2018. The NAV is inclusive of an
attritional loss reserve of approximately 15 bps per month
(year-to-date: 1.5%).
The Company's Ordinary Shareholders and C Shareholders are
exposed to potential losses arising from the 2018 events Hurricane
Michael and Typhoon Jebi. The Manager has implemented a specific
loss reserve for these events resulting in a 3.7% impact to the
Ordinary Share NAV and 9.8% impact to the C Share NAV as of 31
October 2018. Information pertaining to the private insurance
industry loss impact is still developing for these events and
cedant loss notifications are not yet available, meaning reserves
have been based on early industry estimates. As such, it is
possible for the impact of these events to change materially
following the availabilty of formal cedant loss notifications.
The Manager is also monitoring the California Widlfire events,
notably the Camp and Woolsey (Malibu) fires, which began in early
November. The fires have now become the most destructive in
California's history. Based on early assessments of the industry
loss potential due to the fires, it appears a material loss to the
portfolio is likely in an amount that could exceed the impact of
the 2017 California Wildfire events (2017: c.17%). The estimated
impact to Ordinary Shareholders and C Shareholders will be
determined after the fires are fully contained and further industry
information has been made available.
In addition, the Company's Ordinary Shareholders continue to be
exposed to losses arising from 2017 major events. Since the reserve
provisions made in April 2018 for 2017 events, the insurance market
has continued to report further loss deterioration. In addition,
the industry loss estimates for the 2017 events have increased at
least 9% over estimates reported in April 2018. As a result,
further reserve strengthening is likely to be necessary. An
assessment of Q3 cedant loss information is currently underway and
an announcement of the estimated portfolio impact will be made
prior to the release of the 30 November 2018 NAV.
For further information:
Markel CATCo Investment Management Ltd. Numis Securities Limited
David Benda / Hugh Jonathan
Judith Wynne Telephone: +44 (0) 20 7260
General Counsel 1000
Telephone: +1 441 493 9005
Email: judith.wynne@markelcatco.com
Mark Way
Chief of Investor Marketing
Telephone: +1 441 493 9001
Email: mark.way@markelcatco.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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