CATCo Reinsurance Opps Fund Ltd Portfolio Update (7509J)
December 07 2018 - 2:00AM
UK Regulatory
TIDMCAT
RNS Number : 7509J
CATCo Reinsurance Opps Fund Ltd
07 December 2018
FOR IMMEDIATE RELEASE
7 December 2018
CATCo Reinsurance Opportunities Fund Ltd. (the "Company")
Portfolio Update
To: SFS, London Stock Exchange and Bermuda Stock Exchange
Markel CATCo Investment Management Ltd., as Investment Manager
of the Company (the "Manager"), announces its intention to increase
the specific loss reserves held by the Company in relation to the
Ordinary Shares for the 2017 loss events as indicated in the stock
exchange announcement dated 22 November 2018.
The impact of the increase is estimated to be approximately 27.7
per cent of the 31 October 2018 Ordinary Share Net Asset Value
("NAV") and will be accounted for within the 30 November 2018 NAV.
On a normalised basis, this represents approximately a 15.7 per
cent deterioration in the Ordinary Share 2017 annual performance
and is equivalent to a 2017 NAV return on the Ordinary Shares of
approximately -57.1% per cent (down from the -41.4 per cent
reported at year-end).
Following the 2017 Hurricanes Harvey, Irma, Maria (HIM) and the
California Wildfires, the Manager has continued to monitor the
ongoing uncertainty related to these loss events. As has been
communicated previously, industry loss estimates have continued to
deteriorate beyond reasonable expectations since the time of the
last reserve provision made in April 2018. Since this time, the
industry loss estimates on major 2017 loss events have increased by
more than 12% as of December 2018.
In addition, based on an assessment of updated cedant loss data
as of Q3 2018, further reserve strengthening is required. This
expectation aligns not only with the increases of industry loss
estimate trends, but also with the numerous reports of insurers,
reinsurers, and ILS constituents who have continued to report
ongoing loss deterioration throughout Q3 2018. As such, the Manager
will strengthen reserves to be aligned with the observed wider
market increases. Some level of uncertainty will remain until
industry loss estimates cease to exhibit further growth.
Further, the Manager is continuing to assess the potential
impacts to the portfolio related to the 2018 California wildfires.
A material impact is expected to be recorded in the 30 November
2018 NAV. An update will be made to shareholders as soon as the
potential impact to the private insurance marketplace is known.
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
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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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