CATCo Reinsurance Opps Fund Ltd Discount control measures (8773K)
December 18 2018 - 10:30AM
UK Regulatory
TIDMCAT
RNS Number : 8773K
CATCo Reinsurance Opps Fund Ltd
18 December 2018
CATCo Reinsurance Opportunities Fund Ltd. (the "Company")
Discount control measures - redemption share conversion
option
To: London Stock Exchange and Date: 18 December 2018
Bermuda Stock Exchange
The Board notes the significant discount at which both the
Ordinary and the C shares are trading relative to the last
published NAV. The Board is considering a number of options to
address shareholder concerns regarding the discount.
Subject to liquidity created from the release of capital from
the underlying investment portfolio, the Board will conduct share
buybacks as early in 2019 as possible.
The Board also wishes to announce that, notwithstanding the
increased pricing within the retrocessional reinsurance market
resulting from recent catastrophic events, it intends to offer
shareholders the opportunity to elect to convert their
shareholdings into redemption shares in 2019. Redemption shares
would continue to participate pro rata in each of the underlying
reinsurance contracts comprising the relevant share class's
portfolio as at the date of their issue, but will not participate
in any new investments from that date. As the related reinsurance
contracts expire, it is anticipated that the Company would redeem
the redemption shares with the proceeds received from underlying
investments. These elections are expected to be offered in Q2 2019
and, conditional on shareholder approval, are expected to become
effective shortly prior to the 2019 mid-year renewals. Shareholders
who do not so elect will continue in their current share class.
In addition, subject to investor demand, the Board may approve
the issuance of a new C Share class to provide exposure to 2019
mid-year reinsurance contract renewals.
It remains the intention of the Board to pay the annual dividend
in accordance with the Company's previously stated dividend policy,
subject to available liquidity, which is to target an amount equal
to LIBOR plus five per cent of the NAV per share as at 31 December
2018.
This Announcement contains Inside Information as defined under
the Market Abuse Regulation (EU) No. 596/2014.
For further information:
Judith Wynne
General Counsel
Markel CATCo Investment Management Ltd.
Telephone: +1 441 493 9005
Email: judith.wynne@markelcatco.com
Mark Way
Chief of Investor Marketing
Markel CATCo Investment Management Ltd.
Telephone: +1 441 493 9001
Email: mark.way@markelcatco.com
David Benda / Hugh Jonathan
Numis Securities Limited
Telephone: +44 (0) 20 7260 1000
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contact rns@lseg.com or visit www.rns.com.
END
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