CATCo Reinsurance Opps Fund Ltd Net Asset Value(s) and Portfolio Update (3119P)
February 07 2019 - 2:00AM
UK Regulatory
TIDMCAT
RNS Number : 3119P
CATCo Reinsurance Opps Fund Ltd
07 February 2019
FOR IMMEDIATE RELEASE
7 February 2019
CATCo Reinsurance Opportunities Fund Ltd. (the "Company")
Net Asset Value ("NAV" and Portfolio Update)
To: SFS, London Stock Exchange and Bermuda Stock Exchange
Markel CATCo Investment Management Ltd., as Investment Manager
(the "Manager"), announces the unaudited net asset value of the
Company's Ordinary Shares and C Shares of $0.3479 and $0.6299
respectively, as at the close of business on 31 December 2018.
As previously announced the Company's Ordinary Shareholders
continue to be exposed to uncertainty regarding losses arising from
2017 major events through the 2017 Side Pocket Investments.
Using the latest claim information from cedents and trend
analysis of paid losses for hurricanes Harvey, Irma and Maria, the
Manager has determined to increase the specific loss reserves
recorded in relation to the 2017 Side Pocket Investments.
The result of this increase is to reduce the 30 November 2018
Ordinary Share NAV by 13 per cent. On a normalised basis, this
represents approximately a four per cent deterioration in the
Ordinary Share 2017 annual performance and is equivalent to a 2017
NAV return on the Ordinary Shares of approximately -61 per cent
(down from the -57.1 per cent previously reported).
With regard to loss reserving for 2018 catastrophe events, the
31 December 2018 review process has confirmed that existing loss
reserves are deemed sufficient based on latest industry loss
information.
Overview of existing Side Pocket Investments
Shareholders are reminded that the maximum exposure to previous
events is ring-fenced in Side Pocket Investments. Losses cannot
exceed the remaining NAV held within that Side Pocket. The
following table outlines the split of Side Pocket Investments held
by the Ordinary Shares and C Shares respectively as at 31 December
2018:
Ordinary Shares Value Side Pocket Investments
% of Ordinary Share NAV
------ ------------------------
SPI 2015 $0.01 2%
------ ------------------------
SPI 2016 $0.03 11%
------ ------------------------
SPI 2017 $0.15 42%
------ ------------------------
SPI 2018 $0.07 21%
------ ------------------------
C Shares Value Side Pocket Investments
% of C Share NAV
------ ------------------------
SPI 2018 $0.30 47%
------ ------------------------
Redemption Share Proposal
Further to the announcement on 18 December 2018, in which the
Board announced the intention to offer shareholders the option to
convert their shareholdings into redemption shares, the Board is
now seeking feedback on whether shareholders would prefer to either
elect to convert their holdings into redemption shares or continue
to hold either ongoing Ordinary or C Shares. Shareholders are
requested to contact Numis Securities to provide feedback as to a
preference to elect for either the redemption opportunity or
continution share class.
This announcement contains Inside Information as defined under
the Market Abuse Regulation (EU) No. 596/2014.
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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