CatCo fund to be wound up

CatCo Reinsurance Opportunities Fund, which has been in run-off since 2019, will be wound up, the company has announced. 

A partial compulsory redemption of the fund is expected to take place on November 29, after which time the fund will have redeemed the entirety of its interest in the Master Fund and distributed substantially all of the redemption proceeds it has received.

“Consequently, the Board has determined to recommend that the Company is placed into members' voluntary winding up and wound up,” a statement said. 

A special general meeting to approve the wind-up will take place on December 18. 

Bermuda Stock Exchange-listed CatCo Reinsurance Opportunities Fund was part of Markel’s Insurance linked securities platform which was out into run-off in 2019.  

Markel CATCo Investment Management Ltd. ceased accepting new investments in the Markel CATCo Reinsurance Fund Ltd. and went into run-off. 

The platform ran into difficulties over loss reserving which were investigated by US and Bermudian authorities. 

While the run-off was originally expected to take three years, a flurry of litigation ensued, delaying the closure of the funds. 

Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.