Markel CATCo portfolio managers to launch new fund with Markel seed capital
Rick Montgomerie and Charlie Vaughan, the portfolio managers for Markel CATCo Investment Management’s Aquilo Fund, are leaving the company to establish a new investment manager and fund, along with Elizabeth Simmons, Aquilo's underwriter.
The new company will be called Chard Re Investment Management, and is due to launch on January 1, 2020.
Markel Corporation will be a seed investor in Chard Re, subject to the fund reaching a specified level of invested capital and finalising definitive agreements. As long as these requirements are met, Markel will take a 12.5-17 percent ownership position.
Aquilo Fund’s assets and liabilities, including existing business and side pockets, will be transferred to Chard Re, pending investor and regulatory approval. Chard Re will manage the Aquilo Fund run-off.
Markel CATCo launched Aquilo in 2014 as a fully fronted reinsurance offering distinct from the main retrocessional ILS offering. Earlier this year, Markel CATCo announced it will not accept new investments in Markel CATCo Reinsurance Fund, or write any new business through Markel CATCo Re. Its existing portfolio was placed in run-off.