13 September 2019ILS

Markel launches retrocessional ILS fund and reinsurance company

Markel is launching a retrocessional insurance linked securities (ILS) fund manager in Bermuda, Longpine Capital Managament, as well as a reinsurance company called Lodgepine Re.

Lodgepine is led by Andrew “Barney” Barnard, who serves as chief executive officer.

Its initial product offering is the Lodgepine Fund, a property catastrophe retrocessional investment fund, trading ahead of the 2020 renewal period.

The Lodgepine Fund provides investors with access to property catastrophe retrocession exposure via a single-entry point and platform. It offers cedants a suite of property retrocession products, available either on a collateralised basis, written by Lodgepine Re, or on a rated paper basis, written by Markel Bermuda Limited, or a combination of both.

James Welsby moves from Markel into Longpine as chief investment officer, while John Duda also moves across to lead the retrocessional portfolio management team.

Richard Whitt, co-chief executive officer at Markel, said: “Lodgepine will expand Markel’s current range of ILS capabilities and provide institutional investors access to more opportunities in insurance risk, complementing our existing Nephila and State National operations.”

Jed Rhoads, president and chief underwriting officer at Markel Global Reinsurance and now also chairman at Lodgepine, said the company name was inspired by the Lodgepole pine, which he noted is renowned for its durability, reflecting Markel’s long-term commitment to insurance and its clients.

The Bermuda Monetary Authority has given its approval in principle for the licensing of Lodgepine Re, the reinsurance company, and once all requisite approvals of the other Lodgepine entities have been obtained, Markel will work to have all entities organised and capitalised in the coming weeks.