Financial holding company Markel has announced it is to acquire all assets of specialist investment management business CATCo Investment Management (CATCo), subject to customary closing conditions.
The new firm will be known as CATCo Investment Management (Markel CATCo) and will operate from Markel’s Bermuda headquarters.
The transaction is expected to close in the fourth quarter of 2015. Additional terms have not been disclosed.
Richard R Whitt, president and co-chief operating officer of Markel, said: "We are very pleased for Tony Belisle and the entire CATCo team to join Markel.
“The addition of CATCo's insurance linked investment management capabilities alongside Markel's traditional reinsurance capabilities makes for a powerful combination.
“While Markel has a long and successful track record in the insurance linked securities space, the addition of the CATCo team takes our capabilities to an entirely new level. The current challenges in the reinsurance and retrocessional markets are well documented. Despite these short-term challenges, we believe that with innovative products and services the long-term future is bright."
Belisle said: "We felt this partnership offered a rare opportunity for CATCo to combine with a culturally similar organisation, which shares our results-oriented commitment to success and market leadership.
“We are confident that uniting the strength of the Markel brand and its global reach with CATCo's differentiated product innovation capabilities will serve to improve our value proposition for investors and cedants.
Belisle also stated the agreement with Markel will “allow the same management team to maintain its commitment to both client service and continual product innovation”.
Willis Capital Markets & Advisory served as exclusive financial advisor and Hogan Lovells International LLP served as legal advisor to CATCo. Sidley Austin LLP served as legal advisor to Markel.
Markel, CATCo, Markel CATCo, Richard R Whitt, Bermuda