An internal review into Markel's CATCo has suggested there is no evidence of 'bad faith' in how personnel acted in the setting of reserves and making related disclosures during late 2017 and early 2018.
An outside counsel conducted the internal review and met with governmental authorities to report the findings.
These governmental authorities - which includes the US Department of Justice, US Securities and Exchange Commission and Bermuda Monetary Authority - are still carrying out a separate investigation into the loss reserving in late 2017 and early 2018.
In November 2018, Markel CATCo raised reserves for Hurricane Michael and Typhoon Jebi and warned over a loss creep from the 2017 hurricane season. Markel CATCo implemented a specific loss reserve to cover the 2018 events Hurricane Michael and Typhoon Jebi and also warned over potential California wildfire losses and a loss creep from 2017 nat cat events.
The loss reserve figures raised flags about reduced share value and annual performance. Investors that purchased Markel Corporation securities during this time had argued they had been misled regarding CATCo's financial condition.
Markel CATCo provides investors with the opportunity to participate in the returns from a selected mix of investments linked to reinsurance risks accessed through its reinsurance company Markel CATCo Re.
Markel, CATCo, Reserving, BMA, Catastrophe, Hurricanes, ILS, Bermuda