CATCo Reinsurance Opps Fund Ltd Acquisition (6162Y)
September 10 2015 - 1:01AM
UK Regulatory
TIDMCAT
RNS Number : 6162Y
CATCo Reinsurance Opps Fund Ltd
10 September 2015
CATCo Reinsurance Opportunities Fund Ltd. ("the Company")
CATCo Investment Management Ltd. Sale of Assets
To: SFM, London Stock Date: 10 September 2015
Exchange and Bermuda
Stock Exchange
The Company announces that its investment manager, CATCo
Investment Management Ltd. ("CATCo IM") has agreed to sell
substantially all its assets to Markel Corporation ("Markel"), a
U.S. based diverse financial holding company whose principal
business markets and underwrites specialty insurance products.
Listed on the New York Stock Exchange, Markel has a market
capitalisation of approximately $11.5 billion and generated
operating revenues of over $5 billion for the year ended 31
December 2014.
Markel and CATCo IM have entered into an agreement whereby
Markel will acquire substantially all of the assets of CATCo IM,
subject to the satisfaction of certain conditions. Upon completion
of the acquisition which is expected to occur in the fourth quarter
of 2015, the business will operate as Markel CATCo Investment
Management Ltd. ("Markel CATCo"). Also upon completion of the
acqusition, Markel CATCo will manage the Company.
Prior to completion of the acquisition, the Company will
continue to operate and interact with its investment manager as
normal, and there will be no changes to management personnel.
Upon completion of the acquisition, the existing CATCo IM
management team, led by Chief Executive Officer Tony Belisle, will
transition into corresponding roles at Markel CATCo and will
continue to operate the business from its Hamilton, Bermuda
headquarters, under Markel's ownership. Responsibility for existing
and potential reinsurance market client relationships will remain
with the CATCo IM team that will transition to Markel CATCo with
the reinsurance business conducted as before. The existing CATCo IM
senior management team will remain with the business and are
incentivised to stay with the business for a minimum of three to
five years.
The Company believes this is a progressive transaction for all
stakeholders in that the combined strengths of these companies will
further support the development of innovative structures and new
products for reinsurance market clients.
Nigel Barton, Chairman, CATCo Reinsurance Opportunities Fund
Ltd. said:
"The Board sees this as a very positive development for
investors and reinsurance market clients alike. In bringing
together the strengths of CATCo IM and Markel, the Board expects
this transaction to generate future benefits for the Company's
investors."
Tony Belisle, Chief Executive Officer of CATCo Investment
Management Ltd. said:
"We are excited to join forces with Markel, a leading global
specialty insurer and reinsurer which operates with a strong
commitment to its core values and distinguished corporate culture.
We felt this partnership offered a rare opportunity for CATCo IM to
combine with a culturally similar organization 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 IM's differentiated product
innovation capabilities will serve to improve our value proposition
for investors and cedants. CATCo has grown significantly since its
launch in 2010 and the agreement with Markel will allow the same
management team to maintain its commitment to both client service
and continued product development."
For further information:
Judith Wynne,
Company Secretary and General Counsel
CATCo Investment Management Ltd.
Telephone: +44 7986 205364
Email: judith.wynne@catcoim.com
Mark Way
Investor Relations Director
CATCo Investment Management Ltd.
Telephone: +44 7786 116991
Email: mark.way@catcoim.com
David Benda / Hugh Jonathan
Numis Securities Limited
Telephone: +44 (0) 20 7260 1000
- ends -
This information is provided by RNS
The company news service from the London Stock Exchange
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