CATCo Reinsurance Opps Fund Ltd Portfolio Update (7140D)
February 02 2018 - 1:00AM
UK Regulatory
TIDMCAT
RNS Number : 7140D
CATCo Reinsurance Opps Fund Ltd
02 February 2018
CATCo Reinsurance Opportunities Fund Ltd. ("the Company")
Portfolio Update
To: SFM, London Stock Date: 2 February, 2018
Exchange and Bermuda
Stock Exchange
2018 Portfolio Highlights
-- As a result of the 2017 catastrophic events and increases in
rates, the 2018 portfolio indicative maximum net return is
approximately 23 percent on invested capital (c. 43 percent greater
than the 2017 portfolio maximum net returns of 16 percent). These
figures are all net of hedging costs.
-- The maximum capital exposed to a worst-case single event is
limited to 8 percent for the 2018 portfolio, compared to 10 percent
for the 2017 portfolio.
-- Continued increased demand for Markel CATCo Re Ltd. (the
"Reinsurer") products has led to 100 percent of available capital
being deployed at 1 January 2018.
2017 Portfolio Summary
-- 2017 net asset value ("NAV") return for the Ordinary shares was -27.6 percent.
-- Loss reserves were implemented in an amount as a percent of 1 January 2017 NAV as follows:
o Hurricanes Harvey, Irma and Maria: c. 28.6 percent (net of
recoveries on hedges);
o California Wildfires: c. 17 percent;
o Mexico Earthquakes, Cyclone Debbie, US Convective Storms: c. 2
percent.
-- The total Side Pocket Investments ("SPI's") held at 31
December 2017 by calendar year of underwriting are as follows as a
percentage of the Company's 1 January 2017 NAV:
o 2015: c. 1.2 percent (c. 3.2 percent of Ordinary shares at 31
December 2016);
o 2016: c. 6.1 percent (c. 7.1 percent of Ordinary and C shares
at 31 December 2016);
o 2017: c. 41.5 percent.
-- The 2017 annual dividend was announced on 31 January 2018.
Annual dividends of $0.05476 in respect of each of the Ordinary
shares will go ex-dividend on 8 February 2018. It is expected that
this dividend will be paid to Ordinary shareholders on 26 February
2018.
-- After reflecting 2017 SPIs and loss reserves, the Ordinary
shares, post dividend, will have c. 35 percent of NAV available for
reinvestment in the 2018 portfolio.
-- Since inception (incl. the aforementioned dividend), the
Company has returned capital of $234m to Ordinary and C share
investors by way of dividends and return of value distributions.
The original Ordinary Shareholders from December 2010 have received
approximately 75% of their original investment through such
distributions.
For further information:
Judith Wynne
General Counsel
Markel CATCo Investment Management Ltd.
Telephone: +1 441 493 9005
Email: judith.wynne@markelcatco.com
Mark Way
Chief Operating Officer
Markel CATCo Investment Management Ltd.
Telephone: +1 441 493 9001
Email: mark.way@markelcatco.com
David Benda / Hugh Jonathan
Numis Securities Limited
Telephone: +44 (0) 20 7260 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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