Markel

Retro is just the start for Markel’s new ILS platform, the firm’s reinsurance CUO said.

Its new acquisition offset lower revenues from the Markel Catco business, which will take about three years to run off.

The Reinsurance Opportunities fund holds $40.2mn in cash across its two share classes, with the remainder invested or in side pockets.

The new vehicle is expected to offer a range of property retrocession products on a collateralised or rated paper basis, or combination of the two.

The fund has produced gains throughout a quiet 2019, after boosting 2018 reserves.

The firm has settled with Fredricks and will enter binding arbitration with Belisle.

The 2018 share class had been hit by a deteriorating prior year loss earlier in June.

The retro writer warned earlier this month that it was increasing its loss reserves for the two events.

The deterioration pushed the retro fund’s 2018 loss to 46.7 percent for C shares.

The reinsurance fund has ramped up in recent years to $700mn-$800mn.

The fund’s ordinary shares added 0.85 percent during the month.

Markel has not actually come out and said what it plans to do with former top 10 ILS manager Markel Catco, but the likely money has to be on a gradual closure now that an overwhelming 91 percent of assets under management are due to be returned to investors, as claims development permits.