Stocks
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Retro buyers are unclear over how much capacity Markel Catco will have to renew its January 2019 portfolio.
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Ordinary shares in the Markel Catco-managed fund slump more than 40 percent on news of the investigations and increased loss estimate.
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The firm’s 2017 portfolio loss has risen 15.7 percent to 57.1 percent. -
The Markel subsidiary is under investigation into the accounting of loss reserves for 2017 and 2018.
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Trapped capital will add to losses from Michael, Jebi and the wildfires.
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An annualised 5 percent loss since inception incorporates the retro fund's share price return.
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The company may add to its existing catastrophe and US commercial reinsurance programmes.
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The insurer expects $1.8bn of losses from the Camp Fire and $475mn from the smaller Woolsey Fire.
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The insurer forecast gross losses of $207mn from the Camp Fire and $46mn from Woolsey.
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The retro manager also warned 2018 wildfire losses could exceed those of last year.
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The firm paid out just over a third of redemption requests in November, indicating investors sought to redeem 15 percent of its share base, sources said.
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This comes after the (re)insurer shifted away from offering market-facing ILS vehicles.
