Markel Corp. to Acquire CATCo, Bermuda-Based ILS Specialist

Markel Corporation and CATCo Investment Management Ltd. announced they have entered into an agreement whereby Markel will acquire substantially all of the assets of CATCo, a Bermuda-based specialist in insurance linked securities.*

The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2015. Additional terms were not disclosed.

Upon completion of the acquisition, the business will operate as Markel CATCo Investment Management Ltd.

The existing CATCo management team, led by Chief Executive Officer Tony Belisle, will take on commensurate roles at Markel CATCo and will operate the business from its Hamilton, Bermuda, headquarters under Markel’s ownership.

“We are very pleased for Tony Belisle and the entire CATCo team to join Markel,” said Richard R. Whitt, president and co-chief operating officer of Markel.

“The addition of CATCo’s insurance linked investment management capabilities alongside Markel’s traditional reinsurance capabilities makes for a powerful combination,” he added.

“While Markel has a long and successful track record in the insurance linked securities space, the addition of the CATCo team takes our capabilities to an entirely new level. The current challenges in the reinsurance and retrocessional markets are well documented. Despite these short-term challenges, we believe that with innovative products and services the long-term future is bright,” Whitt noted.

“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,” said Tony Belisle, chief executive officer of CATCo Investment Management Ltd.

“We felt this partnership offered a rare opportunity for CATCo to combine with a culturally similar organization which shares our results-oriented commitment to success and market leadership,” he added.

“We are confident that uniting the strength of the Markel brand and its global reach with CATCo’s differentiated product innovation capabilities will serve to improve our value proposition for investors and cedants,” Belisle said.

“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 continual product innovation.”

Willis Capital Markets & Advisory served as exclusive financial advisor and Hogan Lovells International LLP served as legal adviser to CATCo. Sidley Austin LLP served as legal adviser to Markel.

* CATCo manages approximately $2.7 billion of retrocession and traditional reinsurance portfolios for clients around the world, including financial institutions, charities, pension funds, family offices, and investment funds.

Source: Markel Corporation and CATCo Investment Management Ltd.

Topics Mergers & Acquisitions Reinsurance