Markel Launches Bermuda Retrocessional ILS Platform, Lodgepine Capital Management

September 12, 2019

Markel Corp. announced the launch of Lodgepine Capital Management Ltd., its new retrocessional Insurance Linked Securities (ILS) fund manager in Bermuda, together with a reinsurance company, Lodgepine Re.

Lodgepine’s initial product offering will be the Lodgepine Fund, a property catastrophe retrocessional investment fund ahead of the 2020 renewal period.

Markel announced in July it was putting its Bermuda insurance linked securities unit, Markel CATCo, into run-off. At the same time, it announced it was launching a new retrocessional ILS fund platform, which will be ready to write business for the 2020 renewal season.

“Lodgepine will expand Markel’s current range of ILS capabilities and provide institutional investors access to more opportunities in insurance risk, complementing our existing Nephila and State National operations,” said Richard R. Whitt, co-chief executive officer at Markel. “Lodgepine further strengthens our position as an industry leader in the increasingly important ILS market.”

Markel’s Andrew “Barney” Barnard will serve as Lodgepine chief executive officer. Additionally, the entity is drawing from Markel’s deep talent by appointing James “Jamie” Welsby as chief investment officer and John Duda to lead the retrocessional portfolio management team.

“We have been thoughtful both in the name of the company and the composition of the executive team,” said Jed Rhoads, president and chief underwriting officer at Markel Global Reinsurance, who will be chairman of Lodgepine. “The Lodgepole pine is renowned for its durability and the name Lodgepine reflects Markel’s long-term commitment to provide insurance and reinsurance coverage to its insureds and attractive return opportunities to investors.”

The Lodgepine Fund will provide investors with access to property catastrophe retrocession exposure via a single-entry point and platform, offering cedants a suite of property retrocession products with the ability to have coverage provided either on a collateralized basis, written by Lodgepine Re, or on a rated paper basis written by Markel Bermuda Ltd., or a combination of both.

The Bermuda Monetary Authority (BMA) has given its approval in principle for the licensing of Lodgepine Re, the reinsurance company, and once all requisite approvals of the other Lodgepine entities have been obtained, Markel said it will work to have all entities organized and capitalized in the coming weeks.

Source: Markel Corp.

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