Marco Capital Targets Europe’s P/C Insurance Run-Off Market

August 24, 2020

Newly-launched Marco Capital Holdings Limited plans to pursue property/casualty insurance run-off opportunities in Continental Europe, the UK and Lloyd’s of London.

Marco enters the European run-off arena with capital resources provided by majority investor Oaktree and Marco’s own management.

The firm is being led by founder Simon Minshall, ex-chief financial officer of run-off carrier DARAG and previously deputy group CFO at Endurance, and Jonathan Walker, former Merrill Lynch and Baring Brothers re/insurance mergers and acquisition investment banker who leads Marco’s origination initiative.

The chairman is Dieter Wemmer, former group CFO for Allianz SE and Zurich.

Marco’s strategy is to acquire portfolios of non-life insurance loss reserves, through reinsurance structures — loss portfolio transfers, adverse development cover, Part VII Transfer or through purchasing entities.

The company said it is supported by €500m initial committed equity capital with Oaktree as its major investor.

Minshall said Marco is joining the European run-off arena at an” auspicious moment – when the need to resolve legacy and facilitate capital management has been exacerbated by the extraordinary conditions insurers face in 2020 – on both sides of the balance sheet.”

Wemmer, Marco chairman, said the dynamics of the P/C industry beyond 2020’s challenges include the impact of insurtech “which will affect traditional business models and increase demand for efficient capital management solutions.

The Marco’s Insurance Co. board will comprise:

  • Chairman: Dieter Wemmer – ex-group CFO Allianz SE, prior group CFO Zurich; currently UBS board;
  • Rolf Tolle – Lloyd’s first Franchise Board Director, currently QBE board;
  • Monika Sebold-Bender – former ERGO Group management board responsible for P/C, prior management board member at Generali Deutschland, senior positions at Allianz SE and AXA Germany. Currently MS Amlin Europe board;
  • Juanita Bencini – former KPMG Partner specialising in Risk. Currently serving on boards of several insurers and a bank in Malta.

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