Markel Corp. has reported that Anthony Belisle, Markel CATCo chief executive officer, and Alissa Fredricks, Markel CATCo chief executive officer for Bermuda, are no longer with the company following the disclosure of a “personal relationship” that the insurer said violated corporate policy.
According to the company, the relationship came to light during the course of an internal review into loss reserves recorded in late 2017 and early 2018 at Markel CATCo Investment Management and its subsidiaries. After being notified in December of U.S. and Bermuda governmental inquiries into loss reserves, Markel engaged outside counsel to conduct an internal review.
“During the course of the internal review, Markel discovered violations by Mr. Belisle and Ms. Fredricks of Markel policies relating to an undisclosed personal relationship, and prompt action was taken,” the company said in a statement.
The internal review relating to loss reserving continues with no conclusions yet reached, according to the statement.
The statement did not indicate what, if any, role the two former employees had in the loss reserving practices being investigated.
Belisle was a founder of CATCo Investment Management, which Markel bought in 2015. He has worked for various other firms including Fidelity, Cidael, Goldman, Oxygen and Sun Financial in insurance and reinsurance-related investing for 25 years prior to CATCo.
Fredricks was named to the new role of CEO, Bermuda, in December 2017, reporting to Belisle. Before joining Markel CATCo, she worked at catastrophe modeling firm AIR Worldwide.
Markel wasted no time in naming executives to manage in place of the former executives as it pursues a search for a new Markel CATCo chief executive officer.
Management and oversight of Markel CATCo, which includes approximately 25 employees, will be provided by Jed Rhoads, president and chief underwriting officer, for Markel Global Reinsurance, and Andrew Barnard, senior managing director, head of International Property Catastrophe and Retro Reinsurance at Markel Global Reinsurance.
On Friday Dec .7, Markel said it was fully cooperating with inquiries by U.S. and Bermuda authorities into loss reserves recorded in late 2017 and early 2018 at Markel CATCo Investment Management, which is the company’s investment manager, and its subsidiaries.
Markel said it was contacted by those authorities on Nov. 30, 2018. The insurer said it had retained outside counsel to conduct an internal review.
Last week, a shareholder class action was filed against Markel Corp. over reserve statements by its investment management unit that are being investigated by U.S. and Bermuda authorities. New York law firm Bragar Eagel & Squire said it filed the class action U.S. District Court for the Southern District of New York on behalf of purchasers of Markel Corp. securities between July 26, 2017 and December 6, 2018.
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