Catco Reinsurance Opport... Share Discussion Threads

[jonwig] 18/1/2015 12:18

Portfolio update comments:

[jonwig] 15/1/2015 12:03

Yes, that's how I read it - see the timetable at the bottom of the 5 Jan RNS.

EDIT: can receive as either income or capital - useful for me.

[incar] 15/1/2015 11:12

Am i right in saying that the return of value US$0.11528 will go ex divs as such on the 29th Jan as long as approved at the sgm?
sorry about the wrong terminology.

[jonwig] 15/1/2015 07:12

Portfolio update includes:

FY15 portfolio provides for an indicative net return of 19%

2015 average risk per pillar decreased to 3.3% (2014: 4.1%). Helped by reduced cost of hedging the portfolio

This really ought to eliminate the current share price discount to NAV.

[jonwig] 05/1/2015 07:07

The expected dividend:

The Board of Directors are declaring an annual dividend of $0.05929 in respect of the Ordinary Shares for the year to 31 December 2014. The record date for this dividend will be 16 January 2015 and therefore the Ordinary Shares will go ex-dividend on 15 January 2015. It is expected that this final dividend will be paid to shareholders on 30 January 2015.

More important, maybe:

The Board is pleased to announce its intention to make a return of value to Shareholders of US$0.11528 per Existing Ordinary Share, equivalent to approximately US$35 million in aggregate (the "Return of Value"). Based on the closing middle market price of US$1.157 per Existing Ordinary Share on 31 December 2014 (being the latest practicable date prior to posting of the Circular), the proposed Return of Value to Shareholders equates to approximately 10 per cent. of the Company's market capitalisation at that date.

A Circular has today been published which provides further details of a proposal which will provide greater flexibility in how Shareholders can receive the proposed Return of Value, for which approval is being sought at the Special General Meeting to be held at 10.00 a.m. (Bermuda time) on 29 January 2015. However, if the Return of Value is not approved or does not otherwise become unconditional, the Directors intend to declare a special dividend of US$0.11528 per Existing Ordinary Share on or around 27 February 2015.

[jonwig] 29/11/2014 07:04

Cat bonds, retrocession, the re market:

[jonwig] 18/11/2014 20:19

From August:

[jonwig] 16/10/2014 07:00

Yes, the xd fall will let me buy more at 1.05 (or so) without having to go through my broker's expensive Forex trade.

I'm keen to hold these (and BGCR) for USD and reinsurance exposure, with gold ETFs in case of dollar weakness.

[deepvalueinvestor] 15/10/2014 20:07

That seems fair although obviously the divi would simply reduce the price by that amount. I'm just not sure about currency, which is the reason I haven't sold yet although I am starting to edge out of dollar bond funds and back into equities again. After the wobbles, it's nice to see that this investment has done what it was designed to do so far in 2014.

[jonwig] 15/10/2014 07:34

Yes, that fits the data - but I understood contracts were agreed annually in January, so that income should accrue evenly.

Anyway, $1.20 and a 15c payout, maybe.

[deepvalueinvestor] 14/10/2014 21:06

The nav increases most during the hurricane season in the US is I'm not expecting nav to rise as much now. If it wasn't for my desire for the us$ exposure I would be out by now. Further falls in equity markets and I might be tempted to find something else.

[jonwig] 14/10/2014 10:05

The NAV is currently addling about 3c per month, so at this rate can rise to $1.25 by year-end, a rise of 20c from the last xd point.

Given that they don't want to deploy surplus capital in this insurance climate, can we look forward to a 20c payment? (Announcement in December, maybe.)

[deepvalueinvestor] 02/10/2014 23:31

Indeed, if markets keep falling, there may be a case to reduce exposure and rotate back into something more mainstream. As you say, the currency kicker is also helping.

[jonwig] 29/9/2014 09:31

Given the reinsurance climate, recent strength here is a bit puzzling. Perhaps they intend a dividend of around 12c (as per guidance) and returning another tranche of capital.

We get not only the share price increase, but currency translation effects too.

[deepvalueinvestor] 14/8/2014 18:50

Yes I got caught the other November in thinking that the hurricane season was over! The trend change in dollar sterling is making this increasingly attractive so I am a buyer again.

[jonwig] 14/8/2014 17:00

H1 results.

Interesting snip:

The Company's stated target annual net return is LIBOR plus 12 to 15 percent per annum.

... and later ...

Given the performance achieved since launch, the Company is seeking better than targeted returns for 2014, assuming there are no major losses that impact the portfolio during the remainder of the year.

Still time of course in the hurricane season!

[jonwig] 12/6/2014 16:59

NAV rise in May a bit higher than usual, hence share price increase, I think.

Otherwise a catastrophe-free year so far, again - means lower returns ahead.

[deepvalueinvestor] 11/3/2014 08:41

The reason for buying the polar cap fund is that they see limited value now in reinsurance so have lowered their weighting. It used to be the hiscox insurance fund. Us$ exposure as with Catco.

[topvest] 10/3/2014 20:08

Thanks - don't buy OEICs so will give it a miss.

[jonwig] 10/3/2014 07:00

This one?
It looks like it's an OEIC or similar:

[topvest] 09/3/2014 21:54

Polar Cap Global Insurance - is that quoted on the Specialist Fund Market of the LSE?

[jonwig] 09/3/2014 19:07

I'm glad mine are held in a USD (non-ISA) account with TD.
If I hold a decent USD float I can buy/sell, and get divis in USD.
Also, I got full reinvestment of my ROC into CAT shares, so I'm either the only holder in TD nominees or the others voted same.

The killer is when you do a forex, in which case the rate is awful.

Also, holding these in an ISA is a loser, as everything has to be changed to sterling.