CATCo Reinsurance Opps Fund Ltd Portfolio Update (7993M)

TIDMCAT

RNS Number : 7993M

CATCo Reinsurance Opps Fund Ltd

25 January 2016

CATCo Reinsurance Opportunities Fund Ltd. ("the Company")

Portfolio Update

 
 To: SFM, London Stock   Date: 25 January 2016 
  Exchange and Bermuda 
  Stock Exchange 
 

Highlights

-- The FY15 net asset value ("NAV") return was 11.58%, outperforming the Eurekahedge Insurance Linked Securities Advisors Index of 4.27%

-- Side pockets set up at 31 December 2015 amount to approximately 5.5% of Ordinary Share NAV with a significant proportion of this amount related to the late December 2015 UK flooding event. This event is not expected to result in loss payments diluting the value of these side-pockets

-- The late December UK flooding and US tornado events also necessitated the need for a conservative reserving approach at year-end, which adversely impacted the NAV by 175 bps. However, the expectation is that a significant proportion of this reserve will be released during 2016

-- There are no remaining side pockets associated with calendar years prior to 2014 as Superstorm Sandy has now been fully commuted during Q4 2015 resulting in approximately a 1% increase to the FY15 NAV

-- The side pockets related to 2014's US convective storms have reduced to c. 1.5% from the 3.5% established at 31 December 2014

-- Increased demand for Markel CATCo Re Ltd (the "Reinsurer") products has led to 100% of available capital deployed at 1 January 2016

-- FY16 portfolio provides for an indicative net return of c. 16% on invested capital with a lower risk portfolio versus FY15's portfolio

   --     Average risk of FY16 portfolio down c. 20% on FY15's portfolio 
   --     Maximum capital exposed to a worst case single event is not more than 10% 
   --     The FY2015 dividend will be announced on 29 January 2016 

For further information:

Judith Wynne,

Company Secretary and General Counsel

Markel CATCo Investment Management Ltd

Telephone: [phone]

Email: [e-mail]

Mark Way

Fund Operations and Investor Relations Director

Markel CATCo Investment Management Ltd

Telephone: [phone]

Email: [e-mail]

David Benda / Hugh Jonathan

Numis Securities Limited

Telephone: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 25, 2016 02:00 ET (07:00 GMT)