Markel CATCo Investment Management has gained support from a majority of investors in its listed retrocessional reinsurance investment fund for the improved terms of the buy-out offer and an extension of the Support Undertakings to 31st March 2022.We reported last week .Now, the directors of the CATCo Reinsurance Opportunities Fund, the London-listed retrocession strategy, have said that after requesting consent for the improved terms from those investors that had previously signed Support Undertakings, a majority approved these changes.The improved terms effectively will deliver more capital to investors holding shares in the fund and this reads-across to the private CATCo retro fund strategies as well.

Markel Corporation is set to pay the full costs of the increased buy-out offer, so no reduction to the amounts recoverable for investors will be made.Now, with support gained for these improved buy-out terms and the extension to the lifespan of the Support Undertakings also confirmed, the proposed schemes for winding down the CATCo Reinsurance Fund Ltd.and CATCo Reinsurance Opportunities Fund Ltd.

are confirmed and the process will continue.It’s not yet clear how much support there is from the private CATCo fund investors, but it is also likely to have increased with the improvement to the terms.Meanwhile, , as Markel CATCo Investment Management recovered more value for its investors, thanks to favourable development related to 2017 and 2018 catastrophe loss events.

The whole run-off process is certainly taking longer than Markel would live, given the ongoing need to gain additional confirmation from investors.But with another hurdle cleared, the end is nearing and progress continues to be made..

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