CatCo reserve recording being investigated
Authorities in Bermuda and the US are making inquiries into the recording of loss reserves by Markel CatCo Investment Management Ltd and its subsidiaries.
This was revealed in a statement last night from Markel Corporation, the US-based parent company of the Bermudian-based collateralised reinsurance and insurance-linked securities specialist.
The statement reads: “Markel Corporation said today that after having been contacted on November 30, 2018, it is fully cooperating with inquiries by US and Bermuda authorities into loss reserves recorded in late 2017 and early 2018 at Markel CatCo Investment Management Ltd and its subsidiaries.
“These inquiries are limited to Markel CatCo Investment Management Ltd and its subsidiaries and do not involve other Markel Corporation companies. Outside counsel has been retained to conduct an internal review. The company has no further statement at this time.”
AM Best issued a statement later saying that its ratings on Markel were unchanged after the statement.
The ratings agency commented: “No rating actions are being taken at this time as the information available does not warrant any such action.”
Many reinsurers have had to raise their initial loss estimates from the 2017 Hurricane Irma this year.
In May this year, the CatCo Reinsurance Opportunities Fund strengthened its loss reserves for 2017 events by 19.5 per cent of net asset value.
At the time, Alissa Fredericks, Markel CatCo Investment Management’s chief executive officer, said a “material loss creep” relating to Hurricane Irma was the chief reason for the bolstering of reserves.
Markel acquired CatCo three years ago.
Airbnb rentals prove lucrative
Motorcyclist banned for carrying three
Island-branded raincoats much in demand
Gaming watchdog legal fees approach $600,000
BHB awards $9m in service contracts
Customs officers spread a bit of cheer
Lloyd Bean (1938-2019)
Rangers sweating on BFA ruling
Teens and porn warning issued
Government mulls new taxes before Budget day
‘Uzimon’ lands role in The Punisher
Man charged with sexual assault makes bail
Road crash pair bailed
Elderly man hit by reversing car
Privy Council rules in favour of CoH
Take Our Poll
- "Your new year's resolutions for 2019"
- Quit smoking
- Quit drinking/drink in moderation
- Do not drink and drive
- Lose weight
- Stop procrastinating
- Drive with greater care
- Total Votes: 2607
- Poll Archive