CatCo fund issues 7.25m new shares
Rising demand for shares of the Bermuda-run CatCo Reinsurance Opportunities Fund Ltd has resulted in the issuance of 7.25 million new ordinary shares.
The London-listed fund is run by CatCo Investment Management Ltd, which is based in the SE Pearman Building in Par-la-Ville Road, Hamilton.
In a statement yesterday, CatCo said: “The new shares of $0.0001 each have been issued for cash at 101.5 cents per share in order to satisfy demand that cannot be met through the secondary market.”
Trading in the new shares is expected to resume tomorrow. Application has been made for these shares to be admitted to trading on the London Stock Exchange's Specialist Fund Market. The new shares means the fund has in issue 87.64 million shares.
The fund raised about $80 million from institutional investors before it started trading last December. It acts as a feeder fund for the larger CatCo Diversified Fund, which provides capital for CatCo Re, a class 3 Bermuda reinsurer, to write fully collateralised reinsurance contracts.
The fund also invests in insurance-linked securities and insurance loss warranties.
CatCo chief executive officer Tony Belisle told
The Royal Gazette in January that the company targets returns of between 15 percent and 20 percent for investors.