Fund Overview and Investment Objective
Fund Overview

CATCo Reinsurance Opportunities Fund Ltd. (the “Company”) is a limited liability closed-ended fund, registered and incorporated as an exempted mutual fund company in Bermuda on 30 November 2010.

The Company is organised as a feeder fund and will invest all of its investment proceeds directly in Markel CATCo Reinsurance Fund Ltd. - Diversified Fund (the “Master Fund”). The Company is publicly listed on the London and Bermuda Stock Exchanges.

The Master Fund is a segregated account of Markel CATCo Reinsurance Fund Ltd. (the “Master Fund SAC”) which is an open-ended mutual fund company of unlimited duration incorporated with limited liability under the Companies Act 1981 of Bermuda, as amended, on 23 July 2010 and registered as a segregated account company under the Segregated Accounts Companies Act 2000, as amended (the “SAC Act”). Markel CATCo Reinsurance Fund Ltd. is authorised by the Bermuda Monetary Authority and classified as an Institutional Fund under the IFA 2006.

Investment Objective

The investment objective of the Company is to give its shareholders the opportunity to participate in the returns from investments linked to catastrophe reinsurance risks, principally by investing in fully collateralised reinsurance contracts but also via a variety of insurance-based investments, including insurance-linked swaps and industry loss warranties, insurance-linked securities as well as other financial instruments.

The Company will target an internal rate of return in excess of LIBOR plus 12 percent to 15 percent per annum including a distribution by way of dividend in respect of each Fiscal Year, of an amount equal to LIBOR plus 5 percent of the Net Asset Value at the end of each Fiscal Year.

The Master Fund intends to spread investment risk by seeking exposure to several non-correlated risk categories which limits the amount of capital at risk with respect to a single catastrophic event.


The Investment Manager has established Markel CATCo-Re Ltd. (the “Reinsurer”), a Bermuda licensed Class 3 reinsurance company through which the Master Fund SAC accesses all of its reinsurance risk exposure. The Reinsurer, in turn, becomes exposed to reinsurance risks in several manners, including by directly facing ceding companies or utilizing a rated fronting reinsurer that itself will directly face ceding companies. The Reinsurer will be subject to rules and regulations imposed by the Bermuda Monetary Authority (the “BMA”). The Reinsurer forms a segregated account that corresponds solely to the Master Fund SAC's investment in the Reinsurer with respect to each particular reinsurance agreement. The Investment Manager is the insurance manager of the Reinsurer.