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(Alliance News) - CATCo Reinsurance Opportunities Fund Ltd on Monday said its assets shrank in 2019 as its run-off begins.
At December 31, CATco's net asset value per ordinary share stood at USD0.2659, down 24% from USD0.3479 at the same point a year before. The fund's NAV per C share stood at USD0.5157, falling 18% from USD0.6299.
CATco's net assets slipped 36% to USD306.9 million from USD479.8 million.
The fund - which offers exposure to returns from investments linked to catastrophe reinsurance risks - saw its net investment loss narrow to USD3.8 million in 2019 from USD10.4 million in 2018.
"Following two consecutive years of severe catastrophic activity, 2019 proved to be another active year with Hurricane Dorian, Typhoon Faxai, Typhoon Hagibis and the Australia bushfires being the year's most significant events," Chair James Keyes said.
He added: "The reinsurance industry continued to witness loss creep across a number of prior year events. The most extensive loss creep has been in relation to Hurricane Irma and Typhoon Jebi, which has impacted the company's Side Pocket Investments held in relation to 2017 and 2018, respectively."
CATco is in the process of redeeming all of the assets in its master fund, which is expected to take about three years, starting from this past January 1.
At the end of 2019, CATco's Master Fund held USD282.6 million in assets.
"I would like to reassure shareholders that, while it is not straightforward to estimate the timing and amount of capital to be released, the investment manager remains fully committed to working with its cedents and the Bermuda Monetary Authority in order to secure the release of capital to investors as soon as practicable," Keyes said.
Shares in CATco's ordinary shares were untraded in London on Monday but last closed at USD0.17 each. Its C shares, also untraded on Monday, last closed at USD0.32.
By Paul McGowan; paulmcgowan@alliancenews.com
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