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LONDON (Alliance News) - CATCo Reinsurance Opportunities Fund Ltd, which offers exposure to returns from investments linked to catastrophe reinsurance risks, reported an 11.58% return on net asset value in 2015.
The result exceeded the fund's target annual net return of Libor plus 9.0% to 12% percent per annum. The fund outperformed the industry benchmark, the Eurekahedge ILS Advisors Index, by 7.31%, according to Chairman Nigel Barton.
The 2015 net return had been on track to equal the prior year's NAV return of about 14%, Barton said, until UK floods late in December, as well as "increased" uncertainty among its reinsurance clients, caused the fund to "apply a conservative reserving approach" at the end of the 2015.
Investment manager Markel CATCo Investment Management Ltd expects that a proportion of that reserve will be released during 2016, Barton said.
CATCo shares were untraded early Monday at USD1.23.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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