CATCo Reinsurance Opps Fund Ltd Portfolio Update - Hurricane Sandy (1455W)
23 January 2013 - 6:00PM
UK Regulatory
TIDMCAT
RNS Number : 1455W
CATCo Reinsurance Opps Fund Ltd
23 January 2013
CATCo Reinsurance Opportunities Fund Ltd. ("the Company")
Hurricane Sandy Update
To: SFM, London Stock Exchange Date: 23 January 2013
and Bermuda Stock Exchange
Property Claims Services ("PCS"), an independent company who
investigates reported disasters and determines the extent and type
of damage, dates of occurrence, and geographic areas affected,
primarily within the US, have published a re-survey of their
January 2013 initial loss estimate from affected insurers resulting
from the events of Hurricane Sandy which began on 23 October
2012.
The revised loss estimate is $18.75 billion, representing an
increase of 70.45% on the original estimate of $11.0 billion.
The existing retrocessional reinsurance loss reserve provision
that is included in the Company's Net Asset Value calculation is
based on an insured industry loss of $20 billion. The Board of
Directors remains of the opinion that there is no need to amend the
existing retrocessional reinsurance loss reserve provision that is
currently in place. Shareholders should note that this is a loss
reserve, and not a crystalised loss, as CATCo-Re's protections are
based on the actual paid claims.
The majority of the Company's catastrophic property exposure is
through Ultimate Net Loss contracts ("UNLs") and therefore any
losses that may be suffered by the Company will be based on actual
losses of the insured counterparties rather than industry loss
triggers as is the case for Industry Loss Warranty contracts
("ILWs"). However, the magnitude of the industry insured losses
provides a reasonable guide as to the expected level of UNL
claims.
PCS will conduct a re-survey in approximately 60 days following
their new estimate and will update the loss estimate at that time
with new data gained from affected insurers. It is the Directors
intention to update the Company's shareholders with any additional
information when this information is released and whether side
pocket investments are required prior to the year end.
For further information, please contact:
Jason Bibb
CATCo Investment Management Ltd
Telephone: +1 (441) 531 2227
Email: jason.bibb@catcoim.com
David Benda / Hugh Jonathan
Numis Securities Limited
Telephone: +44 (0) 20 7260 1000
John Whiley / Matthew Charleson
Prime Management Ltd
Tel: +1 (441) 295 0329
This information is provided by RNS
The company news service from the London Stock Exchange
END
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