Markel Corp. is headquartered at Innsbrook. Photo by Michael Schwartz.
A Richmond insurance giant has extended its reach in Bermuda.
Innsbrook-based specialty insurer Markel Corp. announced Thursday it is acquiring CATCo Investment Management, a specialist investment management business that manages about $2.7 billion in reinsurance portfolios for clients around the world.
The acquisition is the second for Markel in Bermuda, where it picked up Alterra Capital Holdings in 2012 in a $3.13 billion deal.
Terms of the CATCo deal were not disclosed in a Thursday release, which said Markel will acquire substantially all of the 5-year-old company’s assets. A recent financial statement for CATCo put the company’s total assets at $325 million for the first six months of 2015, up from $332.6 million the same time frame last year.
The acquisition adds to Markel’s foothold in reinsurance, an obscure sector of the insurance industry that is most basically described as the business of insuring insurance companies. The sector is largely based in Bermuda because of the island territory’s tax code.
Messages left for Markel spokesman Bruce Kay were not returned Thursday.
The CATCo acquisition is expected to close in the fourth quarter of this year.
Once the deal is completed, the business will operate as Markel CATCo Investment Management Ltd., or Markel CATCo. The business will be based in Hamilton, Bermuda, and led by existing CATCo CEO Tony Belisle and his management team.
CATCo was advised in the deal by Willis Capital Markets & Advisory and Hogan Lovells International LLP. Markel was advised by Sidley Austin LLP.
Markel stock hit a low of $818.24 Thursday morning before jumping to a day high of $830 and closing at $824.54. Its second-quarter earnings report for this year showed total operating revenues reached $2.6 billion through June 30, up from $2.4 billion the first half of last year. Net income for the first half of this year totaled $286 million, compared to $128 million the first six months of last year.
The CATCo deal marks one of Markel’s first acquisitions since its investment arm, Markel Ventures, picked up a Georgia manufacturing company last year.
Markel Corp. is headquartered at Innsbrook. Photo by Michael Schwartz.
A Richmond insurance giant has extended its reach in Bermuda.
Innsbrook-based specialty insurer Markel Corp. announced Thursday it is acquiring CATCo Investment Management, a specialist investment management business that manages about $2.7 billion in reinsurance portfolios for clients around the world.
The acquisition is the second for Markel in Bermuda, where it picked up Alterra Capital Holdings in 2012 in a $3.13 billion deal.
Terms of the CATCo deal were not disclosed in a Thursday release, which said Markel will acquire substantially all of the 5-year-old company’s assets. A recent financial statement for CATCo put the company’s total assets at $325 million for the first six months of 2015, up from $332.6 million the same time frame last year.
The acquisition adds to Markel’s foothold in reinsurance, an obscure sector of the insurance industry that is most basically described as the business of insuring insurance companies. The sector is largely based in Bermuda because of the island territory’s tax code.
Messages left for Markel spokesman Bruce Kay were not returned Thursday.
The CATCo acquisition is expected to close in the fourth quarter of this year.
Once the deal is completed, the business will operate as Markel CATCo Investment Management Ltd., or Markel CATCo. The business will be based in Hamilton, Bermuda, and led by existing CATCo CEO Tony Belisle and his management team.
CATCo was advised in the deal by Willis Capital Markets & Advisory and Hogan Lovells International LLP. Markel was advised by Sidley Austin LLP.
Markel stock hit a low of $818.24 Thursday morning before jumping to a day high of $830 and closing at $824.54. Its second-quarter earnings report for this year showed total operating revenues reached $2.6 billion through June 30, up from $2.4 billion the first half of last year. Net income for the first half of this year totaled $286 million, compared to $128 million the first six months of last year.
The CATCo deal marks one of Markel’s first acquisitions since its investment arm, Markel Ventures, picked up a Georgia manufacturing company last year.