RICHMOND, Va., Nov. 15, 2021 /CNW/ -- Markel Corporation
(NYSE: MKL) today announced that it is winding down Lodgepine
Capital Management Limited (Lodgepine), its retrocessional
Insurance Linked Securities (ILS) fund manager based in
Bermuda.
Markel launched Lodgepine in 2019, with product offerings
focused on property catastrophe retrocessional investments. In
2021, Lodgepine wrote a portfolio of property retrocessional
business that consisted of approximately $230 million of initial limits. The Lodgepine
Fund launched July 1, 2021 with
initial investor capital of $98.9
million, including an initial investment by Markel of
$18.9 million.
Despite best efforts and in light of headwinds in the
retrocessional ILS market, including a challenging fundraising
environment, Lodgepine will cease to write any new business and
commence the orderly run-off of its existing portfolio and the
return of capital to investors.
The company has entered into a consultation period with
Lodgepine's 18 employees and will look for redeployment
opportunities for these employees within Markel's operations.
About Markel Corporation
Markel Corporation is a
diverse financial holding company serving a variety of niche
markets. The Company's principal business markets and underwrites
specialty insurance products. In each of the Company's businesses,
it seeks to provide quality products and excellent customer service
so that it can be a market leader. The financial goals of the
Company are to earn consistent underwriting and operating profits
and superior investment returns to build shareholder value. Visit
Markel Corporation on the web at www.markel.com.
Disclaimer
Certain of the statements in this
release (and any related oral statements) may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995, as amended. Statements that are not
historical facts, including statements about Markel's beliefs,
plans or expectations, are forward-looking statements. These
statements are based on Markel's current plans, estimates and
expectations. There can be no assurance as to the timing, frequency
or amounts of capital distributed to Lodgepine investors in
connection with the run-off of the existing portfolio.
There are risks and uncertainties that could cause actual results
to differ materially from those expressed in or suggested by such
statements. Markel assumes no obligation to update this release
(including any forward-looking statements herein) as a result of
new information, developments, or otherwise. This release speaks
only as of the date issued.
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SOURCE Markel Corporation