Hurricane Sandy Update

RNS Number : 8230F

CATCo Reinsurance Opps Fund Ltd

29 May 2013

 



CATCo Reinsurance Opportunities Fund Ltd. ("the Company")

Hurricane Sandy Update - updated PCS loss reserve estimate

To: SFM, London Stock Exchange and Bermuda Stock Exchange

Date: 29 May 2013

Further to the Board of Directors' announcements on 23 January 2013 and 25 March 2013 in relation to events of Hurricane Sandy which began on 23 October 2012, Property Claims Services ("PCS"), an independent company which investigates reported disasters and determines the extent and type of damage, dates of occurrence and geographic areas affected primarily within the US, has issued a third re-survey loss estimate based largely on a follow-up with affected insurers. 

The updated loss estimate was $18.75 billion, which remains unchanged from their second re-survey loss estimate released on 22 March 2013.

As this third re-survey loss estimate is equal to the prior two re-surveys, PCS would ordinarily label this loss estimate as "final" at $18.75 billion, which then leads to a final settlement of all of CATCo-Re's Industry Loss Warranty contracts exposed to Hurricane Sandy. However, PCS has elected to allow for one more re-survey within 60 days due to the complexity and severity of this event. 

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. 

For further information, please contact:

Jason Bibb

CATCo Investment Management Ltd                        

Telephone: [phone]

Email: [e-mail] 

David Benda / Hugh Jonathan

Numis Securities Limited

Telephone: [phone]

John Whiley / Matthew Charleson

Prime Management Ltd

Tel: [phone]

 

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