Rick Montgomerie and Charlie Vaughan to leave Markel CATCo; launching new investment manager Chard Re

Rick Montgomerie and Charlie Vaughan, the portfolio managers for Markel CATCo Investment Management’s Aquilo Fund, are leaving the company to establish a new investment manager and fund — Chard Re Investment Management. Elizabeth Simmons, the fund's underwriter, will also be leaving to join Chard Re, which is intended to launch January 1, 2020.

Markel Corporation intends to be a seed investor in Chard Re, subject to the fund reaching a specified level of invested capital and subject to finalising definitive agreements, and will take a 12.5-17 percent ownership position.

The intention is for the assets and liabilities of the Aquilo Fund (existing business and side pockets) to be transferred to Chard Re, pending investor and regulatory approval. Chard Re will manage the Aquilo Fund run-off.

Markel CATCo creates and manages a series of insurance-linked investment funds which provide its investors the opportunity to participate in a selected mix of catastrophe reinsurance risks accessed through its reinsurance company, MCRe. The funds are diversified across a number of risk categories to limit the capital exposed to a single event, and are uncorrelated to traditional asset classes. The structure of the funds provides its reinsurance purchasers significant underwriting capacity and claims-paying capabilities. Markel CATCo is headquartered in Hamilton, Bermuda and is authorised and regulated by the Bermuda Monetary Authority.

Markel CATCo launched Aquilo in 2014 as a fully fronted reinsurance offering distinct from the main retrocessional Insurance Linked Securities (ILS) offering. Earlier this year, Markel CATCo announced it will cease accepting new investments in Markel CATCo Reinsurance Fund Ltd., will not write any new business going forward through Markel CATCo Re Ltd, and it would place its existing portfolio in run-off.

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