Markel CATCo Investment Management Ltd. has confirmed that Rick Montgomerie and Charlie Vaughan, the portfolio managers for its Aquilo Fund, are leaving the company with the intention of establishing a new investment manager and fund – Chard Re Investment Management.
Elizabeth Simmons, the fund's underwriter, also will be leaving to join Chard Re, which is intended to launch January 1, 2020, Markel said.
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 finalizing definitive agreements, and take a 12.5 percent to 17 percent ownership position.
According to Markel, 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 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 would place its existing portfolio in run-off.
Learn more: Markel CATCo to Wind Down.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].