Markel launches retrocessional ILS platform
Markel announced the launch of Lodgepine Capital Management, its new retrocessional Insurance Linked Securities fund manager in Bermuda, together with a reinsurance company, Lodgepine Re. Lodgepine’s initial product offering will be the Lodgepine Fund, a property catastrophe retrocessional investment fund ahead of the 2020 renewal period.
“Lodgepine will expand Markel’s current range of ILS capabilities and provide institutional investors access to more opportunities in insurance risk, complementing our existing Nephila and State National operations. Lodgepine further strengthens our position as an industry leader in the increasingly important ILS market.” – Richard R. Whitt, Co-Chief Executive Officer at Markel.
Markel’s Andrew “Barney” Barnard will serve as Lodgepine chief executive officer.
The Lodgepine Fund will provide investors with access to property catastrophe retrocession exposure via a single-entry point and platform, offering cedants a suite of property retrocession products with the ability to have coverage provided either on a collateralized basis, written by Lodgepine Re, or on a rated paper basis written by Markel Bermuda Limited, or a combination of both.
The Bermuda Monetary Authority (BMA) has given its approval in principle for the licensing of Lodgepine Re, the reinsurance company, and once all requisite approvals of the other Lodgepine entities have been obtained, Markel will work to have all entities organized and capitalized in the coming weeks.