New retrocessional ILS platform from Markel

  • ILS expansion: Markel is to grow its interests in Bermuda with the acquisition of Nephila

Markel Corporation has launched of Lodgepine Capital Management Limited, 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,” Richard Whitt, co-chief executive officer at Markel, said.

“Lodgepine further strengthens our position as an industry leader in the increasingly important ILS market.”

Markel’s Andrew Barnard will serve as Lodgepine CEO. James Welsby will be chief investment officer and John Duda will lead the retrocessional portfolio management team.

“We have been thoughtful both in the name of the company and the composition of the executive team,” Jed Rhoads, president and chief underwriting officer at Markel Global Reinsurance, said. He will be chairman of Lodgepine.

“The Lodgepole pine is renowned for its durability and the name Lodgepine reflects Markel’s long-term commitment to provide insurance and reinsurance coverage to its insureds and attractive return opportunities to investors.”

The company said 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 collateralised basis, written by Lodgepine Re, or on a rated paper basis written by Markel Bermuda Limited, or a combination of both.

It also said the Bermuda Monetary Authority has given its approval in principle for the licensing of Lodgepine Re, and once all requisite approvals of the other Lodgepine entities have been obtained, Markel will work to have all entities organised and capitalised in the coming weeks.