Bermudian-based Markel CatCo Investment Management Ltd has raised more than $1.8 billion for its private fund from existing and new investors — and next month it intends to raise more new capital.

The island-based company with a focus on collateralised reinsurance products was hit hard by catastrophes in the third quarter.

Earlier this month, the company announced that its CatCo Reinsurance Opportunities Fund had implemented loss reserves for hurricanes Harvey, Maria and Irma amounting to 20 per cent of the fund’s net asset value.

On October 2, CatCo said the hurricanes had “resulted in increased pricing within the retrocessional reinsurance market and, in addition, a requirement by the company for new capital”.

And after its successful first wave of raising capital, it intends to publish a prospectus in early November with the aim of closing the fundraise, through a placing of new C shares, by the end of the month.

“With over $1.8 billion already raised, this ensures that Markel CatCo can fund all of its January 1, 2018 reinsurance contract renewals as well as a portion of the increased buyer demand from its reinsurance clients,” the company said in a statement today.

“The proceeds from the C shares will enable the fund to satisfy the additional buyer demand from existing and new reinsurance clients.”

Tony Belisle, chief executive officer of Markel CatCo Investment Management Ltd, said: “The Markel CatCo team is extremely grateful for the tremendous support demonstrated by our investors and, equally importantly, by the buyers of our reinsurance protections and the loyalty they have shown towards our unique product offering.

“The ability to raise and deploy this significant amount of additional capital is testament to the Markel CatCo team focus on providing both exceptional, long term returns to our investors and, also, the highest levels of service to our reinsurance clients.”