CATCo Reinsurance Opportunities Fund Ltd has returned $413.9 million of capital to shareholders since 2019, chairman James Keyes reported in the organisation’s 2023 annual financial report.

Distributions in that amount were made during the period beginning March 26, 2019, and ending December 31, 2023.

Mr Keyes wrote: “As the investment portfolios of CATCo ... are in run-off, all remaining investments are exposed to risk relating to reinsurance contracts entered into from 2018 to 2019.

“Markel CATCo Investment Management Ltd continues to be focused on proactively managing the remaining trapped capital and returning it to shareholders in as timely and cost-effective a manner as possible.”

The chairman said the company opened the year with a total net asset value of $9 million and concluded the year with a NAV of $14.5 million.

Mr Keyes wrote: “The increase in NAV is due to further upside recorded relating to positive development on the 2018 and 2019 reinsurance portfolios plus interest income.”

He said Markel CATCo Investment Management “is continuing to proactively pursue the run-off of the remaining nine contracts in the 2018 and 2019 risk portfolios.

“Whilst the underlying risk contracts typically have a 36-month reporting period post expiry of the risk period, the investment manager has the discretion to either commute the contract or continue to hold it open if it considers that to do so is in the best interest of shareholders.”

Mr Keyes added: “The board continues to meet with the investment manager to determine the outlook for the company and evaluate the future potential for further upside from the underlying portfolio which may arise from (i) commutations and (ii) interest earned on the underlying collateral.

“Consistent with the upside achieved in 2023, any further possible upside from the remaining nine contracts will be reflected in the future reported NAVs and such proceeds will be distributed to shareholders thereafter.

“The board monitors the ongoing operational expenses of the company with the investment manager and will continue to ensure that these expenses are kept as low as possible in order to maximise value for shareholders.”