A new run off carrier has been launched which aims to target European and UK opportunities as the impacts of COVID-19 and InsurTech-led disruption increases.
Malta-based Marco Capital Holdings Limited (Marco) has been formed saying it will focus on run-off opportunities located in/emanating from the Continental Europe, the UK and Lloyd’s of London.
It has been founded and led by Simon Minshall, ex-Chief Financial Officer of run-off carrier DARAG and previously Deputy Group CFO at Endurance, and Jonathan Walker, former Merrill Lynch and Baring Brothers re/insurance M&A investment banker who leads Marco’s Origination initiative. Amongst its board members are former Group CFO Allianz SE, and former Zurich Group CFO Dieter Wemmer, and former Lloyd’s Franchise Board Director Rolf Tolle.
The company’s operations will be supported by €500m initial committed equity capital, to be augmented with ancillary own funds, with €750m ‘dry powder equity’. Oaktree has been named as Marco’s majority investor.
Mr Minshall explained: “Marco joins the European run-off arena at an auspicious moment, when the need to resolve legacy and facilitate capital management has been exacerbated by the extraordinary conditions insurers face in 2020, on both sides of the balance sheet. Marco seeks to provide a professional, well capitalised counterparty for insurers and reinsurers seeking run-off and other solutions”.
The company said its strategy is to focus on P&C Run-Off business opportunities located in/emanating from Continental Europe, the UK and Lloyd’s of London by acquiring portfolios of non-life insurance loss reserves, through reinsurance structures, loss portfolio transfers (LPT), adverse development cover (ADC), Part VII Transfer or through purchasing entities.
Mr Wemmer added: “As a former seller of reserves to run-off companies, I appreciate the need for highly professional and well capitalised counterparties. The dynamics of the P&C industry beyond 2020’s challenges include the coming impact of InsurTech which will affect traditional business models and increase demand for efficient capital management solutions. Marco will position itself as a market with professionalism, integrity and sufficient capital to serve this demand”.