Markel launches new retrocessional ILS fund manager Lodgepine Capital

US insurance holding company Markel has launched Lodgepine Capital Management – its new retrocessional insurance linked securities fund manager (retrocessional ILS fund manager) in Bermuda, along with a reinsurance company called Lodgepine Re.

The initial product offering of Lodgepine Capital Management will be the Lodgepine Fund, a property catastrophe retrocessional investment fund ahead of the renewal period in 2020.

Richard R. Whitt – Co-CEO of Markel said: “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.”

Markel’s Andrew Barnard will be the CEO of Lodgepine.

The Lodgepine Fund will offer investors access to property catastrophe retrocession exposure through a single-entry point and platform, providing cedants a suite of property retrocession products that will have coverage provided on a collateralized basis, written by Lodgepine Re, or on a rated paper basis written by Markel Bermuda, or a mix of both.

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

“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 Bermuda Monetary Authority (BMA) has granted its approval in principle for the licensing of Lodgepine Re. After all the required approvals of the other Lodgepine entities have been received, Markel will work to have all entities organized and capitalized in the next few weeks.