Marco Capital Holdings Limited, a new Malta-headquartered European Property & Casualty run-off solutions provider, has launched with €500 million in committed initial equity capital.
The group, whose majority investor is US alternative investment management firm Oaktree, will pursue run-off opportunities located in/emanating from the Continental Europe, the UK and Lloyd’s of London.
Marco’s initial committed equity capital figure of €500 million is augmented with ancillary own funds, with €750 million ‘dry powder equity’ – allowing more deals to be completed after the initial capital is used.
This new venture is led by former ex-Chief Financial Officer of DARAG Simon Minshall and Jonathan Walker, a former Merrill Lynch and Baring Brothers re/insurance M&A investment banker, who is set to lead Marco’s Origination initiative.
Together they aim to provide a professional, well capitalised counterparty for insurers and reinsurers seeking run-off and other solutions.
Ex-Group CFO of Allianz SE, Dieter Wemmer will serve as the board’s Chairman and is joined by Lloyd’s first Franchise Board Director Rolf Tolle; Monika Sebold-Bender, a former ERGO Group Management Board responsible for P&C; and Juanita Bencini, a former KPMG Partner specialising in Risk.
“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,” said Minshall.
Marco’s strategy will include 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.
“As a former seller of reserves to run-off companies, I appreciate the need for highly professional and well capitalised counterparties,” added Wemmer.
“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.”
