Marco Capital will target run-off opportunities located in or originating from Continental Europe, the UK, and Lloyd’s of London

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Marco Capital has been launched as a new P&C run-off solutions provider. (Credit: mohamed Hassan from Pixabay)

A new company called Marco Capital based in Malta has been launched with €500m in committed initial equity capital for pursuing property and casualty (P&C) run-off opportunities across Europe.

The company will target run-off opportunities located in or originating from Continental Europe, the UK, and Lloyd’s of London.

The CEO of Marco Capital is Simon Minshall, an ex-chief financial officer at DARAG, a run-off carrier. Prior to that, Minshall was deputy group CFO at Endurance.

Minshall founded the company alongside Jonathan Walker, former Merrill Lynch and Baring Brothers re/insurance M&A investment banker. Walker will be heading the company’s origination initiative.

Simon Minshall said: “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”.

Oaktree Capital is the majority investor in Marco Capital

The new P&C run-off solutions provider is backed by funds managed by Oaktree Capital Management, which is its majority investor.

The company will aim to acquire portfolios of non-life insurance loss reserves. This is planned to be executed via reinsurance structures – loss portfolio transfers (LPT), adverse development cover (ADC), Part VII Transfer, or by buying entities.

The company will be engaged in providing finality solutions to carriers for discontinued business, optimisation of balance sheet, and other purposes by buying loss reserve portfolios, via reinsurance and acquisitions of businesses.

Marco Capital chairman Dieter Wemmer said: “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”.