European P&C legacy start-up Marco launches with €500m capital under ex-DARAG, Allianz CFOs

Marco Capital Holdings, a new European property and casualty run-off solutions provider headquartered in Malta, has launched with €500 million initial committed equity capital.

Marco is 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.

The company, whose majority investor is alternative investment management firm Oaktree Capital Management, will pursue run-off opportunities located in/emanating from the 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.

Former group CFO of Allianz SE Dieter Wemmer will join the start-up as chairman. Wemmer was also group CFO of Zurich, and currently serves on UBS' board.

Marco’s insurance company board (iNEDs) will also include Rolf Tolle - Lloyd’s first franchise board director, and current QBE board member; Monika Sebold-Bender - former ERGO Group management board responsible for P&C, prior management board member at Generali Deutschland, senior positions at Allianz SE and AXA Germany, who currently serves on MS Amlin Europe board; and Juanita Bencini - former KPMG Partner specialising in risk, and currently serving on boards of several insurers and a bank in Malta.

Marco chief executive 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.”

Wemmer, Marco chairman, 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.”