Markel internal inquiry finds ‘no evidence’ CATco misled on loss reserves

An internal investigation by Markel Corporation into loss reserves in late 2017 and early 2018 at its CATCo found “no evidence” employees deliberately misled investors.

The loss reserve figures raised flags about reduced share value and annual performance.

This prompted a joint investigation into Markel CATCo by the US Department of Justice, US Securities and Exchange Commission and Bermuda Monetary Authority ( governmental authorities), which is ongoing.

However, the internal Markel inquiry, conducted by outside counsel, said it had “found no evidence that CATCo personnel acted in bad faith in exercising business judgment in the setting of reserves and making related disclosures during late 2017 and early 2018”.

Markel said the counsel has met with the governmental authorities to report its findings.