CATCo Release Full Year 2011 Results (Excerpt)

Hamilton, Bermuda – 10 February, 2012 – In a filing with the Bermuda Stock Exchange (BSX) CATCo Reinsurance Opportunities Fund Ltd. (the “Company”; Ticker: CAT.BH) released the Company’s financial results to 31 December, 2011, and Chairman’s Statement to shareholders.

The announcement read:

CATCo Reinsurance Opportunities Fund Ltd. provides its shareholders the opportunity to participate in the returns from investments linked to catastrophe reinsurance risks, principally by investing in fully collateralised reinsurance contracts and also via a variety of insurance-based investments.

• Successful listing on the Specialist Fund Market, London Stock Exchange raising $80.39 million

• Dual listing on the Bermuda Stock Exchange

• Four successful corporate transactions during the period
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• Net asset value $339.79 million as at 31 December 2011

• Net asset value total return of Ordinary Shares 5.09%, net asset value total return of C Shares 8.58%

• Declared 2011 final dividend of $0.051 for Ordinary Shares and C Shares

I am pleased to present to shareholders the Company’s Annual Financial Report for the period ended 31 December 2011.

The Company was admitted to trading on the Specialist Fund Market, London Stock Exchange on 20 December 2010 raising $80.39 million from the issue of 80,392,000 Ordinary Shares in the Company.

The Company’s shares are now also listed on the Bermuda Stock Exchange following the Secondary Listing on 20 May 2011. At 31 December 2011, the Company had 87,642,000 Ordinary Shares and 244,118,029 C Shares, respectively, with a net asset value of $339.79 million.

Company Overview

The Company is established as a feeder fund that invests substantially all of its assets, via the CATCo Reinsurance Fund Ltd., CATCo Diversified Fund (“Master Fund”), in investments linked to catastrophe reinsurance risks.

This is achieved principally by investing in traditional reinsurance contracts accessed by investments in preferred shares of CATCo Re Ltd., a Bermuda domiciled and regulated Class 3 reinsurer, which writes fully collateralised reinsurance contracts.

In addition, the Master Fund has the ability to invest in a variety of insurance-based instruments. The Master Fund spreads its investment risk by having exposure to several non-correlated risk categories such as residential and commercial property losses caused by catastrophes such as hurricanes and earthquakes.

Investment Objective

The Company's investment objective is to seek to provide investors with significant capital returns and long-term distributions at a sustainable level. The Company targets an internal rate of return in excess of LIBOR plus 12% to 15% per annum.

Distribution Policy

The Company also targets distributions by way of a dividend in respect of each Fiscal Year, of an amount equal to LIBOR plus 5% of the Net Asset Value at the end of each Fiscal Year.

Corporate Activity in 2011

Following the IPO, the Company completed three additional fund raisings to take advantage of higher premiums and increased demand for retrocessional protection as a consequence of the natural catastrophes in Australia, New Zealand and Japan during the year.

The issue of C Shares enabled the Company to increase the diversification of its underlying portfolio throughout the year and benefit from increased retrocessional reinsurance pricing in the market.

Details of the subsequent corporate transactions completed by the Company are as follows:

•       On 31 March 2011, $7,358,750 was raised through an additional issuance of 7,250,000 Ordinary Shares;

•       $124,446,737 was raised through the issuance of 124,446,737 C Shares on 20 May 2011 and $850,000 was raised through the issuance of 850,000 C Shares on 23 May 2011; and

•       A further $125,000,000 was raised through an additional issuance of 118,821,292 C Shares on 16 December 2011.

The Company’s Ordinary Shareholders are indirectly exposed to potential losses arising from the New Zealand earthquake that occurred on 22 February 2011 and the Japan earthquake on 11 March 2011 (respectively, "NZ Exposures" and "Japan Exposures"). Due to the uncertainty in valuing this exposure and the tenure of these contracts, the Master Fund’s Board of Directors designated the Master Fund's potential NZ Exposures and Japan Exposures as a Side Pocket Investment ("SP Investment").

As a result, Master Fund Shares that were issued to Master Fund Shareholders after 31 March 2011 would participate fully in the Master Fund's portfolio, except that they will not have any NZ Exposures or Japan Exposures and will accordingly not participate in any losses or premiums attributable to such exposures.

The Company’s C Shares operate in the same way and have no exposure to these events. The Company’s Investment Managers have recently had meetings with the reinsurance counterparties that have NZ and Japan Exposures included in the Side Pocket Investment and further information has been received.

It was the Company's intention to settle the Master Fund’s exposure to the NZ and Japan Exposures before 31 December 2011 to enable the Side Pocket Investment to be realised and for any C Shares issued throughout 2011 to be converted into Ordinary Shares. However, based on the new information received from our reinsurance counterparties in mid-December the SP Investments will remain in place until more conclusive information becomes available from the reinsurance counterparties.

The Company and its Investment Portfolio

As at 31 December 2011, the net asset value (“NAV”) per Ordinary Share of the Company was $0.9999 and the NAV per C Share was $1.0329. The share price of an Ordinary Share was $1.08 with a premium to NAV per Ordinary Share of 8.01%. The share price of a C Share was $1.08 with a premium to NAV per C Share of 4.56%.

On 15 November 2011 the Board declared a final dividend of $0.051 in respect of the Ordinary Shares and a final dividend of $0.051 in respect of the C Shares.

Outlook

2011 ranks as one of the two most expensive years for the insurance industry with approximately $105bn in insured natural catastrophe losses. This exceeds 2005's natural catastrophe losses of $101bn, which included hurricanes Katrina, Wilma and Rita.

It is particularly pleasing that despite the year’s events the Company generated shareholder returns in its first year of trading.

With the capital from the latest fund raising deployed, enhanced portfolio diversification and premiums at higher levels due to the severe industry losses in 2011, the Board fully expects to produce significantly higher projected returns in 2012.

I look forward to welcoming shareholders to our first Annual General Meeting to be held on 6 March 2012 at the offices of CATCo Investment Management Ltd., 9 Par La Ville Road, Hamilton HM11, Bermuda at 9.30am (local time).

Anthony Taylor

Chairman

The Directors of CATCo Reinsurance Opportunities Fund Limited confirm that the annual report and financial statements of the Company (the "Annual Report") for the year ended 31 December 2011 have been posted to shareholders today.

The Annual Report is available on the Company’s website, www.catcoim.com

For further information, please contact:

CATCo Investment Management Ltd

Jason Bibb, Director                                       Telephone: +1 441 531 2227

Email: jason.bibb@catcoim.com

Mark Way, Corporate Communications        Telephone: +44 7786 116991

Email: mark.way@catcoim.com

Numis Securities Limited

David Benda / Hugh Jonathan                       Telephone: +44 (0) 20 7260 1000

Prime Management Ltd

Michael Toyer / John Whiley                          Tel: +1 (441) 295 0329