Markel Corp. said two executives from one of its divisions have departed after an ongoing internal review discovered an “undisclosed personal relationship” between them that violated company policies.

The Virginia-based specialty insurer said “prompt action was taken” following the discovery and that Anthony Belisle, CEO of Markel CATCo Investment Management Ltd., and Alissa Fredricks, CEO, Bermuda for CATCo, are no longer with the company.

Markel did not disclose further details.

As a result, management and oversight of the division and its 25 employees has been immediately shifted to Jed Rhodes, president and chief underwriting officer, Markel Global Reinsurance, and Andrew Barnard, senior managing director, head of International Property Catastrophe and Retro Reinsurance at Markel Global Reinsurance.

Markel said it will also begin a search for the new CEO of CATCo, which Belisle’s LinkedIn page notes that he founded and ran since 2010.

In December 2018, Markel disclosed that U.S. and Bermuda regulators began an inquiry about loss reserves at CATCo, focusing on those recorded in late 2017 and early 2018. At the time, Markel said that inquiries only involved that division, it was cooperating and also hired outside counsel to conduct an internal review of the matter.

That internal review led to discovery of Belisle’s and Fredricks’ “violations” involving Markel personal relationship policies, Markel said.

Meanwhile, the internal review relating to loss reserves continues, the company added.

Also, disclosure of the ongoing regulatory investigation has led to a class action shareholder lawsuit over the disputed CATCo reserve statements.

Source: Markel