Global specialty insurer Markel Insurance reported that it has completed the sale of the renewal rights for its $1.2 billion global reinsurance business to Nationwide.
This transaction was previously announced on July 30 and is part of what Markel cites as a broader strategy to “simplify operations and focus on the distinct needs of its core specialty insurance markets.”
For Nationwide, acquiring the renewal rights creates an opportunity to further diversify and expand a growing presence in the specialty reinsurance market, the insurance and financial services products company said.
Nationwide said it will delegate the underwriting and management of all renewal policies included in this transaction to Ryan Re Underwriting Managers, a managing general underwriter of Ryan through the expansion of their existing strategic alliance.
In 2019, Ryan Specialty Group and Nationwide announced they were forming a Bermuda reinsurer, Geneva Re Ltd., with Nationwide owning 50% and RSG-related investors holding the remaining 50%.
Virginia-based Markel did not sell any insurance company entities as part of the transaction, and Markel’s global reinsurance division has entered runoff, with premiums continuing to earn out over the next two to three years.
As a Markel Group 10Q filing describes the global reinsurance division as being made up of casualty and specialty reinsurance products including general liability, professional liability, marine and energy, workers compensation and credit and surety.
“This move will sharpen our focus on doing more of what we do best so that we can grow our core specialty insurance business,” said Simon Wilson, chief executive officer of Markel Insurance.
Mark Berven, president of property/casualty at Ohio-based Nationwide, said his company is confident it can to meet the protection needs of Markel’s clients and deliver long-term value to broker partners.
A simplified structure of Markel Specialty into two core business units鈥擴.S. Wholesale and Specialty鈥攁ttempts to clearly align the core insurance businesses with the buying behavior of customers and distribution partners, Simon Wilson, CEO of Markel Insurance, for investors in May.
Transaction terms have not been publicly disclosed.
Topics Reinsurance
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