Insurance provider Markel is transferring its reinsurance renewal rights to Nationwide.
Markel Insurance, a part of the Markel Group, has announced a significant move in the reinsurance market. The company has agreed to sell the renewal rights for its Global Reinsurance business to Nationwide, with a book value of $1.2 billion. The deal, expected to close in August 2025, subject to customary closing conditions, marks a strategic decision by Markel to simplify its specialty insurance structure.
Markel's Global Reinsurance division will enter a runoff phase, meaning the company will no longer write new business in this division. However, premiums and loss reserves will continue to be earned and run off over the next two to three years due to many multi-year contracts.
Nationwide aims to leverage this acquisition to diversify and expand its specialty reinsurance market presence. The management of the runoff business will be delegated to Ryan Re Underwriting Managers, a firm with the necessary scale, market presence, and expertise to manage this portfolio effectively.
Financial terms of the sale have not been disclosed by either Markel or Nationwide.
Key Points
- Seller: Markel Insurance
- Buyer: Nationwide (for renewal rights)
- Closing Date: Expected August 2025 (subject to conditions)
- Business Segment: Global Reinsurance (runoff)
- Strategic Purpose (Markel): Simplify specialty insurance structure, run off reinsurance
- Strategic Purpose (Nationwide): Diversify and expand specialty reinsurance presence
- Management Delegation: Ryan Re Underwriting Managers manage the runoff portfolio
- Financial Terms: Not disclosed
- Runoff Period: Premiums earn and loss reserves run off over next 2-3 years
This sale and runoff approach allow Markel to focus on its core specialty insurance operations, while Nationwide and Ryan Re take over managing the inherited reinsurance contracts. Markel's CEO, Simon Wilson, expressed gratitude for the work of the Global Reinsurance team and expressed confidence that Nationwide and Ryan Re will deliver for their reinsurance customers and trading partners.
[1] Markel Insurance Press Release [2] Nationwide Press Release [3] Ryan Re Underwriting Managers Press Release [4] Insurance Business Magazine Article [5] Reinsurance Magazine Article
- Markel's strategic decision to sell its Global Reinsurance business renewal rights to Nationwide is an important move in the finance sector, as it aims to focus on its core specialty insurance operations.
- With Nationwide's acquisition, they are stepping into business expansion in the specialty reinsurance market, seeking to leverage the acquired portfolio managed by Ryan Re Underwriting Managers.
