Insurance company Markel is transferring its reinsurance renewal rights to Nationwide for a fee.
Markel Insurance Sells Global Reinsurance Business to Nationwide
Markel Insurance, a part of the Markel Group, has agreed to sell the renewal rights for its $1.2 billion Global Reinsurance business to Nationwide. The transaction, expected to close in August 2025, will see Markel's Global Reinsurance division enter runoff, allowing premiums to continue earning out over the next two to three years while loss reserves run off over a longer period.
Nationwide will delegate the underwriting and management of all renewal policies acquired in this transaction to Ryan Re Underwriting Managers, a managing general underwriter (MGU) of Ryan Specialty. This extends Nationwide’s existing strategic alliance with Ryan Specialty, established in 2019. A significant portion of the original Markel Global Reinsurance underwriting team has already moved to Ryan Re to continue managing this business.
The reason for the sale is Markel’s strategic decision to simplify its specialty insurance operations and focus more on its core specialty insurance markets. Markel’s CEO, Simon Wilson, explained that Markel’s smaller scale limited its ability to lead in the reinsurance market. This sale enables Markel to sharpen its focus on specialty insurance and empower local expert teams. Nationwide views the acquisition as an opportunity to diversify and expand its specialty reinsurance presence.
It's important to note that no insurance company entities were sold in this transaction, only renewal rights. Nationwide and Ryan Re have the necessary scale, market presence, and expertise to leverage the renewal rights. With the change, Markel plans to focus more on growing its core specialty insurance business.
The transaction is subject to customary closing conditions and financial terms were not disclosed. Markel is confident that Nationwide and Ryan Re will deliver for its reinsurance customers and trading partners.
[1] Markel Corporation Press Release, "Markel Corporation Announces the Sale of Renewal Rights for its Global Reinsurance Business," 12 May 2023. [2] Nationwide Press Release, "Nationwide to Acquire Renewal Rights for Markel Corporation's Global Reinsurance Business," 12 May 2023. [3] Ryan Specialty Group Press Release, "Ryan Specialty Group's Ryan Re Underwriting Managers to Manage Markel Corporation's Global Reinsurance Business Renewals," 12 May 2023. [4] Insurance Business, "Markel Sells Global Reinsurance Business to Nationwide," 12 May 2023.
- The acquisition of Markel Insurance's Global Reinsurance renewal rights by Nationwide signifies an expansion of Nationwide's presence in the specialty reinsurance finance sector.
- Markel Corporation, in a bid to streamline its specialty insurance operations and concentrate on its core markets, has decided to focus on the banking-and-insurance sector through its remaining specialty insurance division after the sale of its Global Reinsurance business.
