Markel to sell global reinsurance renewal rights to Nationwide

RICHMOND - Markel Insurance, the insurance operations of Markel Group Inc. (NYSE:MKL), a $25.3 billion market cap insurer trading near its 52-week high according to InvestingPro, announced Wednesday an agreement to sell the renewal rights for its Global Reinsurance business to Nationwide as part of a strategic simplification initiative.

The transaction, expected to close in August 2025, will not include the sale of any insurance company entities. Markel’s Global Reinsurance division will enter runoff, with premiums continuing to earn out over the next two to three years, according to the company’s press release. The company maintains strong liquidity with a current ratio of 2.83, as reported by InvestingPro.

Nationwide plans to delegate the underwriting and management of all renewal policies included in the transaction to Ryan Re Underwriting Managers, a managing general underwriter of Ryan Specialty (NYSE:RYAN), through an expansion of their existing strategic alliance.

"We are grateful for the work that our Global Reinsurance team has done for our valued customers, but our scale has held us back from being a leader in the reinsurance market," said Simon Wilson, Chief Executive Officer of Markel Insurance.

Wilson added that the change will allow Markel to "sharpen our focus on doing more of what we do best by growing our core specialty insurance business."

The financial terms of the transaction were not disclosed. The deal remains subject to customary closing conditions.

The move aligns with Markel’s broader strategy to simplify operations and focus on its core specialty insurance markets by empowering local expert teams to serve their distinct needs. With an "GREAT" financial health score and strong profitability metrics, Markel appears well-positioned for this strategic shift. Discover more insights about Markel’s financial outlook in the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Markel Insurance, part of Markel Group Inc., has made significant strides in its operations and strategy. The company announced the appointment of Christian Stobbs as Chief Strategy and Corporate Development Officer, a newly created position aimed at identifying and advancing strategic growth opportunities. Additionally, Markel Insurance has restructured its US operations, consolidating its previous eight regions into four integrated regions to enhance service delivery and operational efficiency. In terms of partnerships, Markel has joined forces with Insurate to leverage artificial intelligence for improved underwriting and risk management in workers’ compensation. This collaboration aligns with Markel’s commitment to innovation and long-term value creation.

Furthermore, Markel has expanded its partnership with Cyberwrite to enhance its cyber risk analysis capabilities across Europe, utilizing AI technology for improved risk assessment. In another development, Argus Research upgraded Markel’s stock rating from Hold to Buy, citing the company’s focus on underwriting profitability and strategic acquisitions. Despite challenges like inconsistent returns on equity and investment portfolio headwinds, Argus recognizes Markel’s potential for growth in insurance premiums. These recent developments reflect Markel’s ongoing efforts to strengthen its market position and operational capabilities.

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