Markel Insurance is running off its global reinsurance business and selling renewal rights to the $1.2 billion b
ook to Nationwide, according to Markel Group and Nationwide in separate announcements on Wednesday.
Neither company disclosed financial terms of the deal.
Markel said its decision to run off the reinsurance book helps to simplify its specialty insurance structure, referring to an effort that’s been in motion since earlier this year. For Nationwide, acquiring the re
newal 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.
Simplifying Markel
Markel Group referred to its decision to place the global reinsurance business into runoff in a media statement announcin
g second-quarter earnings, without explicitly mentioning the renewal rights sale. Markel did cite the sale as a subsequent event in a second-quarter 10Q filing with the Securities and Exchange Commissio
n. Although Markel did not identify the buyer, the filing noted the deal is expected to close in August 2025. At that point, the Global Reinsurance division of Markel Insurance will enter into runoff.
“As many of the contracts written within this division are multi-year agreements, the company expects premiums to continue earning over the next two to three ye
ars and loss reserves are expected to take several additional years to run off,” Markel’s filing said.
While reporting $1.4 billion in first-half operating income for Markel Group overall, CEO Tom Gayner said placing the reinsurance book into runoff is another step the group is taking to simplify the structure of its insu
See more beautiful photo albums Here >>>
rance business, which contributed $273.4 million to operating earnings. Two other reporting segments—investments (encompassing the group’s returns from equity and fixed maturity investment of insurance f
loat) and ventures (a division made up of 21 noninsurance businesses)—contributed $903.4 million and $310.2 million to first-half 2025 results.
The runoff decision, Gayner said, “enables the [insurance] team to focus more clearly on the core underwriting activities where we have distinct strengths.”
Internal reflection on Markel Insurance’s underperformance against its peers and the urging of an activist investor sparked a board-level review of all of Markel Group’s businesses in February, and then a restructuring of the U.S. and Bermuda insurance operations in April.