Markel exits reinsurance to focus on specialty insurance

Markel Insurance, the insurance operations within Markel group, has entered into an agreement to sell the renewal rights for its global reinsurance business to Nationwide. Nationwide subsequently said that it would sub-contract the business to MGA Ryan Re Underwriting Managers. Markel said that the sale is part of its broader strategy to simplify operations and grow the business by empowering local expert teams to serve the needs of their core specialty insurance markets. As he announced second quarter results, group CEO Tom Gayner told shareholders: "We've made meaningful changes across our business in recent years, all with the goal of consistently compounding your capital…Our results included $1.4bn (€1.2bn) in operating income through the first half of the year. Also, this quarter, we took another step to simplify the structure of our insurance business by placing reinsurance into run-off. That decision enables the team to focus more clearly on the core underwriting activities where we have distinct strengths." Simon Wilson, CEO of Markel Insurance, added: "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…With this change, we will sharpen our focus on doing more of what we do best by growing our core specialty insurance business." Markel stressed that it will not sell any insurance company entities as part of the deal with Nationwide. Markel's global reinsurance division will enter runoff, with premiums continuing to earn out over the next two to three years. The transaction is subject to customary closing conditions and is expected to close in August. "Nationwide and Ryan Re have the scale, market presence, and expertise necessary to leverage these renewal rights to build an even stronger foundation for long-term success…We are confident that they will deliver for our reinsurance customers and trading partners," said Wilson. The reinsurance business negatively impacted Markel’s quarterly and six month results before being placed into run-off. For the second quarter Markel reported a combined ratio of 96.9% up from 93.8% at this point last year “The increase in Markel insurance's combined ratio for the quarter ended 30 June 2025 was primarily driven by adverse development in 2025 on our run-off risk-managed directors and officers product lines and on the global reinsurance division, which we announced is being placed into run-off. This adverse development in the second quarter of 2025 resulted in less overall net favourable development on prior accident years loss reserves in the second quarter of 2025 compared to the second quarter of 2024,” said the group. It reported that underwriting results for the first half of 2025 included $60.9m of net losses and loss adjustment expenses, or one-and-a-half points on the Markel insurance combined ratio, attributed to the January wildfires in southern California. This compares to no catastrophe losses in the first half of 2024. “Excluding losses attributed to the California wildfires, the Markel Insurance combined ratio in the first half of 2025 was consistent with the same period of 2024,” said the company. The group reported total insurance operating revenues of $4.42bn for the first six months of this year up from $4.33bn for the first half of 2024. Total operating income was $1.75bn from $1.39bn at this point last year. Consolidated operating income was $1.49bn for the first half of 2025 down from $1.83bn last year.

Markel exits reinsurance to focus on specialty insurance

Want to read this article?

Read Next

Good first half-year for Generali as profit and premiums grow

Zenkyoren picks Guernsey for new reinsurance captive

AGCS profits fall as rates drop 3%

New deputy active underwriter for Arch’s Lloyd’s Syndicate 2012

Liberty Mutual says commercial pricing ‘getting softer’ as it reports profit jump

Good first half-year for Generali as profit and premiums grow

Zenkyoren picks Guernsey for new reinsurance captive

AGCS profits fall as rates drop 3%

New deputy active underwriter for Arch’s Lloyd’s Syndicate 2012

Liberty Mutual says commercial pricing ‘getting softer’ as it reports profit jump

Want to read this article?

Read Next

Good first half-year for Generali as profit and premiums grow

Zenkyoren picks Guernsey for new reinsurance captive

AGCS profits fall as rates drop 3%

New deputy active underwriter for Arch’s Lloyd’s Syndicate 2012

Liberty Mutual says commercial pricing ‘getting softer’ as it reports profit jump

Related Articles