Markel Insurance announces agreement to sell reinsurance renewal rights to Nationwide
Markel Insurance (NYSE:MKL) has announced an agreement to sell its Global Reinsurance business renewal rights to Nationwide. The transaction, expected to close in August 2025, aligns with Markel's strategy to streamline operations and focus on its core specialty insurance business.
Nationwide plans to delegate the underwriting and management of renewal policies to Ryan Re Underwriting Managers, a managing general underwriter of Ryan Specialty (NYSE:RYAN), through an expanded strategic alliance. Markel's Global Reinsurance division will enter runoff, with premiums earning out over 2-3 years. No insurance company entities will be sold as part of the transaction.
Markel Insurance (NYSE:MKL) ha annunciato un accordo per cedere i diritti di rinnovo del suo business di Global Riassicurazione a Nationwide. L'operazione, che dovrebbe concludersi entro agosto 2025, è in linea con la strategia di Markel di semplificare le operazioni e concentrarsi sul suo core business di assicurazioni specializzate.
Nationwide intende affidare la sottoscrizione e la gestione delle polizze di rinnovo a Ryan Re Underwriting Managers, un underwriter generale di Ryan Specialty (NYSE:RYAN), attraverso un'alleanza strategica ampliata. La divisione Global Reinsurance di Markel entrerà in fase di runoff, con i premi che si matureranno nell'arco di 2-3 anni. Nessuna entità assicurativa sarà ceduta nell'ambito della transazione.
Markel Insurance (NYSE:MKL) ha anunciado un acuerdo para vender los derechos de renovación de su negocio de Reaseguro Global a Nationwide. La transacción, que se espera cerrar en agosto de 2025, está alineada con la estrategia de Markel de simplificar operaciones y centrarse en su negocio principal de seguros especializados.
Nationwide planea delegar la suscripción y gestión de las pólizas de renovación a Ryan Re Underwriting Managers, un administrador general de suscripción de Ryan Specialty (NYSE:RYAN), mediante una alianza estratégica ampliada. La división de Reaseguro Global de Markel entrará en runoff, con primas que se devengarán durante 2-3 años. No se venderán entidades de compañías de seguros como parte de la transacción.
Markel Insurance (NYSE:MKL)는 글로벌 재보험 사업 갱신 권리를 Nationwide에 매각하는 계약을 발표했습니다. 이 거래는 2025년 8월에 종료될 예정이며, Markel의 운영 간소화 및 핵심 전문 보험 사업에 집중하는 전략과 일치합니다.
Nationwide는 Ryan Specialty (NYSE:RYAN)의 총괄 인수인 Ryan Re Underwriting Managers에 갱신 보험증권의 인수 및 관리를 위임할 계획이며, 이를 통해 전략적 제휴를 확대할 예정입니다. Markel의 글로벌 재보험 부서는 런오프 단계에 들어가며, 보험료는 2-3년에 걸쳐 수익을 창출할 것입니다. 거래의 일환으로 보험 회사 법인은 매각되지 않습니다.
Markel Insurance (NYSE:MKL) a annoncé un accord pour céder les droits de renouvellement de son activité de réassurance globale à Nationwide. La transaction, qui devrait être finalisée en août 2025, s'inscrit dans la stratégie de Markel visant à simplifier ses opérations et à se concentrer sur son cœur de métier d'assurance spécialisée.
Nationwide prévoit de déléguer la souscription et la gestion des polices de renouvellement à Ryan Re Underwriting Managers, un souscripteur général de Ryan Specialty (NYSE:RYAN), dans le cadre d'une alliance stratégique élargie. La division Global Reinsurance de Markel entrera en phase de runoff, avec des primes qui seront perçues sur une période de 2 à 3 ans. Aucune entité d'assurance ne sera vendue dans le cadre de cette transaction.
Markel Insurance (NYSE:MKL) hat eine Vereinbarung zum Verkauf der Erneuerungsrechte seines Global-Rückversicherungsgeschäfts an Nationwide bekannt gegeben. Die Transaktion, die voraussichtlich im August 2025 abgeschlossen wird, entspricht Markels Strategie, die Abläufe zu straffen und sich auf das Kerngeschäft der Spezialversicherungen zu konzentrieren.
Nationwide plant, die Zeichnung und Verwaltung der Erneuerungspolicen an Ryan Re Underwriting Managers, einen Managing General Underwriter von Ryan Specialty (NYSE:RYAN), im Rahmen einer erweiterten strategischen Partnerschaft zu delegieren. Die Global Reinsurance-Sparte von Markel wird in den Run-off gehen, wobei die Prämien über 2-3 Jahre ausgezahlt werden. Im Rahmen der Transaktion werden keine Versicherungsgesellschaften verkauft.
- None.
- Admission of insufficient scale in reinsurance market
- Loss of reinsurance business revenue stream after runoff period
- Potential impact on overall market presence in insurance sector
Insights
Markel's sale of reinsurance renewal rights to Nationwide represents strategic focus on core specialty insurance while exiting a business line where scale limited growth potential.
Markel Insurance is making a strategic pivot by selling its Global Reinsurance business renewal rights to Nationwide, signaling a deliberate shift to concentrate on its core specialty insurance operations. This transaction reveals that Markel recognized it lacked sufficient scale to compete effectively in the reinsurance market, as explicitly acknowledged by CEO Simon Wilson who stated their "scale has held us back from being a leader in the reinsurance market."
The transaction structure is noteworthy - Markel is selling only renewal rights, not any insurance company entities. This means Markel retains the legal entities and responsibility for existing policies while transferring future business opportunities to Nationwide. The Global Reinsurance division will enter runoff, with premiums continuing to earn out over approximately 2-3 years, providing a gradual transition rather than an abrupt exit.
This deal represents a classical example of portfolio optimization in the insurance industry. By divesting a business line where it couldn't achieve market leadership, Markel can reallocate capital and operational resources toward specialty insurance markets where it possesses competitive advantages. The undisclosed transaction terms prevent assessment of the immediate financial impact, but the strategic benefit lies in improved operational focus and potentially higher returns on capital in core business lines where Markel has stronger market positioning.
The arrangement with Nationwide and Ryan Re (a Ryan Specialty managing general underwriter) creates a continuity mechanism for clients while allowing Markel to exit gracefully from the reinsurance market. This deal demonstrates how consolidation in reinsurance continues to favor larger players with the necessary scale to compete effectively in an increasingly complex risk environment.
"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. "With this change, we will sharpen our focus on doing more of what we do best by growing our core specialty insurance business."
Nationwide intends to delegate the underwriting and management of all renewal policies included in this transaction to Ryan Re Underwriting Managers ("Ryan Re"), a managing general underwriter of Ryan Specialty (NYSE: RYAN), through the expansion of their existing strategic alliance. Markel will not sell any insurance company entities as part of the transaction, and 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 2025.
"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," said Wilson. "We are confident that they will deliver for our reinsurance customers and trading partners."
Transaction terms have not been publicly disclosed.
About Markel Insurance
We are Markel Insurance, a leading global specialty insurer with a truly people-first approach. As the insurance operations within the Markel Group Inc. (NYSE: MKL), we leverage a broad array of capabilities and expertise to create intelligent solutions for the most complex specialty insurance needs. However, it is our people – and the deep, valued relationships they develop with colleagues, brokers, and clients – that differentiates us worldwide.
Disclaimer
Certain of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Statements that are not historical facts, including statements about Markel's beliefs, plans or expectations, are forward-looking statements. These statements are based on Markel's current plans, estimates, and expectations. There are risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by such statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additional factors that could cause actual results to differ from those predicted are set forth in the Markel Group Annual Report on Form 10-K for the year ended December 31, 2024, including under "Business Overview," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," and "Quantitative and Qualitative Disclosures About Market Risk," and in the Markel Group Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, including under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," "Quantitative and Qualitative Disclosures About Market Risk," and "Risk Factors." Neither Markel nor Markel Group assumes any obligation to update this release (including any forward-looking statements herein) as a result of new information, developments, or otherwise. This release speaks only as of the date issued.
View original content to download multimedia:https://www.prnewswire.com/news-releases/markel-insurance-announces-agreement-to-sell-reinsurance-renewal-rights-to-nationwide-302517701.html
SOURCE Markel
FAQ
What is the strategic reason for Markel Insurance (MKL) selling its reinsurance renewal rights?
When will Markel's (MKL) reinsurance renewal rights sale to Nationwide close?
How will Nationwide manage Markel's (MKL) reinsurance renewal rights?
What happens to Markel's (MKL) existing reinsurance business after the sale?
What are the financial terms of Markel's (MKL) reinsurance renewal rights sale?
