Markel exits reinsurance as Nationwide picks up renewal rights

Markel Insurance has agreed to sell the renewal rights to its Global Reinsurance business to Nationwide, in a move that will see the insurer withdraw from the reinsurance market and focus on core specialty lines.

The deal, announced on 30 July, will see Nationwide delegate underwriting and management of the renewals to Ryan Re Underwriting Managers, part of Ryan Specialty.

Financial terms of the agreement have not been disclosed.

Markel confirmed its global reinsurance division will enter runoff, with premiums earning out over the next two to three years.

Markel has consistently been a top 50 reinsurer, ranked 41 with $1.23bn gross premium across life and non-life business in 2022, according to AM Best.

Despite this, Simon Wilson, chief executive of Markel Insurance, said the company still lacked sufficient scale to compete in reinsurance.

“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,” Wilson said.

“With this change, we will sharpen our focus on doing more of what we do best by growing our core specialty insurance business.”

No operating entities are being sold as part of the agreement, which is expected to close in August 2025, subject to customary conditions.

“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,” Wilson added.