Markel Corporation is reorganizing how it handles its reinsurance property catastrophe business, and cutting some jobs in the process.
The specialty insurer said it will close its Markel Global Reinsurance property CAT unit and have its Nephila business unit become Markel’s single point of entry for serving the property CAT reinsurance market. Markel acquired Nephila in 2018 when it was Nephila Holdings, a standalone insurance-linked securities manager with more than $12 billion of assets under management for more than 300 investors.
Some Markel Global Re property team employees may be able to join Nephila, but the company expects to eliminate 25 jobs globally in the process. Those employees impacted will depart the company on December 31, 2020.
Markel Co-CEO Richie Whitt said in prepared remarks that the move will help it boost “operational efficiencies” but also “more fully leverage Nephila’s market leading competitive position.”
“We believe the companies that will win in the future will be those who most efficiently connect risk with capital, and this strategic shift will help us do that in the property CAT market,” Markel said.
He added that Markel will work with and assist any employees affected by the reorganization.
Moving forward, Markel Global Reinsurance will increase its focus on underwriting and growing its casualty and specialty lines under the continued leadership of Jed Rhoads, president and chief underwriting officer, Markel Global Re.
Rhoads said in prepared remarks that the shift to Markel’s new model will happen immediately.