Markel Corp. said it is creating one center for all of its global property catastrophe (CAT) reinsurance business by closing its Markel Global Reinsurance property CAT unit and having Nephila become Markel’s single point of entry for serving the property CAT reinsurance market.
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., according to the announcement.
“This move allows us to more fully leverage Nephila’s market leading competitive position while also generating necessary operational efficiencies,” said Markel Co-CEO Richie Whitt.
Rhoads said the process to shift to to the new model will begin immediately.
The company said that while some Markel Global Re property team employees may have the opportunity to join the Nephila team, the change will result in approximately 25 job reductions globally. Those employees impacted will depart the company on December 31, 2020.
“We are committed to working with and assisting employees affected by this change,” Whitt said.
Markel acquired Nephila, an investment manager, in 2018. Nephila launched the industry’s first ILS fund in 1998. As of July 1, 2020, Markel reported that Nephila manages approximately $9.5 billion of assets for institutional investors. It is headquartered in Bermuda, with offices in San Francisco, Nashville and London. There are currently more than 250 employees.
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