Markel Corporation announced today that it is creating one center of expertise for the global property catastrophe (CAT) reinsurance market 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.
"This move allows us to more fully leverage Nephila's market leading competitive position while also generating necessary operational efficiencies.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."," said Markel Co-CEO Richie Whitt.
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.
"The process to shift to our new model will begin immediately and we will ensure that it's completed in a professional, orderly, and seamless fashion," said Rhoads. "I want to express my deep thanks and appreciation to our property CAT clients, trading partners, and employees for their years of loyal support."
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.