Specialty insurer Markel Corp. has agreed to acquire all of the outstanding shares of Nephila Holdings, a standalone insurance-linked securities manager.
Nephila, has more than $12 billion of assets under management for over 300 investors. Its revenue is primarily from management and incentive fees.
Markel’s assistant manager Richie Whitt said that adding Nephila to Markel’s insurance, reinsurance, insurtech, front-end and insurance policies based on his existing insurance would increase Markel’s breadth and depth of policyholders, producers and investors. . “
Under the terms of the agreement, the combined assets under management between Nephila and Markel will amount to approximately $ 19 billion, representing approximately 20 per cent of the insured securities sector. With this transaction, Markel will be the largest fund manager in this sector.
The transaction is not subject to any financing conditions. Markel said he plans to finance the transaction using the available cash balances. No further details were disclosed.
Nephila will continue to work as a separate business unit. The management team, headed by Greg Hagood and Frank Majors, will be in place and will continue to be in Bermuda, San Francisco, Nashville and London.
Nephila offers investment products focusing on instruments including insured securities, catastrophe bonds, insurance contracts and air derivatives. Nephila has been managing corporate assets since it was founded in 1998. Firman has 180 employees.
The transaction, subject to regulatory approvals, is expected to close in the fourth quarter of 2018.
Skadden, Arps, Slate, Meagher & Flom, Markel. Evercore, Nephila and Willkie Farr & Gallagher, as Nephila’s legal advisor.
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