MARKEL TO ACQUIRE NEPHILA CAPITAL

Markel Corporation is set to become the world’s largest insurance-linked securities (ILS) fund manager after striking a deal to acquire Nephila Capital. Nephila, which was founded by Frank Majors and Greg Hagood, manages more than $12bn of assets, focusing on catastrophe and weather risks. Markel will acquire 100% of the share capital of Nephila Holdings for an undisclosed amount. The acquisition adds to Markel’s existing presence in the third-party capital ILS sector through Markel CatCo, the retrocession and reinsurance investments specialist, which it acquired in 2015. Markel CatCo has around $7bn in assets under management. Markel also owns State National, a programme and fronting specialist that Nephila has been using as a service provider for some years now. Nephila will continue to operate as a separate business unit, with the management team, led by Hagood and Majors as co-chief executives, staying in position.