International speciality P&C insurer expands in Canada
Markel International has bought Canadian managing general agent Elliott Special Risks (ESR), from Newport Partners Income Fund for C$75m. Newport bought an 80% stake of the MGA for C$56m four years ago. A spokesman from Markel said: “We are comfortable buying it at this price.”
William Stovin, President and Chief Operating Officer of Markel International, said: “We’ve been working closely with ESR as an insurer and a reinsurer since 1993 and have the highest regard for its underwriting skills and capabilities across a range of specialist lines. It is clearly the leading Managing General Agent in Canada and its focus fits well with Markel’s commitment to profitable underwriting in niche areas.
ESR provides insurance underwriting and administrative services on behalf of other insurers. The acquisition is expected to close on October 1 and in 2008 ESR reported gross premium income of C$113m.
The acquisition is part of Markel’s plans to develop further its international portfolio of specialist insurance businesses. ESR will continue to trade under its own name as a wholly-owned Markel subsidiary.
The acquisition will make Markel International one of the leading players in the Canadian specialty insurance market and comes four years after the establishment of MINT Canadian Specialty, its service company in Toronto.
Markel International writes specialty property, casualty, professional liability and marine insurance, as well as reinsurance, on a worldwide basis. In 2008, Markel International’s gross premium volume was US$ 693 million. Markel International is a wholly-owned subsidiary of Markel Corporation (NYSE: MKL), which underwrites specialty insurance products and programs to a variety of niche markets. Markel Corporation had gross premium volume of US$ 2.2 billion for 2008.
