Markel Corporation

History

Company founder Samuel A. Markel formed the Mutual Casualty Association and established the Mutual Casualty Company in Norfolk, Virginia. The company headquarters later moved to Richmond, Virginia. Sam Markel's four sons, Lewis, Irvin, Stanley, and Milton, joined the business in the 1930s, and Markel Service, Inc. was created. During this time, Markel was actively involved in efforts to develop safety and other standards aimed at legitimizing the growing bus and trucking industries. Markel also assisted in passing the National Motor Carrier Act of 1935.

By the 1940s, Markel Service, Inc. earned a national following and developed a reputation for industry-leading claims adjusting and safety engineering. American Fidelity & Casualty, a sister company covering fleets of trucks and buses, also became the largest insurer of these risks in the United States. In 1980, the company became an insurance carrier when Essex Insurance Company was incorporated and licensed to write excess and surplus lines business.

In 1986, the Markel Corporation was listed on the NASDAQ exchange, with an IPO offered at $8.33 per share. The company's trading was moved to the NYSE in 1997. Markel gained access to specialty international markets in 2000, when Terra Nova Holdings, Ltd. was acquired and the London office opened. Branch offices later opened in the UK, Europe, Asia Pacific, and Canada. With a "permanent capital" investing approach, Markel Ventures acquired AMF Bakery Systems in 2005 and continued to acquire other varied and scalable businesses. With the $3.1 billion acquisition of Alterra Capital Holdings Limited, Markel added two additional insurance divisions, Markel Global and Markel Reinsurance.

In 2015, Markel acquired Bermuda-based CATCo, a specialist investment management business; and Markel Ventures announced a majority interest in CapTech.

In 2023, Markel Corporation changed its name to Markel Group Inc. Markel is headquartered in Richmond, Virginia, with 76 offices in 18 countries.

Timeline

Beginning in 1930, Markel established Markel Service, a separate company to handle direct and reinsurance of American Fidelity & Casualty.

In 1951, the company expanded into Canada by founding Markel Service Canada, Ltd., headquartered in Toronto, Ontario.

In 1959, the national claims division of American Fidelity & Casualty became National Claims Service, an independent adjuster that could be contracted by other insurance firms. The Safety Engineering Division also began offering services to other firms.

The company later expanded beyond truck and bus companies, led by the third generation of Markels: Anthony, Steve, and Gary.

In 1980, the company founded Essex Insurance Company in Delaware. Essex began as a property insurance company in White Bear Lake, Minnesota, but later moved to Richmond, Virginia.

In 1985, Prem Watsa took control of Markel Financial Holdings, a Canadian-based trucking insurance company. Near bankruptcy, Watsa determined it needed a capital injection.

In December 1986, Markel Corp. held its first IPO at $8.33 per share, valuing the company at $15 million. Shares traded on the NASDAQ.

In 1987, Markel reorganized Markel Financial Holdings (Canada) and renamed it Fairfax Financial Holdings Ltd., short for "fair, friendly acquisitions."

In December 1987, Markel Corp. acquired half of Shand Morahan & Company, an underwriter in Deerfield, Illinois.

In December 1990, Markel completed its acquisition of Shand. As part of the Shand acquisition, Markel Corp. also acquired American Underwriting Managers, an insurance underwriter in Pewaukee, Wisconsin, specializing in personal boat and motorcycle insurance.

Markel Lines of Business

Insurance

Markel Specialty provides property and casualty cover for standard and hard-to-place risks to commercial customers and individuals for the insuring of: camps; child care centers; horses and farms; medical transportation, motorcycle, boat, and ATV owners; museums and fine art collections; pest control operators; schools; social service agencies; and small businesses.

Insurance-linked securities and insurance services

Based in Bermuda, Markel CATCo managed retrocessional and traditional reinsurance portfolios on behalf of financial institutions, charities, pension funds, family offices, and investment funds. CATCo was placed into runoff in 2019 and has 10 or fewer open contracts as of mid-2023.

Based in Bermuda, Nephila Capital Ltd offers a broad range of investment products focusing on instruments such as insurance-linked securities, catastrophe bonds, insurance swaps, and weather derivatives. As of mid-20203 the firm manages $7.2 billion.

State National Companies, Inc., provides property and casualty insurance services operating in two niche markets across the United States—Its Lender Services and Program Services segments—typically as a fronting carrier.

Markel Assurance has underwriting teams located across the US, and in Bermuda, Dublin, and London. Products originate from three product lines—casualty, professional liability, and property/marine.

Headquartered in London, Markel International writes business across the UK, Europe, Canada, Latin America, and Asia Pacific. Their product portfolio includes equine and livestock, marine and energy, professional liability, and trade credit coverage. They also write "specialty" coverage on a primary and reinsurance basis, including products for accident & health, casualty treaty reinsurance, contingency, property open market (including manufacturing risks), and property treaty reinsurance.

Non-Insurance Businesses

This line of business makes permanent investments in businesses outside of the specialty insurance marketplace. The goal is to build profitable enterprises that will endure as part of the broader Markel Corporation. Markel Ventures companies include:

Brahmin – Boston, Massachusetts

CapTech Ventures – Richmond, Virginia

Costa Farms – Miami, Florida

Cotrell – Gainesville, Georgia

Diamond Healthcare Corporation – Richmond, Virginia

Eagle Construction of VA – Richmond, Virginia

Eagle Partners – Richmond, Virginia

Ellicott Dredges – Baltimore, Maryland

Havco – Cape Girardeau, Missouri

Markel Food Group – Richmond, Virginia

Panel Specialists – Temple, Texas

Parkland Ventures – Richmond, Virginia

PartnerMD – Richmond, Virginia

RetailData – Richmond, Virginia

Rosemont Investment Group – Richmond, Virginia

Weldship – Bethlehem, Pennsylvania

Reinsurance

Markel Global Reinsurance provides Casualty and Specialty Reinsurance products to the broker market.

Companies

Essex Insurance Company

Shand, Morahan & Company

Markel Insurance Company

Markel American Insurance Company

Investors Underwriting Managers, Inc.

Markel Global Reinsurance

Markel Southwest Underwriters

Markel International Insurance Company Limited U.K.

Corifrance (Compagnie de Reassurance d'lle-de-France)

Markel Capital Limited

Markel Syndicate Management Limited

Markel Syndicate 3000

Markel UK Ltd

Elliott Special Risks LP

Alterra

Evanston Insurance Company

Markel-Gayner Asset Management Corp

Markel's internal money management firm is Markel-Gayner Asset Management Corp.