Markel Insurance, the insurance operations within Markel Group, has entered into an agreement to sell the renewal rights for its global reinsurance business to Nationwide.

The sale is part of the firm’s broader strategy to simplify operations and grow the business by empowering local expert teams to serve the distinct needs of their core speciality insurance markets.

“We are grateful for the work that our global reinsurance team has done for our valued customers, but our scale has held us back from being a leader in the reinsurance market,” Markel Insurance chief executive Simon Wilson said. “With this change, we will sharpen our focus on doing more of what we do best by growing our core speciality insurance business.”

Nationwide intends to delegate the underwriting and management of all renewal policies included in this transaction to Ryan Re Underwriting Managers, a managing general underwriter of Ryan Specialty, through the expansion of their existing strategic alliance. Markel will not sell any insurance company entities as part of the transaction.

Meanwhile, Markel’s global reinsurance division will enter runoff, with premiums continuing to earn out over the next two to three years.

The transaction is subject to customary closing conditions and is expected to close this month.

“Nationwide and Ryan Re have the scale, market presence, and expertise necessary to leverage these renewal rights to build an even stronger foundation for long-term success,” Mr Wilson said. “We are confident that they will deliver for our reinsurance customers and trading partners.”