Financial holding company Markel has bought out a US insurer in a $919 million deal.

Markel, based in the US but with a Bermuda subsidiary, is expected to take over State National in the cash transaction by the end of the year.

Richard Whitt, Markel’s co-chief executive, said: “We are excited to be joining forces with State National — an industry leader with a talented management team that has delivered exceptional long-term results.

“In addition, we are impressed by the cultural fit between our two organisations. Strategically, State National will help us to leverage our Insurtech and digital distribution initiatives, diversify our underwriting and fee based portfolios and revenue streams, and add to Markel’s third party capital capabilities.

“Combining Markel’s financial strength with State National’s unique business model and proven record of success, we are confident that all stakeholders will be well served moving forward.”

State National, based in Texas, will continue under the same leadership and will operate as a separate business unit.

Terry Ledbetter, State National’s chairman, said: “After careful and thorough analysis of a range of opportunities, our board of directors determined this transaction with Markel to be in the best interest of State National and our shareholders.

“We believe the transaction appropriately recognises the value of State National’s business model, recent growth and future market opportunities as a leading specialty provider of property and casualty insurance services operating in two niche markets throughout the United States, and provides our shareholders with an immediate and attractive cash premium for their investment in State National.

“We believe this transaction with Markel is good for our employees and clients, as well as our shareholders. Markel recognises our shared commitment to offering unique, high-quality solutions that simplify the complexities of insurance for clients nationwide.

“We have long respected Markel and are proud to partner with this distinguished company that has a strong reputation and proven track record of success in acquiring and partnering with insurance companies.

Mr Ledbetter added: “This transaction is all about growth, not cost-cutting, and we believe that State National employees will benefit from being part of a larger, stronger, growth-oriented company with a more diversified platform.

“Our success is driven by the ongoing efforts of our talented employees and I thank them for their continued hard work and dedication. We look forward to working with Markel to quickly complete the transaction and are committed to ensuring a smooth transition.”

The transaction is subject to the approval of a majority of State National shareholders, approvals by relevant state insurance regulators and other customary closing conditions.

Members of the Ledbetter family have entered into a voting agreement with Markel in support of the merger. CF SNC Investors has entered into a separate similar voting agreement with Markel.

The agreements mean around 37 per cent of State National’s common stock is committed to vote in favour of the transaction.