Markel buys $212.5m stake in MGA Hagerty Group

Specialist insurer Markel has acquired a minority ownership interest in managing general agent (MGA) The Hagerty Group for a total consideration of $212.5 million.

The firm operates under the names Hagerty Insurance Agency and Hagerty Classic Marine Insurance Agency, and the Hagerty Group also includes Hagerty Re, a Bermuda Class 3 reinsurance company.

Markel said that its subsidiary Essentia Insurance Company is the exclusive insurance underwriter for Hagerty in the US, and a portion of this insurance is ceded to Hagerty Re.

The insurer announced the investment as part of its second quarter and half year results for 2019. Markel's co-chief executives pointed to “outstanding performance” in the investment portfolio, with more than $1 billion of net investment gains in the first half of the year.

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