Markel to acquire State National for $919 million
The Markel Corp., a Henrico County-based insurance company, said Wednesday that it has entered into an agreement to acquire Texas-based State National Cos. for $919 million in an all-cash deal. Markel will acquire all of the outstanding shares of State National common stock for $21 per share.
State National, based in Bedford, Texas, provides property, casualty and collateral protection insurance. The company had $1.3 billion in gross written premiums in 2016 and more than 60 programs.
Markel is a Fortune 500 company that markets and underwrites specialty insurance products.
“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,” Richard R. Whitt, Markel’s co-CEO said in a statement.
State National would operate as a separate business unit, following completion of the transaction, which is expected to close in the fourth quarter. The company’s management team, led by current chairman and CEO Terry Ledbetter, will remain in place and continue to be based in Bedford.
“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,” Ledbetter said in a statement.
The deal is subject to customary closing conditions, including approval of a majority of State National shareholders and state insurance regulators.