Willkie represented Nephila Holdings Limited, the pre-eminent insurance-linked securities manager in the world, in its agreement to be acquired by Markel.
On August 31, 2018, it was announced that Markel Corporation (NYSE: MKL) has agreed to acquire Willkie client Nephila Holdings Limited, the pre-eminent insurance-linked securities manager in the world. Nephila, whose revenue is driven primarily through management and incentive fees, manages over $12 billion of assets under management for over 300 geographically diverse investors. The combined assets under management between Nephila and Markel CATCo will stand at approximately $19 billion, representing approximately 20% of the insurance-linked securities sector.
Upon completion of the transaction, Nephila will continue to operate as a separate business unit. The transaction, which is subject to approvals by relevant insurance regulators and other customary closing conditions, is expected to close in the fourth quarter of 2018.
Nephila is a leading investment manager specializing in reinsurance risk. Nephila offers a broad range of investment products focusing on instruments such as insurance-linked securities, catastrophe bonds, insurance swaps, and weather derivatives. Nephila has assets under management of approximately $12.3 billion as of July 31, 2018 and has been managing institutional assets in this space since it was founded in 1998. The firm has over 180 employees based in their Bermuda headquarters, San Francisco, CA, Nashville, TN and London. Markel Corporation is a diverse financial holding company serving a variety of niche markets. The company's principal business markets and underwrites specialty insurance products.
The Willkie deal team was led by partners Michael Groll and Arthur Lynch along with associate Ted Powers, and included partner Joseph Cunningham and UK partner Nicholas Bugler.