Markel Acquires Rights to Hiscox Animal Mortality Business

Surplus lines insurer Markel said it has acquired the rights to American Live Stock, the animal mortality business of Hiscox Insurance Co. The companies said they would close the transaction by Oct. 1, but did not disclose terms.

The transaction also includes the rights to Harding & Harding names, an affiliated agency. The deal calls for Markel to assist Hiscox with its business run-off.

Markel said that key members of the Hiscox team are expected to join the company as part of the Markel Equine & Livestock division. The livestock team will be based in Geneva, Ill., while the equine business acquired from Hiscox will be handled by Markel's divisions in Richmond, Va., and Lexington, Ky.

Richard Watson, chief executive officer of Hiscox USA, said in a statement that "both companies are committed to working closely together to ensure a smooth transition for agents and insureds."

Hiscox Ltd., an international specialist insurer, in August 2007 acquired the animal mortality business and the affiliated agency, according to BestLink. In the 2007 deal, Hiscox acquired Althoa Inc. and its subsidiaries, which were then known as American Live Stock Insurance Co. and as Harding & Harding Inc. The acquisition allowed Hiscox to develop and expand its U.S. operations.

After hours on Sept. 15, the stock of Markel Corp. (NYSE: MKL) was trading at $343.91 a share, up 1.98% from the previous day's close. Markel American Insurance Co. has an A.M. Best Financial Strength Rating of A (Excellent).

(By Ron Panko, senior associate editor, Best's Review: [email protected])