Markel and Aspen (doing business as FirstComp) have entered into a definitive agreement for the acquisition by Markel of Aspen, a privately held insurance group that provides workers' compensation insurance and related services, principally to small businesses, in 31 states. Omaha-based Aspen operates primarily through FirstComp Insurance Co., a Nebraska-domiciled insurance company; FirstComp Underwriters Group, Inc. and FirstComp Insurance Agency, Inc., which act as managing general agents; and REX, Inc., which operates as a wholesale intermediary.
Aspen's subsidiaries collectively underwrite more than $300 million of gross written premium annually. They operate through a network of over 9,000 retail agents and have more than 500 employees based in Nebraska, Rhode Island, Nevada, California and Florida.
Following the acquisition, Aspen will continue to operate as a separate business unit, with Luke Yeransian, Aspen's current chief executive officer, as president. The operating unit will be part of Markel's specialty admitted segment, headed by Mike Crowley, Markel's president and co-chief operating officer.
Subject to the terms of the merger agreement, Aspen's shareholders will receive up-front consideration of approximately $135 million in cash plus the value relating to certain outstanding Aspen stock options at closing, as well as contingent value rights that may result in the payment of additional cash consideration depending, among other things, upon the development of Aspen's loss reserves and loss sensitive profit commissions over time. The transaction is subject to customary closing conditions, including regulatory approvals and approval of Aspen's shareholders, and is expected to close before year-end.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
