Markel acquires workers comp unit

firstcompMarkel Corporation is expanding its reach with the acquisition of an Omaha-based insurance company.

Markel announced late yesterday that it reached an agreement to purchase privately-held Aspen Holdings Inc. for $135 million. The company does business as FirstComp and primarily writes workman compensation insurance for small businesses. It underwrites $300 million gross written premiums annually and has 500 hundred employees in Nebraska, Rhode Island, Nevada, California and Florida.

Aspen will operate as a separate business unit from Markel and retains its current CEO as president.

“This transaction presents an excellent opportunity for Markel to use its financial strength to allow Aspen to increase its penetration in the states where it currently operates, expand geographically and retain a greater share of the business it generates over time,” said Mike Crowley, Markel’s president and co-chief operating officer, in a written statement.

Al Harris is a BizSense reporter. Please send news tips to [email protected].

firstcompMarkel Corporation is expanding its reach with the acquisition of an Omaha-based insurance company.

Markel announced late yesterday that it reached an agreement to purchase privately-held Aspen Holdings Inc. for $135 million. The company does business as FirstComp and primarily writes workman compensation insurance for small businesses. It underwrites $300 million gross written premiums annually and has 500 hundred employees in Nebraska, Rhode Island, Nevada, California and Florida.

Aspen will operate as a separate business unit from Markel and retains its current CEO as president.

“This transaction presents an excellent opportunity for Markel to use its financial strength to allow Aspen to increase its penetration in the states where it currently operates, expand geographically and retain a greater share of the business it generates over time,” said Mike Crowley, Markel’s president and co-chief operating officer, in a written statement.

Al Harris is a BizSense reporter. Please send news tips to [email protected].

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Igor
Igor
14 years ago

It is very interesting that Markel has no problem spending $135M to purchase another company but is leaving subcontractors unpaid in its dispute with Justin French.

chief
chief
14 years ago

tell Frenchy to stay on budget, pretty sure Markel shelled out some dolla bills for his project, and if you read the article, it’s the second, not the first installment of overages they don’t want to deal with.

But yes, you are right, they probably don’t have a problem spending 135 mil on something profitable.