Nephila Capital ILS fund revenues keep rising, even as soft market evident in fronted premium. * 29th October 2026 - Author: Steve Evans Nephila Capital's insurance-linked securities (ILS) fund management business continues to deliver in 2026, as revenues reported within parent Markel's quarterly results showed yet another increase of nearly 40% to $42.2 million for the third-quarter, even as the soft reinsurance market becomes increasingly evident in the volume of premiums fronted to Nephila's reinsurers. Then, for the second-quarter, ILS fund management revenues generated by Nephila Capital reached $37.7 million, a 23% increase on Q2 2025's $29.1 million, while the first-half 2026 total reported of $78.1 million was a 30% increase over H1 2025's ILS fund revenues of $54.6 million earned by the Nephila Capital business. Over the course of the first nine months of 2026, Nephila Capital has now generated $120.3 million in ILS fund management revenues for its parent Markel, an almost 42% increase year-on-year from $85 million by the end of September 2025. The third-quarter of the year is likely a period where more performance fees have an effect for Nephila's business, given the seasonal premium accrual that benefits reinsurance contracts at that time of year. This naturally suggests the investors backing Nephila's range of ILS fund strategies will have been seeing positive returns all year, given how the fund management revenues have been rising. This trend has been persistent through the last year or so, for ILS related earnings to be increasing over the prior year quarters, as Nephila Capital has naturally benefited from the higher inward rates it had been earning from underwriting business of recent years, the way it has been able to leverage its underwriting using its infrastructure to write more premium, as well as the more benign major catastrophe loss environment. But, with property catastrophe reinsurance rates now softened and that expected to persist into 2027, it will be interesting to see how ILS management fee income related earnings adjust through 2027, for Nephila Capital and other players in the space. Nephila Capital's premium volumes assumed via the fronted programs operated through parent Markel's business infrastructure fell again in the third-quarter of 2026. The trend of Nephila's reinsurance entities assuming more premiums through these fronted programs began to reverse in recent quarters, as Markel said rate decreases reduce the volumes. Recall that, in full-year 2025, Markel fronted 42% more in gross premiums for Nephila entities and ILS structures, as the manager expanded its stature further in the reinsurance market. But then through quarters in 2026, the softening pricing in the catastrophe reinsurance market has meant these fronted premium volumes have fallen behind the prior year. For the third-quarter of 2026, Markel reported $58.5 million of premium was ceded to Nephila's reinsurers, down from $162.9 million in Q3 2025. Year-to-date in 2026, the figure stood at $1.1 billion by September 30th, again a decline from 9-month 2025's $1.8 billion. Markel again cited "lower premiums on our property catastrophe programs with Nephila driven by rate decreases." However, while the softer market pricing in reinsurance is a factor, there is another to consider as Nephila has other fronting arrangements in place which could account for at least some of the decline. As Artemis had reported, Nephila also struck up a fronting relationship with Enstar and utilised its Cavello Bay reinsurer entity to front risk for it this year, first seen in Florida Citizens reinsurance placement. As Nephila looks to diversify its routes to market, including fronting partnerships, Artemis may find it more of a challenge to know just how much of the premium decline reported by Markel is actually due to the soft market pricing and how much may be due to certain reinsurance deals being fronted elsewhere. The reinsurance recoverable due from Nephila Capital's reinsurance entities that Markel reports on its balance sheet has declined further, continuing to reflect the effect of commutations made and losses being realised from the past, as Artemis saw begin to take effect in 2025. The reinsurance recoverables due to Markel from Nephila reinsurers had fallen to $241.9 million by June 30th 2026, but by September 30th had declined further to a recent historical low of $187.2 million. It seems that Nephila Capital may have increased some of its hedging arrangements in the third-quarter, as Markel reported that fronted ceding reinsurance contracts for industry-loss warranty (ILW) or other retrocession arrangements for the Nephila reinsurers were $18.8 million of gross premiums in Q3 2026, up on the prior year's $7 million. Year-to-date, Markel reported that gross premiums written through fronted ceded reinsurance contracts, primarily in the form of industry loss warranties, had reached $36.8 million by September 30th, down from $81.5 million for 9-months 2025. Markel cited the "higher management fees for our insurance-linked securities investment management services" in commenting on the results for its financial segment, which contains the Nephila Capital and State National businesses. The Nephila Capital business remains a source of attractive and diversified income for Markel, being the only business unit with a reinsurance underwriting focus these days. Markel also reported in its Q3 results that it has entered into an adverse development cover reinsurance agreement with Cavello Bay, Enstar's reinsurer, to cover subject reserves totalling $4.8 billion from its run-off Global Reinsurance business and some exited lines within its insurance operations. View information on dedicated ILS fund managers, as well as reinsurers offering ILS style investment opportunities, in its Insurance-Linked Securities Investment Managers & Funds Directory. All of its Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online. Its Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Markel advances strategic focus on specialty insurance, announces adverse development cover reinsurance agreement with Enstar on reinsurance business. Oct 28, 2026, 16:46 ET Covers future adverse reserve development on Markel's Global Reinsurance and other select insurance lines of business for underwriting years 2025 and prior RICHMOND, Va., Oct. 28, 2026 /PRNewswire/ - Markel Insurance, the insurance operations within Markel Group Inc. (NYSE: MKL) and Enstar today announced that they have entered into an adverse development cover ("ADC") reinsurance agreement covering a portfolio of Markel's run-off global reinsurance business and certain exited lines within its insurance operations. The closing of the transaction is subject to regulatory approval and other customary conditions and is expected to occur by the end of the fourth quarter of 2026. The ADC reinsurance agreement includes subject reserves of $4.8 billion, of which Markel will retain the first $2.6 billion and retrocede the next $2.3 billion to Enstar. Markel will obtain adverse loss development coverage of $1.2 billion above the $4.8 billion of subject reserves under the transaction terms and pay Enstar a risk premium of $120 million. The adverse loss development coverage provided through the transaction reduces the level of prudency management requires in its best estimate of ultimate losses; therefore, Markel expects the net impacts of the transaction to have an immaterial impact on underwriting results in the fourth quarter. Subject reserves include 2025 and prior underwriting years of business written within Markel's Global Reinsurance division and its exited risk-managed professional liability, architects and engineers and other run-off lines within its global insurance operations. Markel will maintain claims control. The ADC reinsurance agreement will be provided by Enstar's wholly owned subsidiary and S&P 'A' financial strength rated reinsurance platform, Cavello Bay Reinsurance Limited. "This transaction provides additional certainty as these liabilities continue to run off and allows us to continue our focus on growing our core specialty insurance business," said Simon Wilson, Chief Executive Officer of Markel Insurance. "Our focus remains on advancing our strategic priorities centered on maintaining an unwavering commitment to our customers, deepening our market-leading expertise, and accelerating decision-making. We are pleased to be partnering with Enstar on this transaction that advances our strategic priorities, enhances financial flexibility, and further strengthens our ability to deliver long-term value for our customers and shareholders." About Markel Insurance We are Markel Insurance, a leading global specialty insurer with a truly people-first approach. As the insurance operations within the Markel Group Inc. (NYSE: MKL), we leverage a broad array of capabilities and expertise to create intelligent solutions for the most complex specialty insurance needs. However, it is our people - and the deep, valued relationships they develop with colleagues, brokers, and clients - that differentiates us worldwide. Disclaimer Certain of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include, among others, statements regarding the expected timing and completion of the transaction contemplated by the ADC reinsurance agreement, receipt of regulatory approval, and expectations or estimates regarding the ultimate losses. Statements that are not historical facts, including statements about Markel's beliefs, plans or expectations, are forward-looking statements. These statements are based on Markel's current plans, estimates, and expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by such statements. Factors that may cause actual results to differ materially include, among others: (i) the failure to obtain, or delays in obtaining, required regulatory approval, or the imposition of burdensome conditions in connection with such approval; (ii) the failure to satisfy other closing conditions or termination of the ADC agreement; (iii) adverse development of the subject reserves; and (iv) the inherent uncertainty of loss reserve estimates. Additional factors that could cause actual results to differ from those predicted are set forth in the Markel Group Annual Report on Form 10-K for the year ended December 31, 2025, including under "Business Overview," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," and "Quantitative and Qualitative Disclosures About Market Risk," and in the Markel Group Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, including under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," "Quantitative and Qualitative Disclosures About Market Risk," and "Risk Factors." Neither Markel nor Markel Group assumes any obligation to update this release (including any forward-looking statements herein) as a result of new information, developments, or otherwise. This release speaks only as of the date issued. SOURCE Markel

Enstar agrees adverse development cover with Markel. HAMILTON, Bermuda, Oct. 28, 2026 (GLOBE NEWSWIRE) - Enstar Group Limited ("Enstar") today announced that its wholly-owned subsidiary, Cavello Bay Reinsurance Limited, has entered into an adverse development cover reinsurance agreement with Markel Insurance, the insurance operations within Markel Group (NYSE:MKL). The agreement covers Markel's run-off global reinsurance portfolio and certain discontinued lines within its insurance operations for underwriting years 2025 and prior. Under the terms of the agreement, Enstar will receive $2.4 billion in consideration to reinsure the 'last-to-pay' $2.3 billion of reserves within a $4.8 billion portfolio, with Markel retaining the first $2.6 billion. In addition, Enstar will provide $1.2 billion of adverse development cover above the $4.8 billion of subject reserves. Markel will retain administrative and claims handling responsibilities for the portfolio. Completion of the transaction is expected by the end of the fourth quarter of 2026, subject to the receipt of regulatory approval and satisfaction of other customary closing conditions. Dominic Silvester, Enstar's Chief Executive Officer, said: "Markel's decision to partner with Enstar reflects our financial strength and our expertise in evaluating and underwriting complex portfolios at scale. The agreement will give Markel greater certainty over its legacy liabilities as it focuses on growing its core specialty insurance business. We look forward to continuing our work with Simon Wilson and his team once the transaction closes." Insurance Advisory Partners LLC acted as advisor to Enstar on the transaction. Aon acted as reinsurance broker and advisor to Markel. About Enstar Enstar is a global insurance and reinsurance group providing leading retrospective and specialist underwriting capabilities through its network of group companies across Bermuda, the United States, the United Kingdom, Continental Europe and Australia. With over $19.9 billion in total assets, $5.0 billion in shareholders' equity (as of 30 June, 2026), and more than 130 transactions completed since formation, Enstar has a proven record of pioneering innovative re/insurance solutions. The Group's financial strength is supported by "A" ratings from AM Best and S&P for its flagship reinsurer, Cavello Bay Reinsurance Limited. Enstar is privately owned and supported by investment vehicles managed by affiliates of Sixth Street, a leading global investment firm. For further information about Enstar, see www.enstargroup.com. Contact Enstar: For Media: Jenna Kerr ([email protected]) or FTI Consulting ([email protected])