TRAVERSE CITY — Markel Corp., the Richmond, Va.-based holding company for various insurance, reinsurance, and investment operations, has acquired a minority stake in The Hagerty Group LLC, a Traverse City-based insurer of classic cars and high-end automobiles.
Markel disclosed the $212.5 million deal in a recent regulatory filing and conference call to discuss its second quarter results. The deal was first reported by The Ticker in Traverse City, which noted Markel acquired a 25-percent stake in The Hagerty Group.
“We’ve been working with Hagerty for a number of years now, but I think there was a misconception that we had ownership in Hagerty,” Markel co-CEO Richard Whitt said last week in a conference call with brokerage analysts to discuss quarterly results. “So we’ve enjoyed a fabulous relationship and as a result of that, the opportunity came up recently for us to partner with them more closely by taking a minority shareholding. So this is our initial shareholding and we’re very excited to be more closely associated in partnering with that or the group.”
Markel (NYSE: MKL) reported second quarter operating revenues of $2.43 billion with net income of $497.2 million.
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