Markel Corporation has closed its property-catastrophe reinsurance unit, impacting a team of about 25 people in Bermuda, The Royal Gazette understands.

Some of the impacted staff have been offered jobs with Nephila, another branch of the Markel group, also based in Bermuda.

In a statement earlier this week, Markel a US-based company whose Bermuda offices are in Markel House, at 2 Front Street, Hamilton, said it was consolidating all of its global property-catastrophe reinsurance operations into Nephila.

The statement added: “While some Markel Global Re property team employees may have the opportunity to join the Nephila team, the change will result in approximately 25 job reductions globally. Those employees impacted will depart the company on December 31, 2020.”

The Royal Gazette has asked a Markel media contact for confirmation of the number of jobs lost in Bermuda, the number of jobs offered at Nephila and how many of the employees affected are Bermudians.

The company said Jed Rhoads, president and chief underwriting officer, would continue to lead Markel Global Reinsurance, which would “increase its focus on underwriting and growing its casualty and specialty lines”.

Nephila is the largest manager of insurance-linked securities in the world and was acquired by Markel two years ago.

Richie Whitt, Markel’s Co-chief executive officer, said: "This move allows us to more fully leverage Nephila's market leading competitive position while also generating necessary operational efficiencies.

“We believe the companies that will win in the future will be those who most efficiently connect risk with capital, and this strategic shift will help us do that in the property cat market."

Mr Rhoads said: “The process to shift to our new model will begin immediately and we will ensure that it's completed in a professional, orderly, and seamless fashion.

"I want to express my deep thanks and appreciation to our property cat clients, trading partners, and employees for their years of loyal support."

Mr Whitt added: "We are committed to working with and assisting employees affected by this change.“