Markel, the insurance arm of US-based Markel Group Inc, has signed an agreement to acquire The MECO Group Limited, a marine-focused managing general agent (MGA) with operations in London, Dubai, and Shanghai. The deal is pending regulatory approval.
Established in 1974, MECO underwrites marine risks for a global client base, including operators in shipping, commodities trading, and logistics. The MGA reported US$63 million in gross written premiums for the 2024 financial year. Its offerings are delivered through three primary underwriting platforms – The Charterers P&I Club, Transmarine, and Aurora P&I – as well as True North, its in-house legal services affiliate.
MECO’s product portfolio spans various specialist marine coverages, including protection and indemnity for charterers, loss of hire, contractual liability, and freight and demurrage.
These capabilities are expected to enhance Markel’s marine insurance footprint, particularly in the UK, Europe, and Asia Pacific.
Andrew McMellin (pictured), managing director of wholesale – international at Markel, said the deal would support growth through a broader product range and deeper client engagement in key maritime markets.
“This agreement presents a unique opportunity to strengthen our marine footprint and capabilities with new products, complementary services, and client relationships in the fast-growing Asia-Pacific economies as well as in Europe,” he said.
He added that Markel intends to retain MECO’s existing brand structure, which aligns well with the company’s operating model.
“MECO will integrate into Markel but will continue to operate utilising its existing core insurance brands, leveraging Markel’s capabilities to build on existing successful relationships in its core regions. The evident synergies between our two companies will allow us to provide a more comprehensive and competitive offering for clients,” McMellin said.
Chris Else, chief executive at MECO, said the move positions the company to build on its five-decade history.
“We’re excited to be joining forces with Markel. [The] announcement marks a new chapter for MECO, our colleagues, and clients, as we continue to expand on the strong foundations we’ve built in many key markets over the past 50 years. There are clear strategic and cultural similarities between the two businesses. Ensuring MECO will continue operating its brands within Markel International recognises the value of our team and provides lasting benefit to clients,” he said.
The announcement comes amid changing conditions in the marine insurance landscape. According to Gallagher Specialty’s Q2 2025 market update, competitive pricing pressures are emerging, particularly in the London market.
Premium rates for hull and machinery coverage are declining as insurers compete for high-quality risks, although technical pricing levels remain a concern for profitability.
The report also highlighted the impact of geopolitical instability on war risk underwriting. Ongoing tensions in the Middle East and Eastern Europe continue to disrupt shipping routes, increasing exposure for vessels navigating these regions. Attacks in the Red Sea and missile strikes in the Black Sea have caused damage to infrastructure and vessels, heightening operational risk.
Marine insurers are also facing pressure from rising repair costs, with inflation in materials and shipyard services contributing to higher claim severity. Meanwhile, piracy incidents off East Africa and shifting trade policies continue to add layers of complexity for underwriters.
Markel’s acquisition of MECO is expected to conclude later in 2025, following regulatory clearance. The company has indicated that MECO will continue operating under its existing brands.
