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Velocity Announces Strategic Sale of Velocity Specialty Insurance Company; Oaktree to Fully Exit

1. Velocity sold VSIC to FM, fully exiting Oaktree's interests. 2. Oaktree previously acquired VRU from Markel to drive growth. 3. Velocity transformed into a hybrid managing general underwriter. 4. The transaction strengthens VSIC's underwriting capabilities. 5. Markel remains a minority shareholder in Velocity.

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FAQ

Why Neutral?

The exit of Oaktree could dilute Markel's influence, but no immediate financial distress is indicated. Markel's long-term strategy can still benefit from the transaction.

How important is it?

The sale indicates a strategic shift and may affect Markel's future market positioning. However, continuity in shareholding mitigates immediate impacts.

Why Long Term?

As the insurance market evolves, the implications of losing operational influence may manifest slowly. Market adjustments post-transaction can take time to unfold.

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RYAN
Nashville, TN, May 05, 2025 (GLOBE NEWSWIRE) -- Velocity HoldCo, LLC (“Velocity” or the “Company”), the former parent company for Velocity Specialty Insurance Company (“VSIC”) and Velocity Risk Underwriters, LLC (“VRU”), announced the sale of VSIC to FM, a leading property mutual insurance company. This transaction follows the earlier sale of VRU to Ryan Specialty (NYSE: RYAN) which together represents a full exit of Oaktree Capital Management, L.P.’s (“Oaktree”) interests in Velocity through a transformative three-way transaction. In partnership with Oaktree, Velocity has achieved significant milestones since 2022. Oaktree acquired VRU from Markel (NYSE: MKL) in a strategic carve-out with a vision of accelerating growth, enhancing operational capabilities, and driving innovation in products and technology. Since then, Velocity, in collaboration with Oaktree, transformed into a cutting-edge, hybrid managing general underwriter through the acquisition and capitalization of VSIC, Velocity’s E&S insurance carrier. Under Oaktree’s ownership the Company has expanded its underwriting footprint, diversified its capacity relationships, maintained exceptional client service, and delivered market-leading underwriting results. These achievements have positioned VRU and VSIC as leaders in the property insurance market. Greg Share, Oaktree Managing Director, commented, “It has been a pleasure collaborating with Phil, Jake, and the rest of the Velocity team, and we are confident in their continued success. Under our ownership, Velocity has achieved remarkable growth, and this transaction with Ryan Specialty and FM firmly positions it as the leading E&S property insurance franchise. We appreciate the partnership from the teams at Ryan Specialty and FM and their dedication and expertise in navigating this complex transaction.” Jake Rothfuss, CEO of VRU, said, “Oaktree’s partnership and guidance over the years has been invaluable and we are grateful to the Oaktree team for investing in our success. We look forward to continuing to deliver on VRU’s underwriting and operational excellence as well as expanding our operations with the support of Ryan Specialty.”  Phil Bowie, Chairman of VRU and CEO of VSIC, stated, “We have appreciated Oaktree’s confidence in and support of Velocity throughout our partnership, which has been instrumental to our growth. We are thrilled to continue building on VSIC’s momentum with FM. This partnership will strengthen our underwriting capabilities and provide the resources needed to expand our capacity.” “Velocity is the latest in a series of successful insurance investments for Oaktree,” commented Patrick C. George, Oaktree Senior Vice President. “Our work with the Velocity team highlighted Oaktree’s ability to drive transformational value creation in a corporate carve-out, and we look forward to continuing to invest in the industry and bringing our experience and network to our partners.” Insurance Advisory Partners LLC and Howden Capital Markets & Advisory acted as financial advisors to Oaktree and Velocity; JP Morgan Securities LLC served as financial advisor to Ryan Specialty. Debevoise & Plimpton LLP served as legal counsel to Velocity and Oaktree; Sidley Austin LLP served as legal counsel to Ryan Specialty; and Willkie Farr & Gallagher LLP served as legal counsel to FM. About Velocity Velocity is the former holding company for VRU, a tech-enabled 50 state E&S specialty property insurance managing general agent, VSIC, an AM Best rated E&S insurance carrier licensed in all 50 states, and Velocity Claims LLC, a leading claims management service. Velocity adopted a strategic ownership structure managed by Oaktree as its majority shareholder, and with Markel Corporation and the Velocity Management Group as minority shareholders. About OaktreeOaktree is a leader among global investment managers specializing in alternative investments, with $202 billion in assets under management as of December 31, 2024. The firm emphasizes an opportunistic, value-oriented, and risk-controlled approach to investments in credit, equity, and real estate. The firm has more than 1,200 employees and offices in 23 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/. Source: Velocity HoldCo, LLC

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