Markel Corp. agreed to acquire SureTec Financial Corp. for approximately $250 million, inclusive of a three-year earn out.

The deal, which is subject to closing conditions and regulatory approval, is expected to close in the first half of the year.

SureTec will operate as a separate business unit with John Knox Jr. remaining as CEO. It will become part of Markel's specialty division and U.S. insurance segment.

TigerRisk Capital Markets & Advisory served as Markel's financial adviser, while Sidley Austin LLP provided legal counsel. Locke Lord LLP acted as SureTec's legal adviser.