Henry appointed him Margrave of Ancona and Count of Abruzzo, placing him in a highly strategic position in north-central Italy.
Markward's political and military activities caused great problems for the Popes, whose control of Sicily gradually weakened.
Two years after Constance's death, Philip gave Markward the lordship of Palermo, where the under-age heir, the future Emperor Frederick II, was resident.
Despite the opposition of Innocent III, Markward became Guardian of Frederick II and Regent of Sicily.
Markward died at a town called Patti having succumbed to surgery for kidney stones.