A.M. Best Assigns Indicative Issue Credit Ratings to Markel Corporation’s New Shelf Registration
March 14 2018 - 3:30PM
Business Wire
A.M. Best has assigned indicative Long-Term Issue Credit
Ratings of “bbb+” to senior unsecured issues, “bbb” to subordinated
issues, and “bbb-” to preferred stock, to the recently filed shelf
registration of Markel Corporation (Markel) (Glen Allen, VA)
(NYSE:MKL). The outlook assigned to these Credit Ratings (ratings)
is stable. Consequently, A.M. Best has withdrawn the ratings on the
previous shelf registration. The existing ratings of Markel and its
subsidiaries are unchanged.
Markel historically has maintained financial leverage and
coverage that are within A.M. Best’s guidelines for its rating and
a level of risk-adjusted capitalization that supports its insurance
operations. Financial leverage and risk-adjusted capitalization
remain in line with guidelines, but coverage metrics declined in
2017 as a result of underwriting losses. A.M. Best expects interest
coverage to return to a level within guidelines in 2018.
Over the most recent five-year period, Markel generally has
produced strong underwriting and operating results. However, in
2017, underwriting results deteriorated for the overall enterprise,
particularly in the reinsurance operation, as a result of increased
catastrophe activity. A.M. Best anticipates that the company will
produce favorable underwriting results over the long term while
maintaining very strong risk-adjusted capitalization and moderate
financial leverage.
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20180314006055/en/
A.M. BestJennifer Marshall, CPCU, ARM, +1
908-439-2200, ext.
5327Directorjennifer.marshall@ambest.comorMichael
Lagomarsino, CFA, FRM, +1 908-439-2200, ext. 5810Senior
Directormichael.lagomarsino@ambest.comorChristopher Sharkey,
+1 908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy, +1
908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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