OLDWICK, N.J.--(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 Consequently, A.M. Best has withdrawn the ratings on the previous shelf registration.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.
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