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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 31, 2021 08:12 AM (EDT)
AM 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, Virginia) [NYSE: MKL]. The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings on the previous shelf registration. The existing ratings of Markel and its insurance subsidiaries are unchanged.
Financial leverage, as calculated by AM Best, was at 23.7% at year-end 2020, within Markel’s targets. Earnings before interest, preferred dividends and taxes interest coverage has been strong, averaging 3.9 times over the past three years, albeit declining to 2.9 times in 2020. AM Best expects Markel’s coverage ratio to remain within guidance. The company’s 2020 net operating earnings results were affected meaningfully by net claim losses associated with natural catastrophes and by pandemic-related event cancellation and business interruption and other claim losses sustained by its international and US insurance and reinsurance operations.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.