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Press release from Business Wire

A.M. Best Assigns Debt Ratings to Markel Corporation's Senior Notes

Wednesday, March 06, 2013

A.M. Best Assigns Debt Ratings to Markel Corporation's Senior Notes16:01 EST Wednesday, March 06, 2013 OLDWICK, N.J. (Business Wire) -- A.M. Best Co. has assigned debt ratings of “bbb+” to the $250 million 3.625% senior unsecured notes due 2023 and the $250 million 5.0% senior unsecured notes due 2043, issued under the existing shelf registration of Markel Corporation (Markel) (Richmond, VA) [NYSE: MKL]. The outlook assigned to both ratings is stable. Markel will use the net proceeds from the sale of the notes for general corporate, including acquisitions. After the close of the Alterra Capital Holdings Limited [NASDAQ: ALTE] transaction, which is expected in second quarter 2013, Markel's total debt-to-capital ratio is projected to be at a manageable 27%, increasing to 34% when debt is measured to tangible equity. At December 31, 2012, Markel's stand-alone debt leverage was 28%. Markel's financial leverage and coverage ratios remain within A.M. Best's guidelines for its debt ratings. At the holding company level, Markel will have pro-forma cash and investments in excess of $1.0 billion, affording it a significant level of liquidity. The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2013 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.A.M. Best Co.Rick Barracato, 908-439-2200, ext. 5787Senior Financial Analystrichard.barracato@ambest.comorJoseph Roethel, 908-439-2200, ext. 5630Assistant Vice Presidentjoseph.roethel@ambest.comorRachelle Morrow, 908-439-2200, ext. 5378Senior Manager, Public Relationsrachelle.morrow@ambest.comorJim Peavy, 908-439-2200, ext. 5644Assistant Vice President, Public Relationsjames.peavy@ambest.com