AM Best has affirmed the A (excellent) financial strength rating of Markel North America Insurance Group.
At the same time, it also affirmed the bbb and bb+ debt ratings on Markel Corporation's existing senior unsecured notes and preferred securities.
The outlook for all the ratings remains stable.
AM Best said the ratings recognise Markel's sustained profitability through the first quarter of 2004, its solid overall capitalisation, and its position as one of the leading excess and surplus lines organisations in the US.
The ratings also reflect Markel Corporation's financial leverage, coverage ratios and the additional financial flexibility afforded by its access to the capital markets, said the ratings agency.
Offsetting factors in the rating are Markel's elevated underwriting leverage, its significant adverse loss reserve development reported in 2003, and the continued concerns, albeit lessened, from its affiliation with Markel International Insurance Company.
