Markel International has received a boost from AM Best.
The rating agency has confirmed Markel's insurance trading platforms' A ratings, as well as the A (Excellent), outlook stable rating for its Lloyd's Syndicate 3000 and the A– (Excellent), outlook stable rating for its London insurance arm, Markel International Insurance Company Limited (MIICL).
Andy Davies, finance director, Markel International, said: “The affirmation of the AM Best rating recognises the strength and success of Markel's international operations. Our diverse book of business, disciplined approach to underwriting and being a key component of Markel Corporation puts the company in a strong position for 2007 and beyond.”
AM Best commented: “Syndicate 3000 has a good specialist business profile within Lloyd's and AM Best forecasts a solid operating profit in 2006, driven by stronger underwriting earnings and assuming the absence of further exceptional catastrophe events. AM Best believes Markel remains committed to Syndicate 3000 as its main underwriting centre for those markets where the Lloyd's brand has a strong recognition, particularly for marine risks. In 2007, AM Best believes the syndicate's capacity is likely to increase in order to take advantage of rate increases on catastrophe exposed business.”
And the agency added: “In 2006 and 2007, AM Best anticipates that MIICL will maintain excellent risk-adjusted capitalisation, as a result of positive after-tax earnings and further commutation of existing liabilities. MIICL has a good business position as a specialist underwriter of professional liability and property insurance in the UK and London market. AM Best recognises that the company has made significant progress addressing its prior year reserves, having completed a number of commutations (30% of asbestos exposures commuted during 2005). In response to higher competition in the UK, MIICL has also increased its writing of international professional liability business, and in 2005 opened a branch office in Spain."
