Ratings agency Fitch has downgraded Markel Corporation's debt ratings and its North American insurance ratings, following the group's fourth quarter announcement of an additional $70m (£49m) in pre-tax charges and reserve strengthening at Markel International.
It added that the reduction in the ratings resulted "from the anticipated drag placed on those operations by losses at Markel International".
Fitch reduced Markel Corporation's senior debt and Liquid Yield Option (TM) Notes ratings to BBB-minus, from BBB, and the trust preferred stock rating of Markel Capital Trust to BB-plus from BBB-minus.
It also reduced Markel North American's insurer financial strength ratings to A from A-plus and placed the debt ratings and the insurer financial strength ratings of Markel International on "Rating Watch Negative".
Fitch said Markel Corporation was considering making an additional capital contribution to the Markel International operations, but had not finalized its decision.
It added that it would either affirm the Markel International ratings with negative outlook, or downgrade those ratings one notch, depending upon the decision and the amount of the contribution, if made.
Markel Corporation markets and underwrites specialty insurance products and programs to a variety of niche markets.
