Fitch IFS rating jumps to 'A' from 'A-'
Following the recent upgrade of Markel International Insurance Company Limited (MIICL) by A.M. Best, Fitch Ratings today upgraded the IFS rating of Markel International’s insurance company to ‘A’ with a positive outlook from ‘A-‘ with a positive outlook.
Fitch said: “The rating upgrade equalizes MIICL with that of the operating companies of Markel North America and considers the significant progress MIICL has made in the past several years in building up a reserve buffer, bringing its reserving methodology into line with that of the group and in commuting reinsurance recoverables. It is expected that future reserve releases will bolster underlying performance and that a return commensurate with that of the rest of the group will be achieved in 2007-8. Given the recent improvements in operating performance Fitch now considers MIICL as being a core and integral part of Markel, with the future rating of the two expected to move in unison.”
In addition Fitch said: “The positive outlook considers the insurance operation’s strong underwriting results benefiting from recent hard market conditions and benign natural catastrophe losses. Should the company outperform peers in 2008, a one-notch upgrade is likely”
Andy Davies, Markel International’s finance director, said: “We are delighted with the rating upgrade and positive outlook we received from Fitch. The upgrade follows the rating upgrade to ‘A’ we received from A.M. Best in July this year and reflects the solid underwriting performance, strong capitalisation and positive outlook for MIICL. The upgrades enables MIICL and our Lloyd’s Syndicate, Markel Syndicate 3000, to offer our clients and brokers a choice of ‘A’ rated security.”
