Continued improvements in Markel's London Market segment see outlook revised to positive...
Standard & Poor's has affirmed its “BBB-“ counterparty credit rating on Markel Corp and has revised the outlook to positive from stable.
"The outlook revision is based on continued improvements at Markel's London Insurance Market segment and improvements in property-catastrophe risk management since the hurricane season of 2005," said S&P credit analyst Jason Jones. "Although Markel's core strength remains in North America, the London Insurance Market has made steady improvements in underwriting performance such that it has obtained underwriting profits for the past three quarters of 2006 and is expected to have strong underwriting profits for at least the next year."
The ratings on Markel are based on very strong competitive position in excess and surplus (E&S) and specialty admitted lines of business, strong operating performance, geographic diversification, strong customer service and underwriting capabilities, improved catastrophe risk management and improved financial leverage. Offsetting the positives are international operations, which, though good, are not as strong as the North American operations; possible integration risk from potential acquisitions; and potential for adverse reserve development on legacy reserves.
