Markel Corp.

The outlook is stable. While its operating performance will suffer in 2020, S&P Global Ratings expects Markel will continue enhancing its operating platform, which will sustain its strong competitive position and support robust earnings and very strong capitalization. Contrary to our expectations, we could lower our ratings during the next two years if: Risk-adjusted capitalization is below the 'AA' confidence level either due to significant underwriting or investment losses, or in pursuit of an acquisition; There is sustained deterioration in the company's competitive position as shown by earnings performance consistently below that of peers, or underwriting losses that are meaningfully outside the company's risk tolerances; or Execution risks heighten and leverage increases significantly in pursuit of an aggressive growth strategy.

... are well placed to take advantage of firming pricing across various business lines. Markel Corp. is recognized as one of the top players in the U.S. specialty, and excess and surplus lines market, where it created a strong position for itself. The company offers specialty and niche insurance products with customization to serve unique needs and underserved markets. Its competitive position is supported by well-diversified platforms that span the continuum of the insurance value chain. In addition, the company is expanding non-insurance holdings covering various sectors. Capitalization expected to remain very strong. The company's capital position took a significant hit in first-quarter 2020 due to investment and COVID-19-related underwriting losses, but we expect Markel's capitalization to be redundant at the '##' confidence level supported by the recovery in capital markets, preferred share issuance, earnings accrual (and assuming no share...

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