Markel Corp.

The outlook is stable. S&P Global Ratings expects Markel will continue to enhance its insurance operating platform and invest in non-insurance businesses, which will sustain its strong competitive position supported by diversified earnings. We also expect capitalization will be at least redundant at the 'A' confidence level despite the potential for additional acquisitions. Contrary to our expectations, we could lower our ratings during the next two years if: Risk-adjusted capitalization is below the 'A' confidence level; The volatility profile changes due to shifts in business or investments mix, resulting in higher risk exposure; There is sustained deterioration in the company's competitive position, as shown by earnings performance consistently below that of peers, or our expectations; or Financial leverage increases significantly

... 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 E&S 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, which provides a diversified earnings stream. We expect diversified earnings to improve, helped by the expansion of insurance earnings and a higher contribution from non-insurance/fee-based businesses helped by the U.S. economic recovery. The prospective volatility profile is improving as Markel focuses on tightly managing tail risks. The company has been restructuring its reinsurance program...

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