Strong competitive position in excess and surplus and specialty admitted lines of business. Strong capital adequacy. Strong liquidity. Deteriorating operating performance because of soft market conditions and high expense ratio. Potential for adverse reserve development on legacy reserves. Significant investment risk attributed to high equity exposure and sector concentration. The unsolicited counterparty credit rating on Markel Corp. (NYSE:MKL) is based on the company's strong competitive position in the excess and surplus (E&S) and specialty lines of business, as well as its strong capital adequacy and liquidity. These strengths are partially offset by Markel's deteriorating operating performance attributed to soft market conditions and a high expense ratio, the potential for adverse reserve development on legacy asbestos and environmental (A&E) reserves, and
