Markel Corp. intends to acquire Alterra Capital Holdings Ltd. We are affirming our 'BBB' counterparty credit rating on Markel. Although the acquisition may pose integration risk to Markel, we believe senior management can handle the process successfully. On Dec. 19, 2012, Standard&Poor's Ratings Services affirmed its 'BBB' long-term counterparty credit rating on Markel Corp. The outlook is stable. The rating on Markel Corp. incorporates the planned acquisition of Alterra and reflects the proposed entity's strong competitive position and scale in its key primary specialty insurance segments, its expansion into the specialty niche reinsurance arena, and its primary specialty offerings to larger corporate customers. The proposed combined entity will benefit from the strong operating performance, historical risk mitigation, and
