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) market and the significant deleveraging of its balance sheet. These strengths are partially offset by the deteriorating market conditions' effect on its operating performance, the potential for adverse reserve development on legacy reserves, and significant investment risk, albeit reduced from historical levels. Markel has a strong competitive position in the E&S market as a specialty underwriter focusing on hard-to-place risks. The company is one of the leading E&S carriers in the U.S., with extensive knowledge and expertise in this market. Within this segment, it has strong underwriting capabilities, many distribution channels, and numerous product offerings. Over
