The ratings on Markel Corp. (NYSE:MKL; Markel) reflect its strong business risk profile and strong financial risk profile. The company's credit profile benefits from its large and diversified re/insurance operations supporting its strong competitive position, growing contribution from non-insurance operations, and very strong capitalization. These strengths are partially offset by a moderate risk position reflecting inherent earnings volatility emanating from the company's exposure to property catastrophe, long-tail casualty business, and high-risk assets. Further supporting Markel's credit profile are strong risk controls. The strong business risk profile and strong financial risk profile lead to an 'a' or 'a-' anchor. The choice of an 'a' anchor reflects relative strength of Markel's competitive position, especially in the U.S. excess and surplus lines market.
