A.M. Best Affirms Ratings of Markel Corporation and Its Domestic Subsidiaries

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent)
and issuer credit ratings (ICR) of "a+" of Markel North America Insurance Group
(Markel) (Glen Allen, VA) and its members. Concurrently, A.M. Best has affirmed
the ICR of "bbb+" and debt ratings of Markel Corporation (MKL) (Glen Allen, VA)
(NYSE: MKL). The outlook for all ratings is stable. (See below for a detailed
list of the companies and ratings.)

These rating actions recognize Markel`s well-established market position as one
of the leading excess and surplus lines organization`s in the United States, its
sustained operating profitability on a pretax basis and the group`s solid
risk-adjusted capitalization. These ratings also acknowledge the group`s
excellent operating cash flow, adequate liquidity and the financial flexibility
of MKL.

Somewhat tempering these positive factors is Markel`s elevated underwriting
leverage and above average common stock leverage. Markel has long held an
underwriting leverage position higher than the average of the surplus lines
composite, driven by its conservative loss reserving. Significant capital losses
in 2008, on both a realized and unrealized basis, reflect the impact of the
financial market crisis. The group`s posting of a net operating loss for the
year was driven by other than temporarily impaired charges.

The decline in surplus in 2008 primarily was due to dividends paid, a change in
unrealized gain/loss and a change in non-admitted assets relating to deferred
tax assets. Dividends paid to MKL are partially offset by Markel`s contributed
capital later in 2008, which also contributed materially to the decline in
surplus. Despite the elevated underwriting leverage, Markel`s capitalization
still supports its current ratings. Prior to 2008, excellent operating
performance had fueled surplus appreciation annually helping to fortify capital
strength.

MKL`s financial leverage remains on par with its current rating level as
demonstrated by a debt-to-capital ratio of 25.3% as of March 31, 2009. Holding
company liquid assets were a robust 14.9 times annual interest expense at
year-end 2008. For liquidity purposes, MKL maintains a $375.0 million revolving
credit facility, of which there was $150.0 million outstanding as of March 31,
2009.

The FSR of A (Excellent) and ICRs of "a+" have been affirmed for Markel North
America Insurance Group and its following members:

* Associated International Insurance Company
* Deerfield Insurance Company
* Essex Insurance Company
* Evanston Insurance Company
* Markel American Insurance Company
* Markel Insurance Company

The ICR of "bbb+" has been affirmed for Markel Corporation.

The following debt ratings have been affirmed:

Markel Corporation-

-- "bbb+" on $250 million, 6.80% senior unsecured notes, due 2013

-- "bbb+" on $200 million, 7.35% senior unsecured notes, due 2034

-- "bbb+" on $150 million, 7.50% senior unsecured notes, due 2046

The following indicative ratings on securities available under the existing
shelf registration have been affirmed:

Markel Corporation-

-- "bbb-" on preferred securities

-- "bbb" on subordinated debt

-- "bbb+" on senior unsecured debt

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

Analysts
David Blades, CPCU, 908-439-2200, ext. 5422
david.blades@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
joseph.roethel@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009