Fitch has affirmed its debt rating on Markel Corporation (Markel) and its insurer financial strength rating on Markel North America.
Ratings agency Fitch has affirmed its debt rating on Markel Corporation (Markel) and its insurer financial strength rating on Markel North America. It removed both ratings from rating watch negative.
The agency said the move reflected increased clarity around Markel's losses from the 11 September attacks on the US, and the replenishment of lost capital through Markel's November 2001 equity issue.
Other positive factors were the continued strong underwriting results in the North American insurance operations and the reserve strength at those operations.
Markel recorded a $75m (£51.7m) pretax loss from the events of 11 September, which represented an estimated gross loss of $325m (£224.2m) net of $250m (£172.4m) of reinsurance recoveries.
Fitch affirmed Markel's BBB senior debt and Liquid Yield Option (TM) Notes ratings and the BBB trust preferred stock rating of Markel Capital Trust. It also affirmed the A-plus financial strength rating on Markel North America.
At the same time, Fitch has downgraded and removed from rating watch negative the debt ratings of Markel's subsidiary Markel International and the insurer financial strength ratings of the Markel International insurance operations.
Fitch downgraded Markel International's senior debt ratings to BB-plus from BBB-minus. Fitch also downgraded the Terra Nova Insurance Company insurer financial strength rating to A-minus from A, and the Terra Nova (Bermuda) Insurance Company insurer financial strength rating to BBB-plus from A. The Rating Outlook is Stable.
