Business & Finance
Business and Finance
Business and Finance 
Fri, June 3, 2011
Thu, June 2, 2011
A.M. Best Assigns Rating to Markel Corporationa?s Senior Notes
OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has assigned a debt rating of abbb+a to the $250 million 5.35% senior unsecured notes due 2021 issued by Markel Corporation (Markel) (Richmond, VA) (NYSE: MKL) under its existing shelf registration. The assigned outlook is stable.
"A.M. Besta™s Ratings & the Treatment of Debt"
The proceeds will be used for general corporate purposes, including acquisitions. Markela™s total debt-to-capital ratio at March 31, 2011 measured 24.0%, increasing to 29.2% when debt is measured relative to adjusted tangible capital. Post-issuance, financial leverage ratios have increased to 28.1% adjusted debt-to-capital and 33.9% debt-to-tangible capital.
At the holding company, Markel had $805.4 million and $885.6 million of invested assets at March 31, 2011 and December 31, 2010, respectively. The companya™s financial leverage and coverage ratios remain within A.M. Besta™s guidelines for its debt ratings and are expected to remain so over the near term.
The principal methodology used in determining these ratings is [ Besta™s Credit Rating Methodology - Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Besta™s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: aA.M. Besta™s Ratings & the Treatment of Debta and aEquity Credit for Hybrid Securities.a Methodologies can be found at [ www.ambest.com/ratings/methodology ].
Founded in 1899, A.M. Best Company is the worlda™s oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].
Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.