Markel Outlook Positive

Standard & Poor’s Ratings Services revised its outlook on Markel Corp., Markel International Insurance Co. Ltd., and Markel’s U.S. insurance subsidiaries to positive from stable because of the historically strong underwriting results of Markel’s U.S. insurance operations, the company’s position as a leading writer in the U.S. surplus lines market, and adequate operating company capitalization.

Also affirmed were the “BBB-” counterparty credit rating on Markel, the “A-” counterparty credit and financial strength ratings on Markel’s U.S. insurance subsidiaries, and the “BBB-” counterparty credit and financial strength ratings on Markel International Insurance Co. Ltd.

Offsetting Markel’s strengths are the parent company’s relatively low fixed charge coverage ratio, and the lingering impact of the 2000 purchase of Terra Nova Holdings Ltd. on the performance of the London operations of Markel International.

Earnings, fixed charge coverage and capitalization measures are expected to improve during 2003, as Markel benefits from the continued strong pricing environment in the property/casualty market and the reunderwriting of its London book of business. The combined ratio for the U.S. operations is expected to improve to about 90 percent in 2003 and remain strong into 2004.

Markel International’s continuing operations should approach underwriting profitability, while discontinued operations should be less of a drag on overall profitability.