UPDATE: Stifel Nicolaus Downgrades Markel Corporation to Hold Following Acquisition

Stifel Nicolaus reduced its rating on Markel Corporation

from Buy to Hold and removed its $550 price target. Stifel Nicolaus commented, "We are downgrading the shares of Markel to Hold from Buy following its announced acquisition of Alterra (ALTE: $28.18, Not Covered). We think Markel's own overwhelmingly positive long-term underwriting track record challenges the cited benefits of increased diversification, product depth, and leadership positions. We're concerned about integration-related distractions in general, and the prospect of less-favorable reserve development in particular, likely limiting near-term book value creation. Long term-focused investors can rely on Markel's proven ability to re-underwrite books of business over time, but the near-term outlook seems too uncertain to warrant a Buy rating." Markel Corporation closed at $436.24 on Wednesday.