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A.M. Best Comments on Credit Ratings of Markel Corporation Following Proposed Acquisition of Nephila

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A.M. Best has commented that the Long-Term Issuer Credit Rating
(Long-Term ICR) of "bbb+" of Markel Corporation (Markel) (NYSE:MKL)
(Glen Allen, VA) is unchanged following the announcement on Aug. 31,
2018, that Markel has entered into an exclusive agreement under which it
will acquire Nephila Capital, Ltd. (Nephila). The Long-Term Issue Credit
Ratings (Long-Term IR) and the indicative Long-Term IRs of Markel and
the Financial Strength Rating of A (Excellent) and the Long-Term ICRs of
its operating insurance subsidiaries also are unchanged following
today's announcement. The outlook of these Credit Ratings (ratings) is
stable.

The purchase, which will be funded by Markel using cash on hand, will
afford Markel a dominant position in the insurance-linked securities
(ILS) market. Nephila will remain a separately managed business within
the enterprise. The transaction is expected to close during the fourth
quarter of 2018. Specific terms were not publicly disclosed.

From a risk-based capital perspective, the acquisition of Nephila will
drive a modest reduction in Markel's Best's Capital Adequacy Ratio
(BCAR), as intangibles are expected to increase post-close. The
transaction will enhance the enterprise's business profile by affording
it a predominant role in the (ILS) market, expanding on the scope of
capabilities the organization has built in its Markel Catco operation.

A.M. Best will continue to assess the impact of the transaction, as
additional details are made available, and will consider rating actions
should they become necessary.

This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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