A.M. Best Assigns Debt Rating to Markel Corporation; Affirms Existing Debt.

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb" to Markel Corporation's (Markel) (NYSE:MKL) (Glen Allen, VA) $150 million, 7.5% senior unsecured notes, due 2046. The proceeds from this offering will be used to call approximately $120.0 million in preferred securities that become callable on January 1, 2007. The debt ratings on Markel's existing senior unsecured notes, preferred securities and indicative ratings under its shelf registration are unchanged. The outlook for all ratings is stable.

Following this offering, Markel's financial leverage will reach the high-end of A.M. Best's accepted range relative to Markel's issuer credit rating. Upon retirement of the preferred securities in January 2007, financial leverage is expected to improve to approximately 30%. This estimate includes A.M. Best's view of the company's favorable near-term earnings prospects and the strong net income reported during the first half of 2006. As of June 30, 2006, Markel's earnings-to-interest coverage of 8.75 times was comfortably supportive of the existing debt ratings.

The following new debt rating has been assigned:

Markel Corporation--

--"bbb" on $150 million 7.5% unsecured senior notes, due 2046

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