A.M. Best Assigns Rating to Markel's Senior Notes.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--May 3, 2002

A.M. Best Co. has assigned a "bbb" senior debt rating to Markel Corporation's (Markel) (NYSE: MKL), Glen Allen, Virginia, intended issue of $100 million 7.0% senior notes due 2008 and to its $75 million 7.2% senior notes due 2007.

As expected, the notes are being issued to replace the debt currently at Markel International Ltd., a downstream holding company, and to consolidate outstanding debt at Markel, the ultimate holding company. The new Markel notes will have the same principal, interest rate, redemption terms and maturity dates as the existing Markel International notes. The elevated position of these two notes provides stronger interest and principal coverage, as now all of the financial resources of Markel are directly available for debt service. The financial strength rating of Markel's subsidiaries and its other debt ratings remain unchanged. Markel International's senior debt rating of "bbb-" remains assigned to notes not tendered. The outlook for all the ratings is stable.

Markel's debt ratings reflect its ability to successfully access the capital markets. In 2001, Markel raised $500 million from two equity offerings and the issuance of a zero coupon convertible note. The proceeds were used to repay existing debt, thereby reducing financial leverage to provide additional capital to U.S. and offshore subsidiaries and to increase holding company liquidity. At year-end 2001, Markel's financial leverage (debt + trust preferreds) was 33%, although leverage is understated given significant intangible assets.

A.M. Best believes Markel's North American operations will significantly benefit from favorable market conditions and produce excellent results in 2002. These results are expected to provide capital to support growth as well as rebuild economic value in loss reserves that was reduced in 2001 with an unexpected reserve charge. As yet, the operations of Markel International have not reflected the significant operational changes initiated by management, and A.M. Best retains a guarded view for its performance in 2002. The positive contributions anticipated from Markel North America to the combined results of Markel should be sufficient to offset the drag on the bottom line of Markel International.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.