Markel Int'l Insurance Co. Upgraded By Best

NU Online News Service, July 2, 11:18 a.m.EDT?A.M. Best Co. has upgraded the financial strengthrating of U.K.-based Markel International Insurance Company Ltd. to"A-Minus" (Excellent) from "B-Double-Plus" (Very Good), citing"prospective excellent risk-adjusted capitalization and improvingunderwriting performance."

The outlook for the newly upgraded rating is "stable", A.M. Bestsaid.

On the company's improved underwriting figures, the Oldwick,N.J.-based rating agency said the insurer's retained losses of $54million between 2000 and 2002 reflected not just losses related toSept. 11 terror events but also "poor underwriting control anddeterioration of old year liabilities," especially inasbestos-related claims.

But A.M. Best noted that Markel's management has sinceimplemented strict underwriting controls, which created prospectiveimproved underwriting performance. The ratings agency said itexpects the company's combined ratio to improve significantly thisyear, to around 100 percent.