Moody’s assigns Baa2 to Markel notes

Moody's Investors Service said it assigned a Baa2 rating to about $600 million of senior unsecured notes issued by Markel Corp. off its multi-purpose shelf registration.

The issuance will consist of 10-year and 30-year senior notes.

Net proceeds are expected to be used for general corporate purposes, including acquisitions.

The outlook is stable.

“Markel's rating reflects the group's scale and market presence in the specialty and excess and surplus (E&S) markets, a diversified mix of specialty insurance and reinsurance, relatively good risk-adjusted capitalization, and a prudent approach to reserving,” the agency said in a news release.

“Offsetting these strengths are the company's somewhat low profitability relative to specialty peers, exposure to a number of volatile and long-tail lines of business, catastrophe exposure, and a relatively high investment allocation to equities.”

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