A.M. Best Upgrades ICR on Lloyd's Syndicate 3000

Business Wire, July 24, 2007

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and upgraded the issuer credit rating (ICR) to "a " from "a" of Lloyd's Syndicate 3000, in line with the upgrade of the ICR of Lloyd's of London. The outlook on both ratings is stable.

The ratings reflect the financial strength of the Lloyd's market, which underpins the security of all Lloyd's syndicates. In addition, A.M. Best believes syndicate 3000's financial flexibility is enhanced by the continued support of Markel Corporation, the ultimate parent of its managing agent, Markel Syndicate Management Ltd.

A solid operating profit is anticipated in 2007, despite deteriorating market conditions. Rates in the company's core U.S. marine and property markets are likely to remain relatively firm. However, profit margins for professional and financial risks business are under considerable pressure due to excess capacity in the sector. On an annually accounted basis, A.M. Best forecasts a combined ratio of approximately 100% in 2007 (2006: 72%), assuming normal catastrophe experience.

Syndicate 3000 has a good business profile within the Lloyd's market and leads approximately 40% of business underwritten. Although there has been a substantial reduction in capacity in recent years, A.M. Best believes Markel remains committed to syndicate 3000 as its main underwriting vehicle for marine and large property risks. In 2007, the syndicate plans to establish an office in Singapore and has created a new division writing reinsurance to close business for Lloyd's syndicate accounts in run-off.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.