AM Best Assigns Issue Credit Rating to Markel Group Inc.’s Senior Unsecured Notes
17 Mayo 2024 - 8:43AM
Business Wire
AM Best has assigned a Long-Term Issue Credit Rating
(Long-Term IR) of “bbb+” to $600 million of 6.00% senior unsecured
notes due 2054 issued by Markel Group Inc. (Markel) (Glen Allen,
VA) [NYSE: MKL]. The outlook assigned to this Credit Rating
(rating) is stable. The debt will rank equally in right of payment
with the company’s outstanding senior unsecured notes.
The proceeds will be used for general corporate purposes, which
may include the redemption of Markel’s $600 million of Series A
6.00% preferred shares that will be callable in June 2025. The
assignment of the Long-Term IR considers the rating profile of
Markel’s principal insurance subsidiary units, as well as the
parent company’s financial leverage, coverage and overall debt
servicing profile, and the application of appropriate notching to
reflect structural subordination of the holding company’s senior
unsecured debt.
Markel’s financial leverage, as calculated by AM Best, was in
the low-to-mid 20% range at year-end 2023 and will remain in the
mid 20% range following the new debt offering. Earnings before
interest and taxes (adjusted for capital gains/losses run through
the income statement) coverage of interest expenses and preferred
dividends has been strong, averaging 6.4 times over the past three
years, albeit declining to 6.0 times in 2023.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Robert Valenta, CPCU Senior Financial Analyst
+1 908 882 2407 robert.valenta@ambest.com Alan Murray
Director +1 908 882 2195 alan.murray@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com
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