S&P upgrades Markel

Standard & Poor’s said it raised the long-term counterparty credit and senior unsecured debt ratings on Markel Corp. by one notch to BBB+ from BBB.

The agency also said it affirmed the BBB+ long-term counterparty credit ratings on intermediate holding companies, Alterra Capital Holdings Ltd., Alterra USA Holdings Ltd. and Alterra Capital UK Ltd.

The outlook is stable.

S&P also said it revised the outlook on Markel’s core operating insurance subsidiaries to stable from positive and affirmed the A financial strength and counterparty credit ratings on these companies.

The agency also affirmed the A financial strength ratings on Alterra Capital’s operating insurance subsidiaries Alterra Reinsurance USA Inc., Alterra Excess & Surplus Insurance Co., and Alterra America Insurance Co.; the outlook on these entities remains stable.

The upgrades reflect significant non-regulated cash and invested assets at the holding company level, which amounted to $1.5 billion as of year-end 2014.

In addition, the ultimate holding company benefits from regulatory flexibility with regard to dividend capacity from its subsidiaries, with about half of the group’s regulated statutory capital located in insurance subsidiaries outside the U.S. and the balance consisting of regulated capital at U.S.-based subsidiaries, the agency said.

The group also benefits from a strong business risk profile and very strong financial risk profile, S&P said.

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