Fitch Places Markel's Ratings On Rating Watch Negative

Fitch has placed the ratings of Markel Corp., which markets and underwrites specialty insurance products and programs to a variety of niche markets, on watch with negative implications. The action reflects Fitch's concerns that losses from the terrorists attacks in the U.S. last week as a percent of capital may ultimately prove to be higher than is consistent with expectations for the current rating category. The actions also reflect Fitch's concerns that operating results at the Markel have not improved at the rate expected. Should ultimate losses related to the terrorist attacks remain consistent with Markel's current estimates of $75 million, and should Fitch gain greater comfort that the Markel operating results are continuing to improve, the ratings will likely be affirmed and removed from watch. If losses grow higher than current estimates, or results at Markel do not improve, Fitch may downgrade the insurer financial strength ratings of the continuing operations to a level that is likely to be no less than A-, which still implies a strong ability to meet claim obligations. Markel's pretax loss estimate of $75 million represents about 5% to 7.5% of its June 30 equity, which was $985 million, depending upon the ultimate tax effect of the loss.

Fitch Places XL Capital Ltd. `A+' Sr Debt On Rtg Watch Neg

Fitch on Friday placed the A+ senior debt rating of XL Capital Ltd. on watch with negative implications. The rating actions reflects Fitch's concerns that losses from the terrorists attacks in the U.S. last week as a percent of capital may ultimately prove to be higher than is consistent with expectations for the current rating category. Should ultimate losses remain consistent with XL's current estimates of $600 million to $700 million, the rating will likely be affirmed and removed from watch. If losses grow higher than current estimates, Fitch said it may downgrade the ratings to a level that is likely no less than A, which still implies high credit quality, and a strong capacity for timely payment of debt obligations. XL is a Bermuda-based holding company with subsidiaries providing insurance, reinsurance and specialty financial products and services.

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