AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings of “a+” (Excellent) of Markel Bermuda Ltd and its affiliate, Delaware-headquartered Markel Global Reinsurance Co.

The ratings agency also affirmed the long-term issuer credit ratings of “bbb+” (Good) and the long-term issue credit ratings of Virginia-based Markel Group Inc.

The outlook of these credit ratings is stable.

The ratings of Markel Bermuda reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The agency said Markel Bermuda’s balance-sheet strength assessment reflects its strongest level of risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, which in recent years has benefited from reduced exposure to natural catastrophes due to its withdrawal from risk-bearing property catastrophe and property excess of loss businesses in its global reinsurance segment, as well as favourable reserve development.

The assessment of the business profile acknowledges the diverse geographies and lines of business in which the group operates that is offset by its modest relative position within the global reinsurance market.

Markel Bermuda’s ratings also reflect rating enhancement it receives as a result of its strategic importance to the Markel enterprise, as well as the benefits it receives through its relationship with other Markel subsidiaries, AM Best said.

The ratings of Markel reflect the ratings of its operating insurance subsidiaries, as well as its financial leverage and coverage metrics, which remain within AM Best’s guidelines.

As of June 30, Markel’s adjusted debt to total capital ratio measured 21.6 per cent. Unadjusted debt to total capital measured 23.4 per cent as of that date.