Fitch Affirms Essentia Insurance Company Following Acquisition by Markel Corp. [Manufacturing Close – Up]

Fitch Ratings has affirmed the 'A' Insurer Financial Strength (IFS) rating of Essentia Insurance Company (Essentia) following its acquisition by Markel Corp. (MKL) on Jan. 2, 2013.

MKL purchased Essentia, from OneBeacon Insurance Group, Ltd., as part of an exclusive underwriting relationship with Hagerty Insurance Agency and Hagerty Classic Marine Insurance Agency (collectively Hagerty). Hagerty offers insurance for classic cars, vintage boats, motorcycles and related automotive collectibles.

Under Fitch's Insurance Rating Methodology, Essentia is 'core' and receives MKL's group IFS rating of 'A'. Essentia's business is a direct complement to MKL's existing specialty business.

MKL's ratings were affirmed with a Stable Outlook on Dec. 19, as follows:

Markel Corp.

--IDR at 'BBB+';

--$250 million 6.8 percent senior notes due Feb. 15, 2013 at 'BBB';

--$350 million 7.125 percent senior notes due Sept. 30, 2019 at 'BBB';

--$250 million 5.35 percent senior notes due June 1, 2021 at 'BBB';

--$350 million 4.9 percent senior notes due July 1, 2022 'BBB'.

--$200 million 7.35 percent senior notes due Aug. 15, 2034 at 'BBB'.

Associated International Insurance Co.

Deerfield Insurance Company

Essex Insurance Company

Evanston Insurance Company

Markel American Insurance Company

Markel Insurance Company

Markel International Insurance Company Limited

--Insurer Financial Strength (IFS) at 'A'.

Additional information is available at 'fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.</p>

Applicable Criteria and Related Research:

--'Insurance Rating Methodology' (Jan. 11, 2013).

Applicable Criteria and Related Research:

Insurance Rating Methodology Amended

http://fitchratings.com/creditdesk/reports/ report_frame.cfm?rpt_id=698731

((Comments on this story may be sent to [email protected]))