COMMENTS ON PERFORMANCE OF LONDON OPERATIONS

Please click here for the announcement of Markel Corporation’s fourth quarter and twelve months’ earnings results for the period ended December 31, 2003.

For the full year, Markel Corporation reported an increase in book value of 19%, to $140.38 per share from  $117.89 per share.  Net income increased to $123.5 million in 2003 from $75.3 million for the year ended December 31, 2002.  In addition, Markel Corporation reported an underwriting profit for 2003 with a combined ratio of 99% compared with a combined ratio of 103% for 2002.

Alan I. Kirshner, Chairman and Chief Executive Officer of Markel Corporation, commented, “We are pleased to report record earnings and strong growth in book value for 2003 despite losses recognised for legacy issues. We are well positioned to continue to produce strong underwriting and investment results in 2004.”

Markel International represents Markel’s London operations and writes specialty property and casualty insurance through Markel International Insurance Company and Markel Syndicate 3000. For the year ended December 31 2003, Markel International’s gross written premiums increased nearly 19%, to $738.4 million from $622.1 million, while the combined ratio for the year improved to 104% from 107% in 2002. This strong underwriting performance was achieved despite increasing prior years’ loss reserves by $15 million in the fourth quarter, related to U.S. casualty reinsurance programmes written between 1997 and 2001.

Commenting on the performance of the London business Richie Whitt, Executive Vice President and Chief Administrative Officer, said: “ London continues to make steady progress and our improved underwriting results have made an important contribution to Markel Corporation’s success in 2003.  We are disappointed to increase reserves for our discontinued U.S. casualty reinsurance programmes.  However, by continuing our focus on disciplined underwriting and expense control, we are moving ever closer to our goal of consistent underwriting profits.”

Gerry Albanese, President and Chief Operating Officer, went on to comment: “Our 2003 successes were numerous.  During the year, we profitably grew our business and added new products. We also made a number of important management appointments designed to strengthen our claims team and to develop our newly formed Specialty Division.  Also our success in managing the underlying business was reflected in 2003 financial strength ratings upgrades for Markel International Insurance Company from A.M. Best and Fitch.”

"We are pleased with our successes in 2003 and are excited by the market opportunities we see in 2004 and beyond."