<PAGE>
Exhibit 99.1
Safe Harbor Statement
This is a "Safe Harbor" statement under the Private Securities Litigation Reform
Act of 1995. Certain statements contained herein are forward-looking statements
that involve risks and uncertainties. Additional information about the Company
and potential uncertainties are contained in the Company's Form 10-K and Form
10-Qs. Future actual results may materially differ from those in these
statements because of many factors. For example, the Company is working with
the associates of Markel International to increase the focus on underwriting
profitability which could result in changes to Markel International's
operations. Markel International's combined ratios for the remainder of the
year could be materially different than anticipated if these corrective actions
are ineffective. In addition, the Company's international operations are
subject to taxation in the U.S. The Company anticipates that its effective tax
rate will increase due to the way taxes on foreign subsidiaries are calculated
for U.S. tax purposes. Projections of premium growth and loss ratios could be
materially different than anticipated if market conditions change or if the
Company is unable to implement its business plans as currently envisioned. The
scope and impact of these changes cannot be determined at this time. Regulatory
actions can impede the Company's ability to charge adequate rates and
efficiently allocate capital. The frequency and severity of natural
catastrophes are highly variable. Economic conditions, interest rate volatility
and foreign exchange volatility can have significant impacts on the market value
of fixed maturity and equity investments. The Company's premium growth,
underwriting and investment results have been and will continue to be
potentially materially affected by these factors.
<PAGE>
[LOGO OF MARKEL]
Markel Style
Markel has a Commitment to Success.
We believe in hard work and a zealous pursuit of excellence while keeping a
sense of humor. Our creed is honesty and fairness in all our dealings.
The Markel way is to seek to be a market leader in each of our pursuits. We
seek to know our customers' needs and to provide our customers with quality
products and service.
Our pledge to our shareholders is that we will build the financial value of
our Company. We respect our relationship with our suppliers and have a
commitment to our communities.
We are encouraged to look for a better way to do things... to challenge
management. We have the ability to make decisions or alter a course quickly. The
Markel approach is one of spontaneity and flexibility. This requires a respect
for authority but a disdain of bureaucracy.
At Markel we hold the individual's right to self-determination in the
highest light, providing an atmosphere in which people can reach their personal
potential. Being results oriented, we are willing to put aside individual
concerns in the spirit of team work to achieve success.
Above all, we enjoy what we are doing. There is excitement at Markel, one
that comes from innovating, creating, striving for a better way, sharing success
with others... winning.
<PAGE>
[LOGO OF MARKEL]
Markel Profile
Markel Corporation markets and underwrites specialty insurance products and
programs to a variety of niche markets.
In each of these markets, we seek to provide quality products and excellent
customer service so that we can be a market leader.
Our financial goals are to earn consistent underwriting profits and superior
investment returns to build shareholder value.
<PAGE>
[LOGO OF MARKEL]
Underwriting Highlights
(dollars in millions)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999 % Change
--------------------- ----------
<S> <C> <C> <C>
Gross Premiums Written $ 159 $ 134 19%
Net Premiums Written $ 121 $ 99 22%
Net Retention 76% 74%
Earned Premiums $ 121 $ 108 12%
GAAP ratios
Loss ratio 61% 65%
Expense ratio 39% 38%
-------- --------
Combined ratio 100% 103%
======== ========
</TABLE>
<PAGE>
[LOGO OF MARKEL]
Underwriting Highlights
(dollars in millions)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------
2000 1999
-------- -------
<S> <C> <C>
Earned Premiums
North America $ 106 $ 93
International 10 -
Discontinued 5 15
------ ------
Markel Corporation $ 121 $ 108
====== ======
Combined Ratio
North America 95% 97%
International 138% -
Discontinued 133% 144%
Markel Corporation 100% 103%
</TABLE>
<PAGE>
[LOGO OF MARKEL]
Investment Highlights
(dollars in millions)
Three Months Ended
March 31,
-----------------------
2000 1999 % Change
-------- -------- ---------
Average Invested Assets $ 1,650 $ 1,838 (10.2%)
Investment Performance
Net Investment Income $ 23 $ 23 -
Net Realized Gains 5 7
-------- --------
28 30
Net Change in Unrealized Gains - (35)
-------- --------
Total Return $ 28 $ (5)
Investment Returns ======== ========
Net Investment Income 5.5% 4.9%
Net Realized Gains 1.3% 1.5%
-------- --------
6.8% 6.4%
Net Change in Unrealized Gains - (7.5%)
-------- --------
Total Return 6.8% (1.1%)
======== ========
<PAGE>
[LOGO OF MARKEL]
Net Income
(dollars in millions)
Three Months Ended
March 31,
-------------------------------
2000 1999
--------- ----------
Core Operations $ 12,098 $ 11,276
Realized Gains 3,578 4,591
Amortization Expense (1,498) (1,193)
-------- ---------
Net Income 14,178 14,674
Net Change in Unrealized Gains (46) (22,461)
-------- ---------
Comprehensive Income (Loss) $14,132 $ (7,787)
======== =========
<PAGE>
[LOGO OF MARKEL]
Diluted Earnings Per Share
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------
2000 1999
---------- ----------
<S> <C> <C>
Core Operations $ 2.08 $ 2.00
Realized Gains 0.62 0.82
Amortization Expense (0.26) (0.21)
--------- ---------
Net Income 2.44 2.61
Net Change in Unrealized Gains (0.01) (4.00)
--------- ---------
Comprehensive Income (Loss) $ 2.43 $ (1.39)
========= =========
</TABLE>
<PAGE>
[LOGO OF MARKEL]
Balance Sheet Highlights
(dollars in millions, except per share data)
<TABLE>
<CAPTION>
March 31, Dec. 31,
2000 1999
---------- ----------
<S> <C> <C>
Total Investments and Cash (at market) $ 2,954 $ 1,625
Total Assets $ 5,356 $ 2,455
Shareholders' Equity $ 692 $ 383
Per Share Data:
Investments and Cash Per Share $ 400.90 $ 290.69
Book Value Per Share $ 93.90 $ 68.59
Investment Leverage 4.3x 4.2x
</TABLE>
<PAGE>
First Quarter 1999 [LOGO OF MARKEL]
Closed on Gryphon Holdings (Associated International, Calvert Insurance Company,
First Re of Hartford)
. Projected premium retention - $70 million p/o $180 million
. West Coast DIC book moved to Essex (ESP West)
. Oakley E&O book moved to Shand Evanston
. Closed Hoboken and Chicago offices and renamed Woodland Hills (Markel West)
. Renamed First Re of Hartford (Deerfield Insurance Co.)
<PAGE>
Second Quarter 1999 [LOGO OF MARKEL]
. MAIC acquired $17 million Helmsman Yacht book from Reliance Insurance Company
<PAGE>
Third Quarter 1999 [LOGO OF MARKEL]
. Announced proposed acquisition of Terra Nova
. Markel American Insurance Company given autonomy
- Timberlee Grove promoted to President
. Sold Calvert Insurance Company
<PAGE>
Fourth Quarter 1999 [LOGO OF MARKEL]
. In anticipation of Terra Nova acquisition:
- Paul Springman: President, Markel North America
- Jeremy Cooke: Transferred to London as COO, Terra Nova
- Mike Rozenberg: President, Shand Evanston
- Rod Ayer: President, Investors Underwriting Managers
. Started Environmental Division at Investors
. Acquired renewal rights to $130 million E&S book from Acceptance (Markel
Southwest Underwriters, expecting to retain $40 - $50 million)
<PAGE>
[LOGO OF MARKEL]
First Quarter 2000
. Revised and closed Terra Nova deal
- Renamed Markel International
- Named Nigel Rogers President and CEO
- Closed Bermuda office
- Announced plans to sell Corifrance
- Announced plans to "abandon" Syndicate 329
- Announced plans to merge Syndicate 1227 into Syndicate 1239
- Created single underwriting unit out of Syndicate 1239 and Terra Nova
UK
. Sold Investors Insurance Company as a "shell"
. Added Atlanta branch to Investors Umbrella unit
. Added new branch of Shand Evanston in Markel West
<PAGE>
[LOGO OF MARKEL]
Resulting Restructure
Markel North America Markel International
-------------------- --------------------
. Essex Insurance Company . Syndicate #702
. Evanston Insurance Company . Syndicate #1009
. Investors Underwriting Managers . Syndicate #1228
. Markel Insurance Company . Syndicate #1239
. Markel Southwest Underwriters . Terra Nova UK
. Markel American Insurance Company . Terra Nova Bermuda (inoperative)
<PAGE>
[LOGO OF MARKEL]
MARKEL NORTH AMERICA
<PAGE>
[LOGO OF MARKEL]
1999 Accomplishments
. Core Underwriting Units Combined - 96%
. Core Products Gross Premium - $535mm (Approximate increase of 12%)
. Successful Integration of Gryphon Holdings including Management of
Runoff issues
. Successful Y2K Remediation / Conversion
. Numerous New Products and Marketing Initiatives
<PAGE>
[LOGO OF MARKEL]
Business Units
ESSEX INSURANCE COMPANY -
Excess & Surplus Lines
Richmond, Virginia
Steve Vaccaro- President & COO
2000 Target - $190mm
SHAND / EVANSTON GROUP -
Professional & Products Liability
Deerfield, Illinois
Mike Rozenberg - President & COO
2000 Target - $160mm
INVESTORS UNDERWRITING MANAGERS
Brokered Excess & Surplus Lines
Red Bank, New Jersey
Rod Ayer - President & COO
2000 Target - $85mm
MARKEL INSURANCE COMPANY -
Specialty Admitted Programs
Richmond, Virginia
Britt Glisson - President & COO
2000 Target - $85mm
MARKEL AMERICAN INSURANCE COMPANY
Specialty Personal & Commercial
Admitted Programs
Pewaukee, Wisconsin
Timberlee Grove - President & COO
2000 Target - $45mm
MARKEL SOUTHWEST UNDERWRITERS -
Commercial Property & Liability
Acceptance West
Scottsdale, Arizona
Tom Stamm - President & COO
2000 Target - $35mm
MARKEL WEST - Branch Office
Woodland Hills, California
Premium included in Essex and Shand
<PAGE>
[LOGO OF MARKEL]
North American Summary
Gross Premium $600mm
Excess Surplus $450mm
Admitted $150mm
Distribution Channels:
Wholesale Brokers 80%
Retail Specialists 15%
Direct 5%
<PAGE>
[LOGO OF MARKEL]
2000 Goals
. Continued Underwriting Profits
. Top Line Growth to $600mm+
. Successful Integration of Scottsdale Operations
. Development of New Products
. E-Commerce Initiatives
<PAGE>
[LOGO OF MARKEL]
New Products 1999 - 2000
. American Quarter Horse Association
. Garage Liability
. MRS - Individual Risk
. Tenant Discrimination
. Hacker Coverage
. Environmental Unit
. Windcall Option
. Motorcycle Dealer
. Atlanta Umbrella Facility
<PAGE>
[LOGO OF MARKEL]
Objectives of the
E-Commerce Team
. Corporate image, branding, tag lines
. Sharing best practices
. Insurance Portal review and test
. Cross-selling product, leveraging customer bases
. Priorities and Resources for the Web Team
. Service and Selling on the Web
. Addition of an E-Commerce Director for Markel North America
<PAGE>
[LOGO OF MARKEL]
MARKEL INTERNATIONAL
<PAGE>
[LOGO OF MARKEL]
London Insurance Market
THE LONDON INSURANCE MARKET
Lloyd's IUA
-----------------------------------------
[PICTURE APPEARS HERE] [PICTURE APPEARS HERE]
-----------------------------------------
. One of the World's leading specialist insurance and reinsurance markets
. Total Gross Premium Income 1999: US$30bn
. 40,000 insurance professionals within the City
<PAGE>
[LOGO OF MARKEL]
Markel International
--------------------
MARKEL TERRA NOVA
SYNDICATE INSURANCE
MANAGEMENT COMPANY
---------- -----------
LLOYD'S INTERNATIONAL
INSURANCE UNDERWRITING
MARKET ASSOCIATION
<PAGE>
[LOGO OF MARKEL]
<TABLE>
<CAPTION>
---------------------------------------------------------------------
MARKEL INTERNATIONAL
Underwriting Operations
2000
------------------------------------------------------------------
------------------------- ----------------- -------------------- ------------------------
<S> <C> <C> <C> <C>
Markel Syndicate Terra Nova Terra Nova
Management Ltd Corifrance Bermuda Insurance Company
------------------------- ----------------- -------------------- ------------------------
----------------------------------------------------------- ---------------------------------
------------------------- ------------------------- -------------------- ------------------------ --------------------
Marine, Energy & Aviation Motor Non-Marine Terra Nova Terra Nova
Premium Income Non-Marine Marine
------------------------- ------------------------- -------------------- ------------------------ --------------------
-----------------
----------------- ----------------------- ----------------- ---------------- ------------------
J L Jones Octavian at Lloyd's R E Brown Property Casualty
Syndicate 329 Syndicate 1228 Syndicate 702
----------------- ----------------------- ----------------- ---------------- ------------------
----------------- -----------------
D E Hope J N C Wooldridge
Syndicate 1009 Syndicate 1227
----------------- -----------------
-----------------
M E Warrington
Syndicate 1239
-----------------
</TABLE>
<PAGE>
Estimated Geographic Split of Business [LOGO OF MARKEL]
<TABLE>
<CAPTION>
-------------------------------------------------------
Region % Total
-------------------------------------------------------
<S> <C>
UK 26%
North America 24%
Worldwide 17%
Continental Europe 13%
Rest of World 10%
Far East 5%
S. / Central America 3%
Australia / Pacific 2%
Total 100%
-------------------------------------------------------
</TABLE>
<PAGE>
Estimated Split of Business [LOGO OF MARKEL]
<TABLE>
<CAPTION>
--------------------------------------------------------------
Class Direct Reinsurance Total
--------------------------------------------------------------
<S> <C> <C> <C>
Property 21% 9% 30%
Casualty 19% 7% 26%
Motor 14% 2% 16%
Marine 7% 3% 10%
Aviation 5% - 5%
Energy 5% - 5%
Other 4% 4% 8%
Total 75% 25% 100%
--------------------------------------------------------------
</TABLE>
<PAGE>
Objectives [LOGO OF MARKEL]
. Focused Underwriting
. Streamline Operations
. Reduce Expenses
. Markel US
<PAGE>
[LOGO OF MARKEL]
-------------------------------
MARKEL INTERNATIONAL
Underwriting Operations
2001
-------------------------------
--------------------
--------------------------- ----------------------------
Markel Syndicate Terra Nova
Management Ltd Insurance Company Limited
--------------------------- ----------------------------
--------------------
------------------------- ------------------------ ----------------------
Marine, Energy & Property & Casualty Auto
Aviation
------------------------- ------------------------ ----------------------
----------------------------------
----------- ------------ ---------------- ----------- -----------------
D E Hope R E Brown M E Warrington Terra Nova Octavian at
Syndicate Syndicate Syndicate Non-Marine Lloyd's Syndicate
1009 702 1239 1228
----------- ------------ ---------------- ----------- -----------------
<PAGE>
[LOGO OF MARKEL]