UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission file number 1-13058
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
MARKEL CORPORATION
A Virginia Corporation
IRS Employer Identification Number 54-0292420
4551 Cox Road
Glen Allen, Virginia 23060
Telephone (804) 747-0136
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
Financial Statements and
Supplemental Schedules
December 31, 1997 and 1996
(With Independent Auditors' Report Thereon)
(Continued)
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
Table of Contents
December 31, 1997 and 1996
- --------------------------------------------------------------------------------
Page
Independent Auditors' Report.................................................1
Financial Statements:
Statements of Assets Available for Benefits
(with fund information) - December 31, 1997 and 1996........2-3
Statements of Changes in Assets Available for Benefits
(with fund information) -Years ended
December 31, 1997 and 1996..................................4-5
Notes to Financial Statements - December 31, 1997 and 1996................6-12
Schedule
1 Item 27a - Schedule of Assets Held for Investment
Purposes - December 31, 1997............................13
2 Item 27d - Schedule of Reportable Transactions -
Year ended December 31, 1997...........................14-15
- -------------------------------------------------------------------------------
(Continued)
<PAGE>
Independent Auditors' Report
The Board of Directors
Markel Corporation
The Administrative Committee
Markel Corporation Retirement Savings Plan:
We have audited the accompanying statements of assets available for benefits
(with fund information) of the Markel Corporation Retirement Savings Plan as of
December 31, 1997 and 1996, and the related statements of changes in assets
available for benefits (with fund information) for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets available for benefits of the Markel
Corporation Retirement Savings Plan as of December 31, 1997 and 1996 and the
changes in assets available for benefits for the years then ended in conformity
with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes (Schedule 1) and reportable transactions (Schedule 2)
are presented for the purpose of additional analysis and are not a required part
of the basic financial statements but are supplementary information required by
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. The fund information
in the statements of assets available for benefits (with fund information) and
the statements of changes in assets available for benefits (with fund
information) is presented for purposes of additional analysis rather than to
present the assets available for benefits and changes in assets available for
benefits of each fund. The supplemental schedules and fund information have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ KPMG PEAT MARWICK LLP
May 29, 1998
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
Statement of Assets Available for Benefits (with fund information)
December 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity
Fidelity Retirement Fidelity
Company Fidelity Fidelity Equity Fidelity Money Stock
Stock Magellan Intermediate Income Puritan Market Selector
Fund Fund Bond Fund Fund Fund Fund Fund
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at fair value
(note 3):
Mutual funds $ - 9,332,899 2,508,910 6,920,401 6,454,488 4,849,491 4,591,926
Markel Corporation
common stock 19,948,333 - - - - - -
Loans receivable - - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Total investments 19,948,333 9,332,899 2,508,910 6,920,401 6,454,488 4,849,491 4,591,926
- -----------------------------------------------------------------------------------------------------------------------------
Receivables:
Employer's contribution 100,810 23,932 6,511 17,212 11,651 20,745 10,925
Employees' contributions 21,023 32,097 9,797 26,182 17,856 18,881 16,817
- -----------------------------------------------------------------------------------------------------------------------------
Total receivables 121,833 56,029 16,308 43,394 29,507 39,626 27,742
- -----------------------------------------------------------------------------------------------------------------------------
Assets available for benefits $ 20,070,166 9,388,928 2,525,218 6,963,795 6,483,995 4,889,117 4,619,668
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Fidelity
Fidelity Overseas Loan
Contrafund Fund Fund Total
<S> <C>
- --------------------------------------------------------------------------------
Investments, at fair value
(note 3):
Mutual funds 1,881,550 285,777 - 36,825,442
Markel Corporation
common stock - - - 19,948,333
Loans receivable - - 1,380,580 1,380,580
- --------------------------------------------------------------------------------
Total investments 1,881,550 285,777 1,380,580 58,154,355
- --------------------------------------------------------------------------------
Receivables:
Employer's contribution 6,903 2,226 - 200,915
Employees' contributions 11,772 4,202 - 158,627
- --------------------------------------------------------------------------------
Total receivables 18,675 6,428 - 359,542
- --------------------------------------------------------------------------------
Assets available for benefits 1,900,225 292,205 1,380,580 58,513,897
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
Statement of Assets Available for Benefits (with fund information)
December 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity
Fidelity Retirement Fidelity
Company Fidelity Fidelity Equity Fidelity Money Stock
Stock Magellan Intermediate Income Puritan Market Selector
Fund Fund Bond Fund Fund Fund Fund Fund
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at fair value
(note 3):
Mutual funds $ - 7,509,746 2,417,729 4,992,963 5,150,510 4,713,227 3,051,650
Markel Corporation
common stock 11,270,370 - - - - - -
Loans receivable - - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Total investments 11,270,370 7,509,746 2,417,729 4,992,963 5,150,510 4,713,227 3,051,650
- -----------------------------------------------------------------------------------------------------------------------------
Assets available for benefits $ 11,270,370 7,509,746 2,417,729 4,992,963 5,150,510 4,713,227 3,051,650
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Fidelity
Fidelity Overseas Loan
Contrafund Fund Fund Total
<S> <C>
- --------------------------------------------------------------------------------
Investments, at fair value
(note 3):
Mutual funds 1,114,710 151,547 - 29,102,082
Markel Corporation
common stock - - - 11,270,370
Loans receivable - - 1,366,025 1,366,025
- --------------------------------------------------------------------------------
Total investments 1,114,710 151,547 1,366,025 41,738,477
- --------------------------------------------------------------------------------
Assets available for benefits 1,114,710 151,547 1,366,025 41,738,477
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
Statement of Changes in Assets Available for Benefits (with fund information)
Year ended December 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity
Fidelity Retirement Fidelity
Company Fidelity Fidelity Equity Fidelity Money Stock
Stock Magellan Intermediate Income Puritan Market Selector
Fund Fund Bond Fund Fund Fund Fund Fund
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Additions to assets attributed to:
Investment income:
Net appreciation in fair
value of investments (note 3) $ 8,466,750 1,393,982 23,598 1,184,314 661,272 - 437,832
Loan repayments-interest, net - - - - - - -
Dividends/interest - 604,986 160,662 371,740 513,456 260,983 543,128
- -----------------------------------------------------------------------------------------------------------------------------------
Subtotal 8,466,750 1,998,968 184,260 1,556,054 1,174,728 260,983 980,960
- -----------------------------------------------------------------------------------------------------------------------------------
Contributions (note 2):
Employee 1,279,995 302,725 90,574 217,209 167,978 325,245 130,944
Employer 386,886 545,402 174,357 510,832 376,148 355,925 340,814
- -----------------------------------------------------------------------------------------------------------------------------------
1,666,881 848,127 264,931 728,041 544,126 681,170 471,758
- -----------------------------------------------------------------------------------------------------------------------------------
Total additions 10,133,631 2,847,095 449,191 2,284,095 1,718,854 942,153 1,452,718
- -----------------------------------------------------------------------------------------------------------------------------------
Deductions from assets
attributed to participant distri-
butions and withdrawals 1,233,807 547,555 284,235 526,468 232,422 617,680 172,606
- -----------------------------------------------------------------------------------------------------------------------------------
Transfers between funds (71,687) (447,917) (77,652) 230,808 (179,459) (123,104) 291,458
Transfers to/from loan account -
net of repayments (28,341) 27,559 20,185 (17,603) 26,512 (25,479) (3,552)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase 8,799,796 1,879,182 107,489 1,970,832 1,333,485 175,890 1,568,018
Assets available for benefits:
Beginning of year 11,270,370 7,509,746 2,417,729 4,992,963 5,150,510 4,713,227 3,051,650
- -----------------------------------------------------------------------------------------------------------------------------------
End of year $ 20,070,166 9,388,928 2,525,218 6,963,795 6,483,995 4,889,117 4,619,668
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Fidelity
Fidelity Overseas Loan
Contrafund Fund Fund Total
<S> <C>
- --------------------------------------------------------------------------------------------
Additions to assets attributed to:
Investment income:
Net appreciation in fair
value of investments (note 3) 99,530 3,987 - 12,271,265
Loan repayments-interest, net - - 120,474 120,474
Dividends/interest 176,366 14,073 - 2,645,394
- --------------------------------------------------------------------------------------------
Subtotal 275,896 18,060 120,474 15,037,133
- --------------------------------------------------------------------------------------------
Contributions (note 2):
Employee 79,398 29,619 - 2,623,687
Employer 168,380 82,779 - 2,941,523
- --------------------------------------------------------------------------------------------
247,778 112,398 - 5,565,210
- --------------------------------------------------------------------------------------------
Total additions 523,674 130,458 120,474 20,602,343
- --------------------------------------------------------------------------------------------
Deductions from assets
attributed to participant distri-
butions and withdrawals 59,983 35,630 116,537 3,826,923
- --------------------------------------------------------------------------------------------
Transfers between funds 331,384 46,169 - -
Transfers to/from loan account -
net of repayments (9,560) (339) 10,618 -
- --------------------------------------------------------------------------------------------
Net increase 785,515 140,658 14,555 16,775,420
Assets available for benefits:
Beginning of year 1,114,710 151,547 1,366,025 41,738,477
- --------------------------------------------------------------------------------------------
End of year 1,900,225 292,205 1,380,580 58,513,897
- --------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
Statement of Changes in Assets Available for Benefits (with fund information)
Year ended December 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity
Fidelity Retirement Fidelity
Company Fidelity Fidelity Equity Fidelity Money Stock
Stock Magellan Intermediate Income Puritan Market Selector
Fund Fund Bond Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Additions to assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments
(note 3) $ 1,679,864 (321,105) (67,923) 584,916 99,441 - 219,615
Interest on loans receivable - - - - - - -
Interest and dividend income - 1,127,061 154,670 325,995 594,111 234,605 251,610
- ------------------------------------------------------------------------------------------------------------------------------------
1,679,864 805,956 86,747 910,911 693,552 234,605 471,225
- ------------------------------------------------------------------------------------------------------------------------------------
Contributions (note 2):
Employee (cash) 261,453 565,544 199,834 288,542 348,884 280,939 248,560
Employer (cash) 1,151,687 297,177 96,913 161,601 156,393 292,646 116,271
- ------------------------------------------------------------------------------------------------------------------------------------
1,413,140 862,721 296,747 450,143 505,277 573,585 364,831
- ------------------------------------------------------------------------------------------------------------------------------------
Total additions 3,093,004 1,668,677 383,494 1,361,054 1,198,829 808,190 836,056
- ------------------------------------------------------------------------------------------------------------------------------------
Deductions from assets
attributed to participant distri-
butions and withdrawals 459,670 233,593 32,945 753,176 476,148 660,494 52,407
- ------------------------------------------------------------------------------------------------------------------------------------
Transfers between funds 153,636 (565,428) (57,959) 85,260 (134,471) (300,034) (299,542)
Transfers to/from loan fund,
net (73,886) (60,238) (20,002) (43,008) (54,128) (96,059) (42,365)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 2,713,084 809,418 272,588 650,130 534,082 (248,397) 441,742
Assets available for benefits:
Beginning of year 8,557,286 6,700,328 2,145,141 4,342,833 4,616,428 4,961,624 2,609,908
- ------------------------------------------------------------------------------------------------------------------------------------
End of year $ 11,270,370 7,509,746 2,417,729 4,992,963 5,150,510 4,713,227 3,051,650
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Fidelity
Fidelity Overseas Loan
Contrafund Fund Fund Total
- ----------------------------------------------------------------------------------------
<S> <C>
Additions to assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments
(note 3) 28,787 (2,665) - 2,220,930
Interest on loans receivable - - 81,699 81,699
Interest and dividend income 46,018 8,987 - 2,743,057
- ----------------------------------------------------------------------------------------
74,805 6,322 81,699 5,045,686
- ----------------------------------------------------------------------------------------
Contributions (note 2):
Employee (cash) 28,984 16,320 - 2,239,060
Employer (cash) 19,262 8,055 - 2,300,005
- ----------------------------------------------------------------------------------------
48,246 24,375 - 4,539,065
- ----------------------------------------------------------------------------------------
Total additions 123,051 30,697 81,699 9,584,751
- ----------------------------------------------------------------------------------------
Deductions from assets
attributed to participant distri-
butions and withdrawals 6,676 - 62,332 2,737,441
- ----------------------------------------------------------------------------------------
Transfers between funds 998,207 120,331 - -
Transfers to/from loan fund,
net 128 519 389,039 -
- ----------------------------------------------------------------------------------------
Net increase (decrease) 1,114,710 151,547 408,406 6,847,310
Assets available for benefits:
Beginning of year - - 957,619 34,891,167
- -----------------------------------------------------------------------------------------
End of year 1,114,710 151,547 1,366,025 41,738,477
- -----------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
- --------------------------------------------------------------------------------
(1) Summary of Significant Accounting Policies
The following are the significant accounting policies
followed by the Markel Corporation Retirement Savings Plan
(the Plan).
Basis of Presentation
The accompanying financial statements, which present the assets of the
Plan and changes in those assets, have been prepared on the accrual
basis of accounting. Accordingly, contributions to the Plan and
investment income are recognized as earned; plan benefits and
withdrawals are recorded when paid and net appreciation and
depreciation of investments are recognized as they occur. Loans
receivable represent loans to participants made against their vested
balances as permitted by the Plan.
Use of Estimates
Generally accepted accounting principles require the Administrative
Committee of the Plan to make estimates and assumptions when preparing
financial statements. Actual results could differ from those estimates.
Investments
Investments are stated at fair value as determined by the Plan's
trustee (generally based upon quoted market prices).
The change in the difference between the fair value and the cost of
investments held at the beginning and end of each year, adjusted for
realized gains or losses on investments sold during the year, is
reflected in the statements of changes in assets available for benefits
as appreciation or depreciation in the fair value of investments.
The cost of investments sold is determined on the basis of average
cost. Purchases and sales of investments are recorded on a settlement
date basis. The recording of these transactions on a trade date basis
would not have had a material impact on the accompanying financial
statements.
Income Taxes
The Plan is in receipt of a favorable determination letter dated
February 18, 1997, and issued pursuant to Revenue Procedure 93-39,
under Section 401(a) of the Internal Revenue Code, and the related
trust is considered exempt from taxation under the provisions of
Section 501(a). Accordingly, participants have not been taxed on their
salary reduction contributions or investment earnings related to these
contributions when received by the trustee under the Plan. Ordinarily,
participants are subject to tax on these amounts when they receive
distributions from the Plan.
(Continued)
<PAGE>
(1) Continued
Under normal circumstances, the Plan will not be taxed on its dividend
and interest income or any capital gains realized by it or any
unrealized appreciation on investments.
(2) Summary of Significant Provisions of the Plan
The following description of the Plan provides only general
information. Participants should refer to the Plan agreement for a more
complete description of the Plan's provisions.
General
The Plan is a defined contribution plan covering all employees of
Markel Corporation and its wholly-owned subsidiaries (the Company).
Employees, age eighteen or older, are eligible for the Plan upon date
of employment, with matching Company contributions commencing after one
year of service. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA). The Plan is
administered by an Administrative Committee appointed by the Chief
Executive Officer of the Company. The assets of the Plan are held in
trust under an agreement with Fidelity Management Trust Company, with
administrative services provided by Fidelity Institutional Retirement
Services Company, a division of Fidelity Investment Institutional
Services Company, Inc. (Fidelity Investments or the Trustee).
Contributions
Each year, the Company is obligated to contribute to the Plan, subject
to certain limitations, an amount equal to 6% of each participant's
compensation. The Company also contributes under the matching provision
of the Plan an amount equal to 100% of the first 2% and 50% of the next
2% of each participant's contribution, not to exceed 3% of the
participant's compensation for any such year. Participants may
contribute, in whole percentage increments, up to 15% of their annual
compensation, excluding bonuses, on a pre-tax basis. The allocation of
both employer and employee contributions to the various funds is based
upon the individual employee's election. However, one-third of the
employer's contribution representing up to 3% of an employee's annual
compensation, will be allocated to a restricted Company Stock Fund.
Employee contributions, as shown in the accompanying statements of
changes in assets available for benefits, include amounts rolled over
into the Plan from other qualified plans totaling $617,211 and $258,196
for the years ended December 31, 1997 and 1996, respectively.
(Continued)
<PAGE>
(2) Continued
Participant Accounts
Each participant's account is credited with the participant's and
Company's contributions and earnings thereon. The posting of
earnings is made on a quarterly or more frequent basis.
Vesting and Plan Termination
Participants are immediately vested in their own contributions plus
earnings thereon. Vesting in the Company's contributions is based on
years of service as follows:
Years of Vesting Service Vested Percentage
----------------------------------------------------------------------
Less than two years of service 0%
Two years of service 20%
Three years of service 50%
Four or more years of service 100%
----------------------------------------------------------------------
In accordance with the provisions of the Plan, any portion of the
Company's contributions that has not vested at the time of a
participant's withdrawal shall be forfeited by the participant and
applied to reduce future Company contributions.
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA.
Payment of Benefits
Upon termination of service, participants may receive either a lump sum
amount equal to the value of their vested account within 45 days of the
quarter end in which termination occurred or their account will
continue to be held in the trust fund until the participant reaches age
65 or dies, whichever occurs first.
Participant Loans
The Plan contains a provision for loans to participants with the Plan
administrator's consent. Under the terms of the Plan, participants may
borrow from their accounts a minimum of $1,000 up to the lesser of
$30,000 or 30% of the vested value of the participant's account or
under certain conditions up to a maximum of the lesser of $50,000 or
50% of the vested value of the participant's account. Loans bear
interest and are repayable in accordance with terms established by the
Plan.
(Continued)
<PAGE>
(2) Continued
Investment Options
The Plan offers nine investment fund options - the Company Stock Fund,
the Fidelity Magellan Fund, the Fidelity Intermediate Bond Fund, the
Fidelity Equity Income Fund, the Fidelity Puritan Fund, the Fidelity
Retirement Money Market Fund, the Fidelity Stock Selector Fund, the
Fidelity Contrafund and the Fidelity Overseas Fund. Participants in the
Plan are able to direct into which Fund contributions are invested as
discussed in note 2. Participants are allowed to change investment
options daily and, accordingly, investment option changes have been
recorded through interfund transfers in the accompanying statements of
assets available for plan benefits and statements of changes in assets
available for plan benefits.
(3) Investments
The Plan's investments are held by a trustee-administered trust fund.
The following tables present the fair values of investments at December
31, 1997 and 1996 representing five percent or more of the Plan's
assets at the end of the respective years.
December 31, 1997
-------------------------
Number of
shares or Fair
units value
----------------------------------------------------------------------
Markel Corporation common stock 127,772 $19,948,333
Mutual funds:
Fidelity Magellan Fund 97,963 9,332,899
Fidelity Intermediate Bond Fund 246,697 2,508,910
Fidelity Equity Income Fund 132,044 6,920,401
Fidelity Puritan Fund 333,049 6,454,488
Fidelity Retirement Money Market Fund 4,849,491 4,849,491
Fidelity Stock Selector Fund 169,256 4,591,926
----------------------------------------------------------------------
(Continued)
<PAGE>
(3) Continued
December 31, 1996
-------------------------
Number of
shares or Fair
units value
----------------------------------------------------------------------
Markel Corporation common stock 125,226 $11,270,370
Mutual funds:
Fidelity Magellan Fund 93,115 7,509,746
Fidelity Intermediate Bond Fund 239,854 2,417,729
Fidelity Equity Income Fund 116,576 4,992,963
Fidelity Puritan Fund 298,754 5,150,510
Fidelity Retirement Money Market Fund 4,713,227 4,713,227
Fidelity Stock Selector Fund 127,952 3,051,650
----------------------------------------------------------------------
During 1997 and 1996, the Plan's investments (including investments
bought, sold and held during the year) appreciated (depreciated) in
fair value by $12,271,265 and $2,220,930, respectively, as follows:
Year ended
December 31, 1997
----------------------------------------------------------------------
Markel Corporation common stock $ 8,466,750
Mutual funds:
Fidelity Magellan Fund 1,393,982
Fidelity Intermediate Bond Fund 23,598
Fidelity Equity Income Fund 1,184,314
Fidelity Puritan Fund 661,272
Fidelity Stock Selector Fund 437,832
Fidelity Contrafund 99,530
Fidelity Overseas Fund 3,987
----------------------------------------------------------------------
Net change in fair value $12,271,265
======================================================================
(Continued)
<PAGE>
(3) Continued
Year ended
December 31, 1996
----------------------------------------------------------------------
Markel Corporation common stock $1,679,864
Mutual funds:
Fidelity Magellan Fund (321,105)
Fidelity Intermediate Bond Fund (67,923)
Fidelity Equity Income Fund 584,916
Fidelity Puritan Fund 99,441
Fidelity Stock Selector Fund 219,615
Fidelity Contrafund 28,787
Fidelity Overseas Fund (2,665)
----------------------------------------------------------------------
Net change in fair value $2,220,930
======================================================================
(4) Administrative Expenses
The administrative expenses of the Plan have been paid by the Company.
Expenses paid by the Company totaled approximately $18,296 and $31,884
for the years ended December 31, 1997 and 1996, respectively.
(5) Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of assets available for benefits per
the financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31,
---------------------------
1997 1996
------------------------------------------------------------------------------------------
<S> <C>
Assets available for benefits per the financial statements $58,513,897 41,738,477
Amounts allocated to withdrawing participants (1,138,032) (595,321)
------------------------------------------------------------------------------------------
Assets available for benefits per the Form 5500 $57,375,865 41,143,156
==========================================================================================
</TABLE>
(Continued)
<PAGE>
(5) Continued
The following is a reconciliation of benefits paid to participants per
the financial statements to the Form 5500:
<TABLE>
<CAPTION>
Year ended
December 31, 1997
-------------------------------------------------------------------------------------------
<S> <C>
Benefits paid to participants per the financial statements $3,826,922
Add: amounts allocated to withdrawing participants at December 31, 1997 1,138,032
Less: amounts allocated to withdrawing participants at December 31, 1996 595,321
-------------------------------------------------------------------------------------------
Benefits paid to participants per the Form 5500 $4,369,633
===========================================================================================
<CAPTION>
Year ended
December 31, 1996
-------------------------------------------------------------------------------------------
<S> <C>
Benefits paid to participants per the financial statements $2,737,441
Add: amounts allocated to withdrawing participants at December 31, 1996 595,321
Less: amounts allocated to withdrawing participants at December 31, 1995 171,767
-------------------------------------------------------------------------------------------
Benefits paid to participants per the Form 5500 $3,160,995
===========================================================================================
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form
5500 for benefit claims that have been processed and approved for
payment prior to December 31 but not yet paid as of that date.
- --------------------------------------------------------------------------------
(Continued)
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN Schedule 1
Item 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Number Current
of units Cost value
- ------------------------------------------------------------------------------------------
<S> <C>
Markel Corporation common stock* 127,772 $ 5,707,575 19,948,333
- ------------------------------------------------------------------------------------------
Mutual Funds:
Fidelity Magellan Fund* 97,963 6,276,722 9,332,899
Fidelity Intermediate Bond Fund* 246,697 2,176,198 2,508,910
Fidelity Equity Income Fund* 132,044 4,422,508 6,920,401
Fidelity Puritan Fund* 333,049 4,991,853 6,454,488
Fidelity Retirement Money Market Fund* 4,849,491 4,849,491 4,849,491
Fidelity Stock Selector Fund* 169,256 3,506,851 4,591,926
Fidelity Contrafund* 40,351 673,153 1,881,550
Fidelity Overseas Fund* 8,782 131,578 285,777
- ------------------------------------------------------------------------------------------
Total mutual funds 27,028,354 36,825,442
- ------------------------------------------------------------------------------------------
Loans receivable 1,380,580 1,380,580
- ------------------------------------------------------------------------------------------
Total investments $34,116,509 58,154,355
==========================================================================================
</TABLE>
*Party-in-interest
See accompanying independent auditors' report.
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN Schedule 2
Item 27(d) - Schedule of Reportable Transactions
Year ended December 31, 1997
===============================================================================
Assets Acquired
- -------------------------------------------------------------------------------
Cost
Transactions Description (notes 1 and 3)
- -------------------------------------------------------------------------------
Regulation 2520.103-6(c)(1)(i)
------------------------------
N/A
Regulation 2520.103-6(c)(1)(ii)
-------------------------------
N/A
Regulation 2520.103-6(c)(1)(iii)
--------------------------------
123 Fidelity Magellan Fund* 1,683,786
111 Fidelity Equity Income Fund* 1,516,507
89 Fidelity Retirement Money Market Fund* 1,480,244
91 Markel Corporation common stock* 2,162,202
Regulation 2520.103-6(c)(1)(iv)
-------------------------------
N/A
(continued)
<PAGE>
MARKEL CORPORATION RETIREMENT SAVINGS PLAN Schedule 2, Cont.
Item 27(d) - Schedule of Reportable Transactions, Cont.
<TABLE>
<CAPTION>
===============================================================================================
Assets Disposed
- -----------------------------------------------------------------------------------------------
Cost Proceeds Realized
Transactions Description (notes 1 and 3) (notes 2 and 3) gain
- -----------------------------------------------------------------------------------------------
<S> <C>
Regulation 2520.103-6(c)(1)(i)
------------------------------
N/A
Regulation 2520.103-6(c)(1)(ii)
-------------------------------
N/A
Regulation 2520.103-6(c)(1)(iii)
--------------------------------
80 Fidelity Magellan Fund* 1,034,742 1,254,615 219,873
59 Fidelity Equity Income Fund* 561,423 773,383 211,960
81 Fidelity Retirement Money Market Fund* 1,343,979 1,343,979 -
55 Markel Corporation common stock* 759,193 1,950,989 1,191,796
Regulation 2520.103-6(c)(1)(iv)
-------------------------------
N/A
</TABLE>
(1) Cost equaled fair value at the dates the assets were acquired.
(2) Proceeds equaled fair value at the dates the assets were disposed of.
(3) No specific expenses were incurred by the Plan in acquiring or disposing
of assets.
*Party-in-interest transactions
See accompanying independent auditors' report.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
administrative committee members have duly caused this annual report to be
signed on behalf by the undersigned hereunto duly authorized.
MARKEL CORPORATION RETIREMENT SAVINGS PLAN
/s/ Pamela J. Perrott
By: _____________________________________
Administrative Committee Member
Date: June 26, 1998
Consent of Independent Auditors
The Board of Directors
Markel Corporation
The Administrative Committee
Markel Corporation Retirement Savings Plan:
We consent to incorporation by reference in the registration statement No.
33-61598 on Form S-8 of Markel Corporation of our report dated May 29, 1998
relating to the statements of assets available for benefits of the Markel
Corporation Retirement Savings Plan as of December 31, 1997 and 1996, the
related statements of changes in assets available for benefits for the years
then ended and the supplemental schedules, which report is included in this
annual report on Form 11-K.
/s/ KPMG PEAT MARWICK LLP
Richmond, Virginia
June 26, 1998
