Markel Gets Subpoena From SEC On Loss Mitigation Insurance
By Nicolas Brulliard
Dow Jones Newswire
November 03, 2005
WASHINGTON -(Dow Jones)- Markel Corp. (MKL) said it received a subpoena from the Securities and Exchange Commission as part of the SEC's industrywide probe into loss- mitigation insurance products.
The Richmond, Va., insurance company said in a quarterly report filed with the SEC after Wednesday's market close that the subpoena seeks documents related to Markel's transactions in securities of Fairfax Financial Holdings Ltd. (FFH) and "non-traditional product" transactions between Markel and Fairfax Financial.
Markel said it received the subpoena in late October from the SEC's Northeast regional office.
The company said it "has not historically purchased or sold finite reinsurance products or used other structures which would have the effect of discounting loss reserves."
Markel said it is "fully cooperating with the SEC request and does not believe it has any transactions with Fairfax meeting the SEC's definition of 'non- traditional products.'"
Markel's shares recently traded at $321.85, down $3.40, or 1%.