Markel Corp. receives subpoena from SEC

Markel Corp. has reported receiving a subpoena from the Northeast Regional Office of the U.S. Securities and Exchange Commission (SEC), which is conducting an inquiry into certain loss mitigation insurance products.
In a recent filing with the SEC, Markel says it received the subpoena in late October 2005. “The subpoena seeks documents concerning transactions by [Markel] in the securities of Fairfax Financial Holdings Limited (Fairfax) and “non-traditional product” transactions between the [Markel] and Fairfax,” the company reported.
According to Markel’s filing, “the company has not historically purchased or sold finite reinsurance products or used other structures which would have the effect of discounting loss reserves.”
The company says it is “fully cooperating with the SEC request and does not believe it has any transactions with Fairfax [that meet] the SEC’s definition of ‘non-traditional products.'”
The report is listed under the “contingencies” section of the company filing. Such contingencies, in the opinion of company management, “are not expected to have a material impact on the company’s financial condition or results of operations.”
Fairfax Financial Holdings Limited (TSX:FFH.SV) received multiple subpoenas from the SEC in August and September. The subpoenas request documents regarding nontraditional insurance/reinsurance transactions made or products offered by entities of the Fairfax group. Fairfax has announced it is co-operating with the SEC’s request.