-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D8vCLBS3CKTRlupG9fe4ksuFBGNcAXIaVJsgEdehQwkCKvNhZ4E1FROeQOprPjHJ dZ3cvouOwAZmU36zm6OzsA== 0000916641-98-000749.txt : 19980630 0000916641-98-000749.hdr.sgml : 19980630 ACCESSION NUMBER: 0000916641-98-000749 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARKEL CORP CENTRAL INDEX KEY: 0000803509 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 540292420 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-13051 FILM NUMBER: 98656353 BUSINESS ADDRESS: STREET 1: 4551 COX RD CITY: GLEN ALLEN STATE: VA ZIP: 23060-3382 BUSINESS PHONE: 8047470136 MAIL ADDRESS: STREET 1: P O BOX 2009 CITY: GLEN ALLEN STATE: VA ZIP: 23058-2009 11-K 1 MARKEL CORPORATION RETIREMENT SAVINGS PLAN 11-K 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 MARKEL CORPORATION RETIREMENT SAVINGS PLAN Financial Statements and Supplemental Schedules December 31, 1997 and 1996 (With Independent Auditors' Report Thereon) (Continued) 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) 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 MARKEL CORPORATION RETIREMENT SAVINGS PLAN Statement of Assets Available for Benefits (with fund information) December 31, 1997
- ----------------------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------------------- 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 - -----------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Fidelity Fidelity Overseas Loan Contrafund Fund Fund Total - -------------------------------------------------------------------------------- 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 - --------------------------------------------------------------------------------
See accompanying notes to financial statements. MARKEL CORPORATION RETIREMENT SAVINGS PLAN Statement of Assets Available for Benefits (with fund information) December 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------------------- 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 - -----------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Fidelity Fidelity Overseas Loan Contrafund Fund Fund Total - -------------------------------------------------------------------------------- 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 - --------------------------------------------------------------------------------
See accompanying notes to financial statements. MARKEL CORPORATION RETIREMENT SAVINGS PLAN Statement of Changes in Assets Available for Benefits (with fund information) Year ended December 31, 1997
- ----------------------------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------------------------- 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 - -----------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------- Fidelity Fidelity Overseas Loan Contrafund Fund Fund Total - -------------------------------------------------------------------------------------------- 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 - --------------------------------------------------------------------------------------------
See accompanying notes to financial statements. MARKEL CORPORATION RETIREMENT SAVINGS PLAN Statement of Changes in Assets Available for Benefits (with fund information) Year ended December 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------- Fidelity Fidelity Overseas Loan Contrafund Fund Fund Total - ---------------------------------------------------------------------------------------- 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 - -----------------------------------------------------------------------------------------
See accompanying notes to financial statements. 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) (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) (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) (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) (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) (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:
December 31, --------------------------- 1997 1996 ------------------------------------------------------------------------------------------ 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 ==========================================================================================
(Continued) (5) Continued The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
Year ended December 31, 1997 ------------------------------------------------------------------------------------------- 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 =========================================================================================== Year ended December 31, 1996 ------------------------------------------------------------------------------------------- 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 ===========================================================================================
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) MARKEL CORPORATION RETIREMENT SAVINGS PLAN Schedule 1 Item 27(a) - Schedule of Assets Held for Investment Purposes December 31, 1997
- ------------------------------------------------------------------------------------------ Number Current of units Cost value - ------------------------------------------------------------------------------------------ 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 ==========================================================================================
*Party-in-interest See accompanying independent auditors' report. 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) MARKEL CORPORATION RETIREMENT SAVINGS PLAN Schedule 2, Cont. Item 27(d) - Schedule of Reportable Transactions, Cont.
=============================================================================================== Assets Disposed - ----------------------------------------------------------------------------------------------- Cost Proceeds Realized Transactions Description (notes 1 and 3) (notes 2 and 3) gain - ----------------------------------------------------------------------------------------------- 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
(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. 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 EX-23 2 EXHIBIT 23 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 -----END PRIVACY-ENHANCED MESSAGE-----