Markel Corporation and Markel CATCo Announce Buy-Out Transaction Offering Accelerated Return of Capital to Investors in Markel CATCo Reinsurance Fund Ltd. and CATCo Reinsurance Opportunities Fund Ltd. and Appointment of Joint Provisional Liquidators to Fa

RICHMOND,Va.,Sept. 27,2021 --Markel Corporation (NYSE: MKL) and Markel CATCo Investment Management Ltd. (MCIM) today announced the terms of a Buy-Out Transaction that provides for an accelerated return of substantially all the net asset value (NAV) in Markel CATCo Reinsurance Fund Ltd. (the Private Fund) and CATCo Reinsurance Opportunities Fund Ltd. (the Public Fund,together with the Private Fund,the Funds) to investors in the Funds. The Funds,which are insurance-linked securities funds managed by Bermuda based MCIM,have been in runoff since June 2019. Affiliates of Markel Corporation will be providing funding of up to approximately $150 million to facilitate the Buy-Out Transaction of the retrocessional segregated accounts of the Funds. In addition,an affiliate of Markel Corporation will be providing tail risk cover that will allow for the return of approximately $100million of trapped collateral to investors in the Private Fund's separately structured reinsurance offering,known as the Aquilo Fund segregated account.

Under the Buy-Out Transaction,investors in the Funds will retain the right to receive any outstanding NAV plus any upside at the end of the applicable run-off period if currently held reserves exceed the amounts necessary to pay ultimate claims. The affiliates of Markel Corporation financing the Buy-Out Transaction expect to receive a return of all their funding by the end of the run-off periods.

MCIM is extending an opportunity to all investors in the Funds to provide a support undertaking with respect to the Buy-Out Transaction on or before October 22,2021 (Early Consent Deadline) in order to become eligible to receive at closing a fee equal to one percent (1%) of the investor's proportional entitlement to the current NAV as at closing (Early Consent Fee).

The boards of directors of each of the Private Fund and Public Fund have unanimously determined that the Buy-Out Transaction is in the best interests of each of their respective Funds (taking into account the interests of their respective investors) and recommend that their investors return support undertakings by the Early Consent Deadline.

Assuming satisfactory investor support for the Buy-Out Transaction is received by the Early Consent Deadline,each of the Funds will propose to their respective investors schemes of arrangement under Bermuda law (Schemes).Pursuant to the Schemes and the Buy-Out Transaction,all investors,the CATCo group companies (MCIM,the Public Fund,the Private Fund and Markel CATCo Re Ltd.),Markel Corporation and each of their related parties,among others,will grant customary mutual releases of all claims related to the Buy-Out Transaction,the CATCo group companies' businesses and the investors' investment in the Funds.

To support and facilitate the implementation of the Buy-Out Transaction through the Schemes,the CATCo group companies have resolved to and will file today applications with the Supreme Court of Bermuda for the appointment of Simon Appell of AlixPartners UK LLP and John McKenna of Finance & Risk Services Ltd. as joint provisional liquidators (JPLs) with limited powers for restructuring purposes only.

The Buy-Out Transaction has been prompted as a result of threatened and asserted claims by two small investors that,although the Funds believe these claims to be meritless,have disrupted the continued timely and orderly return of additional capital to investors and is being offered to prevent the potential for inequitable treatment of some investors at the expense of all other investors. The appointment of the JPLs will enable the implementation of the Buy-Out Transaction and the approval of the Schemes to best ensure the fair,equitable and accelerated distribution of assets to all investors in the Funds.

About Markel Corporation

Markel Corporation is a diverse financial holding company serving a variety of niche markets. The company's principal business markets and underwrites specialty insurance products. In each of the company's businesses,it seeks to provide quality products and excellent customer service so that it can be a market leader. The financial goals of the company are to earn consistent underwriting and operating profits and superior investment returns to build shareholder value. Visit Markel Corporation on the web at www.markel.com.

Disclaimer and important notices

This announcement is for information purposes only and is not intended to,and does not,constitute or form part of any offer or invitation to purchase,otherwise acquire,subscribe for,sell or otherwise dispose of,any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the Buy-Out Transaction or otherwise. The Schemes will be made solely pursuant to the terms of the scheme documents to be sent to investors in the Funds in due course. The scheme documents will contain the full terms and conditions of the Schemes,including details of how to vote in respect of them. Any decision in respect of,or other response to,the Schemes should be made only on the basis of the information in those documents. The information contained in this announcement is for background purposes only and no reliance may or should be placed by any person for any purpose whatsoever on the information contained in this announcement or on its completeness,accuracy or fairness. Recipients of this announcement should conduct their own investigation,evaluation and analysis of the business,data and property described in this announcement. This announcement does not constitute a recommendation concerning any investor's decision or options with respect to the Buy-Out Transaction. The information in this announcement is subject to change.

The distribution of this announcement and the terms of the Buy-Out Transaction are subject to restrictions and may not be made except pursuant to registration with or authorization by the relevant securities regulatory authorities or an exemption therefrom. Therefore,persons who may come into possession of this announcement are advised to consult with their own legal advisors as to what restrictions may be applicable to them and to observe such restrictions. This announcement may not be used for the purpose of an offer or invitation in any circumstances in which such offer or invitation is not authorized.

No action has been or will be taken in any jurisdiction by the Funds that would or is intended to permit a public offering,or any other offering under circumstances not permitted by applicable law,of any securities.

This announcement has not been approved by an authorized person for the purposes of section 21 of the U.K. Financial Services and Markets Act 2000. Accordingly,this announcement is not being distributed to,and must not be passed on to,the general public in the U.K. This announcement is for distribution only to persons who: (i) are outside the U.K.; (ii) are investment professionals,as such term is defined in Article 19(5) of the U.K. Financial Services and Markets Act 2000 (Financial Promotion) Order 2000 (as amended,the Financial Promotion Order); (iii) are persons falling within Article 49(2)(a) to (d)(high net-worth companies,unincorporated associations,etc.),of the Financial Promotion Order; (iv) are members or creditors of the Private Fund or the Public Fund; or (v)are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as Relevant Persons). This announcement is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this announcement relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

Further to the above,the release,publication or distribution of this announcement in other jurisdictions may be restricted by law and therefore any persons who are subject to the laws of any applicable jurisdiction (including any jurisdiction where local laws or regulations may result in a significant risk of civil,regulatory or criminal exposure if information concerning the Buy-Out Transaction is sent or made available to investors in that jurisdiction (Restricted Jurisdictions)) should inform themselves about,and observe,any applicable legal or regulatory requirements. In particular,the ability of persons who are resident in such other jurisdictions or who are subject to the laws of another jurisdiction to participate in the Buy-Out Transaction may be affected by the laws of the relevant jurisdictions in which they are located or to which they are subject. Any failure to comply with applicable legal or regulatory requirements of any jurisdiction may constitute a violation of securities laws in that jurisdiction.

Copies of this announcement and any formal documentation relating to the Buy-Out Transaction are not being,and must not be,directly or indirectly,mailed or otherwise forwarded,distributed or sent in or into or from any Restricted Jurisdiction or any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction and persons receiving such documents (including custodians,nominees and trustees) must not mail or otherwise forward,distribute or send them in or into or from any Restricted Jurisdiction. Doing so may render invalid any related purported vote in respect of the Buy-Out Transaction (or the related Schemes).

Certain of the statements in this announcement or (and any related oral statements) may be considered forward-looking statements. This announcement (including information incorporated by reference in this announcement),oral statements made regarding the Buy-Out Transaction and other information published by Markel Corporation,MCIM and the Funds contain statements which are,or may be deemed to be,"forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are prospective in nature and are not based on historical facts,but rather on current expectations and projections of the management of Markel Corporation,MCIM and the Funds about future events,and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. The forward-looking statements contained in this announcement include statements relating to the expected effects of the Buy-Out Transaction,the expected timing and scope of the Buy-Out Transaction and other statements other than historical facts. Often,but not always,forward-looking statements can be identified by the use of forward-looking words such as "plans","expects" or "does not expect","is expected","is subject to","budget","projects","strategy","scheduled","estimates","forecasts","intends","anticipates" or "does not anticipate",or "believes",or variations of such words and phrases or statements that certain actions,events or results "may","could","should","would","might" or "will" be taken,occur or be achieved. Although Markel Corporation,MCIM and the Funds believe that the expectations reflected in such forward-looking statements are reasonable,they can give no assurance that such expectations will prove to be correct. By their nature,forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.

There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include,but are not limited to: the ability to complete the Buy-Out Transaction; the ability to obtain requisite regulatory and other required approvals and the satisfaction of other conditions on the proposed terms and schedule; as future market conditions,changes in general economic and business conditions,the behavior of other market participants,the anticipated benefits from the proposed transaction not being realized as a result of changes in general economic and market conditions in the countries in which the Funds operate,weak,volatile or illiquid capital and/or credit markets,changes in tax rates,interest rate and currency value fluctuations,the degree of competition in the geographic and business areas in which the Funds operate and changes in laws or in supervisory expectations or requirements.

Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors. Neither Markel Corporation,MCIM nor the Funds,nor any of their respective associates or directors,officers or advisers,provides any representation,assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. You are cautioned not to place any reliance on these forward-looking statements. Other than in accordance with their legal or regulatory obligations,neither Markel Corporation,MCIM nor the Funds is under any obligation,and they expressly disclaim any intention or obligation,to update or revise any forward-looking statements,whether as a result of new information,future events or otherwise. This announcement speaks only as of the date issued.

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