UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-K

[X] Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act
of 1934 [fee required] FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995

or

[ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange
Act of 1934 [no fee required] For the transition period from ___ to ___

Commission File Number 0-15458

                               MARKEL CORPORATION
             (Exact name of registrant as specified in its charter)

              Virginia                                        54-0292420
  (State or other jurisdiction of                          (I.R.S. employer
                  incorporation or organization)         identification number)

                 4551 Cox Road, Glen Allen, Virginia 23060-3382
                    (Address of principal executive offices)
                                   (Zip code)

                                 (804) 747-0136
              (Registrant's telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act: None

Securities Registered Pursuant to Section 12(g) of the Act: Common Stock, no par
value

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the registrant was required
to file such reports),  and (2) has been subject to such filing requirements for
the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K ((S) 229.405 of this chapter) is not contained herein, and
will not be contained, to the best of the registrant's knowledge, in definitive
proxy of information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [X]

The aggregate market value of the shares of the  registrant's  Common Stock held
by  non-affiliates as of January 31, 1996 was  approximately  $302,696,408.  See
Item 5 for an explanation of the calculation of this figure.

Number of shares of the  registrant's  Common Stock  outstanding  at January 31,
1996: 5,423,143.

                      Documents Incorporated By Reference

The portions of the  registrant's  Annual  Report to  Shareholders  for the Year
Ended December 31, 1995, referred to in Parts I and II.

The  portions of the  registrant's  Proxy  Statement  for the Annual  Meeting of
Shareholders scheduled to be held on May 7, 1996, referred to in Part III.


<PAGE>



                                     PART I

ITEM 1.   BUSINESS

GENERAL DESCRIPTION OF BUSINESS AND ORGANIZATIONAL STRUCTURE

         Markel   Corporation  ("the  Company")  evolved  from  a  small  mutual
insurance  company  founded in the  1920's.  The  Company  was  incorporated  in
Virginia in 1930,  reorganized as a holding  company in 1980 and had its initial
public offering in December 1986.

         The Company is primarily an underwriter of specialty insurance products
and programs. The Company focuses on specialty products and programs which serve
particular  market  niches.  This focus allows the Company to develop  expertise
which brings added value to its customers. In this way, the Company enhances its
market recognition and is able to compete in its chosen markets on a basis other
than price.

         The  Company  is  organized   into  four  primary   business  units  --
professional  and  products  liability,  excess  and  surplus  lines,  specialty
programs and specialty personal and commercial lines. These products are offered
through the Company's four insurance  subsidiaries.  Evanston  Insurance Company
("EIC") offers  professional and products liability  coverages.  Essex Insurance
Company  ("Essex")  offers  excess  and  surplus  lines  property  and  casualty
coverages.  Markel  Insurance  Company  ("MIC")  offers  specialty  program  and
specialty  personal lines coverages.  Markel American Insurance Company ("MAIC")
offers specialty personal and commercial lines coverages.

         On May 30, 1995 the Company  acquired all of the issued and outstanding
stock of Lincoln  Insurance  Company  ("LIC") and certain other assets for total
consideration  of approximately  $24.3 million.  Some of LIC's business has been
renewed in Essex and LIC is being reorganized.  LIC is not currently writing new
or renewal business.

         The Company's underwriting management and brokerage operations include
Shand Morahan and Co., Inc. ("SMCO"), Underwriting Management, Inc., ("UMI"),
American Underwriting Managers Agency, Inc. ("AUM") and Markel Service, Inc.
("MSI").   SMCO, UMI, AUM, and MSI develop and market insurance products
primarily for the four business units described above.  MSI maintains retail and
wholesale brokerage operations which produce business for the Company and
provide assistance and expertise in marketing and new product development.

         Essex and EIC offer coverages in the excess and surplus lines market.
The surplus lines market is for hard to place risks and risks that admitted
insurers specifically refuse to write. Premium levels are typically higher for
excess and surplus lines coverages than for standard coverages because of the
lack of availability of coverage through admitted companies.  State insurance
authorities allow excess and surplus lines companies greater rate and policy
form

<PAGE>

flexibility  than admitted  companies.  As a result,  the Company is generally
free to set policy  premiums and  coverage  terms by applying its own judgement
after consideration of the risks involved.  Surplus  lines  companies are
required to be admitted in at least one state,  usually  their state of
domicile.  Essex is admitted in Delaware and is eligible  to write  excess  and
surplus  lines  insurance  in 49 states and the District of  Columbia.  EIC is
admitted  in  Illinois  and is eligible to write excess and surplus lines
insurance in 48 states and the District of Columbia.

         MAIC and MIC operate as admitted  carriers and consequently the Company
has been  able to expand  its  insurance  underwriting  operations  by  insuring
certain  risks  which Essex and EIC, as  non-admitted  companies,  are unable to
insure.  An admitted or licensed insurer is required to follow a state insurance
department's rule, rate and form filing requirements,  to pay premium taxes, and
to join various state associations,  such as guaranty funds. MAIC is licensed to
write property and casualty risks in 38 states  (including the domicile state of
Virginia)  and the  District of Columbia  and is in the process of applying  for
licenses in other  states.  MAIC is eligible to write  excess and surplus  lines
insurance  in  Illinois.  MIC  is  licensed  to  write  insurance  in 50  states
(including the domicile state of Illinois) and the District of Columbia.

         In a "hard" market characterized by constrained capacity,  rising rates
and stricter  underwriting  criteria and policy terms,  excess and surplus lines
insurers  may benefit  from their  ability to increase  their rates more quickly
than admitted insurers.  In a "soft" market,  excess and surplus lines companies
may be unable to underwrite  certain products due to increased  competition from
admitted  insurers,   which  may  result  in  lower  rates  and  less  stringent
underwriting  criteria. The Company believes its focus on specialty products and
programs mitigates, to some extent, the impact of effects of the cycle of "soft"
and "hard" insurance markets.

         Insurance  coverages for which losses can be determined  and settled in
relatively  short  periods  of time are  referred  to as  "short-tail"  lines of
business,  while  insurance  coverages  which require  extended  periods of time
between  the  occurrence  of a loss and the  final  disposition  of a claim  are
referred to as "long-tail"  lines of business.  Exposure to external  variables,
such  as  inflationary   trends  or  adverse  trends  in  the  average  cost  of
settlements,  may be greater for "long- tail" lines than for "short-tail"  lines
because loss reserves are held open for a longer  period of time.  The Company's
property and casualty,  specialty program  insurance and specialty  personal and
commercial  lines tend to be  "short-tail",  while its professional and products
liability  lines  tend to be  "long-tail".  The  Company  considers  the  higher
variability  associated with the  professional and products  liability  business
relative to its other lines of business in its estimation of reserves for losses
and loss adjustment expenses.

SPECIALTY INSURANCE PRODUCTS

         The Company's  specialty insurance products offer coverages designed to
meet the needs of policyholders in various market niches. The Company's products
and programs are unique because they are generally designed to meet the needs of
insureds in niche or emerging markets or they are designed for insureds with
specialized exposures or risks that are not adequately served by the standard
markets.

<PAGE>

         In order to avoid the risks of this business as perceived by the
standard markets, the Company must have extensive knowledge and expertise in the
specialty areas being marketed and underwritten, which range from medical
malpractice and specified medical professions liability insurance to property
and liability insurance for campgrounds, exercise clubs or vacant properties.
Each risk is considered on an individual basis, and limit restrictions,  large
deductibles,  exclusions and/or surcharges are employed in order to respond to
distinctive  risk  characteristics.  The  Company  may also arrange  the
insurance  for  specialized  businesses,  such as  campgrounds  or exercise
clubs,  on a  "program"  basis,  which  addresses  all or  most of the property
and liability coverage requirements of the insureds.

         In most of its lines of business,  the Company acts as an  underwriter,
retaining both the risk and related insurance  premiums.  Specialization  allows
the  Company  to bring  value  to the  customer  in the  form of the  particular
knowledge and experience of its professional personnel. This specialization also
provides a basis for competition other than price and is the manner in which the
Company seeks to attain market  leadership and achieve  superior  profitability.
The Company  evaluates  market  leadership  separately for each of its insurance
products and measures  market  leadership  based on external  considerations.  A
product line  exhibiting  characteristics  of market  leadership  might  include
underwriting  profitability  consistently better than the industry average,  the
fulfillment  of a specific  need for an  identifiable  and  accessible  group of
customers, or the delivery of excellent customer service.  Management emphasizes
quality  service in all phases of its operations and believes that this approach
has enabled it to maintain strong relationships with its producers.

         The Company underwrites  professional liability,  errors and omissions,
directors and officers and products liability insurance,  primarily through EIC.
Target  markets  for  the  Company's  professional  liability  products  include
architects and engineers,  insurance  companies,  insurance  agents and brokers,
lawyers,  physicians,  surgeons,  dentists and other medical professionals.  The
Company also underwrites  products  liability  insurance for  manufacturers  and
distributors  on a selected  basis and other  specialty  property  and  casualty
coverages,  including  mutual fund  management and other  specified  professions
errors and omissions. In 1995 professional and products liability gross premiums
written totalled $127.2 million.

         In 1995 the Company underwrote  approximately  $104.8 million in excess
and surplus  property/casualty  gross premiums through Essex. Property coverages
consist  principally of fire and allied lines and to a lesser  degree,  burglary
and theft on small commercial buildings such as restaurants,  bowling alleys and
vacant  buildings.   Essex  also  underwrites  specialized  property  coverages,
including  earthquake,  primarily  to  multi-location,   multi-state  commercial
accounts.  Liability  coverages  encompass premises and business  activities for
which standard  insurance is not available,  such as bars and taverns (excluding
liquor liability coverages),  restaurants, vacant properties and special events.
Inland  marine  coverages  are provided  primarily for collision and motor truck
cargo.

<PAGE>

         Through MIC, the Company underwrites  specialty program insurance which
seeks to meet all of the needs of clients in unique or specialized businesses or
with difficult risks. Coverages offered relate primarily to agribusiness,  youth
and recreation, and health and fitness organizations. MIC also provides accident
and health insurance to colleges.

         The  agribusiness  program  provides  complete  property  and  casualty
coverages,  including  animal  mortality,  for any  size  private  farm  and for
commercial equine operations such as stables and race tracks. The Company
markets coverages to horse and farm owners directly and through retail and
wholesale insurance agents across the country.

         The youth and recreation  program  includes camp coverages  designed to
meet  the  requirements  of the  particular  facility  and may  include  general
liability,  property,  workers' compensation,  umbrella,  auto and inland marine
insurance.  The Company's staff has knowledge of and experience with unique camp
exposures such as horseback riding,  water sports and other camping  activities.
The  product  line  also  includes  package  programs  for white  water  rafting
operations.  Gross premiums  written on these coverages have  historically  been
seasonal, peaking during the summer months.

         The Company markets  insurance  products to health clubs,  martial arts
schools,  gymnastic schools,  dance and fitness studios and similar  operations.
Coverages include property, liability and auto.

         In 1995 gross premium volume from specialty program insurance  totalled
$102.3 million.

         MAIC  underwrites  specialty  personal and commercial  lines insurance.
Products  offered  include  property and  liability  coverages  for  watercraft,
motorcycles,  automobiles,  mobile  homes,  dwellings,  and  commercial  freight
operations.  In 1995 gross premium volume from specialty personal and commercial
lines was $44.5 million.

         The Company's brokerage and underwriting  management  operations,  MSI,
SMCO, AUM and UMI, develop insurance products,  evaluate insurance applications,
establish  applicable  premiums and terms of coverage,  collect premiums,  place
reinsurance and process claims for the Company's insurance company subsidiaries.
These  operations  also  broker a small  amount  of  business  for  unaffiliated
companies.

         Depending on the insurance product offered and the market involved, the
Company may market its  products  through its own sales  representatives,  other
wholesale  and  retail  brokers,  or direct to its  customers.  These  producers
provide specialized knowledge of particular products,  markets and customers and
enable the Company to  capitalize  on  underwriting  opportunities.  The Company
seeks to be a substantial  underwriter for its producers in order to enhance the
likelihood  of receiving  the most  desirable  underwriting  opportunities.  The
Company pays brokers and agents  commissions based on the amount of premiums and
types of business underwritten.  The Company accepts business from insurance
brokers and general agents nationwide.

<PAGE>

         In 1995 the  Company's  total gross  premium  volume was  approximately
$402.1 million.  The Company's  largest  program  accounted for less than 12% of
this  total.  The risk of  geographic  concentration  is  generally  higher  for
property exposures than for liability  exposures.  In 1995, 40% of the Company's
earned  premiums (32% of gross  premiums)  were from  professional  and products
liability business.  The Company believes its exposure to the risk of geographic
concentration is not material because the diversity of its coverages and product
lines   effectively   disperse   this  risk.  In  addition,   where   geographic
concentration occurs (for example, earthquake coverage),  management  seeks  to
reduce  exposure  to any one  event by use of effective  reinsurance  programs
and through use of exposure analyses  generated with catastrophe modeling
software.

         For  additional  information  about  premium  volume  and  underwriting
results,  refer to Management's  Discussion and Analysis of Financial  Condition
and Result of  Operations  on pages 41 through 52 of the  Company's  1995 Annual
Report to  Shareholders  filed as an exhibit to this  report on Form 10-K.  This
information is incorporated by reference into this report on Form 10- K.

CLAIMS AND RESERVES

          The table on page 46 of the 1995 Annual Report to  Shareholders  shows
the development of balance sheet reserves for the Company for a ten year period.
Note 8 to the  Consolidated  Financial  Statements  of Markel  Corporation  (the
"Consolidated  Financial  Statements")  on page 32 of the Company's  1995 Annual
Report to Shareholders  sets forth a reconciliation  of the beginning and ending
reserves for losses and loss adjustment  expenses for the Company for 1995, 1994
and 1993. This information is incorporated by reference into this report on Form
10-K.

REINSURANCE CEDED

         The Company enters into  reinsurance  agreements in order to reduce its
liability on individual  risks and enable it to underwrite  policies with higher
limits.  In a  reinsurance  transaction,  an  insurance  company  transfers,  or
"cedes", all or part of its exposure in return for a portion of the premium. The
ceding of  insurance  does not legally  discharge  the ceding  company  from its
primary liability for the full amount of the policies, and the ceding company is
required to pay losses if the reinsurer fails to meet its obligations  under the
reinsurance agreement.

         The Company's  treaties are generally  subject to  cancellation  by the
reinsurers  or the Company on the  anniversary  date upon 90 days prior  written
notice  and  are  subject  to  renegotiation  annually.  The  reinsurer  remains
responsible for all business  produced prior to  termination.  The treaties also
typically contain provisions concerning ceding commissions,  required reports to
the reinsurers, responsibility for taxes, arbitration in the event of a dispute,
and  provisions  allowing the Company to demand that a reinsurer post letters of
credit or assets as security  if a  reinsurer  is  or  becomes  an
"unauthorized"  or  "unapproved" reinsurer under applicable state laws and
regulations.

<PAGE>

         Because the Company  retains a  substantial  portion of gross  premiums
produced by its subsidiaries,  the continued  availability of reinsurance is not
considered material to the Company's consolidated operations.  The Company's use
of several reinsurers further limits its reliance on any individual reinsurer.

         At December 31, 1995, only one reinsurer,  TIG Reinsurance Company, had
paid  and  unpaid  claim  recoverables  which  exceeded  10%  of  the  Company's
consolidated  shareholders'  equity at that date.  The  recoverable  from TIG at
December 31, 1995 was $24.7  million.  TIG has received  claims  paying  ability
ratings from A.M. Best Co., Inc. (see "Ratings"  below) and S&P of "A" and "AA-"
respectively.

         At December 31, 1995, the Company's  total paid and unpaid  reinsurance
recoverable  balance  was  $179.5  million.  For  additional  information  about
reinsurance see Note 12 to the  Consolidated  Financial  Statements  included on
page 36 of the Company's 1995 Annual Report to Shareholders. This information is
incorporated by reference into this report on Form 10-K.

         Standard & Poor's ("S&P") claims paying ability ratings are assigned at
the request of insurers, and are based on extensive quantitative and qualitative
analysis.  Ratings from AAA to BBB- are within S&P's  secure  range.  Within the
secure range, AAA category  ratings indicate  superior  financial  security,  AA
category ratings indicate  excellent  financial  security and A category ratings
indicate  good  financial  security.  Plus (+) or minus (-) signs show  relative
standing within a category.

         In recent years, the Company has pursued the settlement of older claims
in as aggressive a manner as reasonably possible. These actions may from time to
time prompt some  reinsurers to dispute claim payment  requests or provisions in
the reinsurance contract.  The Company believes that these types of disputes are
without merit,  and expects to continue its claims  closing  efforts in order to
reduce both  reserve  and  reinsurance  risks.  Further,  the  Company  plans to
continue to commute paid and unpaid  reinsurance  recoverables  when possible in
order to reduce collection risks.

RATINGS

         A.M.  Best  Company  ("Best")   publishes  Best's  Insurance   Reports,
Property-Casualty,  and  assigns  ratings to  property  and  casualty  insurance
companies based on quantitative  criteria,  such as profitability,  leverage and
liquidity as well as  qualitative  assessments,  such as the spread of risk, the
adequacy and soundness of reinsurance, the quality and estimated market value of
assets, the adequacy of loss reserves and surplus and the competence, experience
and integrity of management.  Best's letter ratings range from A++ (Superior) to
F (In Liquidation).

<PAGE>

         Best has currently  assigned an A (Excellent)  rating to Essex. EIC has
been assigned an A (Excellent) rating and MAIC, based on its participation in an
intercompany  pooling arrangement with EIC, is also rated A (Excellent).  MIC is
rated A- (Excellent).

         Duff & Phelps' Credit Rating Co. ("Duff & Phelps") and S&P's  Insurance
Rating Services each provide purchasers of insurance policies and contracts with
analytical  and  statistical  information on the solvency and liquidity of major
U.S.  licensed  insurance  companies.  They also rate  companies  based on their
ability to meet  policyholder  obligations.  The  claims  paying  ability  (CPA)
ratings  are  based  on the same  scale  as the  Duff & Phelps  and S&P bond and
preferred stock ratings. However, reflecting the difference between an insurance
company's  ability to meet its claim  obligations  and an  obligation to service
debt, the insurance company CPA rating scale utilizes  different  definitions of
safety. The Duff & Phelps CPA rating categories range from AAA (risk factors are
negligible) to DD (under order of  liquidation).  The S&P CPA ratings range from
AAA (superior  financial  security) to R (Regulatory  action).  Both the S&P and
Duff & Phelps CPA  ratings  concern  only the  likelihood  of timely  payment of
policyholder  obligations and are not intended to refer to the ability of either
the rated  company,  or its parent,  affiliate or  subsidiary  to pay  nonpolicy
obligations such as debt or commercial paper.

         Duff & Phelps has currently assigned a rating of A+ (High Claims Paying
Ability) to EIC, Essex, MIC and MAIC.

         S&P has currently  assigned a rating of A (Good Financial  Security) to
EIC, Essex, MIC and MAIC.

         Ratings  from Best,  Duff & Phelps  and S&P are based  upon  factors of
concern to  policyholders,  agents and brokers and are not  directed  toward the
protection  of  investors.  These ratings are subject to change or withdrawal at
the discretion of the rating agencies.

INVESTMENTS

         The Company and its subsidiaries  invest their funds in equity and debt
securities with the objectives of preserving capital,  maintaining liquidity and
generating  income.  Approximately  29% of the Company's cash and investments at
December  31, 1995 were  managed by Hamblin  Watsa  Investment  Counsel  Ltd., a
Canadian  investment  management  firm which is controlled  by V. Prem Watsa,  a
director  of the  Company.  Approximately  4% is  managed  by other  independent
portfolio  managers.  The balance of the portfolio is managed by officers of the
Company,  with  the  approval  of the  boards  of  directors  of  the  insurance
companies.  The investments of the Company's insurance company  subsidiaries are
regulated by the insurance laws of their  respective  states of domicile.  These
laws  limit the nature of  permitted  investments  and the  amount  which may be
invested in a particular category of investment or in a single issue or issuer.

<PAGE>

         The Company has  established  an Investment  Committee  composed of key
members  of  management  to monitor  investment  performance,  make basic  asset
allocation decisions, evaluate and direct the activities of outside  investment
advisors and review compliance with  regulatory  requirements.   The  Company's
Board  of  Directors  provides oversight of the Investment  Committee,  however,
the Board of Directors of each of the  Company's  insurance  company
subsidiaries  reviews  and  approves  all investment transactions on a quarterly
basis.

         The   Company's   investment   philosophy   generally   provides   that
policyholder  funds  are  invested  predominately  in  high  quality  corporate,
government  and municipal  bonds.  Shareholder  funds and retained  earnings are
primarily  invested in growth  securities  such as common stocks.  The Company's
fixed  maturity  portfolio has an average rating of AA, with over 90% rated A or
better by at least one nationally recognized rating organization.  The following
table shows the make-up of the Company's fixed maturity portfolio,  at estimated
fair value, by rating category at December 31, 1995 (in thousands).

                                             Est. Fair Value
                  Rating                    December 31, 1995
                  ------                    -----------------
                  AAA/AA                        $ 392,808
                  A                               242,907
                  BBB                              61,223
                  BB/B                              4,387
                  C/D/UNRATED                       4,730
                                                ---------
                       Total                    $ 706,055
                                                =========


         S&P and Moody's  Investors Service provide corporate and municipal debt
ratings based on assessments of the credit worthiness of an obligor with respect
to a specific  obligation.  These debt ratings range from "AAA" (capacity to pay
interest  and repay  principal  is  extremely  strong)  to D (debt is in payment
default).  Securities  with  ratings  of  "BBB" or  higher  are  referred  to as
"investment  grade"  securities.  Debt rated "BB" and below is  regarded  by the
rating agencies as having predominately speculative characteristics with respect
to capacity to pay interest and repay  principal.  It is the  Company's  general
policy to minimize its investments in fixed maturity securities that are unrated
or rated below investment grade.

         For further information  regarding the Company's investment  portfolio,
see Note 2 to the Consolidated  Financial Statements included on pages 26 and 27
of the  Company's  1995  Annual  Report to  Shareholders.  This  information  is
incorporated by reference into this report on Form 10-K.

COMPETITION

         The  Company's  underwriting  operations  compete with  numerous  other
insurance  companies,  many of which  are  much  larger  and have  significantly
greater resources than the Company.  Among other  things,  competition  may take
the form of lower  prices, broader coverages,  greater product flexibility,
higher quality services or the insurer's  rating by  independent  rating
agencies.  The  Company  competes  by developing  specialty  products  to
satisfy  well-defined  market  needs and by maintaining  relationships with
brokers and insureds who rely upon the Company's expertise  in the market

<PAGE>

segments it serves.  In the excess and  surplus  lines markets,  the Company
competes  principally  on the basis of its  expertise  in offering and
underwriting products that are not readily available.  Few barriers exist to
prevent property and casualty insurers from entering into the Company's segments
of the property and casualty industry,  but many of the larger property and
casualty  insurance  companies  generally  have  been  unwilling  to  write
specialty  coverages.  The Company also  competes  with risk  retention  groups,
insurance buying groups and alternative self-insurance mechanisms. In the highly
competitive  admitted  markets,  the Company competes with innovative  products,
appropriate  pricing,  expense control and quality service to policyholders  and
agents.

REGULATION

         The Company's insurance company  subsidiaries are subject to regulation
and  supervision  by  the  insurance  regulatory   authorities  of  the  various
jurisdictions  in which they  conduct  business.  Such  regulation  is  intended
primarily  for the  benefit  of  policyholders  rather  than  shareholders.  The
insurance  regulatory   authorities  have  broad  regulatory,   supervisory  and
administrative  powers.  These  powers  relate  primarily  to the  standards  of
solvency which must be met and  maintained;  the licensing of insurers and their
agents;  the approval of forms and policies used; the nature of, and limitations
on,  insurers'  investments;  the issuance of securities  by insurers;  periodic
examinations  of the  affairs  of  insurers;  the form  and  content  of  annual
statements and other reports required to be filed on the financial  condition of
such insurers or for other purposes;  and the establishment of reserves required
to be maintained for unearned premiums, losses or other purposes.

         The Company is also subject to state laws regulating  insurance holding
companies.  Under these laws, the respective  insurance  departments may, at any
time, examine the Company,  require  disclosure of material  transactions by the
holding company, require prior approval of certain "extraordinary" transactions,
such as  extraordinary  dividends  from the insurance  subsidiary to the holding
company, or require approval of changes in control of an insurer or an insurance
holding company such as the Company.

         The  Company's  subsidiaries  which act as admitted  insurers  are also
subject to  additional  regulation  to which the  non-admitted  insurers are not
subject outside their states of domicile.  Such regulation of admitted  insurers
includes  restrictions  on changes to premium  rates charged to insureds and, in
certain  jurisdictions,  may prohibit withdrawing from a line of business and/or
rate  increases for certain lines of business at a time when loss  experience or
other  factors  would  otherwise  mandate  such  changes.   In  addition,   most
jurisdictions in the United States require all admitted  insurance  companies to
participate in their respective  guaranty funds.  Insurers  admitted to transact
business in such jurisdictions are required to cover losses of insolvent
insurers and are generally subject to annual assessments from 1% to 2% of direct
premiums written in that  jurisdiction to pay the claims of insolvent  insurers.
Certain jurisdictions also require admitted companies to participate in assigned
risk plans for automobile  insurance and other  specialized  liability  coverage
(for example,  natural disasters) for insureds who, for various reasons,  cannot
otherwise obtain insurance in the open market.  The portion of a particular type
of coverage  that is assigned to a  particular  insurer is based on the relative
amount of that type of  coverage  that is written by the  insurer on a voluntary
basis. Each  participating  insurer assumes the premiums and losses only for the
insureds  assigned to it. Losses for insurance written under assigned risk plans
generally are  significantly  greater than losses for  insurance  written in the
voluntary market. Thus, participation in mandatory funds and assigned risk plans
is likely to be unprofitable.

<PAGE>

         In addition,  the Company may be subject to  additional  regulation  by
certain  jurisdictions  in the future,  including  possible  limitations  on the
ability of the Company's  brokerage  operations to place business with insurance
companies affiliated with the Company.

         The activities of the Company related to insurance brokerage and agency
services are subject to licensing and regulation by the  jurisdictions  in which
it conducts such activities.  In addition to regulatory  requirements applicable
to the Company and its  subsidiaries,  most  jurisdictions  require that certain
individuals  engaging in brokerage and agency activities be personally licensed.
As a result, a number of the Company's employees are so licensed.  The Company's
operations  depend on the validity and  continuation  of its good standing under
the licenses and approvals pursuant to which it operates.

         The laws of the  domicile  states of the  Company's  insurance  company
subsidiaries  restrict  the  amount  of  dividends  which  may be  paid  by such
subsidiaries  to the  Company  without  prior  regulatory  approval.  Generally,
statutes  in  Delaware,  Illinois  and  Virginia  (the  domicile  states  of the
Company's insurance company  subsidiaries) require prior approval for payment of
"extraordinary" as opposed to "ordinary" dividends. Delaware and Illinois define
"ordinary  dividends"  for any twelve  month period as the greater of 10% of the
prior year's surplus or the prior year's net income.  Delaware excludes realized
gains in the calculation of prior year's net income.  Virginia defines "ordinary
dividends"  for any twelve  month  period as the  lesser of 10% of prior  year's
surplus or prior year's net income reduced for realized  gains.  In Virginia,  a
company  may  add to  net  income  for  purposes  of  calculating  the  dividend
restriction,  the net  income  less  realized  gains  for the  second  and third
preceding years less dividends paid in those preceding years.

         In addition to ordinary dividends  described above, a company domiciled
in Delaware,  Illinois and  Virginia may make an  extraordinary  dividend if the
respective  State Insurance  Department  approves the dividend within 30 days of
the request.

         Difficulties  with  insurance   availability  and  affordability   have
increased  legislative activity at both the federal and state levels. Some state
legislatures and regulatory agencies have enacted measures to limit  mid-term
cancellations,  require  advance  notice of renewal intentions  and limit  rates

<PAGE>

which may be  charged.  Congress  is  investigating possible avenues for federal
regulation of the insurance industry.  Any of these activities could adversely
affect the Company's operations.

         In addition, the National Association of Insurance Commissioners (NAIC)
and insurance  regulators are  re-examining  existing laws and  regulations  and
their application to insurance companies. In particular, this re-examination has
focused on  insurance  company  investment  and  solvency  issues  and,  in some
instances,  has resulted in new interpretations of existing law, the development
of new laws and the  implementation of non-statutory  guidelines.  In connection
with its  accreditation  of states and as part of its  program  to  monitor  the
solvency of insurance  companies,  the NAIC requires  states to adopt model NAIC
laws and regulations on specific topics, such as holding company regulations and
the definition of extraordinary  dividends and risk-based capital  requirements.
For additional  information  about  risk-based  capital  requirements,  refer to
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations on page 51 of the Company's 1995 Annual Report to Shareholders.  This
information is incorporated by reference into this report on Form 10-K.

EMPLOYEES

         At December 31,  1995,  the Company and its  consolidated  subsidiaries
employed 767 persons, of whom four were executive officers. The Company believes
that, as a service  organization,  its continued  growth is dependent to a large
measure upon its personnel.

ITEM 1A.   EXECUTIVE OFFICERS OF THE REGISTRANT

         The executive  officers of the Company and their ages as of January 31,
1996, are as follows:

      Name                      Age                 Position With the Company
      ----                      ---                 -------------------------
Alan I. Kirshner                 60                 Chairman and Chief
                                                            Executive Officer

Anthony F. Markel (1)            53                 President and Chief
                                                            Operating Officer

Steven A. Markel (1)             47                 Vice Chairman

Darrell D. Martin                47                 Executive Vice President
                                                            and Chief Financial
                                                            Officer
----------------------------------

(1)   Anthony and Steven Markel are first cousins.

<PAGE>

         Alan I.  Kirshner  has been  Chairman of the Board and Chief  Executive
Officer  since 1986.  He also served as President  from 1979 until March of 1992
and has been a director of the Company since 1978.

         Anthony F. Markel has been President and Chief Operating  Officer since
March 1992. He served as Executive  Vice President from 1979 until March of 1992
and has been a director of the Company since 1978.

         Steven A. Markel has been Vice Chairman  since March of 1992. He served
as Treasurer from 1986 to August 1993, and Executive Vice President from 1986 to
March of 1992. He has been a director of the Company since 1978.

         Darrell D. Martin,  a certified public  accountant,  has been Executive
Vice President and Chief  Financial  Officer of the Company since March 1992. He
served  as Chief  Financial  Officer  from  1988 to March of 1992 and has been a
director of the Company since January 1991.

ITEM 2.   PROPERTIES

         The Company has entered into long term operating leases with respect to
three office  buildings in a suburban  office park in  Richmond,  Virginia.  The
Company leases  approximately  216,000  square feet in these  buildings of which
approximately  156,000 square feet is used by the Company and its  subsidiaries.
See  Note 5 to the  Consolidated  Financial  Statements  on page 29 of the  1995
Annual Report to Shareholders for additional information regarding these leases.
This information is incorporated by reference into this report on Form 10-K.

         Shand/Evanston currently occupies approximately 65,000 square feet of a
160,000  square foot office  building in Evanston,  Illinois.  This  building is
owned by Shand/Evanston.

         AUM also leases and  occupies  approximately  19,000  square feet in an
office building in Pewaukee, Wisconsin.

ITEM 3.   LEGAL PROCEEDINGS

         The Company's subsidiaries routinely are party to litigation incidental
to their  business.  In the opinion of the Company's  management,  no individual
item of litigation or group of similar items of litigation,  taken net of claims
reserves  established  therefore  and giving effect to  reinsurance,  errors and
omissions insurance and indemnity  agreements,  is likely to result in judgments
for amounts material to the consolidated  financial condition of the Company and
its subsidiaries.

<PAGE>

         For additional  information  required by this item, see the information
in Exhibit 13.1 -- Annual Report to  Shareholders,  under the caption  "Notes to
Consolidated  Financial Statements-Note 13,  "Contingencies" on page 37 thereof,
which information is incorporated herein by reference.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         None.


                                    PART II

ITEM 5.   MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

         The  aggregate  market value of the shares of the  registrant's  Common
Stock held by non-affiliates as of January 31, 1996, shown on the cover page of
this  report,  was  calculated  by  multiplying  (i) the  closing  price  of the
registrant's Common Stock as reported on the National  Association of Securities
Dealers Automated Quotation National Market System on January 31, 1996 ($75.88),
by (ii) the number of shares of the  registrant's  Common  Stock not held by the
directors or officers of the registrant or any person known to the registrant to
own more than five percent of the outstanding  Common Stock of registrant.  Such
calculation  does not  constitute  an admission or  determination  that any such
officer,  director or holder of more than five percent of the outstanding shares
of Common Stock of the registrant is, in fact, an affiliate of the registrant.

         For additional  information  required by this item, see the information
in Exhibit 13.1 -- Annual Report to Shareholders,  under the captions "Quarterly
Information"  and  "Market  and  Dividend  Information"  on  pages  40  and  54,
respectively, which information is incorporated herein by reference.

ITEM 6.  SELECTED FINANCIAL DATA

         For the  information  required  by this item,  see the  information  in
Exhibit  13.1 -- Annual  Report to  Shareholders,  under the  caption  "Selected
Financial Data" and Notes 1 and 16 to the Consolidated  Financial  Statements on
pages 18, 19, 24, 25 and 38,  respectively,  which  information is  incorporated
herein by reference.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
             OF OPERATIONS

         For the  information  required  by this item,  see the  information  in
Exhibit 13.1 -- Annual Report to Shareholders,  under the caption  "Management's
Discussion  and Analysis of Financial  Condition and Results of  Operations"  on
pages 41  through  52  thereof,  which  information  is  incorporated  herein by
reference.

<PAGE>

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

         The  financial  statements  of  the  registrant  and  its  subsidiaries
required to be included in this item are set forth in item 14 of this report and
are either  incorporated  herein by reference to the  specified  information  in
Exhibit 13.1 -- Annual Report to Shareholders or set forth herein,  in each case
as indicated in item 14 of this report.

         For the  supplementary  financial  information on quarterly  results of
operations required by item 302 of Regulation S-K, see the information under the
caption  "Quarterly  Information"  set forth in Exhibit 13.1 -- Annual Report to
Shareholders on page 40 thereof,  which  information is  incorporated  herein by
reference.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
             FINANCIAL DISCLOSURE

         None.


                                    PART III

ITEM 10.   DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

         For information  required by this item, other than information required
by Item  401(b) of  Regulation  S-K,  see the  information  under  "Election  of
Directors"  in the  registrant's  Proxy  Statement  for the  Annual  Meeting  of
Shareholders scheduled to be held May 7, 1996, which information is incorporated
herein by reference.

         Information  required by Item 401(b) of Regulation  S-K is set forth in
Item 1A of this report.

ITEM 11.   EXECUTIVE COMPENSATION

         For information  required by this item, see the  information  under the
caption  "Executive  Compensation" in the  registrant's  Proxy Statement for the
Annual  Meeting  of  Shareholders  scheduled  to be  held  May  7,  1996,  which
information is incorporated herein by reference.

ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         For information  required by this item, see the  information  under the
caption  "Principal  Shareholders" in the  registrant's  Proxy Statement for the
Annual  Meeting  of  Shareholders  scheduled  to be  held  May  7,  1996,  which
information is incorporated herein by reference.

<PAGE>

ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         For information  required by this item, see the  information  under the
caption  "Executive   Compensation  --  Certain   Transactions"  and  "Executive
Compensation - Compensation  Committee Interlocks and Insider  Participation" in
the  registrant's  Proxy  Statement  for  the  Annual  Meeting  of  Shareholders
scheduled to be held May 7, 1996, which information is incorporated herein by
reference.



                                    PART IV

ITEM 14.   EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

         (A)   DOCUMENTS FILED AS PART OF THE REPORT

                  1.   FINANCIAL STATEMENTS

         The  following   financial   statements  of  Markel   Corporation   and
Subsidiaries  are  incorporated  herein by  reference  to pages 20 through 39 of
Exhibit 13.1 -- 1995 Annual Report to Shareholders:

Consolidated Balance Sheets - December 31, 1995 and 1994

Consolidated Statements of Income - Years Ended December 31, 1995, 1994 and 1993

Consolidated  Statements  of  Changes  in  Shareholders'  Equity  - Years  Ended
December 31, 1995, 1994 and 1993

Consolidated  Statements of Cash Flows - Years Ended December 31, 1995, 1994 and
1993

Notes to Consolidated Financial Statements

Independent Auditors' Report

                  2.   FINANCIAL STATEMENT SCHEDULES

         Included  herein are the  financial  statement  schedules  listed under
"Index to Financial Statement Schedules" on page 19 of this Report.

<PAGE>

                  3.   EXHIBITS

         Included  herein or  incorporated  herein by reference are the exhibits
listed  under  "Index  to  Exhibits"  on pages  30  through  32 of this  report.
Management Contracts and Compensatory Plans or Arrangements required to be filed
are listed in Items 10.1 - 10.7 in the "Index to  Exhibits"  on pages 30 through
31 of this report.

         (B)   REPORTS ON FORM 8-K

                  No reports on form 8-K were filed during the fourth quarter of
                  1995.

         (C)   See Index to Exhibits and Item 14(a)(3) of this Report.

         (D)   See "Index to Financial Statements and Schedules" and Item
               14(a)(1) of this  Report.

                                       2

<PAGE>


SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                                     MARKEL CORPORATION


                                               By:  /s/ STEVEN A. MARKEL
                                                   -----------------------
                                                       Steven A. Markel
                                                        Vice Chairman
March 22, 1996

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
registrant and in the capacities and on the dates indicated.

  Signature                        Capacity                         Date

/s/ ALAN I. KIRSHNER       Chief Executive Officer and           March 22, 1996
---------------------      Chairman of the Board of Directors
  Alan I. Kirshner

/s/ ANTHONY F. MARKEL      President, Chief Operating Officer    March 22, 1996
---------------------      and Director
Anthony F. Markel

/s/ STEVEN A. MARKEL       Vice Chairman and Director            March 22, 1996
---------------------
Steven A. Markel

/s/ DARRELL D. MARTIN      Executive Vice President,             March 22, 1996
---------------------      Chief Financial Officer and Director
Darrell D. Martin          (Principal Accounting Officer)


/s/ LESLIE A. GRANDIS      Director                              March 22, 1996
---------------------
Leslie A. Grandis

/s/ STEWART M. KASEN       Director                              March 22, 1996
---------------------
Stewart M. Kasen

/s/ GARY L. MARKEL         Director                              March 22, 1996
---------------------
Gary L. Markel

/s/ V. PREM WATSA          Director                              March 22, 1996
---------------------
V. Prem Watsa

<PAGE>

                     INDEX TO FINANCIAL STATEMENT SCHEDULES

                                                                     Page No.


Independent Auditors' Report                                            20

Schedule I   -- Summary of Investments Other Than Investments
                  in Related Parties                                    21

Schedule II  -- Condensed Financial Information of Registrant           22

Schedule III -- Supplementary Insurance Information                     25

Schedule IV  -- Reinsurance                                             26

Schedule V   -- Valuation and Qualifying Accounts                       27

Schedule VI  -- Supplemental Information Property -Casualty Insurance   28


Schedules  other than those listed above have been omitted since they either are
not required or are not applicable,  or the  information  called for is shown in
the Consolidated Financial Statements or in the Notes thereto.


<PAGE>


                          Independent Auditors' Report




The Board of Directors and Shareholders
Markel Corporation:

Under date of February 7, 1996, we reported on the  consolidated  balance sheets
of Markel  Corporation and subsidiaries  (the "Company") as of December 31, 1995
and  1994,  and the  related  consolidated  statements  of  income,  changes  in
shareholders'  equity,  and cash  flows for each of the years in the  three-year
period ended December 31, 1995, as contained in the Company's 1995 Annual Report
to Shareholders.  These  consolidated  financial  statements and our independent
auditors'  report  thereon are  incorporated  by reference in the Company's 1995
annual report on Form 10-K. In connection with our audits of the  aforementioned
consolidated  financial  statements,  we  also  audited  the  related  financial
statement  schedules as listed in the Company's 1995 annual report on Form 10-K.
These  financial  statement  schedules are the  responsibility  of the Company's
management.  Our  responsibility  is to express  an  opinion on these  financial
statement schedules based on our audits.

In our  opinion,  such  schedules,  when  considered  in  relation  to the basic
consolidated  financial  statements  taken as a whole,  present  fairly,  in all
material respects, the information set forth therein.

Effective  December 31, 1993,  the Company  changed its method of accounting for
investments  to adopt  the  provisions  of the  Financial  Accounting  Standards
Board's  Statement of Financial  Accounting  Standards No. 115,  Accounting  for
Certain Investments in Debt and Equity Securities.




KPMG Peat Marwick LLP

Richmond, Virginia
February 7, 1996

<PAGE>





                      MARKEL CORPORATION AND SUBSIDIARIES

                      SCHEDULE I - SUMMARY OF INVESTMENTS
                   OTHER THAN INVESTMENTS IN RELATED PARTIES

                               December 31, 1995
                             (dollars in thousands)
<TABLE>
<CAPTION>

                                                                                                 Balance
                                                                                Market            Sheet
Type of Investment                                               Cost           Value          Presentation
------------------                                            ---------       ---------        ------------
<S>                                                           <C>             <C>                <C>
Fixed Maturities:
  Bonds:
    United States Government and government agencies          $ 211,779       $ 215,951          $ 215,951
    States, municipalities and political subdivisions           109,314         112,811            112,811
    Public utilities                                             48,542          51,747             51,747
    Convertibles and bonds with warrants attached                18,076          17,838             17,838
    All other corporate bonds                                   293,853         305,559            305,559
 Redeemable preferred stock                                       2,004           2,149              2,149
                                                              ---------       ---------          ---------
         Total fixed maturities                                 683,568         706,055            706,055
                                                              ---------       ---------          ---------

Equity securities:
  Common stocks:
    Banks, trusts and insurance companies                        32,202          41,765             41,765
    Industrial, miscellaneous and all other                      68,662          89,008             89,008
  Nonredeemable preferred stocks                                  3,674           3,573              3,573
                                                              ---------       ---------          ---------

         Total equity securities                                104,538         134,346            134,346
                                                              ---------       ---------          ---------
Short-term investments                                           68,182          68,182             68,182
                                                              ---------       ---------          ---------
         Total investments                                    $ 856,288       $ 908,583          $ 908,583
                                                              =========       =========          =========

</TABLE>


<PAGE>


                      MARKEL CORPORATION (PARENT COMPANY)

        SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

                      CONDENSED BALANCE SHEET INFORMATION


                                                            DECEMBER 31,
                                                         1995            1994
                                                      ---------       ---------
                                                       (dollars in thousands)
ASSETS
    Investments in consolidated subsidiaries          $ 282,732       $ 192,459
    Short-term investments at estimated fair value
      (estimated fair value approximates cost)           13,740          15,302
    Cash and cash equivalents                               812             692
    Notes receivable due from subsidiary                 45,224          41,219
    Other assets                                         12,097           8,854
                                                      ---------       ---------

         Total assets                                 $ 354,605       $ 258,526
                                                      =========       =========

LIABILITIES AND SHAREHOLDERS' EQUITY
    Income taxes:
      Currently payable                               $     173       $     775
      Deferred                                            8,280           7,548
    Long-term debt                                      106,589         100,536
    Other liabilities                                    26,121          11,166
                                                      ---------       ---------

         Total liabilities                              141,163         120,025

    Shareholders' equity                                213,442         138,501
                                                      ---------       ---------

         Total liabilities and shareholders' equity   $ 354,605       $ 258,526
                                                      =========       =========


<PAGE>


                     MARKEL CORPORATION (PARENT COMPANY)

        SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

                   CONDENSED STATEMENT OF INCOME INFORMATION

<TABLE>
<CAPTION>

                                                                YEARS ENDED DECEMBER 31,
                                                         1995            1994              1993
                                                      ---------       ----------         --------
                                                                 (dollars in thousands)
<S>                                                   <C>              <C>               <C>
Revenues:
   Net investment income                              $   3,879        $   3,434         $  1,894
   Cash dividends on common stock of
      consolidated subsidiaries                          35,459           15,380           12,176
   Other                                                    129              452           (2,438)
                                                      ---------       ----------         --------
                                                         39,467           19,266           11,632
                                                      ---------       ----------         --------
Expenses:
    Interest                                              8,460            7,675            5,638
    Other                                                 3,144            2,064            6,290
                                                      ---------       ----------         --------
                                                         11,604            9,739           11,928
                                                      ---------       ----------         --------
Income (loss) before equity in undistributed earnings
  of consolidated subsidiaries and income taxes          27,863            9,527             (296)
Equity in undistributed earnings of
  consolidated subsidiaries                               5,139           11,423           23,092
Income tax expense (benefit)                             (1,490)           2,361             (839)
                                                      ---------       ----------         --------
         Net income                                   $  34,492        $  18,589         $ 23,635
                                                      =========       ==========         ========


</TABLE>


<PAGE>


                      MARKEL CORPORATION (PARENT COMPANY)

        SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

                 CONDENSED STATEMENT OF CASH FLOWS INFORMATION

<TABLE>
<CAPTION>

                                                                 YEARS ENDED DECEMBER 31,
                                                            1995            1994         1993
                                                          --------       ---------     --------
                                                                  (dollars in thousands)
<S>                                                       <C>            <C>           <C>
OPERATING ACTIVITIES
    Net income                                            $ 34,492       $  18,589     $ 23,635
    Adjustments to reconcile net income to net cash
      provided (used) by operating activities:              (3,181)            725      (23,471)
                                                          --------       ---------     --------
    NET CASH PROVIDED BY OPERATING ACTIVITIES               31,311          19,314          164
                                                          --------       ---------     --------
INVESTING ACTIVITIES
    Cost of investments purchased                           (4,626)        (20,802)    (131,062)
    Proceeds from sales of investments                       4,663          34,525      121,027
    Net change in short-term investments                     1,562          (6,650)      (8,652)
    Increase in notes receivable from subsidiaries          (4,005)        (18,092)      (8,717)
    Decrease in unsettled investment trades                     --              --       19,640
    Capital contribution to subsidiary                      (9,500)        (27,000)          --
    Purchase of Lincoln Insurance Company                  (24,281)             --           --
    Other                                                      (96)            (31)          (7)
                                                          --------       ---------     --------
    NET CASH USED BY INVESTING ACTIVITIES                  (36,283)        (38,050)      (7,771)
                                                          --------       ---------     --------
FINANCING ACTIVITIES
    Dividends to subsidiaries                               (1,080)         (1,080)      (1,080)
    Borrowings under credit facility                        27,500              --           --
    Repayments of long-term debt and credit facility       (21,500)         (7,500)     (71,000)
    Net proceeds from issuance of long-term debt                --          29,280       73,435
    Other                                                      172          (2,118)         140
                                                          --------       ---------     --------
    NET CASH PROVIDED BY FINANCING ACTIVITIES                5,092          18,582        1,495
                                                          --------       ---------     --------
         Increase (decrease) in cash and cash equivalents      120            (154)      (6,112)
         Cash and cash equivalents at beginning of year        692             846        6,958
                                                          --------       ---------     --------
         Cash and cash equivalents at end of yea          $    812       $     692     $    846
                                                          ========       =========     ========

</TABLE>

<PAGE>

                      MARKEL CORPORATION AND SUBSIDIARIES

               SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION


<TABLE>
<CAPTION>
                                                   At December 31,
                                                   ---------------
                                               (dollars in thousands)

                  Deferred policy              Unpaid losses and loss            Unearned
Subsidiaries      acquisition costs            adjustment expenses               premiums
------------      -----------------            -----------------------           --------
  <S>                <C>                          <C>                            <C>
  1995               $ 32,024                     734,409                        170,697

  1994               $ 26,064                     652,930                        146,553


</TABLE>



<TABLE>
<CAPTION>

                                           Years ended December 31,
                                           ------------------------
                                            (dollars in thousands)

                                                              Amortization
                                              Losses          of deferred
                                Net          and loss           policy            Other
                 Earned      investment     adjustment        acquisition        operating      Premiums
Subsidiaries     premiums      income        expenses            costs           expenses       written
------------     --------  --------------- --------------  ------------------    ---------    -----------
  <S>           <C>            <C>           <C>                 <C>               <C>         <C>
  1995          $ 285,146      42,981        186,655             66,788            29,325      297,539

  1994          $ 243,067      29,110        156,169             58,786            21,895      257,022

  1993          $ 192,607      23,512        119,463             45,098            22,157      221,889


</TABLE>

<PAGE>




                      MARKEL CORPORATION AND SUBSIDIARIES

                           SCHEDULE IV - REINSURANCE

                  Years ended December 31, 1995, 1994 and 1993
                             (dollars in thousands)
<TABLE>
<CAPTION>
                                                                                                   Percentage
                                                    Ceded to        Assumed(*)                      of amount
Property-liability insurance         Gross            other         from other           Net         assumed
     premiums earned:                amount         companies        companies          amount        to net
----------------------------         ------         ---------       ----------          ------     ----------
       <S>                          <C>              <C>               <C>              <C>            <C>
       1995                         $ 349,417        90,429            26,158           285,146         9.17%

       1994                         $ 291,816        79,367            30,618           243,067        12.60%

       1993                         $ 228,568        67,864            31,903           192,607        16.56%

</TABLE>

(*) The Company acts as an underwriting  manager for its own insurance companies
as well as non-affiliated  companies. In 1995, 1994 and 1993,  substantially all
of the premiums assumed from other companies were  underwritten by the Company's
management subsidiaries.

<PAGE>


                      MARKEL CORPORATION AND SUBSIDIARIES

                 SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS
<TABLE>
<CAPTION>

                                               Years ended December 31, 1995 and 1994
                                                       (dollars in thousands)

                             Additions                                  Deletions
                             ---------                                  ---------
                    Balance at        Provision
                    beginning        for doubtful             Deductions/        Balance at
Description         of year          receivables              write-offs         end of year
-----------         ----------       ------------             -----------        -----------
<S>                 <C>               <C>                       <C>                 <C>
Allowance for
doubtful
receivables

  1995              $ 1,725              803                       327               2,201

  1994              $ 2,957              229                     1,461               1,725




Reserve for
uncollectible
reinsurance
recoverable

  1995             $ 10,774            9,168                    16,541               3,401

  1994             $ 21,030           (1,858)                    8,398              10,774

</TABLE>

<PAGE>






                      MARKEL CORPORATION AND SUBSIDIARIES

                     SCHEDULE VI - SUPPLEMENTAL INFORMATION
                          PROPERTY-CASUALTY INSURANCE
<TABLE>
<CAPTION>
                                 At December 31,
                             (dollars in thousands)

Affiliation
  with              Deferred policy      Unpaid losses and loss           Unearned
Registrant         acquisition costs       adjustment expenses            premiums
----------         -----------------     ----------------------           --------
<S>                     <C>                      <C>                      <C>
Consolidated
property-
casualty
entities

 1995                   $ 32,024                  734,409                  170,697

 1994                   $ 26,064                  652,930                  146,553

</TABLE>

<PAGE>




                      MARKEL CORPORATION AND SUBSIDIARIES

                     SCHEDULE VI - SUPPLEMENTAL INFORMATION
                          PROPERTY-CASUALTY INSURANCE

<TABLE>
<CAPTION>


                                                                   Years ended December 31,
                                                                    (dollars in thousands)

                                                           Losses and loss
                                                           adjustment expenses        Amortization
                                                           incurred related to        of deferred        Paid losses
Affiliation                             Net                -------------------          policy           and loss
with                   Earned        investment     Current           Prior           acquisition        adjustment        Premiums
Registrant            premiums         income        year             years              costs            expenses         written
----------------      --------     -------------    ------            ------         --------------       ---------        ---------
<S>                   <C>            <C>             <C>              <C>               <C>                <C>              <C>
Consolidated
property-
casualty
entities

1995                 $ 285,146       42,981          195,448          (8,793)            66,788            173,253          297,539

1994                 $ 243,067       29,110          159,730          (3,561)            58,786            171,832          257,022

1993                 $ 192,607       23,512          125,454          (5,991)            45,098            115,899          221,889

</TABLE>

<PAGE>






<TABLE>
<CAPTION>



                               INDEX TO EXHIBITS

Exhibit                                                                           Page
<S>      <C>                                                                       <C>
3.1      Amended and Restated Articles of Incorporation, as amended
         (Exhibit 3.1)*

3.2      Bylaws, as amended (Exhibit 3.2)a

4.1(a)   Indenture dated as of October 26, 1993 between registrant and
         Chase Manhattan Bank, N.A., as trustee.  (Exhibit 4.1(a))b

4.1(b)   Action of Authorized Pricing Officer dated as of October 26, 1993
         with respect to $75,000,000 of 7.25% Notes due November 1, 2003.
         (Exhibit 4.1(b))b

4.1(c)   Action of Authorized Pricing Officer dated as of January 28, 1994
         with respect to $25,000,000 of 7.25% Notes due November 1, 2003.
         (Exhibit 4.1(c))b

4.2      The registrant  hereby agrees to furnish to the Securities and
         Exchange Commission a copy of all instruments  defining the rights
         of holders of long-term  debt  of  the  registrant  and  subsidiaries
         shown  on  the Consolidated  Balance Sheet of registrant at
         December 31, 1995, and the respective Notes thereto, filed with
         this Annual Report on Form 10-K.

         Management Contracts or Compensatory Plans required to be filed
         (Items 10.1 -- 10.7)

10.1     Markel Corporation 1986 Stock Option Plan as amended (Exhibit 4(d))**

10.2     Markel Corporation 1989 Non-Employee Directors Stock Option Plan
         (Exhibit A)***

10.3     Markel Corporation 1993 Incentive Stock Plan (Exhibit 10.3)c

10.4     Executive Employment Agreement between Markel Corporation and
         Alan I. Kirshner dated as of October 1, 1991 (Exhibit 10.5)****

10.5     Executive Employment Agreement between Markel Corporation and
         Anthony F. Markel dated as of October 1, 1991 (Exhibit 10.6)****

10.6     Executive Employment Agreement between Markel Corporation and
         Steven A.. Markel dated as of October 1, 1991 (Exhibit 10.7)****

10.7     Executive Employment Agreement between Markel Corporation and
         Darrell D. Martin dated as of March 1, 1992 (Exhibit 10.8)****

<PAGE>

10.8(a)  Stock  Purchase  Agreement  dated  as of  October  7,  1987 between
         F-M Acquisition Corporation and Alexander & Alexander Services, Inc.
         (Exhibit 2(a))o

10.8(b)  Amendment No. 1 to Stock Purchase Agreement between F-M
         Acquisition Corporation and Alexander & Alexander Services, Inc.
         dated February 15, 1989 (Exhibit 10.7(b))o o

10.8(c)  Settlement Agreement No. 3 relating to Stock Purchase Agreement
         between F-M Acquisition Corporation and Alexander & Alexander
         Services, Inc. (Exhibit 10.8(c))c

10.9(a)  Lease Agreement dated July 21, 1995 between Prudential  Insurance
         Company of America and Registrant related to premises located at 4551
         Cox Road, Glen Allen, Virginia

10.9(b)  Lease Agreement dated July 21, 1995 between Prudential  Insurance
         Company of America and Registrant related to premises located at 4600
         Cox Road, Glen Allen, Virginia

13.1     1995  Annual  Report  to  Shareholders   (With  the  exception  of  the
         information  incorporated  by  reference  in this Form  10-K,  no other
         information  appearing in the 1995 Annual  Report is to be deemed filed
         as part of this Form 10-K)

21       Subsidiaries of Markel Corporation

23       Consents of independent auditors to incorporation by reference of
         certain reports into the Registrant's Registration Statements on
         Form S-8

27       Financial Data Schedule

28.1     Information from reports furnished to insurance regulatory authorities
         by Essex Insurance Company (Exhibit 28.1)d

28.2     Information from reports furnished to insurance regulatory authorities
         by Evanston Insurance Company (Exhibit 28.2)d

28.3     Information from reports furnished to insurance regulatory authorities
         by Markel Insurance Company (Exhibit 28.3)d

28.4     Information from reports furnished to insurance regulatory authorities
         by Markel American Insurance Company (Exhibit 28.4)d

28.5     Information from reports furnished to insurance regulatory authorities
         by Lincoln Insurance Company (Exhibit 28.5)d

</TABLE>

<PAGE>

------------------------------

*        Incorporated by reference from the exhibit shown in parenthesis filed
         with the Commission in the Registrant's 1990 Form 10-K Annual Report

**       Incorporated by reference from the exhibit shown in the parenthesis
         filed with the Commission on May 25, 1989 in the Registrant's
         Registration Statement on Form S-8 (Registration No. 33-28921)

***      Incorporated  by reference from the exhibit shown in parenthesis  filed
         with the Commission in the Registrant's  Proxy Statement for the Annual
         Meeting  of  Shareholders  held on May 15,  1989,  as  filed  with  the
         Commission

****     Incorporated by reference from the exhibit shown in the parentheses
         filed with the Commission in the Registrant's 1991 Form 10-K Annual
         Report

o        Incorporated  by reference from the exhibit shown in parenthesis  filed
         with the  Commission  on January 13, 1988 in the  Registrant's  current
         report on Form 8-K dated December 29, 1987

o o      Incorporated by reference from the exhibit shown in the parenthesis
         filed with the Commission in the Registrant's 1988 Form 10-K Annual
         Report

         a Incorporated by reference from the exhibit shown in parentheses filed
           with the Commission in the Registrant's 1992 Form 10-K Annual Report

         b Incorporated by reference from the exhibit shown in parentheses filed
           with the Commission in the Registrant's 1993 Form 10-K Annual Report

         c Incorporated by reference from the exhibit shown in parentheses filed
           with the Commission in the Registrant's 1994 Form 10-K Annual Report

         d Incorporated by reference from the exhibit shown in parentheses filed
           with the Commission under cover of Form SE dated March 21, 1996

<PAGE>