Markel reports improved Q1 2021 results!
Earned premiums grew 13% to $1.5 bil coming from new business and more favorable rates.
The combined ratio for the first quarter was 94% which is very good as it still includes 5% from losses and loss adjustments from a winterstorm and from Covid19.
Net investment gains were driven by strong equity market conditions.
“Our first quarter results reflected strong, profitable growth across our underwriting operations globally, as we executed on our strategic plans to drive market leadership in key insurance product lines, while maintaining our focus on increasing operational efficiencies” said Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers.
Markel’s stock closed yesterday at $1’174 which translates into a price/book ratio of 1.3
In today’s environment it should be considered a fair price.
We should not forget that for insurance companies it is nearly impossible to earn good interest amounts and for Markel Ventures it is difficult to find good companies to acquire at acceptable prices. Therefore we cannot expect a higher share price!