Archive for February, 2022

Markel in 2021 fired on all three engines!

February 7th, 2022 Comments off

Markel Corporation (NYSE: MKL) in FY 2021 fired on all three engines as Co-CEO Tom Gaynor put it:

In the underwriting operations segment, gross written premiums were $8.5 billion for the year, compared to $7.2 billion in 2020, an increase of 19%.

And earned premiums increased 16% to $6.5 billion in 2021. The increased premium volume reflects both strong growth in new business, as well as ongoing favorable pricing trends across most of the product lines.

The consolidated combined ratio for 2021 was an excellent 90, which included $195 million or three points of losses on natural catastrophes.

With regards to net investment income, Markel reported $375 million for 2021, compared to $372 million last year.

Investment income continues to be impacted by the low interest rate environment we currently face.

Revenues from Markel Ventures increased 30% to $3.6 billion for 2021, compared to $2.8 billion last year. The increase reflects a more significant contribution of revenues from Lansing Building Products, which was acquired in April 2020, and the contribution of revenues from Buckner Heavylift Cranes, which was acquired in August 2021.

Book value per common share outstanding came in at $ 1034,56 up 16,8% from $ 885,72 at dec 31st 2020.

Markel’s stock trades at a price/book value ratio of 1.2 referring to the last share price of $ 1’260,61 This is not expensive!

If one believes that the ultra low interest environment is coming to an end Markel could be an interesting investment as finally insurance companies will be enabled to earn more interest on their bond portfolio!