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Expect big things from „Markel 3.0“!

August 12th, 2013

Markel (NYSE: MKL) is in a transitional phase as the company explains in the Q2 2013 Earnings Release.

They completed the acquisition of Alterra Capital the 1st may 2013 and started rapidly the integration into Markel.

The new Markel 3.0 as it has been called by CIO Thomas Gayner in the conference call boasts more than $23 billion in combined total assets and shareholder equity stands at more than $6.3 billion.

 The „legacy Markel“ achieved very good results in the first half year 2013: 17% increase in gross premiums sold and a combined ratio of 89%

Their non insurance operations under the name of Markel Ventures increased revenue by an impressive 64% to $330 millions and their equity portfolio earned total returns of 16.7% in the first half year.

The big task for the near future is to bring Alterra’s assets up to the standards of Markel!

The equity investment percentage of stockholder equity will jump back to over 60% and Markel Ventures will grow even faster to deploy the integrated assets.

Markel 3.0 certainly means that it will look even more like a „Baby Berkshire“!

Markel’s stock at $ 528.17 is valued at only 1.17 price to book, rather cheap regarding their future perspectives!

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