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Markel’s Tremendous Year 2019!

February 6th, 2020

Markel Corp. (NYSE:MKL) yesterday reported FY 2019 results! What a tremendous year that was!

Markel reported an 40% increase of operating revenue from $6.8 billion in 2018 to $9.5 billion in 2019.
Diluted net income per share was $129.07 for the year ended December31, 2019 compared to diluted net loss per share of $9.55 in 2018.

Comprehensive income which includes book value gains and losses from investments made a big jump to $2.1 billion 2019 compared to a comprehensive loss to shareholders of $375.8 million in 2018.

The combined ratio was 94% in 2019 compared to 98% in 2018 thanks to less catastrophic losses from the hurricanes in 2018.

Book value per common share outstanding the all important metric in the insurance industry, was $802.59 at December31, 2019 compared to $653.85 at December31, 2018.

Thomas Gaynor and Richard Whitt, the co-chief executive officers described 2019 as a record-setting year for Markel:

“Gross written premiums from our underwriting operations surpassed $6 billion and within our Markel Ventures operations, revenues surpassed $2 billion”

“Gains on our investment portfolio were just under $2 billion, driving record comprehensive income and book value per share.”

The tremendous runup of the stock market in 2019 clearly made these results possible.

Not surprisingly Markel’ stock jumped 5.6% on that news at yesterday’s closing!

Markel is now valued at a price/book ratio of 1.6 which is certainly “fully valued”. Markel is a „buy“ but only with a time horizon not under 5 years.

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