Markel reports Q1 2011 Earnings
Markel Corporation (NYSE: MKL), one of the stocks this blog follows on a regular basis reported first quarter 2011 results:
The company posted sharply lower earnings to shareholders of $ 8 million compared to $ 43 million in 2010.
The combined ratio jumped to 112% from 101% last year due mainly to natural catastrophes including the Australian floods, the earthquake in New Zealand and the Japanese earthquake and subsequent tsunami.
But do not forget that historically the first quarter is Markel’s lowest cash and earning quarter as they are paying employee benefit, agent incentives, pension contributions etc.
As a positive sign book value/share increased to $ 329 from $ 326 at yearend 2010!
At yesterday’s share price of $ 405 Markel trades at a price/book value of only 1.2!
That’s historically cheap! Why not profit from current negative sentiment and snap up some shares of this high quality company at a good price?