Markel Corporation’s 2011 Earnings Report
Markel Corporation (NYSE: MKL), one of the 2 companies this blog follows closely reported FY and Q4 2011 Earnings:
The press release can be found on Markel’s Investor Information Site.
A transcript of their Earnings Conference Call can be found on „Seeking Alpha”.
Book value per common share outstanding, the most important metric to value an insurance company increased 8% to $ 352.10 at december 31, 2011 from $ 326.36 at december 31, 2010.
The combined ratio of the insurance business unfortunately rose from 97% on year ago to 102% in 2011 mainly due to natural catastrophies like the Thai floods and hurricane Irene.
Revenues from Markel Ventures, that’s where they invest money in privatly held companies in the Berkshire Hathaway style, jumped from $ 166 millions to $ 317 millions in 2011 mainly due to one big acquisition.
Markel’s investments in the fixed income sector are very cautious as they are traditionally „balance sheet oriented”.
They forego current investment income as they maintain shorter than usual durations in the bond portfolio.
By doing this they avoid heavy losses on their portfolio once this zero interest environment comes to an end.
And that will exactly be the moment when Markel’s stock will return to market’s favor. So be prepared!
Markel’s stock at a price of $ 405 trades at just 1.2 book value /share: …rather cheep isn’t it … why not pick up some shares?