Markel’s combined ratio improved in Q2 2012!
Markel Corporation (NYSE: MKL) released its Q2 2012 earnings and the most important news is certainly the improved combined ratio:
It’s down to a remarkable 87% instead of 103% in the same period last year!
Ok, this year’s quarter was „disaster-free” but nevertheless it seems that the US insurance market is improving.
60% of Markel’s stockholder’s equity is now invested in stocks. So Markel would profit directly from the next stock market upturn.
For more details and all the numbers have a look at the earnings call transcript at Seeking Alpha.
Book value/share, the most important metric to value an insurance company, improved also 7.9 % from $ 352.10 to $ 379.88 this year.
So Markel’s stock sells for 1.1 book value at yesterday’s price of $ 432.25.
Rather cheap isn’t it? A “buy rating” seems more than justified!