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Markel’s combined ratio improved in Q2 2012!

August 16th, 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!

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