Posts Tagged ‘#insurance’

Markel released very good Q2 2021 results!

August 4th, 2021 Comments off

Markel Corp. (NYSE:MKL) today released Q2 and HY1 results „that reflect outstanding performance across all the three engines“ as Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers put it.

So how was the performance of those „three engines“?

Markel continued to achieve double-digit premium growth in their underwriting operations through both organic growth in new business and more favorable rates, and they delivered an 87% combined ratio for the quarter.

Markel Ventures revenues surpassed $1 billion for the quarter,
This private equity arm of Markel is steadily growing.

Within the investment portfolio, significant gains did result from the equity portfolio.

Book value per common share outstanding grew 10% from $885,72 to $974,45, very solid indeed!

Markel’s stock at today’s price of $1’220 means that it trades at a price/book ratio of 1.3
That’s not very expensive but it reflects its limited earnings power in this low interest environment.
Markel is a long term buy and will become more interesting when interest rates will finally rise again.

Markel reports improved Q1 2021 results!

April 30th, 2021 Comments off

Earned premiums grew 13% to $1.5 bil coming from new business and more favorable rates.
The combined ratio for the first quarter was 94% which is very good as it still includes 5% from losses and loss adjustments from a winterstorm and from Covid19.

Net investment gains were driven by strong equity market conditions.

“Our first quarter results reflected strong, profitable growth across our underwriting operations globally, as we executed on our strategic plans to drive market leadership in key insurance product lines, while maintaining our focus on increasing operational efficiencies” said Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers.

Markel’s stock closed yesterday at $1’174 which translates into a price/book ratio of 1.3
In today’s environment it should be considered a fair price.

We should not forget that for insurance companies it is nearly impossible to earn good interest amounts and for Markel Ventures it is difficult to find good companies to acquire at acceptable prices. Therefore we cannot expect a higher share price!