{"id":2113,"date":"2019-11-04T10:06:17","date_gmt":"2019-11-04T08:06:17","guid":{"rendered":"http:\/\/www.blog.asmus-puhl.com\/?p=2113"},"modified":"2019-11-04T10:06:17","modified_gmt":"2019-11-04T08:06:17","slug":"markels-results-are-better-than-they-appear-at-first-glance","status":"publish","type":"post","link":"http:\/\/www.blog.asmus-puhl.com\/?p=2113","title":{"rendered":"Markel&#8217;s results are better than they appear at first glance"},"content":{"rendered":"\n<p>Markel Corp. (NYSE:MKL) our speciality insurance company <a href=\"https:\/\/finance.yahoo.com\/news\/markel-reports-third-quarter-2019-002900264.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"reported Q3 2019 results (opens in a new tab)\">reported Q3 2019 results<\/a> which appear worse than they really are:<\/p>\n\n\n\n<p>Operating revenue\ndeclined 9.1% from $2.236 billion in Q3 2018 to $2.033 billion this\nquarter.<\/p>\n\n\n\n<p>Net income to\nshareholders declined much more. Down 49.8% from $409.4 in Q3 2018\nbillion to $205.6 billion this quarter.<\/p>\n\n\n\n<p>But these declines can be\nexplained by a change in accounting rules: adjustments to the fair\nvalue of equity securities have to be reported and integrated into\nthe quarterly operating results. So, if the stock market has a\nvolatile period this will be reflected by the reported numbers.  \n<\/p>\n\n\n\n<p>Knowing\nthis it is not surprising that the much more important metric in the\ninsurance industry the book value\/share ratio actually rose 9.1% yoy\nto $768.98 !<\/p>\n\n\n\n<p>At\nMarkel&#8217;s investing operations, net investment income climbed 6.7%\nyear over year to $113.4 million \n<\/p>\n\n\n\n<p>\nAt\nMarkel&#8217;s insurance operations the consolidated combined ratio was 94%\nand earned premiums increased 9.3% to $1.3 billion.<\/p>\n\n\n\n<p>At\nMarkel Ventures the operating\nrevenue grew 5.7% to $496.2 million and operating income jumped 50%\nto $35.5 million.<\/p>\n\n\n\n<p>\nAll\nthis shows clearly that Markel&#8217;s long term success story continued\nthis quarter as in the years before.<\/p>\n\n\n\n<p>\nMarkel&#8217;s\nstock today is valued at a price\/book value per share of  1.5 , which\nis the \u201enormal\u201c valuation of Markel&#8217;s stock in the last months,\nnot cheap and not very expensive either.<\/p>\n\n\n\n<p>\nPatient\ninvestors could wait and buy after the next market correction.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Markel Corp. (NYSE:MKL) our speciality insurance company reported Q3 2019 results which appear worse than they really are: Operating revenue declined 9.1% from $2.236 billion in Q3 2018 to $2.033 billion this quarter. Net income to shareholders declined much more. Down 49.8% from $409.4 in Q3 2018 billion to $205.6 billion this quarter. But these [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2113"}],"collection":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2113"}],"version-history":[{"count":4,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2113\/revisions"}],"predecessor-version":[{"id":2117,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2113\/revisions\/2117"}],"wp:attachment":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2113"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}