Markel Earnings: Stronger Equity Market Drives Good Profitability

Markel takes a unique approach to insurance, with a model that is more focused on the investment side relative to the average insurer. While the potential downsides of this approach have been on display over the past year or so, the third quarter highlighted the potential positives, as a $917 million investment gain drove net income of $905 million. We will maintain our $1,500 fair value estimate for the no-moat company and see the shares as about fairly valued.