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Company Report

Markel has built a reputation as a "mini-Berkshire," and while we think it has developed a solid franchise, we believe the premium the market has at times awarded the company based on this narrative is not fully justified.
Stock Analyst Note

Markel finished a difficult year on a very mixed note. Underwriting results have been the company's Achilles' heel this past year, and while that issue only got worse in the fourth quarter, strong investment results acted as an offset. Overall, we are more concerned about the poor underwriting results, as we expect the investment side to be volatile quarter to quarter and think the company's relative investing advantage may be mooted going forward if interest rates remain high. We will maintain our $1,310 fair value estimate for the no-moat company and see the shares as roughly fairly valued at the moment.
Stock Analyst Note

P&C insurers have had substantial pricing increases across lines recently, but otherwise, commercial and personal insurers are in very different places. For commercial insurers, an extended period of strong price increases has them in a hard market and realizing attractive underwriting margins. Underlying combined ratios have flattened out recently, and we don't expect any significant improvement. Still, this should leave commercial insurers in a strong position over the next couple of years. Personal auto insurers have endured a difficult period in the wake of the pandemic, due to a variety of negative claims trends, and have been pushing pricing to catch up. While they are not out of trouble yet, we think the third quarter could mark the start of a turn toward more normalized underwriting results.
Company Report

Markel has built a reputation as a "mini-Berkshire," and while we think it has developed a solid franchise, we believe the premium the market has at times awarded the company based on this narrative is not fully justified.
Stock Analyst Note

Markel’s third-quarter results were a little disappointing, specifically in regard to underwriting. On the investment side, results were mixed with a weaker equity market partially offset by higher interest rates. Overall, though, we remain comfortable with our $1,310 fair value estimate for the no-moat company and see shares as mildly overvalued.
Stock Analyst Note

We think Markel is a solid franchise with a number of attractive qualities, but the "mini-Berkshire" narrative that surrounds the company is misleading. We will maintain our $1,310 fair value estimate and no-moat rating. Starting with the positives: CEO Tom Gayner has a record of outperforming the S&P 500 using an investing philosophy similar to that employed by Morningstar and Berkshire Hathaway's Warren Buffett. Through Markel Ventures, the company appears to be acquiring moaty noninsurance operations at good prices. Finally, the company has materially outperformed the overall industry in terms of underwriting profitability.
Stock Analyst Note

Markel produced a solid overall second quarter. While the company appears to be lagging its peers on the underwriting side, a relatively aggressive investing approach paid off this quarter. Overall, though, we don’t see anything that materially alters our long-term view and will maintain our $1,310 fair value estimate for the no-moat company. We see shares as slightly overvalued.
Company Report

Markel has built a reputation as a "mini-Berkshire," and while we think it has developed a solid franchise, we believe the premium the market has at times awarded the company based on this narrative is not fully justified.
Stock Analyst Note

Markel produced a solid first quarter. While underwriting results were not impressive, in our view, given current market dynamics, the company had a good showing on the investment side. We will maintain our $1,250 per share fair value estimate for the no-moat company and see the shares as being about fairly valued.
Stock Analyst Note

Markel saw a bit of a bounceback on the investing side in the fourth quarter, but the strength there was offset by weaker underwriting results. For the full year, book value per share declined 10%, due mainly to investment losses. Overall, we see nothing in the quarter that materially alters our long-term view, and we will maintain our $1,250 fair value estimate and no-moat rating.
Company Report

Markel has built a reputation as a "mini-Berkshire," and while we think it has developed a solid franchise, we believe the premium the market has at times awarded the company based on this narrative is not fully justified.
Stock Analyst Note

Negative marks on the investment portfolio weighed on Markel in the third quarter, and we think results this year support our view that Markel's investment approach carries some risk. However, the company's underwriting performance was solid. We will maintain our $1,203 fair value estimate and no moat rating.
Stock Analyst Note

Given the differing states of the pricing cycle across lines and recent capital market movements, property and casualty insurers have a variety of tailwinds and headwinds at the moment. Commercial line insurers have seen strong pricing increases over the past few years, and we think the outlook for that area is relatively bright, as attractive underlying combined ratios create a solid base for strong profitability. Conversely, following a burst of abnormally high profitability in the early stage of the pandemic, personal auto insurers have struggled with a number of headwinds more recently, which has pushed most players into significant underwriting losses. Higher interest rates have reduced carrying value for fixed-income investments but offer the possibility of better investment income going forward. Finally, the bear market creates issues for insurers with an equity-heavy investment approach.
Stock Analyst Note

Markel had a solid quarter from an underwriting perspective, but the investment side pushed the company to a $934 million loss for the second quarter. We will maintain our $1,203 per share fair value estimate and no-moat rating.
Company Report

Markel has built a reputation as a "mini-Berkshire," and while we think it has developed a solid franchise, we believe the premium the market has historically awarded the company based on this narrative is not fully justified.
Stock Analyst Note

While Markel had a good quarter on the underwriting side, investment losses pushed the company to a net loss of $53 million in the quarter. We will maintain our $1,179 fair value estimate and no-moat rating.
Company Report

Markel has built a reputation as a "mini-Berkshire," and while we think it has developed a solid franchise, we believe the premium the market has historically awarded the company based on this narrative is not fully justified.
Stock Analyst Note

Markel closed out a fairly strong year on a solid note, with the company continuing to see traction on the underwriting side, and we think favorable industry conditions will remain a tailwind for the company as it enters 2022. This, in combination with attractive investment results this year, led to book value per share growth of 17% this year. We will maintain our $1,171 fair value estimate and no-moat rating.
Stock Analyst Note

Markel delivered a solid third quarter, with relatively strong underwriting results partially offset by modest investment losses. While the company saw something of a turn on the investment side, strong gains on its equity holdings have led to an 11% increase in book value per share year to date. We will maintain our $1,096 fair value estimate and no-moat rating.

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