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1. Company Snapshot

1.a. Company Description

Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, rest of Europe, Canada, the Asia Pacific, and the Middle East.Its Insurance segment offers general and professional liability, personal lines, marine and energy, specialty programs, and workers' compensation insurance products; and property coverages that include fire, allied lines, and other specialized property coverages, including catastrophe-exposed property risks, such as earthquake and wind.This segment also offers credit and surety products, and collateral protection insurance products.


The company's Reinsurance segment offers transaction, healthcare, and environmental impairment liability; and specialty treaty reinsurance products comprising structured and whole turnover credit, political risk, mortgage and contract, and commercial surety reinsurance programs.Its Markel Ventures segment provides equipment used in baking systems and food processing; portable dredges; over-the-road car haulers and transportation equipment; and laminated oak and composite wood flooring, tube and tank trailers, as well as ornamental plants and residential homes, handbags, and architectural products.This segment also provides consulting, and other types of services to businesses and consumers, including distribution of exterior building products, crane rental, fire protection, and life safety services, management and technology consulting, and retail intelligence services.


The company's Other segment provides healthcare, leasing and investment services, as well as operates as an insurance and investment fund manager offering a range of investment products, including insurance-linked securities, catastrophe bonds, insurance swaps, and weather derivatives; and program services.it also manages funds with third parties.Markel Corporation was founded in 1930 and is based in Glen Allen, Virginia.

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1.b. Last Insights on MKL

Markel Group's recent performance was driven by strong Q3 earnings, beating estimates with $30.9 per share versus $22.77 per share expected. Solid investment income and higher premium volume contributed to the outperformance. The company's diversified business model, encompassing insurance, investments, and market ventures, provides a stable foundation for operations and cash flow generation. Institutional investors, such as Chicago Partners Investment Group and DekaBank Deutsche Girozentrale, have recently purchased or increased their stakes in the company. A "strong buy" rating is maintained due to its attractive valuation and resilient business model.

1.c. Company Highlights

2. Markel Group's Q3 2025 Earnings: A Strong Performance

Markel Group reported a 7% increase in consolidated revenues for Q3 2025, reaching a significant milestone, with operating income of $1 billion. However, adjusted operating income was $621 million, up 24% versus the same period last year. The company's earnings per share (EPS) came out at $30.9, significantly beating analyst estimates of $22.77. The Markel Insurance segment had a combined ratio of 93% in Q3 2025, compared to 97% in the comparable period, driven by improvements in underwriting results and increases in net investment income.

Publication Date: Nov -03

📋 Highlights
  • Underwriting Improvement: Insurance combined ratio dropped to 93% (Q3 2025) from 97% (Q3 2024), driven by exited unprofitable lines and light catastrophe losses.
  • Adjusted Operating Income Surge: Q3 2025 adjusted operating income rose 24% to $621M, with insurance contributing $153M of the $121M increase YoY.
  • Share Repurchases: $344M spent on buybacks in 2025, reducing shares from 12.8M to 12.6M, aligning with 10% annual repurchase target over 5 years.
  • Segment Growth: Markel Insurance underwriting gross written premiums grew 11% YoY (Q3) and 4% YTD, fueled by personal lines, general liability, and international expansion.
  • Long-Term Performance: Cumulative operating income over 5 years reached $13B by 2025, reflecting sustained cash flow generation and disciplined capital deployment across industrial, consumer, and financial sectors.

Insurance Segment Performance

The Markel Insurance segment's adjusted operating income was $428 million for Q3 2025, up from $276 million in the same quarter last year. The segment's combined ratio improved due to growth in personal lines, general liability lines, and international lines. Underwriting gross written premiums were up 11% year-over-year for the quarter and 4% year-to-date.

Operational Highlights

Markel Group continued to simplify its business, increasing accountability to front lines and setting the stage for renewed growth and improved profitability. The company repurchased shares totaling $344 million, reducing its share count to 12.6 million shares from 12.8 million at the end of last year. The company's U.S. personal lines business has been growing strongly over several years with excellent profitability.

Valuation Metrics

With a Price-to-Book Ratio (P/B) of 1.39, Markel Group's valuation appears reasonable, especially considering its Return on Equity (ROE) of 14.53%. The company's Free Cash Flow Yield is 9.54%, indicating a strong ability to generate cash. The Combined Ratio, a key metric for insurance companies, improved to 93%, demonstrating the company's focus on underwriting profitability.

Outlook

Markel Group is focusing on execution, developing bottom-up, customer-focused business plans for 2026 and beyond. The company's diversified portfolio and strong underwriting performance position it for future growth. Analysts estimate revenue growth at 9.4% for next year, indicating a positive outlook for the company.

3. NewsRoom

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Choreo LLC Decreases Stake in Markel Group Inc. $MKL

Nov -28

Source: defenseworld.net

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Charles Schwab Investment Management Inc. Increases Stock Holdings in Markel Group Inc. $MKL

Nov -28

Source: defenseworld.net

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Bank Julius Baer & Co. Ltd Zurich Reduces Position in Markel Group Inc. $MKL

Nov -25

Source: defenseworld.net

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Markel announces collaboration with Greenhouse Specialty Insurance Services to deliver innovative environmental solutions

Nov -20

Source: prnewswire.com

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Catalyst Funds Management Pty Ltd Buys Shares of 1,588 Markel Group Inc. $MKL

Nov -20

Source: defenseworld.net

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Allworth Financial LP Buys 46 Shares of Markel Group Inc. $MKL

Nov -17

Source: defenseworld.net

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Jana Partners Reduces Stake in Mercury Systems Inc.

Nov -15

Source: gurufocus.com

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Jana Partners' Strategic Move: Significant Addition of The Cooper Companies Inc

Nov -14

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.01%)

6. Segments

Insurance

Expected Growth: 2%

Markel Corporation's insurance segment growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on underwriting discipline, risk management, and investment income also contribute to its growth. Furthermore, Markel's diversified portfolio and strong capital position enable it to capitalize on opportunities and navigate market volatility.

Markel Ventures

Expected Growth: 1.0%

Markel Ventures' 1.0 growth driven by strategic acquisitions, expansion into new markets, and diversification of portfolio companies. Strong financial position and disciplined capital allocation enable investments in growth initiatives, while a culture of entrepreneurship and innovation fosters organic growth.

Investing

Expected Growth: 3%

Markel Corporation's 3% growth is driven by its disciplined underwriting approach, diversified insurance portfolio, and strategic investments in profitable niches. Additionally, its strong capital position, low debt, and consistent dividend payments contribute to its stable growth. Furthermore, the company's ability to adapt to changing market conditions and its focus on long-term value creation also support its growth momentum.

Reinsurance

Expected Growth: 4%

Markel Corporation's reinsurance growth is driven by increasing demand for specialty insurance products, expansion into new geographic markets, and strategic partnerships. Additionally, the company's diversified portfolio and strong underwriting discipline contribute to its growth. Furthermore, Markel's ability to offer customized solutions and its expertise in niche markets also support its growth momentum.

Other

Expected Growth: 5%

Markel's 'Other' segment growth is driven by increasing demand for its insurance-linked securities, expansion of its Markel Ventures arm, and strategic acquisitions. Additionally, the company's investments in emerging markets and diversification into new product lines, such as environmental and energy-related insurance, contribute to its growth.

7. Detailed Products

Reinsurance

Markel Corporation provides reinsurance products to insurance companies, helping them manage risk and increase capacity.

Insurance

Markel Corporation offers a range of insurance products, including property, casualty, and specialty insurance, to individuals and businesses.

Program Services

Markel Corporation provides program services, including underwriting, policy administration, and claims management, to insurance companies and agents.

Investments

Markel Corporation invests in a diversified portfolio of assets, including equities, fixed income, and real estate, to generate returns for shareholders.

State National

Markel Corporation's State National division provides fronting and program services to insurance companies and agents.

8. Markel Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Markel Corporation operates in the insurance and financial services industry, where substitutes are limited. However, the company faces some threat from alternative financial products and services offered by fintech companies and digital platforms.

Bargaining Power Of Customers

Markel Corporation's customers are largely individual and commercial policyholders, who have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Markel Corporation relies on a network of independent agents and brokers to distribute its insurance products. While these suppliers have some bargaining power, the company's strong relationships and diversified distribution channels mitigate this risk.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory hurdles and significant capital requirements. While new entrants may emerge, Markel Corporation's established brand and scale of operations provide a competitive advantage.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. Markel Corporation faces intense rivalry from other insurance companies, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.68%
Debt Cost 5.27%
Equity Weight 79.32%
Equity Cost 7.41%
WACC 6.97%
Leverage 26.07%

11. Quality Control: Markel Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WR Berkley

A-Score: 7.0/10

Value: 5.3

Growth: 7.9

Quality: 6.5

Yield: 4.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Mercury General

A-Score: 6.8/10

Value: 7.3

Growth: 6.9

Quality: 6.6

Yield: 6.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Hanover Insurance

A-Score: 6.8/10

Value: 7.3

Growth: 4.8

Quality: 6.6

Yield: 4.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
RLI

A-Score: 6.5/10

Value: 6.0

Growth: 6.9

Quality: 8.2

Yield: 7.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Markel

A-Score: 6.4/10

Value: 7.0

Growth: 7.2

Quality: 7.1

Yield: 0.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Loews

A-Score: 6.1/10

Value: 6.2

Growth: 6.8

Quality: 5.3

Yield: 0.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2047.87$

Current Price

2047.87$

Potential

-0.00%

Expected Cash-Flows