Markel CorporationMKL

Morningstar Rating

Stock Research and Analysis

by Drew Woodbury

By confining its operations to the specialty insurance markets Markel is able to dodge both competition and regulation. Specialty insurance, primarily excess and surplus lines, is characterized by policies that are complicated to price or are not accepted Read more

Bulls Say

Markel's capital strength allows it to invest its portfolio in equity securities. Over the long term, this will boost returns for shareholders.

Underwriters have the incentive to turn down business that will be unprofitable. This helps prevent the company from chasing top-line growth when opportunities are scarce.

Specialty insurance customers don't shop for insurance solely on price. This allows Markel to differentiate itself, especially with difficult-to-price policies.

Employees and managers are compensated heavily in stock awards, helping to make them good stewards of shareholders' interests. Read more

Bears Say

Equity market declines--such as the one experienced in 2008--will hurt Markel's results and capital position.

Many of Markel's recent acquisitions have experienced integration problems.

Markel is beginning to see more competition in its niche markets. A number of startup firms in Bermuda are entering specialty markets in search of profitable business.

The company's reorganization through its One Markel initiative may run into snags. Read more

Strategy

Markel seeks to use its long-term time horizon and niche focus to generate superior returns for shareholders. To that end, management believes it can deliver excess returns by investing a large portion Read more

Management

We hold the managers of Markel in high regard, and award them our highest Stewardship Grade. Alan Kirshner has served as the chairman and CEO of the company since 1986. Steven and Anthony Markel serve as joint vice chairmen and play a role in shaping Read more

Profile

Markel is a specialty insurance marketer and underwriter, with products covering a range of unique risks such as racehorses and summer camps. The firm operates in three Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

How Dodge & Cox Looks at Financials
Watch more