Markel: Baby Berkshire Is On Sale
Eliot Murray • 47 Comments
Eliot Murray • 47 Comments
Tue, May 3, 5:33 PM
Wed, Feb. 10, 4:49 PM
Nov. 19, 2015, 5:02 PM
- Chief Investment Office Thomas Gayner and co-COO Richard Whitt, III have been appointed co-CEOs at Markel (NYSE:MKL), effective Jan. 1. Whitt's co-COO Michael Crowley is promoted to president.
- All will continue to report to current chairman and CEO Alan Kirshner, who will become executive chairman.
Nov. 4, 2015, 6:34 PM
- Markel (NYSE:MKL): Q3 EPS of $7.39 beats by $1.13.
- Revenue of $1.34B (+3.1% Y/Y) beats by $30M.
Aug. 5, 2015, 5:59 PM
May 6, 2015, 5:51 PM
- Markel (NYSE:MKL): Q1 EPS of $13.49 beats by $7.61.
- Revenue of $1.3B (+4.8% Y/Y) misses by $10M.
Apr. 13, 2015, 10:02 PM
- The scorecard since the Bank One/JPMorgan (NYSE:JPM) merger in 2004 - with Jamie Dimon taking the helm of the merged company - is a remarkable one, writes The Brooklyn Investor.
- Dimon has grown tangible book value per share at a rate of 14.1% annually. As comparison (though it isn't a perfect one), BVPS at Berkshire Hathaway (BRK.A, BRK.B) and Markel (NYSE:MKL) - hall of fame compounders - has grown by 10.1% and 12.5% respectively per year over the same time frame. Keep in mind that JPMorgan turned in this record during the period that includes the financial crisis.
- As for stock performance, someone owning Bank One when Dimon became CEO in 2000 and holding through the merger would have had a total return of 10.4% annually since - 170 basis points per year better than Berkshire Hathaway. The S&P Financials Index over that time has returned just 2.2% per year, and the S&P 500 only 4%.
- As for Dimon's defense against those arguing for a break-up of JPMorgan, BI's buying it, excerpting the CEO: "Our long-term view means that we do not manage to temporary P/E rations - the tail should not wag the dog."
- And finally, BI notes Jamie Dimon comes pretty cheap - the average percentage of profits paid to the JPMorgan CEO over the three years ended in 2013 was 0.09%, the lowest among the Too Big To Fail U.S. banks.
Feb. 11, 2015, 5:01 PM
- Markel (NYSE:MKL): Q4 EPS of $8.05 beats by $2.35.
- Revenue of $1.34B (+4.7% Y/Y) in-line.
Nov. 5, 2014, 6:17 PM
- Markel (NYSE:MKL): Q3 EPS of $5.30 misses by $0.07.
- Revenue of $1.3B (+9.2% Y/Y) beats by $10M.
Aug. 7, 2014, 3:59 PM
- The "recasting" of the investment portfolio picked up in the Alterra acquisition is largely complete, says Markel (MKL -1.7%) CIO Tom Gayner on the earnings call (transcript). Alterra's fixed-income heavy portfolio has been turned over to equities and high-cost alternative investments have been mostly eliminated.
- As of June 30, says Gayner, equities represent 51% of shareholder equity, up from 48% at the start of the year. He notes Markel has enjoyed about a 700 basis point addition annually over a 25-year period when money is allocated to stocks rather than fixed-income.
- Previously: Markel EPS of $2.66
- Previously: Markel trading at 1.26x book value
Aug. 7, 2014, 9:39 AM
- Book value per share of $511.28 up 7% from the year's start. Last night's close of $643.93 puts the stock at 1.26x book.
- Net income per share of $2.66 vs. $2.24 one year ago.
- CEO Alan Kirshner: "We are pleased with our growth in book value for 2014, which was driven by strong performance in our equity and fixed income investment portfolios."
- Conference call at 10:30 ET
- Previously: Markel EPS of $2.66
- MKL flat in early action
Aug. 6, 2014, 6:20 PM
- Markel (NYSE:MKL): Q2 EPS of $2.66 may not be comparable to consensus of $5.79.
- Revenue of $1.26B (+22.3% Y/Y) beats by $40M.
Jul. 16, 2014, 11:22 AM
- Thomas Smith has been appointed to the newly-created position of Chief Marketing Officer, where he'll oversee business development, branding, managing strategic relationships, creating digital assets, and corporate advertising/marketing initiatives.
- Smith has been in the industry for 30 years, and with Markel (MKL -0.3%) since 2007. He'll report to co-COO Mike Crowley.
May 8, 2014, 1:09 PM
- Markel (MKL -0.4%) bulls can fondly recall December 2012, when a dive in the stock following the announcement of the Alterra acquisition allowed them to buy more of this serial compounder at book value.
- Amid the integration of Alterra's insurance operations, and its investment portfolio being turned over to CIO Tom Gaynor, Markel is up about 50% since and now trades at 1.3x March 31 book value per share of $493.96 (up 4% from Q4).
- Previously: Markel Corp beats by $0.51, beats on revenue
May 7, 2014, 5:15 PM
- Markel Corp (MKL): Q1 EPS of $6.25 beats by $0.51.
- Revenue of $1.24B (+51.2% Y/Y) beats by $20M.
Mar. 26, 2014, 3:28 PM
- In 140 characters or less (by Markel): "2013 a great year. Doubled insurance business with Alterra acquisition. Rest of Markel (MKL) grew by double digits. Expect more over time."
- Book value per share rose 18.2%, the same as Berkshire Hathaway, and putting BPS at $477.16 and the stock at about 1.24x book. 18% isn't bad, but BPS has grown at a 16.5% pace over the last five years, 13% annually over ten years, and 15.3% annually over the last twenty. Pretty impressive against the S&P 500 at 17.95%, 7.41%, and 9.23%, and Berkshire's 13.87%, 10.34%, and 14.6%.
- The equity portfolio gains are even more impressive, beating the S&P 500 by 365 basis points per year over 5 years, 499 bps per year over 10, and 236 bps per year over 20.
- One shift of note is the company's new emphasis on the 5-year CAGR of book value, rather than book value itself. The reason: While insurance operations and GAAP accounting work well for calculating book value, the increasingly important Markel Ventures operations are better valued by considering cash flow. "[Cash flow] is not measured predominantly by the balance sheet; it is measured predominantly by current and future income and cash flow statements."
- And don't forget the Alterra acquisition. After the purchase, Markel's equity portfolio as a percentage of shareholder equity dropped well below 50%. But Tom Gaynor has been busily reallocating and the percentage is back up to 49%; the company expects it to gradually increase to a more normal 80% over time.
Markel Corp. is a financial holding company. It markets and underwrites specialty insurance products and programs. The company operates through three segments: U.S. Insurance, International Insurance and Reinsurance. The U.S. Insurance segment includes all direct business and facultative... More
Industry: Property & Casualty Insurance
Country: United States
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