Markel Corp.’s shares took a hit down last Friday after the company released a statement about an investigation on Markel CATCo, started by US and Bermuda’s authorities.
The investigation is limited to Markel CATCo operations and the parent company has a minimal risk exposure to the business.
Moreover, the loss-reserving practice is clearly difficult for every company in the field of collateralized reinsurance and retrocession business, and the inquirers will take this into account.
Law firms' investigations on behalf of Markel shareholders, which have arisen after the news, appear to have little merit.
On December 6th, Markel Corporation (NYSE:MKL) revealed that the firm was contacted on November 30th regarding an inquiry by U.S. and Bermudian authorities into loss reserves that were recorded in late