Markel Corporation An overview markelcorp com ForwardLooking Statements
- Slides: 71
Markel Corporation An overview markelcorp. com
Forward-Looking Statements in this presentation which are not statements of historical fact are “forward-looking statements” within the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance. Many factors could cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking-statements. These factors are discussed in detail in our Annual Report on Form 10 -K, Quarterly Reports on Form 10 -Q and in our other filings with the SEC. We make forward-looking statements based on currently available information, and we assume no obligation to update the statements made today or contained in our Annual Report or other filings due to changes in underlying factors, new information, future developments, or otherwise, except as required by law. Third Party Information This presentation, including certain forward-looking statements herein, include information obtained from third party sources that we believe to be reliable. However, we have not independently verified this third party information and cannot assure you of its accuracy or completeness. While we are not aware of any misstatements regarding any third party data contained in this presentation, such data involve risks and uncertainties and are subject to change based on various factors, including those discussed in detail in our Annual Report on Form 10 -K, Quarterly Reports on Form 10 -Q and in our other filings with the SEC. We assume no obligation to revise or update this third party information to reflect future events or circumstances. 2 07132018
The Markel Style Markel has a commitment to Success. We believe in hard work and a zealous pursuit of excellence while keeping a sense of humor. Our creed is honesty and fairness in all our dealings. The Markel way is to seek to be a market leader in each of our pursuits. We seek to know our customers' needs and to provide our customers with quality products and service. Our pledge to our shareholders is that we will build the financial value of our company. We respect our relationship with our suppliers and have a commitment to our communities. We are encouraged to look for a better way to do things…to challenge management. We have the ability to make decisions or alter a course quickly. The Markel approach is one of spontaneity and flexibility. This requires a respect for authority but a disdain of bureaucracy. At Markel we hold the individual's right to self-determination in the highest light, providing an atmosphere in which people can reach their personal potential. Being results-oriented, we are willing to put aside individual concerns in the spirit of teamwork to achieve success. Above all, we enjoy what we are doing. There is excitement at Markel, one that comes from innovating, creating, striving for a better way, sharing success with others…winning. 3 07132018
4 07132018
About Markel Corporation • Diverse financial holding company for insurance and investment operations • Trades on the New York Stock Exchange: MKL • Headquartered in Richmond, Virginia • Founded in 1930 • Covers standard and hard-to-place insurance and reinsurance risks, and maintains underwriting platforms in Bermuda and at Lloyd’s of London (Syndicate 3000) • Makes strategic investments in companies outside of the insurance industry; these investments are known collectively as Markel Ventures 5 07132018
Markel offices around the world Headquarters • Richmond, VA Asia Pacific • Dubai, UAE • Hong Kong • Kuala Lumpur, Malaysia • Labuan, Malaysia • Mumbai, India • Singapore • Tokyo, Japan Bermuda • Hamilton, Bermuda* Canada • Montreal, Canada • Toronto, Canada • Vancouver, Canada 6 Europe • Barcelona, Spain • Dublin, Ireland • Madrid, Spain • Munich, Germany • Pierrefitte-en-Auge, France • Rotterdam, Netherlands • Zürich, Switzerland Latin America • Bogotá, Colombia • Buenos Aires, Argentina • Rio de Janeiro, Brazil • São Paulo, Brazil *Multiple offices in these locations United Kingdom • Birmingham, England • Brinkworth, England • Bristol, England • Leeds, England • London Metro* • Manchester, England • Reigate, England • Rugby, England • Sheffield, England United States • Atlanta Metro* • Austin, TX • Chicago Metro* • Dallas-Fort Worth Metro* • Denver Metro • Geneva, IL • • • • • Hartford, CT Hawley, PA Houston Metro Kansas City Las Vegas Metro Los Angeles Metro* Milwaukee Metro New York Metro Omaha, NE Providence, RI Red Bank, NJ San Antonio, TX San Diego Metro San Francisco Metro* Scottsdale, AZ Summit, NJ Tampa, FL Warrenton, VA 07132018
Organizational structure 7 07132018
Markel Corporation executive team Alan I. Kirshner Executive Chairman Thomas S. Gayner Co-Chief Executive Officer Anthony F. Markel Vice Chairman Richard R. Whitt, III Co-Chief Executive Officer Steven A. Markel Vice Chairman F. Michael Crowley Executive Consultant 8 07132018
Year-end financial highlights 2017 2016 2015 Total revenues $6, 061, 659 $5, 612, 026 $5, 369, 983 Gross written premium $5, 253, 107 $4, 796, 645 $4, 632, 912 Net income from other sources $1, 333, 280 $1, 214, 449 $1, 047, 516 Comprehensive income to shareholders $1, 174, 974 $667, 047 $232, 723 Shareholders’ equity $9, 504, 148 $8, 460, 927 $7, 834, 150 Book value per common share outstanding $683. 55 $606. 30 $561. 23 Combined ratio (US GAAP) 105% 92% 89% Total assets $32, 805, 016 $25, 875, 299 $24, 941, 271 Dollars in thousands, except per share amounts (USD) 9 07132018
Reporting segments Divisions Markel Global Insurance Markel Assurance Markel Specialty Markel International Markel Global Reinsurance Reporting segments US Insurance International Insurance Reinsurance Results for lines of business discontinued prior to, or in conjunction with, acquisitions will continue to be reported as the Other Insurance (Discontinued Lines) segment. 10 07132018
Underwriting operations: January 1 -March 31 2018 Insurance Reinsurance Consolidated Gross premium $1. 093 b $492. 3 m $1. 586 b Earned premium $902. 9 m $248. 0 m $1. 151 b Combined ratio 89% 97% 90% Other revenues 2018 Markel Ventures $392. 1 m Program services $21. 6 m Markel CATCo $17. 3 m Other $8. 4 m Total other revenues $439. 4 m 11 07132018
Gross premium distribution (as reported for Jan. 1 -March 31) 12 07132018
Our place in the industry • 2 nd largest excess and surplus lines insurer in the US (SNL Financial, April 2018) • Top 25 US liability insurers (National Association of Insurance Commissioners, March 2018) • #29 on A. M. Best’s top 75 North American public insurers (July 2017) • Ward’s Top 50 performing P&C insurers (July 2017) • #295 on Forbes’ list of America’s top companies (May 2018) • #464 on Fortune 500 (May 2018) 13 07132018
Recent insurance acquisitions • State National November 2017: An insurer focused on program services and lender services • Sure. Tec April 2017: A Houston-based privately-held surety company • CATCo December 2015: A Bermuda-based specialist investment management business 14 07132018
Recent non-insurance acquisitions • Costa Farms August 2017: The largest producer of ornamental plants in the world • Cap. Tech December 2015: A national management consulting firm that helps bridge the gap between business and technology • Vanderpol and Den Boer August 2014: Designers and manufacturers of waffle baking equipment; now part of Tromp Group • Cottrell July 2014: Designer and manufacturer of over-the-road automobile transport equipment 15 07132018
Combined ratio: insurance operations 110% 105% 100% 97% 95% 92% 89% 90% 85% 80% Industry 2013 2014 2015 2016 96% 97% 98% 101% 2017 105% 16 07132018
Capital management • Markel’s philosophy is to maintain more than adequate capital in the insurance subsidiaries, and pay dividends to the holding company each year • Provides the flexibility to deploy capital where needed • We seek to maintain: – RBC scores of at least 300% in each of our US subsidiaries – Best’s Capital Adequacy Ratio (BCAR) scores to support each subsidiary’s technical rating 17 07132018
Underwriting and reserving • Underwriting approach – Open-minded – Disciplined – Knowledge of specific risks and industries • Reserving approach – “Better to be redundant than deficient. ” 18 07132018
Long-term growth in book value Book value ($b) / book value per share ($) $10 $684 +13% $9 $800 $700 $8 Book value ($b) $7 $500 $6 +11% $5 $400 $4 +10% $300 $3 $200 $2 +12% $100 $1 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $0 Book value per share $600
Capital generation 1 Reinvestment in insurance operations • New products • New geographies Capital generated from: 2 • Industry hires • Acquisitions Public securities markets • Fixed income • Equities four investment lenses • Underwriting profits • Fixed income coupons • Equity investment returns 3 • Cash flows from industrial and service subsidiaries Privately held companies (Markel Ventures) • Permanent capital • Management independence • Strong balance sheets • Long-term orientation 4 Share repurchases • Impact per share performance 20 07132018
Types of insurance products we underwrite • Admitted • Excess and surplus lines • Reinsurance • Lloyd’s Syndicate 3000 21 07132018
Distribution channels • Direct-to-consumer (select products) • Retail agents (generalists) • Retail agents (specialists) • Wholesale, binding agents • Program administrators • Top 100 agencies 22 07132018
Financial strength formula • Consistent, long-term underwriting profits • Reserves more likely to be redundant than deficient • Investing success 23 07132018
Our insurance companies • Alterra America Insurance Company • City National Insurance Company • Markel Global Reinsurance Company • EC Insurance Company Limited • Markel Insurance Company • Essentia Insurance Company • Markel International Insurance Company Limited • Evanston Insurance Company • First. Comp Insurance Company • Markel Resseguradora do Brasil S. A. • Independent Specialty Insurance Company • National Specialty Insurance Company • State National Insurance Company • Lloyd’s Syndicate 3000 • Sure. Tec Indemnity Company • Markel American Insurance Company • Sure. Tec Insurance Company • Markel Bermuda Limited • United Specialty Insurance Company 24 07132018
Financial strength and credit ratings 25 07132018
Insurance divisions
Markel Assurance
Markel Assurance • Formed in 2018 by merging the Global Insurance and Wholesale divisions • Production channels include both wholesale and retail • Three product lines – casualty, professional liability, and property/marine *Markel West, Inc. operates in California as Markel West Insurance Services, a California licensed surplus lines broker, license No. 0 D 95581. 28 07132018
Target risks • Construction • Health care • Energy and environmental • Financial institutions • Life sciences • Manufacturing • Real estate • Technology 29 07132018
Regional offices 30 07132018
Markel Assurance leadership team Bryan Sanders President Jim Gray Executive Underwriting Officer, Professional Jeff Lamb Chief Operations Officer Jon Hahn Executive Underwriting Officer, Property Jim Arnold Chief Administrative Officer Glenn Harris Managing Director, Business Development Alan Rodrigues Executive Underwriting Officer, Casualty Denise Perlman Senior Director, Business Development 31 07132018
Markel Specialty
Markel Specialty • Insurance solutions for both commercial customers and individuals • Coverages: – Small business protection – workers compensation, businessowners policy (BOP), and other specialized protection – Property and casualty – Professional liability coverages – Accident medical – Surety bonds Markelinsurance. com 33 07132018
Production partners • Retail agents • Agents specializing in particular product lines • Program administrators • MGAs/MGUs • Affinity groups 34 07132018
Programs Small business packages • Available for most small business classes. Coverages include workers compensation, general liability, property, businessowners policy (BOP), and miscellaneous E&O. Commercial industry specializations • Medical services – hospital fleets and ambulances • Program Administrators • Sports and fitness – health clubs, personal trainers, cheer gyms, gymnastics, dance, martial arts • Child development and recreation – camps, • Winery and vineyards educational services, youth recreation, child Personal care • Special property – E&S, renters, • Commercial and residential services – lawn manufactured home care, pest control, artisan contractors • Pet insurance • Community services – civic organizations, • Marine – boats, yachts, and personal emergency relief services, environmental watercraft organizations • Farm property and liability • Powersports – motorcycle, ATV, bicycle • Hunting and fishing • Event liability and cancellation 35 07132018
Markel Specialty offices 36 07132018
Markel Specialty leadership Matt Parker President Stephen Leeret Managing Director Programs Chad Bertucci Managing Executive Markel Specialty Commercial Mary Pat Joyce Managing Executive Markel Carrier Alliance Don Faison Managing Executive Markel Specialty Agriculture Chris Reichert Managing Director Sales and Marketing Audrey Hanken Managing Executive Markel Specialty Personal Lines 37 07132018
Markel International
Markel International • Writes insurance and reinsurance business through offices across the UK, Europe, Canada, Latin America, and Asia Pacific • Insuring entities: Syndicate 3000, Markel International Insurance Company Limited, and Markel Resseguradora do Brasil S. A. • Units: Specialty property, casualty, professional liability, equine, terrorism, marine, energy, and trade credit insurance on both a direct and reinsurance basis and manages Markel Syndicate 3000 at Lloyd’s. • Markelinternational. com 39 07132018
Markel International products • Accident and health • Environmental liability • Business interruption • Equine and livestock • Cargo • Contingency • Crime • Cyber liability • D&O, management liability • Employers’ liability • Employment law protection • Employment practices liability 40 • Ports and terminals • Professional indemnity/liability • Excess/umbrella liability • Property • Financial institutions • Property treaty • Fine arts reinsurance • General liability • Social welfare • Hull • Specie • Intellectual property • Terrorism • Italian liability/indemnity • Trade credit • Marine and energy • UK motor reinsurance • Marine liability • War • Media liability • Products liability 07132018
Markel International leadership William Stovin President Nick Line Chief Actuary Andy Davies Chief Operating Officer Jeremy Brazil Director of Underwriting Jeremy Noble Finance Director 41 07132018
Markel International offices 42 07132018
Reinsurance division
Markel Global Reinsurance
Markel Global Reinsurance • Provides traditional reinsurance products to the broker market – Treaty reinsurance – Facultative reinsurance • Writes reinsurance treaties – Quota share – Excess of loss 45 07132018
Markel Global Reinsurance products • Agriculture • Professional liability • Auto • Property • Aviation • Public entity • Environmental • Retro • Excess casualty • Surety • General liability • Terrorism • Marine and energy • Trade credit/political risk • Medical malpractice • Whole account • Mortgage • Whole turnover credit • Multi-line • Workers compensation 46 07132018
Markel Global Reinsurance leadership Jed Rhoads President and Chief Underwriting Officer, Global Reinsurance Don Bahr Senior Managing Director, Casualty Reinsurance Andrew Barnard Senior Managing Director, International Property Catastrophe and Retro Reinsurance Phil Freda Managing Director, Public Entity Reinsurance Steve Leitz Chief Administrative Officer Peta White Senior Managing Director, North American Property Tod Costikyan Senior Managing Director, Specialty Reinsurance 47 07132018
Global Re offices 48 07132018
ILS management
Markel CATCo
Markel CATCo • A specialist investment management business, based in Hamilton, Bermuda • Manages retrocessional and traditional reinsurance portfolios on behalf of financial institutions, charities, pension funds, family offices, and investment funds • Authorized and regulated by the Bermuda Monetary Authority • Markelcatco. com 51 07132018
State National Companies
State National • Leading, specialty provider of property and casualty insurance operating in two niche markets across the United States • 27+-year track record of profitability • “A” rating from A. M. Best since 1993, the company’s first year of eligibility • Headquartered in Bedford, Texas; 450 employees • Statenational. com 53 07132018
Non-insurance
Markel Ventures
Markel Ventures • Markel’s non-insurance operations • Acquire majority control of companies outside of the insurance industry using “permanent capital” • Portfolio includes companies in the manufacturing, health care, and business/financial services sectors • Markelventures. com 56 07132018
Markel Ventures investment criteria Acquisitions are for the long-term and financed with little or no debt. Look to invest permanent capital in businesses that meet the following criteria: – Profitable businesses with good returns on capital – Management teams with talent and integrity – Reinvestment opportunities – Reasonable price 57 07132018
Markel Ventures companies Manufacturing AMF Bakery Systems | VA Eagle Construction | VA Designer and manufacturer of high speed bakery equipment for the production of bread and buns Residential homebuilder and provider of diverse real estate services in Virginia Reading Bakery Systems | PA Park. Land Ventures | VA Designer and manufacturer of industrial baking systems for the production of cookies, crackers and other baked snacks Leading operator of manufactured housing communities throughout the US Tromp Group| Netherlands Designer and manufacturer of baking equipment and sheeting lines for pizza, pastry, pie, waffle, and other specialty bread Solbern | NJ Designer and manufacturer of processing equipment including direct fillers for food products Cottrell | GA Designer and manufacturer of over-the-road automobile transport equipment Ellicott Dredges | MD Designer and manufacturer of portable dredges for governments, contractors, miners and marine operators Havco Wood Products | MO Provider of laminated oak and composite wood flooring to the truck trailer and intermodal container industry Panel Specialists | TX Manufacturer of dorm furniture, wall systems, medical casework and marine panels 58 Non-manufacturing Weldship | PA Designer and manufacturer of storage and transportation equipment used by the industrial and specialty gas industry Diamond Healthcare | VA National leader in the planning, development, and operation of behavioral health services Partner. MD | VA Provider of concierge medical and executive health programs Retail. Data | VA Delivers retail intelligence through customized competitive retail price checks Cap. Tech | VA National management consulting firm that bridges the gap between business and technology Costa Farms | FL Largest producer of ornamental plants in the world Markel|Eagle | VA Mid-Atlantic focused capital provider for opportunistic real estate projects 07132018
History
Highly confidential – not for distribution A century of transformation Over the course of 87 years in business, Markel successfully transformed from a small insurance broker to a global diversified financial holding company 1920 s-1950 s-1985 1986 -2000 -2012 2013 -today Humble beginnings Building the business A lasting enterprise Finding new markets Continued growth Sam Markel starts Markel Leverages expertise in insuring unique risks to expand into new products Third generation of Markel family at the helm; public offering to fund growth Expansion into global insurance markets and noninsurance operations Adds reinsurance and global insurance (large accounts) capabilities Organizes jitney bus operators and starts a small transportation insurance company in Norfolk, VA Company expands as the automobile and trucking industry thrives in the US 60 Essex Insurance Company Tony, Steve, and Alan organize opens - insures new specialized family members to consolidate property and casualty risks ownership Position as global specialty insurer established through Terra Nova acquisition Extends operations into Canada First Markel shares sold to public at $8. 33 per share Markel Ventures is founded; begins acquiring high quality companies outside the insurance sector Continue to expand number of unique insurance products Acquisition of Alterra provides entry into reinsurance and large accounts businesses Markel CATCo bolsters reinsurance platform with insurance-linked investments Acquisition of Sure. Tec provides entry into surety business Markel Ventures continues growth trend; >$1 bn in revenue in 2016
Corporate milestones 1930 Humble beginnings Sam Markel forms Mutual Casualty Association and establishes Mutual Casualty Company in Norfolk, VA to insure jitney buses. 1930 s A family business Sam Markel’s four sons, Lewis, Irvin, Stanley, and Milton, join the growing business, and Markel Service, Inc. is created. 61 07132018
Corporate milestones 1940 s Competitive advantages Markel Service, Inc. earns a national following and develops a reputation for industry-leading claims adjusting and safety engineering. 1980 Becoming an insurance carrier Essex Insurance Company is incorporated and licensed to write excess and surplus (E&S) lines business. 62 07132018
Corporate milestones 1986 Going public Markel listed on NASDAQ exchange. IPO offered at $8. 33 per share; market capitalization of nearly $15 million (USD). 1987 Growing the business Markel acquires four focused, wellpositioned companies to grow the business. 63 07132018
Corporate milestones 1997 Getting bigger Trading of Markel shares moves to the NYSE and market capitalization approaches $900 million (USD). 2000 Going global Markel acquires Terra Nova Holdings Ltd. (Bermuda) and gains entry to London markets. 64 07132018
Corporate milestones 2005 Introducing Markel Ventures is established. First acquisition is AMF Bakery Systems. 2009 Reorganizing with purpose Markel Wholesale launches regional model to get closer to customers. 2011 Markel Ventures continues to grow Top-line revenues from Markel Ventures increase by 89%. 65 07132018
Corporate milestones 2012 Finding new markets Markel Specialty grows by acquisition of First. Comp, THOMCO, and Essentia Insurance. 2013 Alterra, a natural fit Markel acquires Alterra Capital Holdings Limited (Bermuda). 2014 Adding Abbey Protection plc, a UK-based integrated specialist insurance and consultancy group was acquired in January. 66 07132018
Corporate milestones 2015 More acquisitions Markel acquired Bermuda-based CATCo, a specialist investment management business. Markel Ventures announces majority interest in Cap. Tech. 2016 Joining the Fortune 500 Markel joins the Fortune 500 at number 476 and celebrates 30 years as a public company. 2017 Growing the family Markel acquired Sure. Tec Financial Corp, Costa Farms, and State National Companies. 67 07132018
68 Markel Confidential 07132018
Community involvement • Successful companies are by definition good corporate citizens. • Markel's associates are generous with both their time and money. • The company is supportive of their efforts on behalf of more than 100 local, regional, national, and international charities. • Markel encourages associates to donate to charitable organizations and take advantage of Markel’s matching gift program. 69 07132018
Board of Directors Alan I. Kirshner Executive Chairman Anthony F. Markel Vice Chairman Steven A. Markel Vice Chairman Lemuel E. Lewis Retired Executive Vice President and Chief Financial Officer Landmark Communications, Inc. Thomas S. Gayner Co-Chief Executive Officer Markel Corporation Darrell D. Martin Retired Executive Vice President and Chief Financial Officer Markel Corporation Richard R. Whitt, III Co-Chief Executive Officer Markel Corporation Michael O'Reilly Retired Vice Chairman The Chubb Corporation J. Alfred Broaddus, Jr. Private Investor Michael J. Schewel General Counsel and Secretary Tredegar Corporation K. Bruce Connell Retired Executive Vice President XL Group plc Stewart M. Kasen Retired President and Chief Executive Officer S&K Famous Brands, Inc. 70 Diane Leopold President & CEO Gas Infrastructure Group, Dominion Energy Debora J. Wilson Former President and Chief Executive Officer The Weather Channel 07132018
Learn more about Markel Learn about Markel’s products, history, corporate highlights, and more: • Markelcorp. com • Markelinsurance. com • Markelinternational. com Facebook. com/markelcorp Linkedin. com/company/markel-corporation 71 07132018
- Markel corporation headquarters
- Markelcorp.com
- Bài thơ mẹ đi làm từ sáng sớm
- Cơm
- Markelcorp
- Areanna ai
- Overview of cellular respiration
- The odyssey overview
- Cmmi overview
- Satisfy client request without involving origin server
- Citibank overview
- Overview of cellular respiration
- Wan technologies atm
- Overview of personal finance chapter 1
- Overview of government accounting
- Overview broadcom february
- Eskom overview
- Animal farm overview
- Antigone overview
- Walmart inventory management systems
- Overview chemical bonds
- Can bus overview
- Onap architecture
- An overview of money
- Overview manajemen keuangan
- Chapter 8 section 2 photosynthesis answer key
- Figure 12
- Video coding
- Review paper introduction
- Overview of the current state of technology
- Maximo work order priority
- Rup overview
- Gsm protocol
- Stylistic analysis
- Cell signaling overview
- An overview of data warehousing and olap technology
- Market overview managed file transfer solutions
- Overview text
- Education splunk
- Sap erp system overview
- Methodologies for cross-domain data fusion: an overview
- Ductus parotideus
- Lesson overview
- Consulting industry overview
- Solar massachusetts renewable target (smart) program
- Iso 9000 overview
- Pseudo wire
- Iptv technology overview
- C language overview
- Dual mode in os
- Foundation of hrm
- Dell emc services
- What is classification of matter
- Mpls overview
- H&m presentation
- Computer memory system overview
- Abstract vs summary
- Disadvantages of skimming in reading
- Gambaran
- Figure 12-1 provides an overview of the lymphatic vessels
- M commerce infrastructure
- Dna purification overview
- Example of nursing process
- Branch of statistics
- Hyper-v overview
- Chapter 14 medical overview
- Elements and their properties section 1 metals
- Chapter 9 lesson 2 photosynthesis an overview
- Sap ariba overview
- Android security overview
- Enterprise resource planning overview
- Ssrs overview