Author Topic: MKL - Markel Corp  (Read 334059 times)

Parsad

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Re: MKL - Markel Corp
« Reply #790 on: May 03, 2020, 01:47:32 PM »
Anyone have an idea what level of exposure each of these insurers like MKL, Allegheny and Fairfax have to business I nterruption? Buffett seemed to suggest one of their smaller competitors might be on the hook. I know MKL took a 325M guesstimate of damages, I think Fairfax said 83M and of course Allegheny is get to report but all of heir stocks sold off more than the market and I am wondering if markets pricing in exposire into this risk.

I assume all these are prudent underwrites, but CINF got the thumbs down and is making new loans, because they make substantial BI insurance with no explicit pandemics exclusion in addition having a substantial equity exposure (book value /share was down ~$10). I actually think they were a good underwriter traditionally,  it may have been caught by this pandemics.

Exclusive pandemics insurance shouldnít be be necessary in principle, since BI insurance only covers causes due to property damage, but I am sure lawyers will torture this if it isnít explicitly excluded. Even if itís is explicitly excluded, lawyers may still go after them, encouraged by some politicians.


I donít know if CINF is the insurer in question, as there may be others. TRV for example explicitly mentioned in their CC that they have an exclusion for pandemics in most of their contracts.

I think reinsurers May be in trouble here too, depending on how these custom contracts are written.

Most likely AIG.  Cheers!
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Spekulatius

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Re: MKL - Markel Corp
« Reply #791 on: May 03, 2020, 04:11:27 PM »
Most likely AIG.  Cheers!

Yeah, hadnít thought of them honestly, but it makes perfect sense. They have been sloppily underwriting for 20 years now.
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racemize

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Re: MKL - Markel Corp
« Reply #792 on: May 04, 2020, 05:35:27 AM »
Most likely AIG.  Cheers!

Yeah, hadnít thought of them honestly, but it makes perfect sense. They have been sloppily underwriting for 20 years now.

It certainly could be, but he did say "relative to their size", which to me means it wasn't a huge company.  That being said, pandemic insurance can be large "relative" to anyone's size, so maybe that didn't mean what I thought...

GregS

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Re: MKL - Markel Corp
« Reply #793 on: May 04, 2020, 04:26:19 PM »
Has anyone seen a COVID-related charge larger than Markel's?  TRV had $86m and CB $13m.

Foreign Tuffett

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Re: MKL - Markel Corp
« Reply #794 on: May 04, 2020, 04:59:33 PM »
Has anyone seen a COVID-related charge larger than Markel's?  TRV had $86m and CB $13m.

Looks like COB&F was right that AIG would have issues

https://www.bloomberg.com/news/articles/2020-05-04/aig-takes-272-million-in-covid-19-losses-and-withdraws-guidance
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Parsad

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Re: MKL - Markel Corp
« Reply #795 on: May 05, 2020, 12:28:12 AM »
Has anyone seen a COVID-related charge larger than Markel's?  TRV had $86m and CB $13m.

Looks like COB&F was right that AIG would have issues

https://www.bloomberg.com/news/articles/2020-05-04/aig-takes-272-million-in-covid-19-losses-and-withdraws-guidance

That's actually not as bad as I expected.  I thought for sure they lost $1-2B in the 1st quarter.  Let's see what their adverse losses look like going forward.  Cheers!
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KFS

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Re: MKL - Markel Corp
« Reply #796 on: July 29, 2020, 12:22:05 PM »

Xerxes

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Re: MKL - Markel Corp
« Reply #797 on: September 26, 2020, 06:26:48 PM »
Since BRK and FFH were getting overanalyzed for their investment decision in Q2 i thought it would be good to look at Markel as well.

Very much like two above, the insurer in question was busy making sure it has enough for its liabilities.

https://www.dataroma.com/m/m_activity.php?m=MKL&typ=s

BUYS
Q2  2020
≡   NVR - NVR Inc.                           Add 7.23%   
≡   OTIS - Otis Worldwide Corp.   Buy   112,000   
≡   CARR - Carrier Global Corp.   Buy   224,000   
≡   PYPL - PayPal Holdings Inc.           Buy   1,830   

Q1  2020  [those above 20% increase, which i think might at the back end of Q1]
≡   ILMN - Illumina Inc.                   Add 300.00%   3,000   
≡   BKNG - Booking Holdings Inc.   Add 105.00%   210          
≡   IAC - IAC/InterActive Corp.            Add 43.48%   500          
≡   BK - Bank of New York Mellon       Add 37.80%   96,000   
≡   OI - O-I Glass Inc.                      Add 26.86%   94,000   
≡   HCSG - Healthcare Services Group Add 21.80%   125,000   
≡   TRUP - Trupanion Inc.              Add 21.18%   23,300

Q2  2020  [SELLS that were 100% of positions]
I think a whole bunch of tracker-position got removed for liquid/cash

≡   KMX - CarMax Inc.   Sell 100.00%   
≡   MAR - Marriott Int'l.   Sell 100.00%   
≡   WBA - Walgreens Boots Alliance   Sell 100.00%   
≡   ADP - Automatic Data Processing Inc.   Sell 100.00%   
≡   ANTM - Anthem Inc.   Sell 100.00%
≡   TRV - Travelers Companies Inc.   Sell 100.00%   
≡   LYV - Live Nation Inc.   Sell 100.00%   
≡   LUV - Southwest Airlines   Sell 100.00%   
≡   PH - Parker-Hannifin   Sell 100.00%   
≡   BA - Boeing Co.   Sell 100.00%   
≡   CHH - Choice Hotels Int. Inc.   Sell 100.00%   
≡   DAL - Delta Air Lines Inc.   Sell 100.00%   
≡   MCK - McKesson Corp.   Sell 100.00%   
≡   FWONK - Liberty Media Corp Formula One Series C   Sell 100.00%   
≡   FWONA - Liberty Media Corp Formula One Series A   Sell 100.00%   
≡   PAG - Penske Automotive Group   Sell 100.00%   
≡   AN - AutoNation Inc.   Sell 100.00%   
≡   AAL - American Airlines Group Inc.   Sell 100.00%
≡   BKNG - Booking Holdings Inc.   Sell 100.00%   
≡   LEN - Lennar Corp.   Sell 100.00%   
« Last Edit: September 26, 2020, 06:31:04 PM by Xerxes »

NotSoWise

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Re: MKL - Markel Corp
« Reply #798 on: September 26, 2020, 11:14:16 PM »
If you look at the list, its interesting to see Markel selling mostly: airlines/ travel/ hotel/ retail related => areas of impact from COVID or online retail.
Was it for liabilities or rather was it fast sale of stuff negatively related to Covid and "old" retail or both reasons?