Davenport Initiates Coverage on Markel Corp. (MKL) with a Buy

February 11, 2009 10:48 AM EST

Davenport initiates coverage on Markel Corp. (NYSE: MKL) with a Buy. Price target $365.

Davenport analys says, "The combination of a competitive insurance market, hurricane-related losses and our generation’s worst investment environment triggered a 16% decline in Markel’s book value during 2008. We feel Markel’s positive long-term attributes of underwriting discipline, a strong balance sheet and superior investment results will ultimately reward shareholders who buy the stock at current levels. Our $365 target price is based on adding year-end book value to our projected 2009 operating earnings ($222.20 + $23.40) and applying a 50% premium to the result. This assumed premium is well below the company’s average of roughly twice book value over the past ten years."

Markel Corporation markets and underwrites specialty insurance products and programs to a variety of markets. The Company has three segments of the specialty insurance marketplace: the Excess and Surplus Lines (E and S), the Specialty Admitted and the London markets.

Related Categories

New Coverage

Stocks Mentioned

Related Entities

• Davenport

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?