Summary
- Markel has a differentiated model of investing its retained cash flows to buy other companies, similar to how Berkshire Hathaway operates.
- Its insurance business is profitable despite a challenging quarter, and the ventures segment has shown strong growth.
- Valuation metrics suggest that the shares are undervalued at the moment.
The insurance sector has yet to fully recover from the effects of the pandemic, and Markel Corp. is no different. Since the start of the year, Markel’s share price is still down by 12%, and this compares unfavorably to the S&P 500 ,which has risen by 13% over the same time frame. I believe this presents a good opportunity to own this high-quality insurance company, and in this article, I evaluate what makes Markel an attractive buy at the current valuation, so let’s get started.
