Markel
Encyclopedia
Markel Corporation is an insurance
holding company
.
Never declaring a stock split
, their stock has risen from $8.33 per share in its 1986 IPO to over $350 a share in 2010. Their book value per share has risen from $3.42 in 1986 to $282.55 in 2009, which is a compound annual growth rate of 21.2%.
. In the 1920s, the city of Norfolk passed a law mandating that all jitney buses
be insured. Unable to find backing from any large insurance firms, Markel organized a mutual insurance
company composed of the jitney bus owners, called the Mutual Casualty Association. Company headquarters later moved to Richmond, Virginia
.
The Mutual Casualty Company structure was rearranged in 1926 and transformed to a stock company, American Fidelity & Casualty Company. At this point, the company began insuring motor freight carriers. At one point, AF&C became the largest insurer of trucks and buses in the country. Markel assisted in passing the National Motor Carrier Act of 1935 which allowed state and federal authorities to regulate truckers.
In 1930, Markel established Markel Service, a separate company to handle direct and reinsurance of AF&C. His older twins Lewis and Irvin helped start Markel Service, and younger twins Stanley and Milton joined later.
In 1951, the company expanded into Canada by founding Markel Service Canada, Ltd., headquartered in Toronto, Ontario.
In 1959, the national claims division of AF&C became National Claims Service, an independent adjuster which could be contracted by other insurance firms. The Safety Engineering Division also began offering services to other firms.
The company later expanded beyond truck and bus companies, led by the third generation of Markels; Anthony (Vice Chairman), Steve, and Gary.
In 1980, the company founded Essex Insurance Company in Delaware. Essex began as a property insurance company in White Bear Lake, Minnesota
but later moved to Richmond, Virginia.
In 1985, Prem Watsa
took control of Markel Financial Holdings, a Canadian-based specialist in trucking insurance. The company was controlled by the Virginia-based Markel family. The company was almost bankrupt, but Watsa figured it just needed a capital injection. Watsa hit it off with Steven Markel, who is still a friend. In 1987, he reorganized Markel Financial Holdings (Canada) and renamed it Fairfax Financial Holdings
Ltd., short for "fair, friendly acquisitions".
In December 1986, Markel Corp. held its first IPO at $8.33 per share, valuing the company at $15 million. Shares traded on the NASDAQ
.
In December 1987, Markel Corp. acquired half of Shand Morahan & Company, an underwriter in Deerfield, Illinois
. In December 1990, Markel completed its acquisition of Shand.
As part of the Shand acquisition, Markel Corp. also acquired American Underwriting Managers, an insurance underwriter in Pewaukee, Wisconsin
specializing in personal boat and motorcycle insurance. In 1992, AUM became Markel American Insurance Company.
In 1989, Markel Corp. acquired the Rhulen Agency of Monticello, New York
. Rhulen is a speciality insurer for children's summer camp
s and youth organizations. Rhulen was later moved to Richmond, Virginia, and renamed Markel Insurance Company.
In October 1996, Markel Corp. acquired Investors Insurance Holding Corporation in Red Bank, New Jersey
.
In spring 1997, Markel Corp. trading moved to the NYSE.
In January 2000, Markel Corp. founded Markel Southwest Underwriters in Scottsdale, Arizona
after buying the Arizona policies of Acceptance Insurance Company.
In March 2000, Markel Corp. completed the acquisition of Terra Nova (Bermuda) Holdings Ltd.
On May 10, 2010 at the Markel Corp. Annual Meeting it was reported there would be a new management structure approved by the Board. Alan I. Kirshner will remain Chairman and Chief Executive Officer while Anthony F. and Steven A. Markel will still serve as Vice Chairman. Reporting to them is a three-member Office of the President. Thomas S. Gayne will be President and Chief Investment Officer, while Richard R. Whitt, III and Michael Crowley will each be President and Co-Chief Operating Officers.
In July 2010, Markel Corp. acquired Aspen Holdings, Inc. of Omaha, Nebraska
.
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
.
Never declaring a stock split
Stock split
A stock split or stock divide increases the number of shares in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. Options and warrants are included....
, their stock has risen from $8.33 per share in its 1986 IPO to over $350 a share in 2010. Their book value per share has risen from $3.42 in 1986 to $282.55 in 2009, which is a compound annual growth rate of 21.2%.
History
Company founder Samuel A. Markel ran a small insurance agency in Norfolk, VirginiaNorfolk, Virginia
Norfolk is an independent city in the Commonwealth of Virginia in the United States. With a population of 242,803 as of the 2010 Census, it is Virginia's second-largest city behind neighboring Virginia Beach....
. In the 1920s, the city of Norfolk passed a law mandating that all jitney buses
Share taxi
A share taxi is a mode of transport that falls between taxis and conventional buses. These informal vehicles for hire are found throughout the world. They are smaller than buses, and usually take passengers on a fixed or semi-fixed route without timetables, usually leaving when all seats are filled...
be insured. Unable to find backing from any large insurance firms, Markel organized a mutual insurance
Mutual insurance
A mutual insurance company is an insurance company which has no shareholders but instead is owned entirely by its policyholders. The primary form of financial business set up as a mutual company in the United States has been mutual insurance. Under this idea, what would have been profits are...
company composed of the jitney bus owners, called the Mutual Casualty Association. Company headquarters later moved to Richmond, Virginia
Richmond, Virginia
Richmond is the capital of the Commonwealth of Virginia, in the United States. It is an independent city and not part of any county. Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond area...
.
The Mutual Casualty Company structure was rearranged in 1926 and transformed to a stock company, American Fidelity & Casualty Company. At this point, the company began insuring motor freight carriers. At one point, AF&C became the largest insurer of trucks and buses in the country. Markel assisted in passing the National Motor Carrier Act of 1935 which allowed state and federal authorities to regulate truckers.
In 1930, Markel established Markel Service, a separate company to handle direct and reinsurance of AF&C. His older twins Lewis and Irvin helped start Markel Service, and younger twins Stanley and Milton joined later.
In 1951, the company expanded into Canada by founding Markel Service Canada, Ltd., headquartered in Toronto, Ontario.
In 1959, the national claims division of AF&C became National Claims Service, an independent adjuster which could be contracted by other insurance firms. The Safety Engineering Division also began offering services to other firms.
The company later expanded beyond truck and bus companies, led by the third generation of Markels; Anthony (Vice Chairman), Steve, and Gary.
In 1980, the company founded Essex Insurance Company in Delaware. Essex began as a property insurance company in White Bear Lake, Minnesota
White Bear Lake, Minnesota
White Bear Lake is a city in Ramsey and Washington counties in the U.S. state of Minnesota. The population was 23,797 at the 2010 census. The city is located on White Bear Lake, one of the largest lakes in the Minneapolis-St...
but later moved to Richmond, Virginia.
In 1985, Prem Watsa
Prem Watsa
Prem Watsa was born in 1950 in Hyderabad, India and is the founder, chairman, and chief executive of Fairfax Financial Holdings, based in Toronto, Ontario....
took control of Markel Financial Holdings, a Canadian-based specialist in trucking insurance. The company was controlled by the Virginia-based Markel family. The company was almost bankrupt, but Watsa figured it just needed a capital injection. Watsa hit it off with Steven Markel, who is still a friend. In 1987, he reorganized Markel Financial Holdings (Canada) and renamed it Fairfax Financial Holdings
Fairfax Financial Holdings
Fairfax Financial Holdings Limited is a financial holding company based in Toronto, Ontario, which is engaged in property, casualty, and life insurance and reinsurance, investment management, and insurance claims management...
Ltd., short for "fair, friendly acquisitions".
In December 1986, Markel Corp. held its first IPO at $8.33 per share, valuing the company at $15 million. Shares traded on the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
.
In December 1987, Markel Corp. acquired half of Shand Morahan & Company, an underwriter in Deerfield, Illinois
Deerfield, Illinois
Deerfield is a village in Lake County, Illinois, United States and is located approximately 25 miles north of Chicago, Illinois. A portion of the village is in Cook County, Illinois, United States...
. In December 1990, Markel completed its acquisition of Shand.
As part of the Shand acquisition, Markel Corp. also acquired American Underwriting Managers, an insurance underwriter in Pewaukee, Wisconsin
Pewaukee, Wisconsin
Pewaukee is a city in Waukesha County, Wisconsin. The population was 11,783 at the 2000 census. The city was incorporated from what was formerly the Town of Pewaukee. The Village of Pewaukee, which was incorporated out of the town before it incorporated as a city, is surrounded by the city...
specializing in personal boat and motorcycle insurance. In 1992, AUM became Markel American Insurance Company.
In 1989, Markel Corp. acquired the Rhulen Agency of Monticello, New York
Monticello, New York
Monticello is a village located in the Town of Thompson in Sullivan County, New York, United States. The population was 6,512 at the 2000 census. It is the seat for the Town of Thompson and the county seat of Sullivan County...
. Rhulen is a speciality insurer for children's summer camp
Summer camp
Summer camp is a supervised program for children or teenagers conducted during the summer months in some countries. Children and adolescents who attend summer camp are known as campers....
s and youth organizations. Rhulen was later moved to Richmond, Virginia, and renamed Markel Insurance Company.
In October 1996, Markel Corp. acquired Investors Insurance Holding Corporation in Red Bank, New Jersey
Red Bank, New Jersey
-Demographics:As of the census of 2000, there were 11,844 people, 5,201 households, and 2,501 families residing in the borough. The population density was 6,639.1 people per square mile . There were 5,450 housing units at an average density of 3,055.0 per square mile...
.
In spring 1997, Markel Corp. trading moved to the NYSE.
In January 2000, Markel Corp. founded Markel Southwest Underwriters in Scottsdale, Arizona
Scottsdale, Arizona
Scottsdale is a city in the eastern part of Maricopa County, Arizona, United States, adjacent to Phoenix. According to the U.S. Census Bureau, as of 2010 the population of the city was 217,385...
after buying the Arizona policies of Acceptance Insurance Company.
In March 2000, Markel Corp. completed the acquisition of Terra Nova (Bermuda) Holdings Ltd.
On May 10, 2010 at the Markel Corp. Annual Meeting it was reported there would be a new management structure approved by the Board. Alan I. Kirshner will remain Chairman and Chief Executive Officer while Anthony F. and Steven A. Markel will still serve as Vice Chairman. Reporting to them is a three-member Office of the President. Thomas S. Gayne will be President and Chief Investment Officer, while Richard R. Whitt, III and Michael Crowley will each be President and Co-Chief Operating Officers.
In July 2010, Markel Corp. acquired Aspen Holdings, Inc. of Omaha, Nebraska
Omaha, Nebraska
Omaha is the largest city in the state of Nebraska, United States, and is the county seat of Douglas County. It is located in the Midwestern United States on the Missouri River, about 20 miles north of the mouth of the Platte River...
.
Companies
- Essex Insurance Company
- Shand, Morahan & Company
- Markel Insurance Company
- Markel American Insurance Company
- Investors Underwriting Managers, Inc.
- Markel Re
- Markel Southwest Underwriters
- Markel International Insurance Company Limited U.K.
- Corifrance (Compagnie de Reassurance d'lle-de-France)
- Markel Capital Limited
- Markel Syndicate Management Limited
- Markel Syndicate 3000
Markel-Gayner Asset Management Corp
Markel's internal money management firm is Markel-Gayner Asset Management Corp.Articles
- 2002-12-01 - www.ambest.com - Markel Scores Big By Playing Small by Meg Green (Best's Review)
- 2001-02-24 - www.focusinvestor.com - Markel Corporation Research Report by Richard M. Rockwood
- 2007-30-07 -j3sg.com- Stocks own by Merkel
- 2008-12-08 -www.gurufocus.com- Stocks own by Merkel
- 2008-02-03 -www.online.barrons.com- In His Image: An Insurer With Buffet-Like Charm By JONATHAN R. LAING
Regulatory Filings
- SEC.gov - the EDGAR database Markel Corp. - EDGAR Filings (CIK: 0001096343)
- SEC.gov - the EDGAR database Markel-Gayner Asset Management Corp. - EDGAR Filings (CIK: 0001034180)