Markel

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Markel Corporation
Type Public (NYSE: MKL)
Founded 1930
Headquarters Glen Allen, Virginia
Key people Alan I. Kirshner, Chairman of the Board and CEO
Anthony F. Markel, President and COO
Steven A. Markel, Vice chairman
Revenue ▼$2.5 billion USD
Employees approximately 2000 (at December 31, 2007)
Website http://www.markelcorp.com/

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 $475 a share in 2007. Their book value per share has risen from $4.66 in 1987 to $265.26 in 2007.

Contents

[edit] 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."

[edit] History

Company founder Samuel A. Markel ran a small insurance agency in Norfolk, Virginia. 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 (now President/COO), 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 camps 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.

[edit] 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

[edit] Markel-Gayner Asset Management Corp

Markel's internal money management firm is Markel-Gayner Asset Management Corp.

[edit] Articles

[edit] References

[edit] Regulatory Filings