Markel Corporation ( MKL Quick Quote MKL - Free Report) has been favored by investors, given its new business opportunities, favorable rating environment, higher renewals and strategic buyouts. Growth Projections
The Zacks Consensus Estimate for Markel’s 2022 and 2023 earnings per share is pegged at $72.97 and $86.99, indicating a year-over-year increase of 23.4% and 19.2%, respectively.
Zacks Rank & Price Performance
Markel currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 9% against the
industry’s decline of 5.4%. Image Source: Zacks Investment Research Return on Equity (ROE)
Markel’s trailing 12-month return on equity (ROE) was 6.3%, which expanded 60 basis points year over year. ROE reflects its efficiency in using its shareholders’ funds.
Markel has a favorable
VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum. Business Tailwinds
In the Insurance segment, Markel witnessed double-digit growth rates across all major product lines, particularly, within the professional liability and general liability product lines in the first quarter. MKL should continue to benefit from a favorable rating environment within most of the insurance product lines and new business opportunities in domestic and international operations.
Premium growth in the Reinsurance segment is likely to gain from higher premiums in general liability and professional liability lines, new business and higher renewals due in part to more favorable rates. The impact from favorable premium adjustments within credit and surety, professional liability, and general liability product lines should also add to the upside. Markel considers strategic buyouts a prudent approach to ramp up the growth profile. Such acquisitions have helped the insurer not only enhance its surety capabilities but also ramp up Markel Ventures’ revenues and expand its reinsurance product offerings. The combined ratio of the insurer should continue to benefit from a lower current accident year loss ratio as a result of lower catastrophe losses as well as lower attritional loss ratio. Riding on the favorable impact of higher earned premiums, the expense ratio is likely to improve in the long run. Markel seeks to maintain prudent levels of liquidity and financial leverage for the protection of policyholders, creditors and shareholders. Higher net premium volumes across both of the underwriting segments should benefit the operating cash flow of the property and casualty insurer. Stocks to Consider
Some better-ranked stocks in the property and casualty insurance industry are
HCI Group, Inc. ( HCI Quick Quote HCI - Free Report) , American Financial Group, Inc. ( AFG Quick Quote AFG - Free Report) and Cincinnati Financial Corporation ( CINF Quick Quote CINF - Free Report) . While HCI Group and American Financial sport a Zacks Rank #1 (Strong Buy), Cincinnati Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for HCI Group’s 2022 and 2023 earnings has moved 33.3% and 40% north, respectively, in the past 60 days. In the past year, HCI Group’s stock has lost 33.2%. The Zacks Consensus Estimate for HCI’s 2022 and 2023 earnings per share indicates a year-over-year increase of 280.9% and 75%, respectively. American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has gained 10.8%. The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past 60 days. The bottom line of Cincinnati Financial surpassed earnings estimates in each of the last four quarters, the average being 32.55%. In the past year, the CINF stock has lost 0.1%. The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 3.6% and 1.7% north, respectively, in the past 60 days.