Markel: Insurance Book Issues Re-Surface, But Value Remains Compelling

Markel remains resilient despite Q2 volatility, with strong insurance and consumer segments offsetting financial division setbacks. MKL trades near 20-year lows on price-to-book, appearing historically cheap given robust investment income and tangible book growth. Net investment income surged 11% in H1 FY2026, now comprising roughly half of adjusted earnings; tangible book value per share grew 13-14% over five years. With a 14% return on tangible equity and potential for valuation re-rating, MKL offers a compelling 20%+ medium-term annual return potential despite insurance book risks.

The second quarter earnings have failed to impress the markets as the share price of Markel ( MKL ) fell after the announcement. The move down was probably caused primarily by issues within the Financials division.