Core Insights - Markel Group (MKL) is positioned to continue its earnings-beat streak, having a strong history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 19.31% [1] Earnings Performance - In the most recent quarter, Markel Group reported earnings of $30.9 per share, exceeding the expected $22.77 per share by 35.70%. In the previous quarter, the company reported $25.46 per share against an estimate of $24.74 per share, resulting in a surprise of 2.91% [2] Earnings Estimates and Predictions - Recent estimates for Markel Group have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat. The current Earnings ESP stands at +2.55% [5][8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise, suggesting that Markel Group may follow this trend [6] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which are often more accurate [7] Importance of Earnings ESP - Monitoring a company's Earnings ESP before quarterly releases is crucial for increasing the odds of successful investment decisions. Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell prior to earnings reports [10]

Core Insights - Fenimore Asset Management's Q4 2025 investor letter highlights a solid yet volatile stock market influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1] Group 1: Market Performance - The S&P 500 Index rose by 2.66% in Q4 2025, driven by large-cap technology and communication services stocks [1] - Fenimore Small Cap Strategy returned -4.12%, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined by -4.41% compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy saw a decline of -1.17% against the Russell Midcap Index's 0.16% return, with underperformance attributed to investments in financial and industrial sectors [1] Group 2: Company Highlights - Markel Group Inc. (NYSE:MKL) was the top performer in Fenimore's Value Strategy for Q4 2025, with a stock price of $2,084.14 per share as of January 15, 2026 [2] - Markel Group Inc. experienced a one-month return of -3.81% but gained 17.48% over the last 52 weeks, with a market capitalization of $26.37 billion [2] - The insurance segment of Markel Group Inc. achieved a 93% combined ratio, and its equity portfolio benefited from the year-end market rally, supported by disciplined capital allocation and stock buybacks [3]

Core Insights - Markel Group Inc. (MKL) shares are trading at a discount compared to the Zacks Insurance - Multi-line industry, with a price-to-book ratio of 1.48X, lower than the industry average of 2.71X, the Finance sector's 4.36X, and the Zacks S&P 500 Composite's 8.67X [1] - MKL has a market capitalization of $26.81 billion and an average trading volume of 0.04 million shares over the last three months [1] Financial Performance - MKL's bottom line has surpassed earnings estimates in each of the last four quarters, with an average beat of 19.93% [2] - The stock has surged 27% over the past year, outperforming its industry and the Finance sector, which grew by 12% and 20.8% respectively [3] - MKL's earnings have grown 23.1% over the past five years, significantly higher than the industry average of 10.2% [8] Technical Analysis - MKL shares are trading above the 50-day and 200-day simple moving averages of $2,084.72 and $1,958.45, indicating solid upward momentum [4] Growth Drivers - MKL benefits from rising premiums, strong retention, and expanded product offerings, with higher yields and gains from acquisitions contributing to revenue growth [7] - The Zacks Consensus Estimate for MKL's 2026 earnings per share indicates a 5.8% increase from 2025 estimates [8] - Recent acquisitions, including a 68% ownership interest in Educational Partners International, have enhanced MKL's capabilities and contributed $28 million in revenues in the most recent quarter [11] Analyst Sentiment - Two of the four analysts covering MKL have raised their 2026 earnings estimates in the past 30 days, leading to a 1.4% increase in the Zacks Consensus Estimate for 2026 earnings [9] Capital Management - MKL has a share repurchase program authorized for up to $2 billion, with $1.6 billion remaining available as of September 30, 2025 [15] - The company maintains a solid cash position of $4.1 billion, ensuring it can meet short-term obligations [15] Conclusion - Given MKL's strong stock performance, solid retention levels, improving rate environment, favorable growth estimates, and robust capital position, current shareholders may find it wise to hold onto MKL shares [16]

Core Insights - Markel Insurance has appointed Preeti Gureja as Chief Risk Officer for the US and Bermuda, pending regulatory approvals [1] - Gureja's role will focus on integrating risk into decision-making processes and enhancing risk reporting and regulatory engagement [2] Group 1: Appointment and Role - Preeti Gureja will lead the risk agenda across Markel's US and Bermuda operations and report to Henry Gardener, the Chief Risk Officer of Markel Insurance [1] - Her responsibilities will include supporting underwriting, reinsurance, and capital decisions through forward-looking analysis and clear risk appetites [2] Group 2: Experience and Background - Gureja has extensive experience in enterprise risk management from her previous roles at Chubb and AIG, where she led risk reporting and advanced industry thinking on emerging risks [3] - She holds an MBA from the Indian Institute of Management, Ahmedabad, and a B.E. in Electrical Engineering from the Delhi College of Engineering [3] Group 3: Leadership Perspective - Henry Gardener praised Gureja as a proven enterprise risk leader who combines analytical rigor with practical judgment, emphasizing her ability to turn risk insights into better decisions [4] - Gureja expressed her alignment with Markel's entrepreneurial culture and her commitment to using data and scenarios to support sustainable growth [4] Group 4: Company Overview - Markel Insurance is a leading global specialty insurer known for its people-first approach and strong relationships with colleagues, brokers, and clients [5]

Core Insights - Markel Group (MKL) experienced significant developments in 2025, particularly with the involvement of activist investor JANA, which aimed to influence the company's direction [1] Group 1: Company Developments - The first quarter of 2025 marked the disclosure of JANA's involvement with Markel Group, indicating a potential shift in company strategy and governance [1] Group 2: Analyst Position - The analyst holds a beneficial long position in the shares of MKL, indicating confidence in the company's future performance [2]

Core Insights - Markel Group (MKL) experienced significant developments in 2025, particularly with the involvement of activist investor JANA, which aimed to influence the company's direction [1] Group 1: Company Developments - The first quarter of 2025 marked the disclosure of JANA's involvement with Markel Group, indicating a potential shift in company strategy [1] Group 2: Analyst Position - The analyst holds a beneficial long position in the shares of MKL, indicating confidence in the company's future performance [2]

Core Viewpoint - Markel Group (MKL) has shown strong performance, with shares up 2.1% over the past month and a year-to-date increase of 23.2%, outperforming the Zacks Finance sector and the Zacks Insurance - Multi line industry [1][3]. Financial Performance - In the last earnings report on October 29, 2025, Markel Group reported an EPS of $30.9, exceeding the consensus estimate of $22.77, and beat the revenue estimate by 5.66% [2]. - For the current fiscal year, earnings are expected to be $101.04 per share on revenues of $15.32 billion, reflecting a 23.22% increase in EPS and a 3.41% increase in revenues [3]. - For the next fiscal year, the company is projected to earn $110.01 per share on revenues of $15.22 billion, indicating a year-over-year change of 8.88% in EPS and a slight decline of 0.63% in revenues [3]. Valuation Metrics - Markel Group has a Value Score of B, with Growth and Momentum Scores of C and D, respectively, resulting in a combined VGM Score of B [6]. - The stock trades at 21 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 9.9 times [6]. - On a trailing cash flow basis, the stock trades at 20.6 times, compared to the peer group's average of 12.2 times, indicating it is not in the top echelon from a value perspective [6]. Zacks Rank - Markel Group holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7]. - The recommendation suggests that stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B are favorable, indicating potential for further gains for Markel Group [8]. Industry Comparison - SiriusPoint Ltd. (SPNT) is a notable peer with a Zacks Rank of 1 (Strong Buy) and a Value Score of B, indicating strong performance within the industry [9]. - SPNT reported earnings that beat consensus estimates by 41.18%, with expected earnings of $2.44 per share on revenues of $3.01 billion for the current fiscal year [10]. - The Insurance - Multi line industry is performing well, ranking in the top 18% of all industries, suggesting positive conditions for both MKL and SPNT [11].

Core Thesis - Markel Group Inc. is viewed positively due to its unique business model, strong management alignment, and potential for growth in the specialty insurance market [1][6]. Company Overview - Markel Group Inc. is often referred to as a "mini-Berkshire Hathaway" due to its combination of insurance, investments, and private businesses under Markel Ventures [2]. - The company focuses on niche property and casualty risks, such as equine, marine, and professional liability, which are typically avoided by traditional insurers [2]. Historical Performance - Since its IPO in 1986, Markel has achieved a 14.5% annualized return, consistently outperforming the S&P 500 [3]. - The company's "win-win-win" philosophy emphasizes the importance of customers, employees, and shareholders, leading to disciplined capital allocation and long-term compounding [3]. Current Strategy - Markel is refocusing its insurance business after previous underperformance, with a renewed emphasis on underwriting discipline and exiting loss-making reinsurance [4]. - The company holds only a 3% share of the U.S. excess and surplus market, indicating significant growth potential domestically [4]. - International operations now account for 25% of total gross written premiums, showcasing rapid expansion abroad [4]. Management and Culture - CEO Tom Gayner's personal investment of approximately $52 million in stock reflects strong management alignment and conviction in the company's future [5]. - The company maintains a shareholder-aligned culture, prudent underwriting practices, and disciplined capital allocation, positioning it for sustained long-term growth [5]. Recent Developments - The stock price of Markel has appreciated approximately 14.32% since previous bullish coverage, indicating ongoing investor confidence in its compounding model [6].

Core Insights - Markel Group Inc. (MKL) shares have increased by 16.3% over the past year, outperforming the Finance sector and the S&P 500 composite, which grew by 10.4% and 15.2%, respectively [1] - The company has a market capitalization of $25.85 billion and has shown strong earnings performance, surpassing estimates in three of the last four quarters with an average beat of 19.93% [2] Valuation Metrics - MKL shares are trading at a price-to-book ratio of 1.43X, which is lower than the industry average of 2.4X, the Finance sector's 4.23X, and the S&P 500 composite's 8.53X, indicating affordability [3] - The Zacks average price target for MKL is $2,081.75 per share, suggesting a potential upside of 1.21% from the last closing price [12] Technical Analysis - MKL shares are currently trading above both the 50-day and 200-day simple moving averages, indicating solid upward momentum [4] Growth Projections - The Zacks Consensus Estimate for MKL's 2025 earnings per share indicates a year-over-year increase of 23.2%, with revenues projected at $15.32 billion, reflecting a 3.4% improvement [9] - Earnings have grown by 23.1% over the past five years, outperforming the industry average of 10.2% [10] Analyst Sentiment - Despite some analysts lowering their estimates for 2025 and 2026, the Zacks Consensus Estimate for both years has increased by 4.7% and 3.9%, respectively, over the past 60 days [11] Revenue Drivers - MKL benefits from rising premiums, strong retention, and expanded product offerings, with recent acquisitions contributing to revenue growth [7][14] - The company reported a seven-year CAGR of 15.1% in operating revenues from 2018 to 2024, with recent acquisitions contributing $28 million in revenues in the latest quarter [14] Capital Management - MKL has a share repurchase program authorized for up to $2 billion, with $1.6 billion remaining available for repurchase as of September 30, 2025 [16] - The company maintains a solid cash position of $4.1 billion, ensuring it can meet short-term obligations [16] Strategic Outlook - The company considers strategic buyouts a prudent approach to enhance its growth profile, with recent acquisitions aimed at improving its surety capabilities [14] - MKL's new business volume and prudent capital deployment present significant growth opportunities [17]

Core Insights - Markel Insurance has announced a strategic collaboration with Greenhouse Specialty Insurance Services to enhance environmental casualty insurance offerings [1][9] - The partnership aims to leverage Greenhouse Specialty's innovative technology and underwriting expertise to address complex environmental risks while promoting sustainable growth for clients [3][5] Company Overview - Markel Insurance is a leading global specialty insurer known for its people-first approach and expertise in complex specialty insurance needs [7] - Greenhouse Specialty Insurance Services focuses on environmental solutions for contractors and consultants, utilizing AI technology to provide curated offerings [8] Collaboration Details - The collaboration emphasizes a limited distribution model, allowing brokers to receive tailored support and solutions, enhancing their competitive edge [3][4] - Both companies share a commitment to innovation, responsibility, and long-term impact, aiming to redefine service standards in the insurance industry [5][6] Leadership Perspectives - Jeff Lamb, President at Markel, expressed enthusiasm for the partnership, highlighting the alignment of values and the potential for meaningful growth [3] - Josh Rubin and Geoff Bernardo, founders of Greenhouse Specialty, emphasized the importance of a people-first culture and the opportunity to scale their innovative approach through this collaboration [4][5]