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 Richard R. Whitt, III, SVP and CFO
Revenue	$2.2 billion USD
Employees	1866 (in 2005)
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 $300 a share in 2005.

In 2005, Markel suffered an underwriting loss of $12 million due to Hurricane Katrina, Hurricane Rita, and Hurricane Wilma.

[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 December 1986, Markel held its first IPO at $8.33 per share, valuing the company at $15 million. Shares traded on the NASDAQ.

In December 1987, Markel 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 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 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 acquired Investors Insurance Holding Corporation in Red Bank, New Jersey.

In spring 1997, Markel trading moved to the NYSE.

In January 2000, Markel founded Markel Southwest Underwriters in Scottsdale, Arizona after buying the Arizona policies of Acceptance Insurance Company.