| Type | Public (NYSE: MKL) |
|---|---|
| Founded | 1930 |
| Headquarters | Glen Allen, Virginia |
| Key people | Alan I. Kirshner, Chairman of the Board and CEO Anthony F. Markel, Vice Chairman 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 $350 a share in 2010. Their book value per share has risen from $3.42 in 1986 to $282.55 in 2009, which is a compound annual growth rate of 21.2%.
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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 (Vice Chairman), 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.
On May 10, 2010 at the Markel Corp. Annual Meeting it was reported there would be a new management structure approved by the Board. Alan I. Kirshner will remain Chairman and Chief Executive Officer while Anthony F. and Steven A. Markel will still serve as Vice Chairman. Reporting to them is a three-member Office of the President. Thomas S. Gayne will be President and Chief Investment Officer, while Richard R. Whitt, III and Michael Crowley will each be President and Co-Chief Operating Officers.
In July 2010, Markel Corp. acquired Aspen Holdings, Inc. of Omaha, Nebraska.
Markel's internal money management firm is Markel-Gayner Asset Management Corp.