<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
/ X / Quarterly report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended September 30, 1995
or
/ / Transition report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from _____ to _____
Commission File Number 0-15458
MARKEL CORPORATION
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
Virginia 54-0292420
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
</TABLE>
4551 Cox Road, Glen Allen, Virginia 23060-3382
(Address of principal executive offices)
(Zip code)
(804) 747-0136
(Registrant's telephone number, including area code)
NONE
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes / X / No / /
Number of shares of the registrant's common stock outstanding at October 30,
1995: 5,413,420
1
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Markel Corporation
Form 10-Q
Index
<TABLE>
<CAPTION>
Page Number
<S> <C>
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Balance Sheets--
September 30, 1995 and December 31, 1994 3
Consolidated Statements of Income--
Quarters and Nine Months Ended September 30, 1995 and 1994 4
Consolidated Statements of Cash Flows--
Nine Months Ended September 30, 1995 and 1994 5
Notes to Consolidated Financial Statements--
September 30, 1995 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K 12
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MARKEL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
---------------------------------
1995 1994
=========================================================================================================================
(dollars in thousands)
<S> <C> <C>
ASSETS
Investments, available-for-sale, at estimated fair value
Fixed maturities (cost of $648,808 in 1995 and $441,983 in 1994) $ 660,436 $ 423,114
Equity securities (cost of $104,418 in 1995 and $98,117 in 1994) 131,579 107,315
Short-term investments (estimated fair value approximates cost) 97,299 81,258
- -------------------------------------------------------------------------------------------------------------------------
Total investments, available-for-sale 889,314 611,687
- -------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents 12,192 10,229
Receivables 60,331 71,561
Reinsurance recoverable on unpaid losses 170,429 180,934
Reinsurance recoverable on paid losses 16,000 45,163
Deferred policy acquisition costs 33,612 26,064
Prepaid reinsurance premiums 40,616 37,290
Property and equipment 27,586 43,288
Intangible assets 42,052 45,086
Deferred tax asset -- 14,912
Other assets 19,740 17,274
- -------------------------------------------------------------------------------------------------------------------------
Total assets $ 1,311,872 $ 1,103,488
=========================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Unpaid losses and loss adjustment expenses $ 729,816 $ 652,930
Unearned premiums 178,285 146,553
Payables to insurance companies 24,038 20,757
Long-term debt (estimated fair value of $115,188 in 1995 and $87,489 in 1994) 118,176 100,686
Other liabilities 67,580 44,061
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,117,895 964,987
- -------------------------------------------------------------------------------------------------------------------------
Stockholders' equity
Common stock 23,039 22,929
Retained earnings 145,726 121,858
Net unrealized gains (losses) on fixed maturities and equity securities,
net of taxes 25,212 (6,286)
- -------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 193,977 138,501
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 1,311,872 $ 1,103,488
=========================================================================================================================
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 4
MARKEL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
<TABLE>
<CAPTION>
Quarter Ended, Nine Months Ended
September 30, September 30,
----------------------- -------------------------
1995 1994 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
(dollars in thousands, except per share data)
<S> <C> <C> <C> <C>
Operating revenues
Earned premiums $ 75,659 $ 63,828 $ 209,892 $ 176,684
Net investment income 12,058 7,529 30,530 21,092
Net realized gains from investment sales 3,037 265 7,650 3,868
Other 789 792 2,561 2,636
- -------------------------------------------------------------------------------------------------------------------------
Total operating revenues 91,543 72,414 250,633 204,280
- -------------------------------------------------------------------------------------------------------------------------
Operating expenses
Losses and loss adjustment expenses 49,651 40,364 137,685 112,200
Underwriting, acquisition and insurance expenses 25,575 21,719 70,254 59,484
Other 410 443 1,239 1,975
Amortization of intangible assets 899 2,038 2,192 5,448
- -------------------------------------------------------------------------------------------------------------------------
Total operating expenses 76,535 64,564 211,370 179,107
- -------------------------------------------------------------------------------------------------------------------------
Operating income 15,008 7,850 39,263 25,173
Interest expense 2,173 1,992 6,304 5,691
- -------------------------------------------------------------------------------------------------------------------------
Income before income taxes 12,835 5,858 32,959 19,482
Income taxes 3,851 1,640 9,083 5,455
- -------------------------------------------------------------------------------------------------------------------------
Net income $ 8,984 $ 4,218 $ 23,876 $ 14,027
=========================================================================================================================
Earnings per share
Primary $ 1.59 $ 0.76 $ 4.26 $ 2.51
- -------------------------------------------------------------------------------------------------------------------------
Fully diluted $ 1.59 $ 0.76 $ 4.23 $ 2.51
=========================================================================================================================
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 5
MARKEL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
---------------------------------
1995 1994
- -------------------------------------------------------------------------------------------------------------------------
(dollars in thousands)
<S> <C> <C>
Operating Activities
Net income $ 23,876 $ 14,027
Adjustments to reconcile net income to net cash provided by operating activities 126,780 21,204
- -------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 150,656 35,231
- -------------------------------------------------------------------------------------------------------------------------
Investing Activities
Proceeds from sales of fixed maturities and equity securities 427,790 267,518
Proceeds from maturities of fixed maturities 15,561 12,622
Cost of fixed maturities and equity securities purchased (587,422) (308,036)
Net change in short-term investments (16,041) (30,292)
Purchase of Lincoln Insurance Company - net of cash acquired (21,747) --
Proceeds from sale of Corporate headquarters buildings 19,068 --
Other (3,454) 17,346
- -------------------------------------------------------------------------------------------------------------------------
Net cash used by investing activities (166,245) (40,842)
- -------------------------------------------------------------------------------------------------------------------------
Financing Activities
Borrowings under credit facility 27,500 --
Net proceeds from issuance of long-term debt -- 24,280
Repayment of long-term debt and credit facility (10,050) (1,550)
Retirement of capital lease -- (19,584)
Repurchase of common stock -- (2,520)
Other 102 402
- -------------------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 17,552 1,028
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents 1,963 (4,583)
Cash and cash equivalents at beginning of period 10,229 12,386
- -------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 12,192 $ 7,803
=========================================================================================================================
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE> 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--September 30, 1995
1. Principles of Consolidation
The consolidated balance sheet as of September 30, 1995, the related
consolidated statements of income for the quarters and nine months ended
September 30, 1995 and 1994, and the consolidated statements of cash flows for
the nine months ended September 30, 1995 and 1994, are unaudited. In the
opinion of management, all adjustments necessary for a fair presentation of
such consolidated financial statements have been included. Such adjustments
consist only of normal recurring items. Interim results are not necessarily
indicative of results of operations for the full year.
The consolidated financial statements and notes are presented as permitted by
Form 10-Q, and do not contain certain information included in the Company's
annual consolidated financial statements and notes.
Certain reclassifications of prior year's amounts have been made to conform
with 1995 presentations.
2. Earnings per share
Earnings per share was determined by dividing net income, as adjusted below, by
the applicable shares outstanding (in thousands):
<TABLE>
<CAPTION>
Quarter Ended, Nine Months Ended
September 30, September 30,
---------------------- ------------------------
1995 1994 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net income, as reported $ 8,984 $ 4,218 $ 23,876 $ 14,027
Dividends on redeemable preferred stock (4) (4) (12) (12)
- -------------------------------------------------------------------------------------------------------------------------
Primary and fully diluted income $ 8,980 $ 4,214 $ 23,864 $ 14,015
=========================================================================================================================
Average common shares outstanding 5,411 5,384 5,402 5,398
Shares applicable to common stock equivalents 221 177 195 175
- -------------------------------------------------------------------------------------------------------------------------
Average primary shares outstanding 5,632 5,561 5,597 5,573
Additional dilution attributable to common
stock equivalents 16 -- 42 --
- -------------------------------------------------------------------------------------------------------------------------
Average fully diluted shares outstanding 5,648 5,561 5,639 5,573
=========================================================================================================================
</TABLE>
6
<PAGE> 7
3. Reinsurance
The table below summarizes the effect of reinsurance on premiums written and
earned (dollars in thousands):
<TABLE>
<CAPTION>
Quarter Ended September 30,
- -------------------------------------------------------------------------------------------------------------------------
1995 1994
- -------------------------------------------------------------------------------------------------------------------------
Written Earned Written Earned
<S> <C> <C> <C> <C>
Direct $ 105,517 $ 95,144 $ 90,908 $ 76,816
Assumed 4,624 5,717 9,772 7,044
Ceded (26,706) (25,212) (26,288) (20,032)
- -------------------------------------------------------------------------------------------------------------------------
Net premiums $ 83,435 $ 75,659 $ 74,392 $ 63,828
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Nine Months Ended September 30,
- -------------------------------------------------------------------------------------------------------------------------
1995 1994
- -------------------------------------------------------------------------------------------------------------------------
Written Earned Written Earned
<S> <C> <C> <C> <C>
Direct $ 280,767 $ 255,761 $ 235,761 $ 213,025
Assumed 22,111 23,434 22,176 20,860
Ceded (73,892) (69,303) (61,551) (57,201)
- -------------------------------------------------------------------------------------------------------------------------
Net premiums $ 228,986 $ 209,892 $ 196,386 $ 176,684
=========================================================================================================================
</TABLE>
Incurred losses and loss adjustment expenses are net of reinsurance recoveries
of $16.9 million and $28.0 million for the quarters ended September 30, 1995
and 1994, respectively, and $47.1 million and $58.2 million for the nine months
ended September 30, 1995 and 1994, respectively.
7
<PAGE> 8
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
RESULTS OF OPERATIONS
Quarter and Nine Months ended September 30, 1995 compared to Quarter and Nine
Months ended September 30, 1994
The Company underwrites specialty insurance products and programs to niche
markets. Significant areas of underwriting include professional and products
liability, excess and surplus lines, specialty programs and specialty personal
and commercial lines. Professional liability coverage is offered to physicians
and health professionals, insurance companies, directors and officers,
attorneys and architects and engineers. Products liability insurance is
provided to manufacturers and distributors. Property/casualty insurance for
nonstandard and hard-to-place risks is underwritten on an excess and surplus
lines basis. Specialty program insurance includes coverage for camps, youth
and recreation, health and fitness and agribusiness organizations, as well as
accident and health insurance for colleges. The Company also underwrites
personal and commercial property and liability coverages for watercraft,
motorcycles, mobile homes, dwellings and commercial freight companies, and
maintains wholesale and retail brokerage operations that produce business
primarily for its insurance subsidiaries.
Following is a comparison of gross premium volume by significant underwriting
area:
<TABLE>
<CAPTION>
Gross Premium Volume
Quarter Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------------------------------
1995 1994 (amounts in thousands) 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 29,177 $ 31,597 Professional/Products Liability $ 96,395 $ 96,847
28,585 28,154 Excess & Surplus Lines 80,241 68,924
31,686 31,435 Specialty Program Insurance 82,217 72,176
13,725 4,613 Specialty Personal and Commercial Lines 32,134 11,544
8,687 5,772 Other 19,413 16,645
- -------------------------------------------------------------------------------------------------------------------------
$ 111,860 $ 101,571 Total $ 310,400 $ 266,136
=========================================================================================================================
</TABLE>
Gross premium volume increased 10% to $111.9 million for the third quarter and
17% to $310.4 million for the nine month period in 1995 from $101.6 million and
$266.1 million, respectively, for the same periods in 1994. Premiums from new
programs provided most of the growth for the quarter and nine month period in
1995.
Premiums from professional/products liability insurance totalled $29.2 million
for the third quarter and $96.4 million for the nine month period compared to
$31.6 million and $96.8 million, respectively, for the same periods last year.
The Company reported growth in the medical malpractice and specified medical
professions product lines for both periods. However, third quarter production
from professional and products liability programs was adversely affected by
increasing competition which offset the growth in the medical malpractice and
specified medical professions lines.
Excess and surplus lines third quarter gross premium volume totalled $28.6
million compared to $28.2 million a year earlier. For the nine month period,
excess and surplus lines gross premium volume rose 16% to $80.2 million from
$68.9 million in 1994. The year-to-date increase resulted
8
<PAGE> 9
from special property insurance premiums which increased 69% to $28.8 million
from $17.1 million in the prior year.
Specialty program insurance premiums totalled $31.7 million for the third
quarter compared to $31.4 million in the prior year. For the nine month
period, premiums advanced 14% to $82.2 million from $72.2 million in 1994. The
increase followed policy processing improvements and other operating
efficiencies in the Company's specialty program insurance division.
Specialty personal and commercial lines premiums were $13.7 million for the
third quarter and $32.1 million for the nine month period, up significantly
from $4.6 million and $11.5 million, respectively, for the same periods a year
ago. New programs, including property coverage for mobile homes and low value
dwellings, liability coverages for commercial autos and physical damage
coverage for personal autos, contributed $8.0 million to quarterly production
and $17.9 to the nine month gross premium volume. The growth was supported by
marketing and promotion efforts which enhanced production from established
books of business in both periods.
Other gross premium volume totalled $8.7 million for the third quarter and
$19.4 million for the nine month period compared to $5.8 million and $16.6
million, respectively, for the same periods in 1994. Other gross premium
volume included production from the Company's brokerage operations as well as
run-off business related to the acquisition of Lincoln Insurance Company (LIC)
in May 1995.
The Company enters into reinsurance agreements in order to reduce its liability
on individual risks and enable it to underwrite policies with higher limits.
The Company's net retention of gross premium volume rose to 75% in the third
quarter from 73% in the prior year. For the nine month period, the Company
maintained a 74% net retention.
Following is a comparison of earned premiums by significant underwriting area:
<TABLE>
<CAPTION>
Earned Premiums
Quarter Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------------------------------
1995 1994 (amounts in thousands) 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 28,545 $ 27,566 Professional/Products Liability $ 84,275 $ 79,808
17,987 17,237 Excess & Surplus Lines 51,724 45,568
16,699 14,406 Specialty Program Insurance 48,146 39,167
6,874 3,097 Specialty Personal and Commercial Lines 17,506 7,820
5,554 1,522 Other 8,241 4,321
- -------------------------------------------------------------------------------------------------------------------------
$ 75,659 $ 63,828 Total $ 209,892 $ 176,684
=========================================================================================================================
</TABLE>
Total operating revenues for the third quarter increased 26% to $91.5 million
from $72.4 million in 1994. For the nine month period, operating revenues rose
23% to $250.6 million from $204.3 million a year ago. Earned premiums advanced
to $75.7 million for the quarter and $209.9 million for the nine month period
from $63.8 million and $176.7 million, respectively, for the same periods in
1994. Higher gross premium volume prompted the 19% quarterly and year-to-date
increase in earned premiums.
9
<PAGE> 10
Third quarter net investment income rose 60% to $12.1 million from $7.5 million
a year ago. For the nine month period, net investment income increased 45% to
$30.5 million from $21.1 million in 1994. The increases reflected the impact
of a significantly larger investment portfolio and higher yields. The
Company's invested assets were $889.3 million at September 30, 1995 compared to
$625.7 million at September 30, 1994.
Realized investment gains totalled $3.0 million for the third quarter and $7.7
million for nine months compared to $0.3 million and $3.9 million,
respectively, for the same periods last year. Variability in the timing of
realized investment gains is to be expected and often results from interest
rate volatility which affects the market values of fixed maturity and equity
investments.
Total operating expenses for the third quarter were $76.5 million compared to
$64.6 million in 1994. Total operating expenses for the nine month period were
$211.4 million compared to $179.1 million a year ago. The 19% and 18%
quarterly and year-to-date increases, respectively, resulted primarily from
higher variable expenses associated with higher earned premiums.
Following is a comparison of selected data from the Company's operations (in
thousands):
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------------------------------
1995 1994 (amounts in thousands) 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 111,860 $ 101,571 Gross premium volume $ 310,400 $ 266,136
$ 83,435 $ 74,392 Net premiums written $ 228,986 $ 196,386
75% 73% Net retention 74% 74%
$ 75,659 $ 63,828 Earned premiums $ 209,892 $ 176,684
$ 49,651 $ 40,364 Losses and loss adjustment expenses $ 137,685 $ 112,200
Underwriting, acquisition, and
$ 25,575 $ 21,719 insurance expenses $ 70,254 $ 59,484
GAAP ratios
65% 63% Loss ratio 65% 63%
34% 34% Expense ratio 34% 34%
- -------------------------------------------------------------------------------------------------------------------------
99% 97% Combined ratio 99% 97%
=========================================================================================================================
</TABLE>
The third quarter and nine month combined loss and expense ratio increased to
99% from 97% in both periods in 1994. The loss ratio rose to 65% for the
quarter and the nine month period from 63% for the same periods a year ago.
Loss ratios rose as increased competition and continued soft market conditions
prompted the Company to establish loss reserves for current business at higher
levels relative to the prior year. Third quarter and nine month expenses
remained steady at 34% of earned premiums. The Company's continuing focus on
process improvements and cost controls has helped to maintain expense ratios in
1995 and 1994.
In the third quarter, amortization expense declined to $0.9 million from $2.0
million for the same period last year. For the nine month period, amortization
expense decreased to $2.2 million from $5.4 million in 1994. The declines in
both periods resulted from the expiration of noncompete agreements in December
1994.
10
<PAGE> 11
Higher net investment income and higher earned premiums with continued
underwriting profitability fueled significant growth in core operating income
for both the quarter and nine month period. The Company focuses on core
underwriting and investing results before consideration of realized gains or
losses from the sales of investments and expenses related to the amortization
of intangible assets in order to reduce the variability in results associated
with realized investment gains or losses and eliminate the impact of accounting
conventions which do not reflect current operating costs. For the third
quarter of 1995, pre-tax income from core underwriting and investing operations
increased 26% to $9.6 million from $7.6 million in 1994. For the nine month
period, pre-tax income from core operations grew 23% to $25.9 million from
$21.1 million last year.
Interest expense was $2.2 million for the quarter and $6.3 million for the nine
month period compared to $2.0 million and $5.7 million, respectively, for the
same periods in 1994. The Company increased borrowings in order to facilitate
the purchase of LIC, leading to higher interest expense in both the quarter and
nine month period.
The Company's effective tax rate for the third quarter was 30% of income before
income taxes compared to 28% of income before income taxes for the same period
last year. The rise in the effective tax rate followed a reallocation of the
Company's investment portfolio from tax-advantaged to taxable securities. For
the nine month period in both years, the Company's effective tax rate was 28%
of income before income taxes.
Third quarter net income rose sharply to $9.0 million from $4.2 million in
1994. For the nine month period, net income advanced to $23.9 million from
$14.0 million last year. The strong performance reflected higher net
investment income, higher earned premiums with continued underwriting
profitability and lower amortization expenses.
FINANCIAL CONDITION AS OF SEPTEMBER 30, 1995
The Company's insurance operations collect premiums and pay current claims,
reinsurance commissions and operating expenses. Premiums collected and
positive cash flows from the insurance operations are invested primarily in
short-term investments and long-term bonds. The Company's short-term
investments provide liquidity for projected claims, reinsurance costs and
operating expenses.
For the nine month period ended September 30, 1995, the Company reported net
cash provided by operating activities of $150.7 million, compared to net cash
provided by operating activities of $35.2 million for the same period in 1994.
Higher premiums, commutations from reinsurers and other settlements contributed
to strong operating cash flow in the nine month period.
For the nine month period ended September 30, 1995, the Company reported net
cash used by investing activities of $166.2 million compared to $40.8 million
in 1994. The Company's invested assets increased to $889.3 million at
September 30, 1995 from $611.7 million at December 31, 1994. Commutations with
reinsurers and other settlements and the acquisition of LIC contributed
approximately $73 million and $60 million, respectively, to invested assets
during
11
<PAGE> 12
the nine month period. In addition, the pre-tax market value of the Company's
investment portfolio increased by $48.5 million since December 31, 1994. As of
September 30, 1995, the estimated fair value of the Company's fixed maturity
investments exceeded cost by $11.6 million, while the estimated fair value of
its equity investments exceeded cost by $27.2 million.
At September 30, 1995 the Company's fixed maturity and equity investments
comprised approximately 74% and 15% of total investments, respectively. The
Company expects variability in its realized and unrealized investment gains due
to interest rate volatility as well as other economic conditions.
The Company borrowed $17.0 million under an existing credit facility in order
to complete the purchase of LIC. As of September 30, 1995, the unused balances
available under the credit facility totalled $21.5 million.
Stockholders' equity at September 30, 1995 was $194.0 million compared to
$138.5 million at December 31, 1994. Book value per common share rose to
$35.84 at September 30, 1995 from $25.71 at December 31, 1994. During the nine
month period, net unrealized investment gains, net of income taxes, increased
by $31.5 million. There were no other material changes in the Company's
financial condition from that reported as of December 31, 1994.
OTHER ITEMS
In July 1995, the Company took advantage of favorable conditions in the real
estate market and executed sale and lease agreements related to its home
office properties in Richmond, Virginia. The Company sold the properties
which housed its corporate offices and Richmond-based underwriting units for
approximately $19 million after expenses and concurrently entered into ten to
twelve year operating lease agreements with the buyers. The Company realized a
$4.9 million gain on the sale of the properties which is being deferred and
amortized over the terms of the operating leases.
During the third quarter, the Company filed a registration statement on Form
S-8 with the Securities and Exchange Commission related to an employee stock
purchase and loan program. The program gave all Markel employees the
opportunity to purchase up to 125,000 shares of common stock through loans
provided at favorable terms. The first phase of the plan was completed in
September 1995. Employees participating in the plan purchased approximately
68,000 shares at an average price of $66.02 per share. The Company may make
future purchases of its common stock in order to accommodate employee demand
for shares under the program.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended September 30,
1995.
12
<PAGE> 13
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized, this 30th day of October, 1995.
Markel Corporation
By Alan I. Kirshner
------------------------------------
Alan I. Kirshner
Chief Executive Officer
(Principal Executive Officer)
By Anthony F. Markel
------------------------------------
Anthony F. Markel
President
(Principal Operating Officer)
By Steven A. Markel
------------------------------------
Steven A. Markel
Vice Chairman
By Darrell D. Martin
------------------------------------
Darrell D. Martin
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)
13
<PAGE> 14
Exhibit Index
<TABLE>
<CAPTION>
Number Description
<S> <C>
27 Financial Data Schedule**
</TABLE>
** Filed electronically with the Commission's operational EDGAR system.
14
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements contained in the Form 10-Q for the quarterly period ended
September 30, 1995 for Markel Corporation and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<DEBT-HELD-FOR-SALE> 660,436
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 131,579
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 889,314
<CASH> 12,192
<RECOVER-REINSURE> 16,000
<DEFERRED-ACQUISITION> 33,612
<TOTAL-ASSETS> 1,311,872
<POLICY-LOSSES> 729,816
<UNEARNED-PREMIUMS> 178,285
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 118,176
<COMMON> 23,039
0
0
<OTHER-SE> 170,938
<TOTAL-LIABILITY-AND-EQUITY> 1,311,872
209,892
<INVESTMENT-INCOME> 30,530
<INVESTMENT-GAINS> 7,650
<OTHER-INCOME> 2,561
<BENEFITS> 137,685
<UNDERWRITING-AMORTIZATION> 48,370
<UNDERWRITING-OTHER> 21,884
<INCOME-PRETAX> 32,959
<INCOME-TAX> 9,083
<INCOME-CONTINUING> 23,876
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 23,876
<EPS-PRIMARY> 4.26
<EPS-DILUTED> 4.23
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
