Subject: Re: MKL q1
Gaynor has outperformed S&P by almost 2% a year over the last 10 years.

The 1Q results showed they have made significant progress in fixing their underwriting performance.

The operating earnings loss is entirely due to unrealized losses in the equity portfolio. Equity markets were down in March due to Iran war, and have fully recovered in April. If the earnings were a current snapshot, instead of March 31, there would be no loss and book value too would be higher. Based on current book and share price, PB would be well below 1.2. Buying back lots of stock with free cash flow and excess capital would be exemplary capital allocation.