Good comprehensive analysis of the earnings report.

In recent years, Markel has been restructuring and streamlining its insurance division. The challenge with insurance is that it is a slow-moving business; this long-tail business takes years to run off the books completely. So today's figures still carry a few underperforming contracts that hide the real earning power. The Global Reinsurance division, which is being wound down in run-off; the long tail of an old State National programme that caused the credit loss this quarter and the accounting distortion resulting from Hagerty’s transition to a fronting model. None of this means the business is failing. It's the leftover of a company deliberately dropping risk it doesn't want.

This takes time, and when it finally happens, we will see what the reformed, Markel Insurance is truly capable of earning. That's why our long-term confidence in Markel only grows, right through the noise of one quarter

kevincasteleijn.substack.com - Markel mkl q2 update