The Markel Reunion was well attended.

• The reorganization of the Insurance operations under Simon Wilson's leadership has been completed
• Insurance has essentially been decentralized into logical groupings to optimize for speed and accountability
• In the past two years insurance has gone from a multi-day process to a less than one hour quote with contract across the insurance units. This has been facilitated through the use of improved/streamlined forms, processes and the extensive use of AI to review legal language, site location risks and much more.
• We learned a new phrase: "Social Inflation". This pertains to juries awarding significantly larger settlements against insurance companies. An example was given of what was heretofore has been $9M to $11M jury settlements now soaring to over $100M. Furthermore, in conversations outside the meeting was told that "Social Inflation" is also increasingly being seen in the courtroom influencing behavior of the presiding judges. Markel is taking all the steps possible to avoid/exit those lines of insurance most likely to be affected by this trend.
• Markel exited the Reinsurance business in 2025 and is in run-off mode for previously written Reinsurance policies. Answering an audience question, the CFO said they would be open to selling off the Reinsurance business remnants for the right price.
• Markel Ventures is clicking on all cylinders and returning cash to the mother ship. Management pointed out how Ventures is providing a steady flow of cash to Markel whereas insurance can have up and down years. This steady flow thus allows Markel to have the latitude to seize opportunities even in years where the insurance units have large claims.

I bought our Markel holdings in September 2022 when the price bottomed. Markel is looking tempting now for more purchases at its present pricing. It is a steady compounder and while there are other potential investments with likely higher long term appreciation, there are some factors that are leading me to consider taking a lower compounding rate:

1)Markel Ventures is mostly immune to international competition outside the Western hemisphere. The products are either big (example: car carriers), special localized services (rental cranes), fragile (nursery grown plants), medical services (concierge), special specifications (pre-cast concrete) and the like.

2) Insurance is also mostly immune to competition from state sponsored actors as it does not employ many people, has no special scalability like manufacturing and fits into two buckets: 1) regulated insurance that is under the review of individual states or governments and 2) non-regulated insurance where every situation, client, risk and rate is unique.

Uwharrie