John Fox's questions to Markel Group Inc (MKL) leadership • Q4 2024
Question
John Fox asked for clarification on the company's performance targets, questioned the intrinsic value calculation's use of gross investments against unstated liabilities, and inquired about the premium growth in the Reinsurance segment given its historical underwriting record.
Answer
Executive Thomas Gayner directed Fox to the proxy statement for details on performance targets, which are tied to double-digit returns on operating income and share price. Regarding intrinsic value, Gayner emphasized the methodology's goal is consistency for tracking the rate of change, not a precise valuation. Executive Jeremy Noble explained that reinsurance growth was driven by better-performing lines like marine and energy, while the company has been contracting in challenged areas like D&O and casualty, with the goal of improving the combined ratio.