markelcorp.com Markel Corporation - PowerPoint Presentation

1. markelcorp.comMarkel CorporationAn overview

2. Forward-Looking Statements Statements in this presentation which are not statements of historical fact are “forward-looking statements” within the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance. Many factors could cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking-statements. These factors are discussed in detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other filings with the SEC. We make forward-looking statements based on currently available information, and we assume no obligation to update the statements made today or contained in our Annual Report or other filings due to changes in underlying factors, new information, future developments, or otherwise, except as required by law.  Third Party Information This presentation, including certain forward-looking statements herein, include information obtained from third party sources that we believe to be reliable. However, we have not independently verified this third party information and cannot assure you of its accuracy or completeness. While we are not aware of any misstatements regarding any third party data contained in this presentation, such data involve risks and uncertainties and are subject to change based on various factors, including those discussed in detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other filings with the SEC. We assume no obligation to revise or update this third party information to reflect future events or circumstances.2

3. The Markel StyleMarkel has a commitment to Success. We believe in hard work and a zealous pursuit of excellence while keeping a sense of humor. Our creed is honesty and fairness in all our dealings.The Markel way is to seek to be a market leader in each of our pursuits. We seek to know our customers' needs and to provide our customers with quality products and service.Our pledge to our shareholders is that we will build the financial value of our company. We respect our relationship with our suppliers and have a commitment to our communities.We are encouraged to look for a better way to do things…to challenge management. We have the ability to make decisions or alter a course quickly. The Markel approach is one of spontaneity and flexibility. This requires a respect for authority but a disdain of bureaucracy.At Markel we hold the individual's right to self-determination in the highest light, providing an atmosphere in which people can reach their personal potential. Being results-oriented, we are willing to put aside individual concerns in the spirit of teamwork to achieve success.Above all, we enjoy what we are doing. There is excitement at Markel, one that comes from innovating, creating, striving for a better way, sharing success with others…winning.3

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5. About Markel CorporationDiverse financial holding company for insurance and investment operationsTrades on the New York Stock Exchange: MKLHeadquartered in Richmond, VirginiaFounded in 1930Covers standard and hard-to-place insurance and reinsurance risks, and maintains underwriting platforms in Bermuda and at Lloyd’s of London (Syndicate 3000)Makes strategic investments in companies outside of the insurance industry; these investments are known collectively as Markel Ventures5

6. Markel offices around the worldHeadquartersRichmond, VAAsia PacificDubai, UAEHong KongKuala Lumpur, MalaysiaLabuan, MalaysiaMumbai, India SingaporeTokyo, Japan Bermuda Hamilton, Bermuda* Canada Calgary, CanadaMontreal, CanadaToronto, Canada Vancouver, Canada Europe Barcelona, Spain Dublin, Ireland Madrid, Spain Munich, Germany Pierrefitte-en-Auge, FranceRotterdam, Netherlands Zürich, Switzerland Latin America Bogotá, Colombia Buenos Aires, Argentina Rio de Janeiro, BrazilSão Paulo, Brazil*Multiple offices in these locationsUnited Kingdom Birmingham, EnglandBrinkworth, EnglandBristol, EnglandLeeds, EnglandLondon Metro*Manchester, EnglandReigate, EnglandRugby, EnglandSheffield, EnglandUnited States Atlanta Metro*Austin, TXChicago Metro*Dallas-Fort Worth Metro*Denver Metro Geneva, IL Hartford, CT Hawley, PAHouston Metro Kansas City Las Vegas MetroLos Angeles Metro* Milwaukee MetroNew York MetroOmaha, NE Providence, RI Red Bank, NJ San Antonio, TXSan Diego MetroSan Francisco Metro* Scottsdale, AZ Summit, NJ Tampa, FLWarrenton, VA6

7. 7Organizational structure

8. Thomas S. GaynerCo-Chief Executive OfficerRichard R. Whitt, IIICo-Chief Executive OfficerF. Michael CrowleyExecutive Consultant Markel Corporation executive team8Alan I. KirshnerExecutive ChairmanAnthony F. MarkelVice ChairmanSteven A. MarkelVice Chairman

9. Year-end financial highlights201720162015Total revenues$6,061,659$5,612,026$5,369,983Gross written premium $5,253,107$4,796,645$4,632,912Net income from other sources $1,333,280$1,214,449$1,047,516Comprehensive income to shareholders$1,174,974$667,047$232,723Shareholders’ equity$9,504,148$8,460,927$7,834,150Book value per common share outstanding$683.55$606.30$561.23Combined ratio (US GAAP)105%92%89%Total assets$32,805,016$25,875,299$24,941,2719Dollars in thousands, except per share amounts (USD)

10. Reporting segments10DivisionsReporting segmentsUS InsuranceInternational InsuranceReinsuranceResults for lines of business discontinued prior to, or in conjunction with, acquisitions will continue to be reported as the Other Insurance (Discontinued Lines) segment.Markel Global InsuranceMarkel Global InsuranceMarkel AssuranceMarkel SpecialtyMarkel InternationalMarkel Global Reinsurance

11. Underwriting operations:January 1-March 312018InsuranceReinsuranceConsolidatedGross premium$1.093 b$492.3 m$1.586 bEarned premium$902.9 m$248.0 m$1.151 bCombined ratio89%97%90%11Other revenues 2018Markel Ventures$392.1 mProgram services$21.6 mMarkel CATCo$17.3 mOther$8.4 mTotal other revenues$439.4 m

12. Gross premium distribution (as reported for Jan. 1-March 31)12

13. Our place in the industry2nd largest excess and surplus lines insurer in the US (SNL Financial, April 2018) Top 25 US liability insurers(National Association of Insurance Commissioners, March 2018)#29 on A.M. Best’s top 75 North American public insurers(July 2017)Ward’s Top 50 performing P&C insurers (July 2017)#276 on Forbes’ list of America’s top companies(May 2017)#464 on Fortune 500 (May 2018)13

14. Recent insurance acquisitionsState NationalNovember 2017: An insurer focused on program services and lender servicesSureTecApril 2017: A Houston-based privately-held surety companyCATCoDecember 2015: A Bermuda-based specialist investment management business14

15. Recent non-insurance acquisitionsCosta FarmsAugust 2017: The largest producer of ornamental plants in the worldCapTechDecember 2015: A national management consultingfirm that helps bridge the gap between business and technologyVanderpol and Den Boer August 2014: Designers and manufacturers of waffle baking equipment; now part of Tromp GroupCottrell July 2014: Designer and manufacturer of over-the-road automobile transport equipment15

16. Combined ratio: insurance operations16Industry 96% 97% 98% 101% 105%

17. Capital managementMarkel’s philosophy is to maintain more than adequate capital in the insurance subsidiaries, and pay dividends to the holding company each yearProvides the flexibility to deploy capital where neededWe seek to maintain:RBC scores of at least 300% in each of our US subsidiariesBest’s Capital Adequacy Ratio (BCAR) scores to support each subsidiary’s technical rating17

18. Underwriting and reservingUnderwriting approachOpen-mindedDisciplinedKnowledge of specific risks and industriesReserving approach“Better to be redundant than deficient.”18

19. Long-term growth in book valueBook value ($b) / book value per share ($)$684 +13%+11%+10%+12%

20. Capital generation20Capital generated from:Underwriting profitsFixed income couponsEquity investment returnsCash flows from industrial and service subsidiariesReinvestment in insurance operationsNew productsNew geographiesPublic securities marketsFixed incomeEquities  four investment lensesPrivately held companies (Markel Ventures)Permanent capitalStrong balance sheets Share repurchasesImpact per share performance4321Management independenceLong-term orientationIndustry hiresAcquisitions

21. Types of insurance products we underwriteAdmittedExcess and surplus linesReinsuranceLloyd’s Syndicate 300021

22. Distribution channelsDirect-to-consumer (select products)Retail agents (generalists)Retail agents (specialists)Wholesale, binding agentsProgram administratorsTop 100 agencies22

23. Financial strength formulaConsistent, long-term underwriting profitsReserves more likely to be redundant than deficientInvesting success23

24. Our insurance companiesAlterra America Insurance CompanyCity National Insurance CompanyEC Insurance Company LimitedEssentia Insurance CompanyEvanston Insurance CompanyFirstComp Insurance CompanyIndependent Specialty Insurance CompanyLloyd’s Syndicate 3000Markel American Insurance CompanyMarkel Bermuda Limited Markel Global Reinsurance CompanyMarkel Insurance CompanyMarkel International Insurance Company LimitedMarkel Resseguradora do Brasil S.A.National Specialty Insurance CompanyState National Insurance CompanySureTec Indemnity CompanySureTec Insurance Company United Specialty Insurance Company24

25. Financial strength and credit ratings25

26. Insurance divisions

27. Markel Assurance

28. Markel Assurance Formed in 2018 by merging the Global Insurance and Wholesale divisionsProduction channels include both wholesale and retailThree product lines – casualty, professional liability, and property/marine28*Markel West, Inc. operates in California as Markel West Insurance Services, a California licensed surplus lines broker, license No. 0D95581.

29. Target risksConstructionHealth careEnergy and environmentalFinancial institutionsLife sciences ManufacturingReal estateTechnology29

30. Regional offices30

31. Markel Assurance leadership team31Bryan SandersPresident Jeff LambChief Operations OfficerJim ArnoldChief Administrative OfficerAlan RodriguesExecutive Underwriting Officer, Casualty Jim GrayExecutive Underwriting Officer, Professional Jon HahnExecutive Underwriting Officer, Property Glenn HarrisManaging Director, Business Development Denise Perlman Senior Director, Business Development

32. Markel Specialty

33. Markel SpecialtyInsurance solutions for both commercial customers and individualsCoverages: Workers compensationProperty and casualtyPersonal linesAccidentMarkelinsurance.com33

34. Production partnersRetail agentsAgents specializing in particular product linesProgram administratorsMGAs/MGUsAffinity groups34

35. Programs Commercial programs Camps and youth recreationChild care centersEvent plannersHealth clubsHorses and farmsHuman servicesInvestment advisorsMedical transportationMuseumsOutdoor programsPest controlProgram administrator businessSchools – private, charter, professionalSmall business Special risk accident – groups, clubs, nonprofitsSports and fitnessStudent accidentSuretyWorkers compensationPersonal linesBicyclesEvent cancellationMotorcycles, ATVs, snowmobilesWatercraft35

36. Markel Specialty offices36

37. Markel Specialty leadership37Matt ParkerPresidentStephen LeeretManaging DirectorProgramsChad BertucciManaging ExecutiveMarkel Specialty CommercialMary Pat JoyceManaging ExecutiveMarkel Carrier AllianceDon FaisonManaging Executive-MarketingMarkel Specialty Commercial Chris ReichertManaging DirectorSales and MarketingAudrey HankenManaging ExecutiveMarkel Specialty Personal Lines

38. Markel International

39. Markel InternationalWrites insurance and reinsurance business through offices across the UK, Europe, Canada, Latin America, and Asia Pacific Insuring entities: Syndicate 3000, Markel International Insurance Company Limited, and Markel Resseguradora do Brasil S.A. Units: Specialty property, casualty, professional liability, equine, terrorism, marine, energy, and trade credit insurance on both a direct and reinsurance basis and manages Markel Syndicate 3000 at Lloyd’s.Markelinternational.com39

40. Markel International productsAccident and health Business interruptionCargoContingencyCrimeCyber liabilityD&O, management liabilityEmployers’ liabilityEmployment law protectionEmployment practices liabilityEnvironmental liabilityEquine and livestockExcess/umbrella liabilityFinancial institutionsFine artsGeneral liabilityHullIntellectual propertyItalian liability/indemnityMarine and energyMarine liabilityMedia liability Products liabilityPorts and terminalsProfessional indemnity/liabilityPropertyProperty treaty reinsuranceSocial welfareSpecieTerrorismTrade creditUK motor reinsuranceWar40

41. Markel International leadership41William StovinPresidentNick LineChief ActuaryAndy DaviesChief Operating Officer Jeremy BrazilDirector of UnderwritingJeremy NobleFinance Director

42. Markel International offices42

43. Reinsurance division

44. Markel Global Reinsurance

45. Markel Global Reinsurance Provides traditional reinsurance products to the broker marketTreaty reinsuranceFacultative reinsuranceWrites reinsurance treatiesQuota shareExcess of loss45

46. Markel Global Reinsurance productsAgricultureAutoAviationEnvironmental Excess casualtyGeneral liabilityMarine and energyMedical malpracticeMortgageMulti-line Professional liabilityPropertyPublic entityRetroSuretyTerrorismTrade credit/political riskWhole accountWhole turnover credit Workers compensation46

47. Markel Global Reinsurance leadership47Jed RhoadsPresident and Chief Underwriting Officer,Global ReinsuranceDon BahrSenior Managing Director, Casualty ReinsuranceAndrew BarnardSenior Managing Director, International Property Catastrophe and Retro ReinsuranceTod CostikyanSenior Managing Director, Specialty ReinsurancePhil FredaManaging Director,Public Entity ReinsuranceSteve LeitzChief Administrative OfficerPeta WhiteSenior Managing Director,North American Property

48. Global Re offices48

49. ILS management

50. Markel CATCo

51. Markel CATCoA specialist investment management business, based in Hamilton, BermudaManages retrocessional and traditional reinsurance portfolios on behalf of financial institutions, charities, pension funds, family offices, and investment fundsAuthorized and regulated by the Bermuda Monetary AuthorityMarkelcatco.com51

52. State National Companies

53. State NationalLeading, specialty provider of property and casualty insurance operating in two niche markets across the United States27+-year track record of profitability“A” rating from A.M. Best since 1993, the company’s first year of eligibilityHeadquartered in Bedford, Texas; 450 employeesStatenational.com53

54. Non-insurance

55. Markel Ventures

56. Markel VenturesMarkel’s non-insurance operationsAcquire majority control of companies outside of the insurance industry using “permanent capital”Portfolio includes companies in the manufacturing, health care, and business/financial services sectorsMarkelventures.com56

57. Markel Ventures investment criteriaAcquisitions are for the long-term and financed with little or no debt.Look to invest permanent capital in businesses that meet the following criteria:Profitable businesses with good returns on capitalManagement teams with talent and integrityReinvestment opportunities Reasonable price57

58. Markel Ventures companies58Non-manufacturingEagle Construction | VAResidential homebuilder and provider of diverse real estate services in VirginiaParkLand Ventures | VALeading operator of manufactured housing communities throughout the USRetailData | VADelivers retail intelligence through customized competitive retail price checksDiamond Healthcare | VANational leader in the planning, development, and operation of behavioral health servicesPartnerMD | VAProvider of concierge medical and executive health programsMarkel|Eagle | VAMid-Atlantic focused capital provider for opportunistic real estate projectsEllicott Dredges | MDDesigner and manufacturer of portable dredges for governments, contractors, miners and marine operatorsHavco Wood Products | MOProvider of laminated oak and composite wood flooring to the truck trailer and intermodal container industryPanel Specialists | TXManufacturer of dorm furniture, wall systems, medical casework and marine panelsWeldship | PADesigner and manufacturer of storage and transportation equipment used by the industrial and specialty gas industryManufacturingAMF Bakery Systems | VADesigner and manufacturer of high speed bakery equipment for the production of bread and bunsReading Bakery Systems | PADesigner and manufacturer of industrial baking systems for the production of cookies, crackers and other baked snacksTromp Group| NetherlandsDesigner and manufacturer of baking equipment and sheeting lines for pizza, pastry, pie, waffle, and other specialty breadSolbern | NJDesigner and manufacturer of processing equipment including direct fillers for food productsCottrell | GADesigner and manufacturer of over-the-road automobile transport equipmentCapTech | VANational management consulting firm that bridges the gap between business and technologyCosta Farms | FLLargest producer of ornamental plants in the world

59. History

60. 60A century of transformationOver the course of 87 years in business, Markel successfully transformed from a small insurance broker to a global diversified financial holding company1920s-1950s1950s-19851986-20002000-20122013-todaySam Markel startsMarkelLeverages expertise in insuring unique risks to expand into new productsThird generation of Markel family at the helm; public offering to fund growthExpansion into global insurance markets and non-insurance operationsAdds reinsurance and global insurance (large accounts) capabilitiesHumblebeginningsBuilding the businessA lasting enterpriseFinding new marketsContinued growthOrganizes jitney bus operators and starts a small transportation insurance company in Norfolk, VACompany expands as the automobile and trucking industry thrives in the USEssex Insurance Company opens - insures new specialized property and casualty risksExtends operations into CanadaTony, Steve, and Alan organize family members to consolidate ownershipFirst Markel shares sold to public at $8.33 per shareContinue to expand number of unique insurance productsPosition as global specialty insurer established through Terra Nova acquisitionMarkel Ventures is founded; begins acquiring high quality companies outside the insurance sectorAcquisition of Alterra provides entry into reinsurance and large accounts businessesMarkel CATCo bolsters reinsurance platform with insurance-linked investmentsAcquisition of SureTec provides entry into surety businessMarkel Ventures continues growth trend; >$1bn in revenue in 2016

61. Corporate milestones1930 Humble beginningsSam Markel forms Mutual Casualty Association and establishes Mutual Casualty Company in Norfolk, VA to insure jitney buses.1930s A family businessSam Markel’s four sons, Lewis, Irvin, Stanley, and Milton, join the growing business, and Markel Service, Inc. is created.61

62. Corporate milestones1940s Competitive advantagesMarkel Service, Inc. earns a national following and develops a reputation for industry-leading claims adjusting and safety engineering.1980 Becoming an insurance carrierEssex Insurance Company is incorporated and licensed to write excess and surplus (E&S) lines business.62

63. Corporate milestones1986 Going publicMarkel listed on NASDAQ exchange. IPO offered at $8.33 per share; market capitalization of nearly $15 million (USD).1987 Growing the businessMarkel acquires four focused, well-positioned companies to grow the business.63

64. Corporate milestones1997 Getting biggerTrading of Markel shares moves to the NYSE and market capitalization approaches $900 million (USD).2000 Going globalMarkel acquires Terra Nova Holdings Ltd. (Bermuda) and gains entry to London markets.64

65. Corporate milestones2005 Introducing Markel VenturesMarkel Ventures is established. First acquisition is AMF Bakery Systems.2009 Reorganizing with purposeMarkel Wholesale launches regional model to get closer to customers.2011 Markel Ventures continues to growTop-line revenues from Markel Ventures increase by 89%.65

66. Corporate milestones2012 Finding new marketsMarkel Specialty grows by acquisition of FirstComp, THOMCO, and Essentia Insurance.2013 Alterra, a natural fitMarkel acquires Alterra Capital Holdings Limited (Bermuda).2014 Adding AbbeyAbbey Protection plc, a UK-based integrated specialist insurance and consultancy group was acquired in January.66

67. Corporate milestones2015 More acquisitionsMarkel acquired Bermuda-based CATCo, a specialist investment management business. Markel Ventures announces majority interest in CapTech.2016 Joining the Fortune 500Markel joins the Fortune 500 at number 476 and celebrates 30 years as a public company. 2017 Growing the familyMarkel acquired SureTec Financial Corp, Costa Farms, and State National Companies.67

68. 68Markel Confidential

69. Community involvementSuccessful companies are by definition good corporate citizens. Markel's associates are generous with both their time and money.The company is supportive of their efforts on behalf of more than 100 local, regional, national, and international charities.Markel encourages associates to donate to charitable organizations and take advantage of Markel’s matching gift program.69

70. Board of DirectorsAlan I. KirshnerExecutive ChairmanAnthony F. MarkelVice ChairmanSteven A. MarkelVice ChairmanThomas S. GaynerCo-Chief Executive OfficerMarkel CorporationRichard R. Whitt, IIICo-Chief Executive OfficerMarkel CorporationJ. Alfred Broaddus, Jr.Private InvestorK. Bruce ConnellRetired Executive Vice PresidentXL Group plcStewart M. KasenRetired President and Chief Executive OfficerS&K Famous Brands, Inc.Diane LeopoldPresident & CEOGas Infrastructure Group, Dominion EnergyLemuel E. LewisRetired Executive Vice President and Chief Financial OfficerLandmark Communications, Inc.Darrell D. MartinRetired Executive Vice President and Chief Financial OfficerMarkel CorporationMichael O'ReillyRetired Vice ChairmanThe Chubb CorporationMichael J. SchewelGeneral Counsel and SecretaryTredegar Corporation Debora J. WilsonFormer President and Chief Executive OfficerThe Weather Channel70

71. Learn more about Markel Learn about Markel’s products, history, corporate highlights, and more:Markelcorp.comMarkelinsurance.comMarkelinternational.com Facebook.com/markelcorp Linkedin.com/company/markel-corporation71