Markel 1Q17 Earnings Call Notes

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Thomas Gayner – Co-Chief Executive Officer

Prices in this world are high

“Prices in this world are high and there is a lot of capital sloshing around, trying to find deals. We will continue to focus on organic growth opportunities at our existing businesses and we’ll opportunity respond when we see the chance to do so.”

Starting to see loss cost trend move up a bit

“As just as people start to talk about rates potentially moving up and inflation maybe starting to move a little bit, you’re starting to see loss cost trend, which makes sense. So there it’s a mixed bag depending on which line of business of ours we’re talking about. But we’re seeing a little bit of a trend and that’s driven some of those rate increases and we also just had some one-off things in the first quarter that drove some of that increase.”

Richard Witt

Reinsurance combined ratio hit 132%

“The combined ratio for the reinsurance segment was 132% compared to 82% in 2016. As Anne just discussed, the significant increase in the combined ratio this quarter is due to adverse development on prior year loss reserves, driven by the $85 million or 38 points of reserve strengthening in U.K. motor reinsurance. It’s worth pointing out that this London written business was discontinued in 2014.”