Takeaways from Annual Meeting: Vast Specialty TAM; Execution Key in Soft Mkt

Research evidence excerpt

Takeaways from Annual Meeting: Vast Specialty TAM; Execution Key in Soft Mkt

Markel Group Inc (MKL)

Equity Research

May 22, 2026

Company Description

Markel Group

MKL is a specialty insurance and reinsurance company with a greater orientation to casualty lines than property lines. The company has diverse

holdings through its Ventures unit and aims to generate stronger investment returns to build book value over time.

Company Valuation/Risks

Our price target is established by applying a target multiple of 1.2x to our 1Q27E BVPS ex AOCI estimate. Upside risks include greater-than-expected

premium growth and margin improvement. Downside risks include pressure on underwriting results from loss cost trends in casualty, which could

result in a miss to our estimates. Pricing pressure in casualty lines, as the company limits property growth, could lead to lower premium growth.

American Financial Group, Inc.

Our price target is established by applying a target multiple of 2.2x to our 1Q27E BVPS ex AOCI estimate. Upside risks include casualty line pricing

momentum improving, which could lead to a beat to our underlying margin and premium growth expectations. Improving investor sentiment on real

estate sector could also lead to multiple upside. Downside risks include deteriorating loss trends and reserve strengthening for long-tailed commercial

lines, on which the company is oriented. Reserve strengthening could call into question pricing and loss pick adequacy for recent years.

Kinsale Capital Group Inc

Our price target is established by applying a target multiple of 3.0x to our 1Q27E BVPS ex AOCI estimate. Upside risks include property pricing recovering

or casualty pricing staying firmer for longer, disruption in the MGA marketplace, and higher E&S submission growth.

RLI Corp