Markel Corporation (NYSE:MKL) Q2 2023 Earnings Call Transcript

We extrapolate that, and we take a more significant movement, right. So the total dollars in the period of actual versus expected on that loss activity, it pales in comparison to the total amount of loss development we recognized in the period. So now we’ll wait and see how that sort of trends and develops over time. But a lot of that is now sitting in IBNR, we continue to be very, very cautious to respond quickly on that back year development.

Scott Heleniak: Okay. Got it. And just a last question just on Markel Ventures, Tom, could you comment on just – you mentioned some conversations and discussions you’re having and how those have kind of trended just the number of them this year versus last year and anything you can add there? And is deal pricing still – I know I was kind of holding you back a little bit. Is that still case now? Or just any update on kind of what you’re seeing in terms of potential M&A for ventures.

Tom Gayner: Sure. Well, let me give you some precise answers on that. So the conversations we’re having now, reported some, the conversations a year ago, almost none. So just a few more people have talked to. And the gap would be in pricing and remaining disciplined and being a different kind of buyer than the other buyers that are out there. That’s something obviously sellers are aware of. We can bridge those gaps and get close in some markets. Other markets, we just have to wait and let the tide roll out a little bit and we’ve been doing that for a while. And it’s not unprecedented. The first Markel Ventures deal we did was in 2005. We didn’t do the second 1 until I think, three years later in 2008. So we’re used to periods where we just talk to people and wait for the stars to align.

Scott Heleniak: Yes. Well, some is better than none, right?

Tom Gayner: That’s correct.

Scott Heleniak: All right, thanks a lot.

Tom Gayner: Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tom Gayner for any closing remarks.

Tom Gayner: Thank you very much for your ongoing support and interest. We look forward to catching up with you in another 90 days. We will.

Operator: The conference call has now concluded. Thank you for attending today’s presentation. You may now disconnect.