Markel Group Inc (MKL): A Bull Case Theory

We came across a bullish thesis on Markel Group Inc on Coughlin Capital by Brian Coughlin. In this article, we will summarize the bulls’ thesis on MKL. Markel Group Inc’s share was trading at $1,950.52 as of 18^th June. MKL’s trailing and forward P/E were 14.35 and 14.60 respectively according to Yahoo Finance.

Markel Group Inc. (MKL), often referred to as a “mini-Berkshire,” is a diversified insurance holding company with operations across specialty insurance, public and private investments, and a group of non-insurance businesses under Markel Ventures. The company’s core insurance segment, which focuses on long-tail excess and surplus lines, has shown consistent underwriting profitability in 8 of the last 9 years, although it has recently underperformed peers, particularly in reinsurance.

Markel Ventures, a $5.1 billion revenue segment with a 12.5% EBITDA margin, now contributes 40–50% of overall earnings and spans industries from construction to consumer goods. Despite its strong performance, limited transparency in segment disclosures has raised investor concerns. Meanwhile, Markel’s $11.8 billion public equity portfolio—managed by CEO Tom Gayner and featuring high-quality names like Berkshire Hathaway—has trailed broader indices over the past 5–10 years. The company holds $13.1 billion in net investments, or $1,025 per share, representing over half of its market cap, though not all of this is excess capital due to regulatory constraints.

Activist investors, including JANA Partners, are pressuring the company to separate its insurance and Ventures arms to unlock value. Management has acknowledged the need to improve insurance results for long-term success. With a conservative intrinsic value estimate of $2,610 per share—versus a current price of ~$1,813—the stock appears significantly undervalued.

Capital allocation has become more disciplined, with $8.8 billion deployed into investments since 2021 and an uptick in share repurchases. If insurance performance improves, MKL could see a major rerating, offering investors meaningful upside through multiple value-unlocking levers.

Previously we covered a bullish thesis on Markel Group Inc. by Value Don’t Lie in May 2025, which highlighted the company’s undervaluation, strong performance in Markel Ventures, and potential value unlock through a breakup of its insurance and Ventures segments. The company’s stock price has appreciated by approximately 7.5% since our coverage. This is because the thesis partially played out, driven by improved capital allocation and ongoing activist pressure. The thesis still stands as Markel’s intrinsic value remains well above its current valuation. Brian Coughlin shares an identical thesis but emphasizes more recent valuation metrics and reinforces the sum-of-the-parts argument amid persistent structural inefficiencies.

Markel Group Inc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held MKL at the end of the first quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of MKL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None.