-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SG938C8jwsCHgQVq2drGPJvSZnGFLkLKeVSq8ybckHA59QEqaL7SZPc1LZfmVDIT Fs3eie7KDQvwmLGulIvOyA== 0000950133-95-000609.txt : 19951102 0000950133-95-000609.hdr.sgml : 19951102 ACCESSION NUMBER: 0000950133-95-000609 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951101 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARKEL CORP CENTRAL INDEX KEY: 0000803509 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 540292420 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15458 FILM NUMBER: 95586280 BUSINESS ADDRESS: STREET 1: 4551 COX RD CITY: GLEN ALLEN STATE: VA ZIP: 23060-3382 BUSINESS PHONE: 8047470136 MAIL ADDRESS: STREET 1: P O BOX 2009 CITY: GLEN ALLEN STATE: VA ZIP: 23058-2009 10-Q 1 MARKEL CORPORATION 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q / X / Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 1995 or / / Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____ to _____ Commission File Number 0-15458 MARKEL CORPORATION (Exact name of registrant as specified in its charter) Virginia 54-0292420 (State or other jurisdiction of (I.R.S. employer incorporation or organization) identification number)
4551 Cox Road, Glen Allen, Virginia 23060-3382 (Address of principal executive offices) (Zip code) (804) 747-0136 (Registrant's telephone number, including area code) NONE (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes / X / No / / Number of shares of the registrant's common stock outstanding at October 30, 1995: 5,413,420 1 2 Markel Corporation Form 10-Q Index
Page Number PART I. FINANCIAL INFORMATION: Item 1. Financial Statements Consolidated Balance Sheets-- September 30, 1995 and December 31, 1994 3 Consolidated Statements of Income-- Quarters and Nine Months Ended September 30, 1995 and 1994 4 Consolidated Statements of Cash Flows-- Nine Months Ended September 30, 1995 and 1994 5 Notes to Consolidated Financial Statements-- September 30, 1995 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II. OTHER INFORMATION: Item 6. Exhibits and Reports on Form 8-K 12
2 3 PART I. FINANCIAL INFORMATION Item 1. Financial Statements MARKEL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets
September 30, December 31, --------------------------------- 1995 1994 ========================================================================================================================= (dollars in thousands) ASSETS Investments, available-for-sale, at estimated fair value Fixed maturities (cost of $648,808 in 1995 and $441,983 in 1994) $ 660,436 $ 423,114 Equity securities (cost of $104,418 in 1995 and $98,117 in 1994) 131,579 107,315 Short-term investments (estimated fair value approximates cost) 97,299 81,258 - ------------------------------------------------------------------------------------------------------------------------- Total investments, available-for-sale 889,314 611,687 - ------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents 12,192 10,229 Receivables 60,331 71,561 Reinsurance recoverable on unpaid losses 170,429 180,934 Reinsurance recoverable on paid losses 16,000 45,163 Deferred policy acquisition costs 33,612 26,064 Prepaid reinsurance premiums 40,616 37,290 Property and equipment 27,586 43,288 Intangible assets 42,052 45,086 Deferred tax asset -- 14,912 Other assets 19,740 17,274 - ------------------------------------------------------------------------------------------------------------------------- Total assets $ 1,311,872 $ 1,103,488 ========================================================================================================================= LIABILITIES AND STOCKHOLDERS' EQUITY Unpaid losses and loss adjustment expenses $ 729,816 $ 652,930 Unearned premiums 178,285 146,553 Payables to insurance companies 24,038 20,757 Long-term debt (estimated fair value of $115,188 in 1995 and $87,489 in 1994) 118,176 100,686 Other liabilities 67,580 44,061 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,117,895 964,987 - ------------------------------------------------------------------------------------------------------------------------- Stockholders' equity Common stock 23,039 22,929 Retained earnings 145,726 121,858 Net unrealized gains (losses) on fixed maturities and equity securities, net of taxes 25,212 (6,286) - ------------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 193,977 138,501 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 1,311,872 $ 1,103,488 =========================================================================================================================
See accompanying notes to consolidated financial statements. 3 4 MARKEL CORPORATION AND SUBSIDIARIES Consolidated Statements of Income
Quarter Ended, Nine Months Ended September 30, September 30, ----------------------- ------------------------- 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- (dollars in thousands, except per share data) Operating revenues Earned premiums $ 75,659 $ 63,828 $ 209,892 $ 176,684 Net investment income 12,058 7,529 30,530 21,092 Net realized gains from investment sales 3,037 265 7,650 3,868 Other 789 792 2,561 2,636 - ------------------------------------------------------------------------------------------------------------------------- Total operating revenues 91,543 72,414 250,633 204,280 - ------------------------------------------------------------------------------------------------------------------------- Operating expenses Losses and loss adjustment expenses 49,651 40,364 137,685 112,200 Underwriting, acquisition and insurance expenses 25,575 21,719 70,254 59,484 Other 410 443 1,239 1,975 Amortization of intangible assets 899 2,038 2,192 5,448 - ------------------------------------------------------------------------------------------------------------------------- Total operating expenses 76,535 64,564 211,370 179,107 - ------------------------------------------------------------------------------------------------------------------------- Operating income 15,008 7,850 39,263 25,173 Interest expense 2,173 1,992 6,304 5,691 - ------------------------------------------------------------------------------------------------------------------------- Income before income taxes 12,835 5,858 32,959 19,482 Income taxes 3,851 1,640 9,083 5,455 - ------------------------------------------------------------------------------------------------------------------------- Net income $ 8,984 $ 4,218 $ 23,876 $ 14,027 ========================================================================================================================= Earnings per share Primary $ 1.59 $ 0.76 $ 4.26 $ 2.51 - ------------------------------------------------------------------------------------------------------------------------- Fully diluted $ 1.59 $ 0.76 $ 4.23 $ 2.51 =========================================================================================================================
See accompanying notes to consolidated financial statements. 4 5 MARKEL CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows
Nine Months Ended September 30, --------------------------------- 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- (dollars in thousands) Operating Activities Net income $ 23,876 $ 14,027 Adjustments to reconcile net income to net cash provided by operating activities 126,780 21,204 - ------------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 150,656 35,231 - ------------------------------------------------------------------------------------------------------------------------- Investing Activities Proceeds from sales of fixed maturities and equity securities 427,790 267,518 Proceeds from maturities of fixed maturities 15,561 12,622 Cost of fixed maturities and equity securities purchased (587,422) (308,036) Net change in short-term investments (16,041) (30,292) Purchase of Lincoln Insurance Company - net of cash acquired (21,747) -- Proceeds from sale of Corporate headquarters buildings 19,068 -- Other (3,454) 17,346 - ------------------------------------------------------------------------------------------------------------------------- Net cash used by investing activities (166,245) (40,842) - ------------------------------------------------------------------------------------------------------------------------- Financing Activities Borrowings under credit facility 27,500 -- Net proceeds from issuance of long-term debt -- 24,280 Repayment of long-term debt and credit facility (10,050) (1,550) Retirement of capital lease -- (19,584) Repurchase of common stock -- (2,520) Other 102 402 - ------------------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 17,552 1,028 - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents 1,963 (4,583) Cash and cash equivalents at beginning of period 10,229 12,386 - ------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 12,192 $ 7,803 =========================================================================================================================
See accompanying notes to consolidated financial statements. 5 6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--September 30, 1995 1. Principles of Consolidation The consolidated balance sheet as of September 30, 1995, the related consolidated statements of income for the quarters and nine months ended September 30, 1995 and 1994, and the consolidated statements of cash flows for the nine months ended September 30, 1995 and 1994, are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of such consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated financial statements and notes are presented as permitted by Form 10-Q, and do not contain certain information included in the Company's annual consolidated financial statements and notes. Certain reclassifications of prior year's amounts have been made to conform with 1995 presentations. 2. Earnings per share Earnings per share was determined by dividing net income, as adjusted below, by the applicable shares outstanding (in thousands):
Quarter Ended, Nine Months Ended September 30, September 30, ---------------------- ------------------------ 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- Net income, as reported $ 8,984 $ 4,218 $ 23,876 $ 14,027 Dividends on redeemable preferred stock (4) (4) (12) (12) - ------------------------------------------------------------------------------------------------------------------------- Primary and fully diluted income $ 8,980 $ 4,214 $ 23,864 $ 14,015 ========================================================================================================================= Average common shares outstanding 5,411 5,384 5,402 5,398 Shares applicable to common stock equivalents 221 177 195 175 - ------------------------------------------------------------------------------------------------------------------------- Average primary shares outstanding 5,632 5,561 5,597 5,573 Additional dilution attributable to common stock equivalents 16 -- 42 -- - ------------------------------------------------------------------------------------------------------------------------- Average fully diluted shares outstanding 5,648 5,561 5,639 5,573 =========================================================================================================================
6 7 3. Reinsurance The table below summarizes the effect of reinsurance on premiums written and earned (dollars in thousands):
Quarter Ended September 30, - ------------------------------------------------------------------------------------------------------------------------- 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- Written Earned Written Earned Direct $ 105,517 $ 95,144 $ 90,908 $ 76,816 Assumed 4,624 5,717 9,772 7,044 Ceded (26,706) (25,212) (26,288) (20,032) - ------------------------------------------------------------------------------------------------------------------------- Net premiums $ 83,435 $ 75,659 $ 74,392 $ 63,828 =========================================================================================================================
Nine Months Ended September 30, - ------------------------------------------------------------------------------------------------------------------------- 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- Written Earned Written Earned Direct $ 280,767 $ 255,761 $ 235,761 $ 213,025 Assumed 22,111 23,434 22,176 20,860 Ceded (73,892) (69,303) (61,551) (57,201) - ------------------------------------------------------------------------------------------------------------------------- Net premiums $ 228,986 $ 209,892 $ 196,386 $ 176,684 =========================================================================================================================
Incurred losses and loss adjustment expenses are net of reinsurance recoveries of $16.9 million and $28.0 million for the quarters ended September 30, 1995 and 1994, respectively, and $47.1 million and $58.2 million for the nine months ended September 30, 1995 and 1994, respectively. 7 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS Quarter and Nine Months ended September 30, 1995 compared to Quarter and Nine Months ended September 30, 1994 The Company underwrites specialty insurance products and programs to niche markets. Significant areas of underwriting include professional and products liability, excess and surplus lines, specialty programs and specialty personal and commercial lines. Professional liability coverage is offered to physicians and health professionals, insurance companies, directors and officers, attorneys and architects and engineers. Products liability insurance is provided to manufacturers and distributors. Property/casualty insurance for nonstandard and hard-to-place risks is underwritten on an excess and surplus lines basis. Specialty program insurance includes coverage for camps, youth and recreation, health and fitness and agribusiness organizations, as well as accident and health insurance for colleges. The Company also underwrites personal and commercial property and liability coverages for watercraft, motorcycles, mobile homes, dwellings and commercial freight companies, and maintains wholesale and retail brokerage operations that produce business primarily for its insurance subsidiaries. Following is a comparison of gross premium volume by significant underwriting area:
Gross Premium Volume Quarter Ended Nine Months Ended September 30, September 30, - ------------------------------------------------------------------------------------------------------------------------- 1995 1994 (amounts in thousands) 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- $ 29,177 $ 31,597 Professional/Products Liability $ 96,395 $ 96,847 28,585 28,154 Excess & Surplus Lines 80,241 68,924 31,686 31,435 Specialty Program Insurance 82,217 72,176 13,725 4,613 Specialty Personal and Commercial Lines 32,134 11,544 8,687 5,772 Other 19,413 16,645 - ------------------------------------------------------------------------------------------------------------------------- $ 111,860 $ 101,571 Total $ 310,400 $ 266,136 =========================================================================================================================
Gross premium volume increased 10% to $111.9 million for the third quarter and 17% to $310.4 million for the nine month period in 1995 from $101.6 million and $266.1 million, respectively, for the same periods in 1994. Premiums from new programs provided most of the growth for the quarter and nine month period in 1995. Premiums from professional/products liability insurance totalled $29.2 million for the third quarter and $96.4 million for the nine month period compared to $31.6 million and $96.8 million, respectively, for the same periods last year. The Company reported growth in the medical malpractice and specified medical professions product lines for both periods. However, third quarter production from professional and products liability programs was adversely affected by increasing competition which offset the growth in the medical malpractice and specified medical professions lines. Excess and surplus lines third quarter gross premium volume totalled $28.6 million compared to $28.2 million a year earlier. For the nine month period, excess and surplus lines gross premium volume rose 16% to $80.2 million from $68.9 million in 1994. The year-to-date increase resulted 8 9 from special property insurance premiums which increased 69% to $28.8 million from $17.1 million in the prior year. Specialty program insurance premiums totalled $31.7 million for the third quarter compared to $31.4 million in the prior year. For the nine month period, premiums advanced 14% to $82.2 million from $72.2 million in 1994. The increase followed policy processing improvements and other operating efficiencies in the Company's specialty program insurance division. Specialty personal and commercial lines premiums were $13.7 million for the third quarter and $32.1 million for the nine month period, up significantly from $4.6 million and $11.5 million, respectively, for the same periods a year ago. New programs, including property coverage for mobile homes and low value dwellings, liability coverages for commercial autos and physical damage coverage for personal autos, contributed $8.0 million to quarterly production and $17.9 to the nine month gross premium volume. The growth was supported by marketing and promotion efforts which enhanced production from established books of business in both periods. Other gross premium volume totalled $8.7 million for the third quarter and $19.4 million for the nine month period compared to $5.8 million and $16.6 million, respectively, for the same periods in 1994. Other gross premium volume included production from the Company's brokerage operations as well as run-off business related to the acquisition of Lincoln Insurance Company (LIC) in May 1995. The Company enters into reinsurance agreements in order to reduce its liability on individual risks and enable it to underwrite policies with higher limits. The Company's net retention of gross premium volume rose to 75% in the third quarter from 73% in the prior year. For the nine month period, the Company maintained a 74% net retention. Following is a comparison of earned premiums by significant underwriting area:
Earned Premiums Quarter Ended Nine Months Ended September 30, September 30, - ------------------------------------------------------------------------------------------------------------------------- 1995 1994 (amounts in thousands) 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- $ 28,545 $ 27,566 Professional/Products Liability $ 84,275 $ 79,808 17,987 17,237 Excess & Surplus Lines 51,724 45,568 16,699 14,406 Specialty Program Insurance 48,146 39,167 6,874 3,097 Specialty Personal and Commercial Lines 17,506 7,820 5,554 1,522 Other 8,241 4,321 - ------------------------------------------------------------------------------------------------------------------------- $ 75,659 $ 63,828 Total $ 209,892 $ 176,684 =========================================================================================================================
Total operating revenues for the third quarter increased 26% to $91.5 million from $72.4 million in 1994. For the nine month period, operating revenues rose 23% to $250.6 million from $204.3 million a year ago. Earned premiums advanced to $75.7 million for the quarter and $209.9 million for the nine month period from $63.8 million and $176.7 million, respectively, for the same periods in 1994. Higher gross premium volume prompted the 19% quarterly and year-to-date increase in earned premiums. 9 10 Third quarter net investment income rose 60% to $12.1 million from $7.5 million a year ago. For the nine month period, net investment income increased 45% to $30.5 million from $21.1 million in 1994. The increases reflected the impact of a significantly larger investment portfolio and higher yields. The Company's invested assets were $889.3 million at September 30, 1995 compared to $625.7 million at September 30, 1994. Realized investment gains totalled $3.0 million for the third quarter and $7.7 million for nine months compared to $0.3 million and $3.9 million, respectively, for the same periods last year. Variability in the timing of realized investment gains is to be expected and often results from interest rate volatility which affects the market values of fixed maturity and equity investments. Total operating expenses for the third quarter were $76.5 million compared to $64.6 million in 1994. Total operating expenses for the nine month period were $211.4 million compared to $179.1 million a year ago. The 19% and 18% quarterly and year-to-date increases, respectively, resulted primarily from higher variable expenses associated with higher earned premiums. Following is a comparison of selected data from the Company's operations (in thousands):
Quarter Ended Nine Months Ended September 30, September 30, - ------------------------------------------------------------------------------------------------------------------------- 1995 1994 (amounts in thousands) 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- $ 111,860 $ 101,571 Gross premium volume $ 310,400 $ 266,136 $ 83,435 $ 74,392 Net premiums written $ 228,986 $ 196,386 75% 73% Net retention 74% 74% $ 75,659 $ 63,828 Earned premiums $ 209,892 $ 176,684 $ 49,651 $ 40,364 Losses and loss adjustment expenses $ 137,685 $ 112,200 Underwriting, acquisition, and $ 25,575 $ 21,719 insurance expenses $ 70,254 $ 59,484 GAAP ratios 65% 63% Loss ratio 65% 63% 34% 34% Expense ratio 34% 34% - ------------------------------------------------------------------------------------------------------------------------- 99% 97% Combined ratio 99% 97% =========================================================================================================================
The third quarter and nine month combined loss and expense ratio increased to 99% from 97% in both periods in 1994. The loss ratio rose to 65% for the quarter and the nine month period from 63% for the same periods a year ago. Loss ratios rose as increased competition and continued soft market conditions prompted the Company to establish loss reserves for current business at higher levels relative to the prior year. Third quarter and nine month expenses remained steady at 34% of earned premiums. The Company's continuing focus on process improvements and cost controls has helped to maintain expense ratios in 1995 and 1994. In the third quarter, amortization expense declined to $0.9 million from $2.0 million for the same period last year. For the nine month period, amortization expense decreased to $2.2 million from $5.4 million in 1994. The declines in both periods resulted from the expiration of noncompete agreements in December 1994. 10 11 Higher net investment income and higher earned premiums with continued underwriting profitability fueled significant growth in core operating income for both the quarter and nine month period. The Company focuses on core underwriting and investing results before consideration of realized gains or losses from the sales of investments and expenses related to the amortization of intangible assets in order to reduce the variability in results associated with realized investment gains or losses and eliminate the impact of accounting conventions which do not reflect current operating costs. For the third quarter of 1995, pre-tax income from core underwriting and investing operations increased 26% to $9.6 million from $7.6 million in 1994. For the nine month period, pre-tax income from core operations grew 23% to $25.9 million from $21.1 million last year. Interest expense was $2.2 million for the quarter and $6.3 million for the nine month period compared to $2.0 million and $5.7 million, respectively, for the same periods in 1994. The Company increased borrowings in order to facilitate the purchase of LIC, leading to higher interest expense in both the quarter and nine month period. The Company's effective tax rate for the third quarter was 30% of income before income taxes compared to 28% of income before income taxes for the same period last year. The rise in the effective tax rate followed a reallocation of the Company's investment portfolio from tax-advantaged to taxable securities. For the nine month period in both years, the Company's effective tax rate was 28% of income before income taxes. Third quarter net income rose sharply to $9.0 million from $4.2 million in 1994. For the nine month period, net income advanced to $23.9 million from $14.0 million last year. The strong performance reflected higher net investment income, higher earned premiums with continued underwriting profitability and lower amortization expenses. FINANCIAL CONDITION AS OF SEPTEMBER 30, 1995 The Company's insurance operations collect premiums and pay current claims, reinsurance commissions and operating expenses. Premiums collected and positive cash flows from the insurance operations are invested primarily in short-term investments and long-term bonds. The Company's short-term investments provide liquidity for projected claims, reinsurance costs and operating expenses. For the nine month period ended September 30, 1995, the Company reported net cash provided by operating activities of $150.7 million, compared to net cash provided by operating activities of $35.2 million for the same period in 1994. Higher premiums, commutations from reinsurers and other settlements contributed to strong operating cash flow in the nine month period. For the nine month period ended September 30, 1995, the Company reported net cash used by investing activities of $166.2 million compared to $40.8 million in 1994. The Company's invested assets increased to $889.3 million at September 30, 1995 from $611.7 million at December 31, 1994. Commutations with reinsurers and other settlements and the acquisition of LIC contributed approximately $73 million and $60 million, respectively, to invested assets during 11 12 the nine month period. In addition, the pre-tax market value of the Company's investment portfolio increased by $48.5 million since December 31, 1994. As of September 30, 1995, the estimated fair value of the Company's fixed maturity investments exceeded cost by $11.6 million, while the estimated fair value of its equity investments exceeded cost by $27.2 million. At September 30, 1995 the Company's fixed maturity and equity investments comprised approximately 74% and 15% of total investments, respectively. The Company expects variability in its realized and unrealized investment gains due to interest rate volatility as well as other economic conditions. The Company borrowed $17.0 million under an existing credit facility in order to complete the purchase of LIC. As of September 30, 1995, the unused balances available under the credit facility totalled $21.5 million. Stockholders' equity at September 30, 1995 was $194.0 million compared to $138.5 million at December 31, 1994. Book value per common share rose to $35.84 at September 30, 1995 from $25.71 at December 31, 1994. During the nine month period, net unrealized investment gains, net of income taxes, increased by $31.5 million. There were no other material changes in the Company's financial condition from that reported as of December 31, 1994. OTHER ITEMS In July 1995, the Company took advantage of favorable conditions in the real estate market and executed sale and lease agreements related to its home office properties in Richmond, Virginia. The Company sold the properties which housed its corporate offices and Richmond-based underwriting units for approximately $19 million after expenses and concurrently entered into ten to twelve year operating lease agreements with the buyers. The Company realized a $4.9 million gain on the sale of the properties which is being deferred and amortized over the terms of the operating leases. During the third quarter, the Company filed a registration statement on Form S-8 with the Securities and Exchange Commission related to an employee stock purchase and loan program. The program gave all Markel employees the opportunity to purchase up to 125,000 shares of common stock through loans provided at favorable terms. The first phase of the plan was completed in September 1995. Employees participating in the plan purchased approximately 68,000 shares at an average price of $66.02 per share. The Company may make future purchases of its common stock in order to accommodate employee demand for shares under the program. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibit 27 - Financial Data Schedule (b) No reports on Form 8-K were filed during the quarter ended September 30, 1995. 12 13 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, this 30th day of October, 1995. Markel Corporation By Alan I. Kirshner ------------------------------------ Alan I. Kirshner Chief Executive Officer (Principal Executive Officer) By Anthony F. Markel ------------------------------------ Anthony F. Markel President (Principal Operating Officer) By Steven A. Markel ------------------------------------ Steven A. Markel Vice Chairman By Darrell D. Martin ------------------------------------ Darrell D. Martin Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) 13 14 Exhibit Index
Number Description 27 Financial Data Schedule**
** Filed electronically with the Commission's operational EDGAR system. 14 EX-27 2 FINANCIAL DATA SCHEDULE
7 This schedule contains summary financial information extracted from the financial statements contained in the Form 10-Q for the quarterly period ended September 30, 1995 for Markel Corporation and is qualified in its entirety by reference to such financial statements. 1,000 9-MOS DEC-31-1995 SEP-30-1995 660,436 0 0 131,579 0 0 889,314 12,192 16,000 33,612 1,311,872 729,816 178,285 0 0 118,176 23,039 0 0 170,938 1,311,872 209,892 30,530 7,650 2,561 137,685 48,370 21,884 32,959 9,083 23,876 0 0 0 23,876 4.26 4.23 0 0 0 0 0 0 0
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