Wunderlich Comments On Markel Estimates

According to Wunderlich, Markel MKL announced 1Q11 operating EPS were $0.26 compared to $3.36. Wunderlich said that its $2.91 1Q11 estimate excluded catastrophes and reserve development. "The company experienced $68 million, or $5.28, in catastrophe losses during 1Q11. Excluding catastrophes, operating EPS would have been $5.54. The 1Q11 results benefited from significant reserve favorable development of $71.8 million or $5.52. We are lowering our 2011 estimate to $16.05 from $18.73 to reflect the cats in 1Q11. The MKL annual shareholder's meeting provided better understanding of the strategy. In addition, the meeting reinforced our belief that MKL's loyal shareholder base represents a competitive advantage." Markel closed yesterday at $405.37.