Markel downgraded to Hold on challenged outlook at TD Cowen

TD Cowen analyst Andrew Kligerman downgraded Markel (MKL) to Hold from Buy with a price target of $1,836, down from $1,986. The firm cites lower premiums in insurance and reinsurance, “poor” reinsurance performance, reduced earnings in ventures, and lower than expected profit from Nephila for the downgrade. While Markel has significant re-deployable capital and may increase share repurchases, TD prefers carriers such as Axis Capital (AXS) and Arch Capital (ACGL) on better operating outlooks, the analyst tells investors in a research note. The firm says Markel’s lower premiums in insurance, mainly in select casualty lines, gives it pause.