Markel Corp. (NYSE:MKL) Q3 2016 Earnings Conference Call - Final Transcript

Good morning and welcome to the Markel Corporation Third Quarter 2016 Conference Call. All participants will be in listen-only mode. [Operator Instructions]

During the call today, we may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They are based on current assumptions and opinions concerning a variety of known and unknown risks. Actual results may differ materially from those contained in or suggested by such forward-looking statements. Additional information about factors that could cause actual results to differ materially from those projected in the forward-looking statements is included under the captions Risk Factors and Safe Harbor and Cautionary Statement in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

We may also discuss certain non-GAAP financial measures in the call today. You may find a reconciliation to GAAP of these measures in the Form 10-Q, which can be found on our website at www.markelcorp.com in the Investor Information section. Please note, this event is being recorded.

I would now like to turn the conference over to Tom Gayner, Co-Chief Executive Officer. Please go ahead, sir.

Thank you. Good morning. This is Tom Gayner, and it's my pleasure to welcome this morning to our third quarter 2016 conference call. I'm pleased to report to you that we made solid economic progress during the ongoing extremely competitive conditions that describe the first nine months of 2016. Markel is a diversified enterprise with three engines that drive our economic progress, namely insurance underwriting, investments and Markel Ventures.

As is always the case with the diversified portfolio of businesses, some areas performed better than others. That said, for the first nine months, the aggregate result of comprehensive income of $697 million and book value per share growth of 9% is a result we're proud to share with you.

As is always the case with Markel, we're quick to share challenges and bad news with you, and we're slow to talk about good news. This quarter is no exception to that pattern. We acknowledge to you and more importantly to ourselves where we need to change and adapt and improve. That is what we always do, and that mission of continuous improvement and learning of what has and will continue to drive the excellent long-term results you've enjoyed over the years at Markel.Joining me in the room this morning are Anne Waleski, our Chief Financial Officer; Richie Whitt, our Co-CEO; and Mike Crowley, our Vice Chairman, and we'll review the numbers in some detail. Richie will cover all of the insurance underwriting operations, then I will cover investments and Markel Ventures. All of us will then be available for your questions.

With that, I'd like to turn things over to Anne.

Thank you, Tom, and good morning, everyone. I'm happy to report that our financial performance through the first three quarters of 2016 continues to be strong across our underwriting, investing and Markel Ventures operations.

While our underwriting results for the quarter were adversely