Markel Corp. (NYSE:MKL) Q2 2017 Earnings Conference Call - Final Transcript
Jul 27, 2017 • 09:30 am ET
Thomas S. Gayner
expect from them.
Markel Ventures continues to produce free cash flow and make distributions back to Markel. While we are not disclosing the terms of the cost of transaction and the seasonality of the business, means there will not be that much of an impact in 2017 from this deal, it should take a material and meaningful difference to our results in 2018.
Costa, along with the rest of Markel Ventures, makes Markel more resilient and adaptable due to the additional and diverse cash flows they produce. As my friend Mark Hughes of Lafayette Investments said after our Cottrell deal, congratulations on adding another leading company in an industry that I didn't even know existed. Mark might feel the same way today and he's right to do so. Costa is a leading company at what they do and they add to our goal of Markel of building one of the world's great companies.
Today is indeed a day we celebrate the hat-trick of meaningful earnings in the first half of the year, the addition of State National and all that it represents, and the addition of Costa and all that it represents to the future of Markel. In total, these two deals will add about a third to the overall revenue base of Markel and we purchase these with internally generated cash. We will not be issuing any equity to finance these deals.
I want to thank my partners at Markel. As you might imagine, this has not been a lazy summer around here. People have been busting their tails to get these deals done and I want to publicly thank them for their efforts.
I also want to thank our long-term shareholders who are partners in building Markel. A long-term focus is increasingly rare in today's world and we couldn't continue to build you a company without the long-term support and encouragement of our capital partners. Thank you. We will continue to do our best to validate your unique trust in us.
With that, let's stop, take a breath, try to answer your questions.