Markel downgraded to Neutral at Janney after Q4 miss

As previously reported, Janney Montgomery Scott analyst Robert Farnam downgraded Markel to Neutral from Buy with a fair value estimate of $1,600, up from $1,550. Q4 operating EPS missed both consensus and the firm’s estimate due to weaker underwriting results along with higher attritional loss ratios, leading management to boost reserves for certain casualty product lines in the quarter, the analyst tells investors. While the firm believes Markel’s shares will outperform the S&P 500 over the long term, outperformance in the next 12 months is “less certain,” the analyst says.