Markel initiated with a Sell at Citi

Citi initiated coverage of Markel with a Sell rating and $1,275 price target. he analyst says the reinsurance group is the firm’s second favorite insurance sub-sector along with personal lines, behind brokers, though it acknowledges “crowding risk.” The firm’s Sell rating on Markel is based on its view that the company’s mix that is overweight professional lines will remain less attractive than peers, continuing to slow sales and margin momentum. Citi also sees Markel’s property catastrophe reinsurance exit as a potential headwind in reinsurance casualty.