Markel Insurance (NYSE:MKL) is about to report the latest earnings. Ponder the Bear Case Scenario as you digest management comments.
Markel has deep roots in specialty and unregulated markets. A number of new entities are setting up in Bermuda and starting to give battle. Margin pressure coming.
The acquisition of Alterra comes with major integration risks. The road is long and bumpy. Problems will abound. Given the size of the acquisition major problems may prove fatal.
Any capital market melt down or correction will affect capital adequacy and the ability to pursue attractive opportunities.
George Gutowski writes from a caveat emptor perspective.