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Markel Corporation An overview

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1 Markel Corporation An overview
markelcorp.com

2 Forward-Looking Statements Statements in this presentation which are not statements of historical fact are “forward-looking statements” within the Safe Harbor provision of the Private Securities Litigation Reform Act of Such statements are not guarantees of future performance. Many factors could cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking-statements. These factors are discussed in detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other filings with the SEC. We make forward-looking statements based on currently available information, and we assume no obligation to update the statements made today or contained in our Annual Report or other filings due to changes in underlying factors, new information, future developments, or otherwise, except as required by law. Third Party Information This presentation, including certain forward-looking statements herein, include information obtained from third party sources that we believe to be reliable. However, we have not independently verified this third party information and cannot assure you of its accuracy or completeness. While we are not aware of any misstatements regarding any third party data contained in this presentation, such data involve risks and uncertainties and are subject to change based on various factors, including those discussed in detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other filings with the SEC. We assume no obligation to revise or update this third party information to reflect future events or circumstances.

3 The Markel Style Markel has a commitment to Success. We believe in hard work and a zealous pursuit of excellence while keeping a sense of humor. Our creed is honesty and fairness in all our dealings. The Markel way is to seek to be a market leader in each of our pursuits. We seek to know our customers' needs and to provide our customers with quality products and service. Our pledge to our shareholders is that we will build the financial value of our company. We respect our relationship with our suppliers and have a commitment to our communities. We are encouraged to look for a better way to do things…to challenge management. We have the ability to make decisions or alter a course quickly. The Markel approach is one of spontaneity and flexibility. This requires a respect for authority but a disdain of bureaucracy. At Markel we hold the individual's right to self-determination in the highest light, providing an atmosphere in which people can reach their personal potential. Being results-oriented, we are willing to put aside individual concerns in the spirit of teamwork to achieve success. Above all, we enjoy what we are doing. There is excitement at Markel, one that comes from innovating, creating, striving for a better way, sharing success with others…winning.

4

5 About Markel Corporation
Diverse financial holding company for insurance and investment operations Trades on the New York Stock Exchange: MKL Headquartered in Richmond, Virginia Founded in 1930 Covers standard and hard-to-place insurance and reinsurance risks, and maintains underwriting platforms in Bermuda and at Lloyd’s of London (Syndicate 3000) Makes strategic investments in companies outside of the insurance industry; these investments are known collectively as Markel Ventures

6 Markel offices around the world
Headquarters Richmond, VA Asia Pacific Dubai, UAE Hong Kong Kuala Lumpur, Malaysia Labuan, Malaysia Mumbai, India Singapore Tokyo, Japan Bermuda Hamilton, Bermuda* Canada Calgary, Canada Montreal, Canada Toronto, Canada Vancouver, Canada Europe Barcelona, Spain Dublin, Ireland Madrid, Spain Munich, Germany Pierrefitte-en-Auge, France Rotterdam, Netherlands Stockholm, Sweden Zurich, Switzerland Latin America Bogotá, Colombia Buenos Aires, Argentina Rio de Janeiro, Brazil *Multiple offices in these locations United Kingdom Birmingham, England Brinkworth, England Bristol, England Leeds, England London Metro* Manchester, England Reigate, England Rugby, England Sheffield, England United States Atlanta Metro* Austin, TX Chicago Metro* Dallas-Fort Worth Metro* Denver Metro Geneva, IL Hartford, CT Hawley, PA Houston Metro Kansas City Las Vegas Metro Los Angeles Metro* Milwaukee Metro New York Metro Omaha, NE Providence, RI Red Bank, NJ San Antonio, TX San Diego Metro San Francisco Metro* Scottsdale, AZ Summit, NJ Tampa, FL Warrenton, VA

7 Organizational structure
Discussing SNC verbage and global re.

8 Markel Corporation executive team
Alan I. Kirshner Executive Chairman Anthony F. Markel Vice Chairman Steven A. Markel Thomas S. Gayner Co-Chief Executive Officer Richard R. Whitt, III Co-Chief Executive Officer F. Michael Crowley Executive Consultant Asking Paul about Mike Crowley title and placement.

9 Year-end financial highlights
2017 2016 2015 Total revenues $6,061,659 $5,612,026 $5,369,983 Gross written premium $5,253,107 $4,796,645 $4,632,912 Net income from other sources $1,333,280 $1,214,449 $1,047,516 Comprehensive income to shareholders $1,174,974 $667,047 $232,723 Shareholders’ equity $9,504,148 $8,460,927 $7,834,150 Book value per common share outstanding $683.55 $606.30 $561.23 Combined ratio (US GAAP) 105% 92% 89% Total assets $32,805,016 $25,875,299 $24,941,271 Dollars in thousands, except per share amounts (USD)

10 Reporting segments Reporting segments Divisions
US Insurance International Insurance Reinsurance Markel Global Insurance Markel Assurance Markel Specialty Markel International Markel Global Reinsurance Markel Global Insurance Results for lines of business discontinued prior to, or in conjunction with, acquisitions will continue to be reported as the Other Insurance (Discontinued Lines) segment.

11 Financial comparisons: January 1-December 31
2017 US insurance International insurance Reinsurance Consolidated Gross premium $2.885 b $1.256 b $1.112 b $5.507 b Earned premium $2.364 b $949.9 m $934.1 m $4.248 b Combined ratio 95% 104% 132% 105% 2016 US insurance International insurance Reinsurance Consolidated Gross premium $2.635 b $1.120 b $1.041 b $4.797 b Earned premium $2.175 b $853.5 m $836.3 m $3.866 b Combined ratio 93% 94% 87% 92% Other revenues 2017 2016 Change Manufacturing(Markel Ventures) $742.6 m $784.7 m -5.4% Non-Manufacturing(Markel Ventures) $590.7 m $429.7 m +37.5% Other (includes investment management, program services, MGA operations, life and annuity, and other $80.0 m $93.3 m -14.3%

12 Premium percentage by segment (as reported for Jan. 1-Dec. 31)

13 Our place in the industry
5th largest excess and surplus lines insurer in the US (SNL Financial, April 2017) Top 25 US liability insurers (National Association of Insurance Commissioners, March 2017) #29 on A.M. Best’s top 75 North American public insurers (July 2017) Ward’s Top 50 performing P&C insurers (July 2017) #276 on Forbes’ list of America’s top companies (May 2017) #460 on Fortune (June 2017)

14 Recent insurance acquisitions
State National November 2017: An insurer focused on program services and lender services SureTec April 2017: A Houston-based privately-held surety company CATCo December 2015: A Bermuda-based specialist investment management business

15 Recent non-insurance acquisitions
Costa Farms August 2017: The largest producer of ornamental plants in the world CapTech December 2015: A national management consulting firm that helps bridge the gap between business and technology Vanderpol and Den Boer August 2014: Designers and manufacturers of waffle baking equipment; now part of Tromp Group Cottrell July 2014: Designer and manufacturer of over-the-road automobile transport equipment

16 Combined ratio: insurance operations
Industry % % % % %

17 Capital management Markel’s philosophy is to maintain more than adequate capital in the insurance subsidiaries, and pay dividends to the holding company each year Provides the flexibility to deploy capital where needed We seek to maintain: RBC scores of at least 300% in each of our US subsidiaries Best’s Capital Adequacy Ratio (BCAR) scores to support each subsidiary’s technical rating

18 Underwriting and reserving
Underwriting approach Open-minded Disciplined Knowledge of specific risks and industries Reserving approach “Better to be redundant than deficient.”

19 Long-term growth in book value
Book value ($b) / book value per share ($) $ % +11% +10% +12%

20 Capital generation Reinvestment in insurance operations
Capital generated from: Underwriting profits Fixed income coupons Equity investment returns Cash flows from industrial and service subsidiaries Reinvestment in insurance operations New products New geographies Public securities markets Fixed income Equities  four investment lenses Privately held companies (Markel Ventures) Permanent capital Strong balance sheets Share repurchases Impact per share performance 4 3 2 1 Management independence Long-term orientation Industry hires Acquisitions

21 Types of insurance products we underwrite
Admitted Excess and surplus lines Reinsurance Lloyd’s Syndicate 3000

22 Distribution channels
Direct-to-consumer (select products) Retail agents (generalists) Retail agents (specialists) Wholesale, binding agents Program administrators Top 100 agencies

23 Financial strength formula
Consistent, long-term underwriting profits Reserves more likely to be redundant than deficient Investing success

24 Our insurance companies
Alterra America Insurance Company Markel Global Reinsurance Company City National Insurance Company Markel Insurance Company EC Insurance Company Limited Markel International Insurance Company Limited Essentia Insurance Company Markel Resseguradora do Brasil S.A. Evanston Insurance Company National Specialty Insurance Company FirstComp Insurance Company State National Insurance Company Independent Specialty Insurance Company SureTec Indemnity Company Lloyd’s Syndicate 3000 SureTec Insurance Company Markel American Insurance Company United Specialty Insurance Company Markel Bermuda Limited

25 Financial strength and credit ratings

26 Insurance divisions

27 Markel Assurance

28 Markel Assurance Formed in 2018 by merging the Global Insurance and Wholesale divisions Production channels include both wholesale and retail Three product lines – casualty, professional liability, and property/marine

29 Target risks Construction Health care Energy and environmental
Financial institutions Life sciences Manufacturing Real estate Technology

30 Regional offices

31 Markel Assurance leadership team
Bryan Sanders President Jim Gray Executive Underwriting Officer, Professional Jeff Lamb Chief Operations Officer Jon Hahn Executive Underwriting Officer, Property Jim Arnold Chief Administrative Officer Glenn Harris Managing Director, Business Development Alan Rodrigues Executive Underwriting Officer, Casualty Denise Perlman Senior Director, Business Development

32 Markel Specialty

33 Markel Specialty Insurance solutions for both commercial customers and individuals Coverages: Workers compensation Property and casualty Personal lines Accident Markelinsurance.com

34 Production partners Retail agents
Agents specializing in particular product lines Program administrators MGAs/MGUs Affinity groups

35 Programs Commercial programs Camps and youth recreation
Schools – private, charter, professional Child care centers Small business Event planners Special risk accident – groups, clubs, nonprofits Health clubs Sports and fitness Horses and farms Student accident Human services Surety Investment advisors Workers compensation Medical transportation Personal lines Museums Bicycles Outdoor programs Event cancellation Pest control Motorcycles, ATVs, snowmobiles Program administrator business Watercraft

36 Markel Specialty offices

37 Markel Specialty leadership
Matt Parker President Stephen Leeret Managing Director Programs Chad Bertucci Managing Executive Markel Specialty Commercial Mary Pat Joyce Markel Carrier Alliance Don Faison Managing Executive-Marketing Chris Reichert Managing Director Sales and Marketing Audrey Hanken Markel Specialty Personal Lines

38 Markel International

39 Markel International Writes insurance and reinsurance business through offices across the UK, Europe, Canada, Latin America, and Asia Pacific Insuring entities: Syndicate 3000, Markel International Insurance Company Limited, and Markel Resseguradora do Brasil S.A. Units: Specialty property, casualty, professional liability, equine, terrorism, marine, energy, and trade credit insurance on both a direct and reinsurance basis and manages Markel Syndicate 3000 at Lloyd’s. Markelinternational.com

40 Markel International products
Accident and health Environmental liability Ports and terminals Business interruption Equine and livestock Professional indemnity/liability Cargo Excess/umbrella liability Property Contingency Financial institutions Property treaty reinsurance Crime Fine arts Cyber liability General liability Social welfare D&O, management liability Hull Specie Intellectual property Terrorism Employers’ liability Italian liability/indemnity Trade credit Employment law protection Marine and energy UK motor reinsurance Marine liability Employment practices liability War Media liability Products liability

41 Markel International leadership
William Stovin President Nick Line Chief Actuary Andy Davies Chief Operating Officer Jeremy Brazil Director of Underwriting Jeremy Noble Finance Director

42 Markel International offices

43 Reinsurance division

44 Markel Global Reinsurance

45 Markel Global Reinsurance
Provides traditional reinsurance products to the broker market Treaty reinsurance Facultative reinsurance Writes reinsurance treaties Quota share Excess of loss

46 Markel Global Reinsurance products
Agriculture Professional liability Auto Property Aviation Public entity Environmental Retro Excess casualty Surety General liability Terrorism Marine and energy Trade credit/political risk Medical malpractice Whole account Mortgage Whole turnover credit Multi-line Workers compensation

47 Markel Global Reinsurance leadership
Jed Rhoads President and Chief Underwriting Officer, Global Reinsurance Don Bahr Senior Managing Director, Casualty Reinsurance Andrew Barnard Senior Managing Director, International Property Catastrophe and Retro Reinsurance Tod Costikyan Specialty Reinsurance Phil Freda Managing Director, Public Entity Reinsurance Steve Leitz Chief Administrative Officer Peta White Senior Managing Director, North American Property

48 Global Re offices

49 ILS management

50 Markel CATCo

51 Markel CATCo A specialist investment management business, based in Hamilton, Bermuda Manages retrocessional and traditional reinsurance portfolios on behalf of financial institutions, charities, pension funds, family offices, and investment funds Authorized and regulated by the Bermuda Monetary Authority Markelcatco.com

52 Non-insurance

53 Markel Ventures

54 Markel Ventures Markel’s non-insurance operations
Acquire majority control of companies outside of the insurance industry using “permanent capital” Portfolio includes companies in the manufacturing, health care, and business/financial services sectors Markelventures.com

55 Markel Ventures investment criteria
Acquisitions are for the long-term and financed with little or no debt. Look to invest permanent capital in businesses that meet the following criteria: Profitable businesses with good returns on capital Management teams with talent and integrity Reinvestment opportunities Reasonable price

56 Markel Ventures companies
Manufacturing AMF Bakery Systems | VA Designer and manufacturer of high speed bakery equipment for the production of bread and buns Reading Bakery Systems | PA Designer and manufacturer of industrial baking systems for the production of cookies, crackers and other baked snacks Tromp Group| Netherlands Designer and manufacturer of baking equipment and sheeting lines for pizza, pastry, pie, waffle, and other specialty bread Solbern | NJ Designer and manufacturer of processing equipment including direct fillers for food products Cottrell | GA Designer and manufacturer of over-the-road automobile transport equipment Non-manufacturing Eagle Construction | VA Residential homebuilder and provider of diverse real estate services in Virginia ParkLand Ventures | VA Leading operator of manufactured housing communities throughout the US Diamond Healthcare | VA National leader in the planning, development, and operation of behavioral health services PartnerMD | VA Provider of concierge medical and executive health programs RetailData | VA Delivers retail intelligence through customized competitive retail price checks Ellicott Dredges | MD Designer and manufacturer of portable dredges for governments, contractors, miners and marine operators Havco Wood Products | MO Provider of laminated oak and composite wood flooring to the truck trailer and intermodal container industry Panel Specialists | TX Manufacturer of dorm furniture, wall systems, medical casework and marine panels Weldship | PA Designer and manufacturer of storage and transportation equipment used by the industrial and specialty gas industry CapTech | VA National management consulting firm that bridges the gap between business and technology Costa Farms | FL Largest producer of ornamental plants in the world Markel|Eagle | VA Mid-Atlantic focused capital provider for opportunistic real estate projects

57 History

58 A century of transformation
Over the course of 87 years in business, Markel successfully transformed from a small insurance broker to a global diversified financial holding company 1920s-1950s 1950s-1985 2013-today Humble beginnings Building the business A lasting enterprise Finding new markets Continued growth Sam Markel starts Markel Leverages expertise in insuring unique risks to expand into new products Third generation of Markel family at the helm; public offering to fund growth Expansion into global insurance markets and non-insurance operations Adds reinsurance and global insurance (large accounts) capabilities Acquisition of Alterra provides entry into reinsurance and large accounts businesses Markel CATCo bolsters reinsurance platform with insurance-linked investments Acquisition of SureTec provides entry into surety business Markel Ventures continues growth trend; >$1bn in revenue in 2016 Organizes jitney bus operators and starts a small transportation insurance company in Norfolk, VA Company expands as the automobile and trucking industry thrives in the US Essex Insurance Company opens - insures new specialized property and casualty risks Extends operations into Canada Tony, Steve, and Alan organize family members to consolidate ownership First Markel shares sold to public at $8.33 per share Continue to expand number of unique insurance products Position as global specialty insurer established through Terra Nova acquisition Markel Ventures is founded; begins acquiring high quality companies outside the insurance sector

59 Corporate milestones 1930 Humble beginnings Sam Markel forms Mutual Casualty Association and establishes Mutual Casualty Company in Norfolk, VA to insure jitney buses. 1930s A family business Sam Markel’s four sons, Lewis, Irvin, Stanley, and Milton, join the growing business, and Markel Service, Inc. is created.

60 Corporate milestones 1940s Competitive advantages Markel Service, Inc. earns a national following and develops a reputation for industry-leading claims adjusting and safety engineering Becoming an insurance carrier Essex Insurance Company is incorporated and licensed to write excess and surplus (E&S) lines business.

61 Corporate milestones 1986 Going public Markel listed on NASDAQ exchange. IPO offered at $8.33 per share; market capitalization of nearly $15 million (USD) Growing the business Markel acquires four focused, well- positioned companies to grow the business.

62 Corporate milestones 1997 Getting bigger Trading of Markel shares moves to the NYSE and market capitalization approaches $900 million (USD) Going global Markel acquires Terra Nova Holdings Ltd. (Bermuda) and gains entry to London markets.

63 Corporate milestones 2005 Introducing Markel Ventures Markel Ventures is established. First acquisition is AMF Bakery Systems Reorganizing with purpose Markel Wholesale launches regional model to get closer to customers Markel Ventures continues to grow Top-line revenues from Markel Ventures increase by 89%.

64 Corporate milestones 2012 Finding new markets Markel Specialty grows by acquisition of FirstComp, THOMCO, and Essentia Insurance Alterra, a natural fit Markel acquires Alterra Capital Holdings Limited (Bermuda).

65 Corporate milestones 2014 Adding Abbey Abbey Protection plc, a UK-based integrated specialist insurance and consultancy group was acquired in January More acquisitions Markel acquired Bermuda-based CATCo, a specialist investment management business. Markel Ventures announces majority interest in CapTech Joining the Fortune 500 Markel joins the Fortune 500 at number 476 and celebrates 30 years as a public company.

66 Markel Confidential

67 Community involvement
Successful companies are by definition good corporate citizens. Markel's associates are generous with both their time and money. The company is supportive of their efforts on behalf of more than local, regional, national, and international charities. Markel encourages associates to donate to charitable organizations and take advantage of Markel’s matching gift program.

68 Board of Directors Alan I. Kirshner Executive Chairman
Lemuel E. Lewis Retired Executive Vice President and Chief Financial Officer Landmark Communications, Inc. Anthony F. Markel Vice Chairman Darrell D. Martin Retired Executive Vice President and Chief Financial Officer Markel Corporation Steven A. Markel Vice Chairman Thomas S. Gayner Co-Chief Executive Officer Markel Corporation Michael O'Reilly Retired Vice Chairman The Chubb Corporation Richard R. Whitt, III Co-Chief Executive Officer Markel Corporation Michael J. Schewel General Counsel and Secretary Tredegar Corporation J. Alfred Broaddus, Jr. Private Investor Jay M. Weinberg Chairman Emeritus Hirschler Fleischer, a professional corporation K. Bruce Connell Retired Executive Vice President XL Group plc Debora J. Wilson Former President and Chief Executive Officer The Weather Channel Stewart M. Kasen Retired President and Chief Executive Officer S&K Famous Brands, Inc.

69 Learn more about Markel
Learn about Markel’s products, history, corporate highlights, and more: Markelcorp.com Markelinsurance.com Markelinternational.com Facebook.com/markelcorp Linkedin.com/company/markel-corporation


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