Insider buying can provide valuable trading signals. Insiders sell company stock for many reasons. But they only buy stock for one reason – they expect it to go up.

In this report, we are going to highlight some interesting insider buying at Markel Corporation (MKL:US). Markel is a diverse financial services holding company that serves a variety of niche markets. Operating in the insurance and investment fields, it aims to generate consistent underwriting and operating profits, and superior investment returns to build shareholder value. The company is listed on the New York Stock Exchange and currently has a market cap of approximately $17.91 billion.

Insider Buying at Markel

2iQ data shows that between February 16 and February 17, two insiders at Markel bought company stock. Those who bought shares were:

Board member Diane Leopold (150 shares @ $1338.20 per share)
Board member Greta Harris (400 shares @ $1,327.50 per share)

Combined, the two insiders invested around $730,000 in company stock.

High-conviction Purchase

It’s the stock purchase from Ms. Harris that stands out here. Not only is it very large in nominal terms (the trade was worth $531k) but it is also large in relative terms as it has increased the size of her holding by approximately 170%. It’s very much a high-conviction trade.

It’s worth noting that Ms. Leopold and Ms. Harris are not the only insiders at Markel to purchase stock recently. Earlier in February, CEO Thomas Gayner purchased 25 shares at a price of $1317.18 per share.

Solid 2022 Results

Markel recently posted a solid set of 2022 results.

While declines in the fair value of its equity and bond portfolios during the year generated unrealized losses, the company delivered strong growth in earned premiums (+17%), net investment income (+22%), and operating revenues from Markel Ventures (+31%).

And operating cash flows totaled $2.7 billion for the year, up 19% on 2021, reflecting strong cash inflows from underwriting operations.

"Our 2022 results reflect the strength and balance of our three-engine architecture of insurance, investments, and Markel Ventures. Each engine delivered strong operating performance this year, generating an impressive $2.7 billion of operating cash flows," commented CEO Thomas Gayner.

Looking ahead, the company said that it remains confident in the strong operating performance of the business.

In light of these results, we see the insider buying here as a bullish signal.

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