Investment and Returns Benchmarking for a Specialty Insurance Peer Group January 2011
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Investment and Returns Benchmarking for a Specialty Insurance Peer Group (1/2) Risk* & Return (2007-09 avg)
ROAE
5.0% WR Berkley (1.93 4.4%)
RLI (1.35, 4.2%)
4.5%
30% 20%
Return Average = 3.8%
10%
Markel (1.49, 3.8%)
3.5% Argo (1.25, 3.6%)
0%
Risk Average = 1.6
Return
4.0%
3.0% 2.5% 2.0% 1.10
1.30
1.50
Risk
-10%
Alleghany (1.80, 2.9%)
2007
1.70
1.90
Argo
2.10
2008
Markel Corp
P/B Ratio
2009
Alleghany Corp
WR Berkley
RLI
Stock Performance 130
2.00
120 110
1.50
100 90
1.00
80 70
0.50
60 50
Source: Research Databases, Company filings,, Earnings Call report, Annual Report, Company Website, Bloomberg
Argo
Markel
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Alleghany
WRB
Sep-10
May-10
Jan-10
Sep-09
May-09
Jan-09
40 Sep-08
Markel Corp WR Berkley
May-08
PE Sep 2010
Jan-08
Argo Alleghany Corp RLI
2009
Sep-07
2008
May-07
2007
Jan-07
0.00
RLI
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Investment and Returns Benchmarking for a Specialty Insurance Peer Group (2/2) RLI Investment Yield by Invst Type, %, 2009
Investment Yield, % 6.00%
88.1%
11.1%
0.8%
% of Total Inv Income
100%
5.00% 5.00%
4.00% 3.00% 4.25%
2.00%
3.03%
3.00%
Markel Corp
Alleghany Corp
RLI
WR Berkley
Average
All are >A rated
Markel Investment Yield by Invst Type, %, 2009
WR Berkeley Investment Yield by Invst Type, %, 2009 89.0%
3.6%
7.3%
100%
5.00%
Others
2009
Argo
Equity
2008
Fixed Maturity
2007
% of Total Inv Income
5.00%
90%
9.6%
2.2%
-0.1%
% of Total Inv Income
100%
4.00%
4.00%
3.00%
3.00%
2.00% 4.38%
5.06%
4.60%
1.00% 3.02%
1.00%
4.26%
3.70% 1.80%
1.10%
0.00%
-0.90%
-1.00%
Source: Research Databases, Company filings,, Earnings Call report, Annual Report, Company Website, Bloomberg
90% is >A rated
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Total
Inv in Affliates
Short Term Inv
-2.00% Equity
Total
Others
Equity
Fixed Maturity
0.00%
Fixed Maturity
2.00%
0.57%
0.00%
2.00%
6.00%
3.87%
1.00%
Total
4.00%
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Thank You
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