-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
MKL posted a Q1 GAAP loss of $18.90/share vs. $12.08 EPS a year ago, reflecting wider investment losses of $728M, though operating EPS of $39.40 vs. $37.40 beat our $26.10 estimate and $26.34 consensus. Operating revenues were flat vs. our 4%-7% growth forecast, with premium revenues declining 1.9%. We view these results as mixed, reflecting a more competitive market environment that may be exacerbated by internal factors, including activist interest from Jana Partners. Management noted recent streamlining actions but has not commented on the status of the previously announced activism. Underwriting results improved with the combined ratio at 93% vs. 96%, though still lagging some peers despite $35M in Middle East conflict losses.