13F-HR 1 d13fhr.txt HOLDINGS REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 13F Form 13F COVER PAGE Report for the Calendar Year or Quarter: September 30, 2006 Check here if Amendment [_]; Amendment Number: ____ This Amendment (Check only one.): [_] is a restatement. [_] adds new holdings entries. Institutional Investment Manager Filing this Report: Name: Markel Gayner Asset Management Corporation Address: 4521 Highwoods Pkwy Glen Allen, VA 23060 Form 13F File Number: 28-6056 The institutional investment manager filing this report and the person by whom it is signed hereby represent that the person signing the report is authorized to submit it, that all information contained herein is true, correct and complete, and that it is understood that all required items, statements, schedules, lists, and tables, are considered integral parts of this form. Person Signing this Report on Behalf of Reporting Manager: Name: Thomas S. Gayner Title: President Phone: 804-527-3806 Signature, Place, and Date of Signing: Thomas S. Gayner Richmond, VA 11/03/06 -------------------------- -------------------------- ----------------------- [Signature] [City, State] [Date] Report Type (Check only one.): [X] 13F HOLDINGS REPORT. (Check here if all holdings of this reporting manager are reported in this report.) [_] 13F NOTICE. (Check here if no holdings reported are in this report, and all holdings are reported by other reporting manager(s).) [_] 13F COMBINATION REPORT. (Check here if a portion of the holdings for this reporting manager are reported in this report and a portion are reported by other reporting manager(s).) 1 Form 13F SUMMARY PAGE Report Summary: Number of Other Included Managers: 5 Form 13F Information Table Entry Total: 245 Form 13F Information Table Value Total: $ 1,672,827 (thousands) List of Other Included Managers: Provide a numbered list of the name(s) and Form 13F file number(s) of all institutional investment managers with respect to which this report is filed, other than the manager filing this report. No. Form 13F File Number Name --- -------------------- ----------------------------------------------------- 1 28-6647 Markel Corporation 2 28-6745 Evanston Insurance Company 3 28-10352 Essex Insurance Company 4 28-10743 Markel International Insurance Company Limited 5 28-11258 Markel Syndicate Management Limited Markel Gayner Asset Management Corporation FORM 13F September 30, 2006

Voting Authority ------------------ Title of Value Shares/ Sh/ Put/ Invstmt Other Name of Issuer Class CUSIP (x$1000) Prn Amt Prn Call Dscretn Managers Sole Shared None -------------- -------- --------- -------- -------- --- ---- ------- -------- ---- -------- ---- Aflac COM 001055102 2974 65000 SH Other 1,2 65000 2746 60000 SH Other 1,3 60000 9152 200000 SH Other 1,5 200000 2023 44200 SH Other 1 44200 Allied Capital Corp. COM 019033109 4396 145500 SH Other 1,2 145500 302 10000 SH Other 1,3 10000 2485 82265 SH Other 1,4 82265 755 25000 SH Other 1,5 25000 5443 180180 SH Other 1 180180 Altria Group Inc. COM 02209S103 9071 118500 SH Other 1 118500 Ambac Financial COM 023139108 827 10000 SH Other 1 10000 American Express COM 025816109 7683 137000 SH Other 1,2 137000 1122 20000 SH Other 1,3 20000 561 10000 SH Other 1,4 10000 11585 206600 SH Other 1 206600 Anheuser Busch COM 035229103 30037 632225 SH Other 1,2 632225 7127 150000 SH Other 1,3 150000 3326 70000 SH Other 1,4 70000 10927 230000 SH Other 1,5 230000 24118 507645 SH Other 1 507645 Automatic Data Processing COM 019411107 7574 160000 SH Other 1,2 160000 1420 30000 SH Other 1,3 30000 1453 30700 SH Other 1,4 30700 2367 50000 SH Other 1,5 50000 1776 37500 SH Other 1 37500 Bank of America COM 060505104 536 10000 SH Other 1,2 10000 1205 22500 SH Other 1 22500 Bank of New York COM 064057102 6171 175000 SH Other 1,2 175000 1763 50000 SH Other 1,3 50000 1939 55000 SH Other 1,4 55000 353 10000 SH Other 1,5 10000 3254 92300 SH Other 1 92300 Bea Systems, Inc. NOTE 073325AD4 16243 16325000 PRN Other 1,4 16325000 1965 1975000 PRN Other 1 1975000 Bed Bath & Beyond Inc. COM 075896100 383 10000 SH Other 1,5 10000 306 8000 SH Other 1 8000 Berkshire Hathaway Class B COM 084670207 57449 18100 SH Other 1,2 18100 7935 2500 SH Other 1,3 2500 6062 1910 SH Other 1,5 1910 28811 9077 SH Other 1 9077 Berkshire Hathaway, Inc. COM 10382K102 26824 280 SH Other 1,2 280 12454 130 SH Other 1,3 130 7185 75 SH Other 1,4 75 16286 170 Sh Other 1,5 170 14753 154 SH Other 1 154 Brookfield Asset Management COM 10549P606 7436 167700 SH Other 1,3 167700 2236 50437 SH Other 1,4 50437 8007 180592 SH Other 1,5 180592 30657 691395 SH Other 1 691395

Voting Authority ---------------- Title of Value Shares/ Sh/ Put/ Invstmt Other Name of Issuer Class CUSIP (x$1000) Prn Amt Prn Call Dscretn Managers Sole Shared None -------------- -------- --------- -------- ------- --- ---- ------- -------- ---- ------ ---- Brown & Brown COM 115236101 905 29610 SH Other 1,2 29610 490 16018 SH Other 1,3 16018 2139 70000 SH Other 1,4 70000 5501 180000 SH Other 1,5 180000 2139 70000 SH Other 1 70000 Brown Forman Class A COM 115637100 1780 23000 SH Other 1,2 23000 1238 16000 SH Other 1,3 16000 8603 111200 SH Other 1,5 111200 10403 134460 SH Other 1 134460 Bunge Limited COM 013317810 580 10000 SH Other 1,3 10000 580 10000 SH Other 1,4 10000 1390 24000 SH Other 1 24000 Carmax COM 143130102 38728 928500 SH Other 1,2 928500 8133 195000 SH Other 1,3 195000 10694 256386 SH Other 1,4 256386 16504 395693 SH Other 1,5 395693 38923 933178 SH Other 1 933178 Cedar Fair LP COM 150185106 247 9400 SH Other 1 9400 Charles Schwab COM 808513105 448 25000 SH Other 1,2 25000 7164 400000 SH Other 1,4 400000 460 25700 SH Other 1 25700 Cincinnati Financial COM 172062101 9019 187425 SH Other 1,2 187425 8210 170611 SH Other 1,3 170611 1857 38587 SH Other 1,4 38587 7394 153678 SH Other 1 153678 Citigroup COM 172967101 7202 145000 SH Other 1,2 145000 5682 114400 SH Other 1,3 114400 6368 128200 SH Other 1,4 128200 4282 86200 SH Other 1,5 86200 30878 621675 SH Other 1 621675 Corus Bankshares COM 220873103 4338 194000 SH Other 1,2 194000 559 25000 SH Other 1,4 25000 2504 112000 SH Other 1 112000 Deere & Co. COM 214199105 210 2500 SH Other 1 2500 Diageo PLC COM 25243Q205 51149 720000 SH Other 1,2 720000 107 1500 SH Other 1,3 1500 3197 45000 SH Other 1,4 45000 22626 318500 SH Other 1,5 318500 13939 196220 SH Other 1 196220 Exxon Mobil Corporation COM 30231G102 3355 50000 SH Other 1,2 50000 4697 70000 SH Other 1,3 70000 13407 199800 SH Other 1,5 199800 2257 33638 SH Other 1 33638 Fairfax Financial Holdings COM 303901102 108455 833561 SH Other 1 833561 Federated Investors Inc. COM 314211103 676 20000 SH Other 1,2 20000 676 20000 SH Other 1,3 20000 3212 95000 SH Other 1,4 95000 1048 31000 SH Other 1 31000

Voting Authority ---------------- Title of Value Shares/ Sh/ Put/ Invstmt Other Name of Issuer Class CUSIP (x$1000) Prn Amt Prn Call Dscretn Managers Sole Shared None -------------- -------- --------- -------- ------- --- ---- ------- -------- ---- ------ ---- Forest City Enterprises COM 345550107 33764 621800 SH Other 1,2 621800 5430 100000 SH Other 1,3 100000 1662 30600 SH Other 1,5 30600 4061 74800 SH Other 1 74800 Friedman Billings Ramsey Group COM 358434108 281 35000 SH Other 1,2 35000 1445 180000 SH Other 1,3 180000 4432 551900 SH Other 1 551900 General Dynamics COM 369550108 15051 210000 SH Other 1,2 210000 2867 40000 SH Other 1,3 40000 2867 40000 SH Other 1,5 40000 7546 105300 SH Other 1 105300 General Electric COM 369604103 35150 995750 SH Other 1,2 995750 14236 403300 SH Other 1,3 403300 1697 48060 SH Other 1,4 48060 3798 107580 SH Other 1,5 107580 31269 885818 SH Other 1 885818 General Motors Corp. DEB SR CONV. A 370442741 1733 70000 PRN Other 1,4 70000 3218 130000 PRN Other 1,5 130000 Golden West Financial COM 381317106 1236 16000 SH Other 1 16000 Goldman Sachs COM 38141G104 1692 10000 SH Other 1,3 10000 H&R Block COM 093671105 3478 160000 SH Other 1,2 160000 2174 100000 SH Other 1,5 100000 1413 65000 SH Other 1 65000 Harley-Davidson Inc. COM 412822108 627 10000 SH Other 1,5 10000 Harrah's Entertainment COM 413619107 1993 30000 SH Other 1,3 30000 664 10000 SH Other 1,4 10000 11293 170000 SH Other 1,5 170000 10908 164200 SH Other 1 164200 Home Depot COM 437076102 10337 285000 SH Other 1,2 285000 2720 75000 SH Other 1,3 75000 1269 35000 SH Other 1,4 35000 12742 351300 SH Other 1 351300 International Game Tech. COM 459902102 2490 60000 SH Other 1,2 60000 3528 85000 SH Other 1,3 85000 4150 100000 SH Other 1,4 100000 23648 569850 SH Other 1 569850 International Speedway COM 460335201 6115 122700 SH Other 1,2 122700 3738 75000 SH Other 1,3 75000 6728 135000 SH Other 1,5 135000 7290 146250 SH Other 1 146250 Investors Title Company COM 461804106 1869 42200 SH Other 1,2 42200 6760 152600 SH Other 1,3 152600 1576 35550 SH Other 1 35550 Johnson and Johnson COM 478160104 1299 20000 SH Other 1,2 20000 2598 40000 SH Other 1,3 40000 1766 27200 SH Other 1,4 27200 18183 280000 SH Other 1,5 280000 2266 34900 SH Other 1 34900 Leucadia National Corp COM 527288104 1570 60000 SH Other 1,3 60000 47 1800 SH Other 1 1800

Voting Authority ---------------- Title of Value Shares/ Sh/ Put/ Invstmt Other Name of Issuer Class CUSIP (x$1000) Prn Amt Prn Call Dscretn Managers Sole Shared None -------------- -------- --------- -------- ------- --- ---- ------- -------- ---- ------ ---- MBIA Inc. COM 55262C100 21811 355000 SH Other 1,2 355000 2150 35000 SH Other 1,3 35000 1106 18000 SH Other 1,4 18000 4731 77000 SH Other 1,5 77000 9395 152900 SH Other 1 152900 Marriott International COM 571903202 14297 370000 SH Other 1,2 370000 1546 40000 SH Other 1,3 40000 5796 150000 SH Other 1,5 150000 5387 139425 SH Other 1 139425 Marsh & McLennan COM 571748102 6756 240000 SH Other 1,2 240000 5489 195000 SH Other 1,3 195000 3040 108000 SH Other 1,4 108000 15483 550000 SH Other 1,5 550000 4808 170810 SH Other 1 170810 McGraw-Hill COM 580645109 2321 40000 SH Other 1,3 40000 17409 300000 SH Other 1,4 300000 4642 80000 SH Other 1,5 80000 3807 65600 SH Other 1 65600 News Corp Class B COM 65248E203 1032 50000 SH Other 1,3 50000 516 25000 SH Other 1,4 25000 4895 237150 SH Other 1 237150 Northern Trust Corp. COM 665859104 1753 30000 SH Other 1,2 30000 584 10000 SH Other 1,3 10000 2922 50000 SH Other 1,4 50000 1168 20000 SH Other 1 20000 Nuveen Investments COM 67090F106 1025 20000 SH Other 1 20000 Penn National Gaming COM 707569109 4528 124000 SH Other 1,2 124000 9890 270800 SH Other 1,3 270800 1461 40000 SH Other 1 40000 Pepsico COM 713448108 2173 33300 SH Other 1,4 33300 13 200 SH Other 1 200 Pitney Bowes Inc. COM 724479100 444 10000 SH Other 1 10000 Plum Creek Timber Co. COM 729251108 4766 140000 SH Other 1,2 140000 1021 30000 SH Other 1,3 30000 5106 150000 SH Other 1,5 150000 1593 46800 SH Other 1 46800 Progressive Corp. COM 743315103 160 6516 SH Other 1,3 6516 982 40000 SH Other 1 40000 RLI Corporation COM 749607107 5263 103624 SH Other 1,2 103624 20142 396576 SH Other 1,3 396576 6668 131274 SH Other 1 131274 Reddy Ice COM 75734R105 605 25000 SH Other 1,2 25000 110 4556 SH Other 1,3 4556 253 10445 SH Other 1,4 10445 1198 49499 SH Other 1 49499 ServiceMaster COM 817615107 630 56200 SH Other 1,3 56200 561 50000 SH Other 1,4 50000 2803 250000 SH Other 1,5 250000 2707 241543 SH Other 1 241543 St. Joe Corporation COM 790148100 1152 21000 SH Other 1,4 21000 993 18100 SH Other 1 18100

Voting Authority ---------------- Title of Value Shares/ Sh/ Put/ Invstmt Other Name of Issuer Class CUSIP (x$1000) Prn Amt Prn Call Dscretn Managers Sole Shared None -------------- -------- --------- -------- ------- --- ---- ------- -------- ---- ------ ---- State Street Corp. COM 857477103 1248 20000 SH Other 1,2 20000 1273 20400 SH Other 1,4 20400 Sysco Corp. COM 871829107 4349 130000 SH Other 1,2 130000 2174 65000 SH Other 1,3 65000 3345 100000 SH Other 1,4 100000 1673 50000 SH Other 1,5 50000 10153 303556 SH Other 1 303556 T Rowe Price Group COM 74144T108 4785 100000 SH Other 1,2 100000 957 20000 SH Other 1,3 20000 2392 50000 SH Other 1 50000 TCF Financial Corp. COM 872275102 526 20000 SH Other 1,3 20000 Tiffany COM 886547108 3154 95000 SH Other 1,2 95000 996 30000 SH Other 1,3 30000 1494 45000 SH Other 1,5 45000 53 1600 SH Other 1 1600 United Mobile Homes COM 911024107 201 13000 SH Other 1 13000 United Parcel Service COM 911312106 719 10000 SH Other 1,4 10000 719 10000 SH Other 1,5 10000 857 11900 SH Other 1 11900 Valley National Bank COM 919794107 957 37446 SH Other 1,2 37446 816 31904 SH Other 1,4 31904 846 33075 SH Other 1,5 33075 510 19946 SH Other 1 19946 W. P. Carey COM 92930Y107 22740 826600 SH Other 1,2 826600 275 10000 SH Other 1,3 10000 3860 140300 SH Other 1 140300 Wachovia COM 337358105 316 5668 SH Other 1 5668 Wal-Mart COM 931142103 12083 245000 SH Other 1,2 245000 3123 63320 SH Other 1,3 63320 1233 25000 SH Other 1,4 25000 2290 46425 SH Other 1,5 46425 12733 258180 SH Other 1 258180 Walt Disney Company COM 254687106 526 17016 SH Other 1 17016 Washington Post Co. COM 939640108 2064 2800 SH Other 1,3 2800 1400 1900 SH Other 1,4 1900 461 625 SH Other 1 625 Washington Real Estate Investment COM 939653101 3801 95500 SH Other 1,2 95500 8569 215293 SH Other 1,3 215293 7072 177707 SH Other 1 177707 White Mountains COM G9618E107 14437 29050 SH Other 1,2 29050 4970 10000 SH Other 1,3 10000 14412 29000 SH Other 1,4 29000 7169 14425 SH Other 1,5 14425 31220 62825 SH Other 1 62825 XL Capital COM G3242A102 24674 359160 SH Other 1,2 359160 7467 108688 SH Other 1,3 108688 8154 118686 SH Other 1 118686

REPORT SUMMARY DATA RECORDS: 245 $1,672,827 5 OTHER MANAGERS ON WHOSE BEHALF REPORT IS FILED