Markel Group reports 2025 second quarter and six-months results
Markel Group (NYSE:MKL) reported its Q2 2025 financial results, achieving $1.4 billion in operating income for the first half of the year. The company's Q2 operating revenues reached $4.6 billion, up from $3.7 billion in Q2 2024, driven by market value movements in their equity portfolio. Notable highlights include:
The Insurance segment posted a combined ratio of 96.9%, up from 93.8% in Q2 2024, impacted by adverse development in run-off risk-managed directors and officers product lines. Markel Ventures showed growth in both revenues and operating income, benefiting from the acquisitions of Valor and EPI. The company's strategic decision to place reinsurance into run-off aims to streamline focus on core underwriting activities.
Net investment income increased 3% for Q2 and 6% for H1 2025, reflecting higher yields and increased fixed maturity securities holdings. The first half of 2025 included $60.9 million in losses from the January California Wildfires.
Markel Group (NYSE:MKL) ha comunicato i risultati finanziari del secondo trimestre 2025, registrando un reddito operativo di 1,4 miliardi di dollari nella prima metà dell'anno. I ricavi operativi del secondo trimestre sono saliti a 4,6 miliardi di dollari, rispetto ai 3,7 miliardi del secondo trimestre 2024, grazie ai movimenti di valore di mercato nel portafoglio azionario. Tra i punti salienti:
Il segmento Assicurativo ha riportato un combined ratio del 96,9%, in aumento rispetto al 93,8% del secondo trimestre 2024, influenzato da sviluppi negativi nelle linee di prodotto run-off per rischi di direttori e amministratori. Markel Ventures ha mostrato crescita sia nei ricavi che nel reddito operativo, beneficiando delle acquisizioni di Valor ed EPI. La decisione strategica di porre in run-off la riassicurazione mira a concentrare l'attenzione sulle attività di sottoscrizione principali.
Il reddito netto da investimenti è aumentato del 3% nel secondo trimestre e del 6% nella prima metà del 2025, riflettendo rendimenti più elevati e un incremento delle partecipazioni in titoli a scadenza fissa. La prima metà del 2025 ha incluso 60,9 milioni di dollari di perdite derivanti dagli incendi della California di gennaio.
Markel Group (NYSE:MKL) informó sus resultados financieros del segundo trimestre de 2025, alcanzando un ingreso operativo de 1.400 millones de dólares en la primera mitad del año. Los ingresos operativos del segundo trimestre llegaron a 4.600 millones de dólares, frente a los 3.700 millones del segundo trimestre de 2024, impulsados por movimientos en el valor de mercado de su cartera de acciones. Destacan:
El segmento de Seguros registró un ratio combinado del 96,9%, superior al 93,8% del segundo trimestre de 2024, afectado por desarrollos adversos en las líneas de productos run-off para riesgos de directores y oficiales. Markel Ventures mostró crecimiento tanto en ingresos como en ingresos operativos, beneficiándose de las adquisiciones de Valor y EPI. La decisión estratégica de poner la reaseguradora en run-off busca enfocar la atención en las actividades principales de suscripción.
Los ingresos netos por inversiones aumentaron un 3% en el segundo trimestre y un 6% en el primer semestre de 2025, reflejando mayores rendimientos y un incremento en las tenencias de valores de renta fija. La primera mitad de 2025 incluyó 60,9 millones de dólares en pérdidas por los incendios forestales de California en enero.
Markel Group (NYSE:MKL)는 2025년 2분기 재무 실적을 발표하며 상반기 영업이익 14억 달러를 달성했습니다. 2분기 영업수익은 46억 달러로 2024년 2분기 37억 달러에서 증가했으며, 이는 주식 포트폴리오의 시장 가치 변동에 기인합니다. 주요 내용은 다음과 같습니다:
보험 부문은 결합 손해율 96.9%를 기록했으며, 2024년 2분기 93.8%에서 상승했는데, 이는 임원 및 이사 책임 상품의 런오프 위험에서 부정적 발전이 있었기 때문입니다. Markel Ventures는 Valor와 EPI 인수로 매출과 영업이익 모두 성장했습니다. 재보험을 런오프로 전환하는 전략적 결정은 핵심 인수 활동에 집중하기 위한 것입니다.
순투자수익은 2분기 3%, 2025년 상반기 6% 증가했으며, 이는 더 높은 수익률과 고정 만기 증권 보유 증가를 반영합니다. 2025년 상반기에는 1월 캘리포니아 산불로 인한 6090만 달러 손실이 포함되었습니다.
Markel Group (NYSE:MKL) a publié ses résultats financiers du deuxième trimestre 2025, enregistrant un revenu opérationnel de 1,4 milliard de dollars pour le premier semestre. Les revenus opérationnels du deuxième trimestre ont atteint 4,6 milliards de dollars, en hausse par rapport à 3,7 milliards au T2 2024, grâce aux variations de la valeur de marché de leur portefeuille d'actions. Points marquants :
Le segment Assurance a affiché un ratio combiné de 96,9%, en hausse par rapport à 93,8% au T2 2024, impacté par des développements défavorables sur les produits run-off pour les risques des administrateurs et dirigeants. Markel Ventures a connu une croissance de ses revenus et de son résultat opérationnel, profitant des acquisitions de Valor et EPI. La décision stratégique de mettre la réassurance en run-off vise à recentrer l'activité sur le cœur de la souscription.
Le revenu net des investissements a augmenté de 3% au T2 et de 6% sur le premier semestre 2025, reflétant des rendements plus élevés et une augmentation des titres à échéance fixe. Le premier semestre 2025 comprend 60,9 millions de dollars de pertes liées aux incendies de forêt en Californie en janvier.
Markel Group (NYSE:MKL) meldete seine Finanzergebnisse für das zweite Quartal 2025 und erzielte im ersten Halbjahr einen operativen Gewinn von 1,4 Milliarden US-Dollar. Die operativen Umsätze im zweiten Quartal beliefen sich auf 4,6 Milliarden US-Dollar, gegenüber 3,7 Milliarden im zweiten Quartal 2024, angetrieben durch Marktwertänderungen im Aktienportfolio. Wichtige Highlights sind:
Der Versicherungsbereich verzeichnete eine Combined Ratio von 96,9%, gegenüber 93,8% im zweiten Quartal 2024, beeinträchtigt durch ungünstige Entwicklungen bei den Run-off-Risiken im Bereich Directors and Officers. Markel Ventures zeigte Wachstum bei Umsatz und operativem Gewinn, begünstigt durch die Übernahmen von Valor und EPI. Die strategische Entscheidung, die Rückversicherung in den Run-off zu geben, zielt darauf ab, den Fokus auf die Kernunterwriting-Aktivitäten zu legen.
Das Nettoanlageergebnis stieg im zweiten Quartal um 3% und im ersten Halbjahr 2025 um 6%, was auf höhere Renditen und eine erhöhte Position in festverzinslichen Wertpapieren zurückzuführen ist. Das erste Halbjahr 2025 beinhaltete Verluste von 60,9 Millionen US-Dollar durch die Waldbrände in Kalifornien im Januar.
- Operating revenues increased to $4.6 billion in Q2 2025 from $3.7 billion in Q2 2024
- Net investment income grew 6% in H1 2025
- Markel Ventures showed growth in both revenues and operating income
- Strategic streamlining through placing reinsurance division into run-off
- 16% compound annual growth rate in stock price from December 2020 to June 2025
- Insurance combined ratio deteriorated to 96.9% from 93.8% year-over-year in Q2
- Adverse development in run-off risk-managed directors and officers product lines
- $60.9 million in losses from California Wildfires in H1 2025
- Diluted net income per share decreased to $61.60 in H1 2025 from $94.24 in H1 2024
Insights
Markel posts solid $1.4B operating income despite reinsurance run-off decision and declining insurance underwriting performance.
Markel Group's Q2 2025 results reveal a company in transition, with management making strategic structural changes to focus on core strengths. The most significant development is the decision to place the Global Reinsurance division into run-off, allowing the company to concentrate on areas where it has competitive advantages. This strategic shift comes amidst mixed financial performance.
The Insurance segment shows concerning signs with a
Insurance segment operating income declined significantly to
Despite these challenges, Markel's diversified business model continues to demonstrate resilience. The Investments segment delivered strong results with
Markel Ventures continued its positive trajectory with
Overall, Markel posted diluted earnings per share of
"We've made meaningful changes across our business in recent years, all with the goal of consistently compounding your capital," said Tom Gayner, Chief Executive Officer of Markel Group. "Our results included
The following table presents the Company's summary financial data, by engine, for the quarters and six months ended June 30, 2025 and 2024.
Quarter Ended June 30, | Six Months Ended June 30, | ||||||
(dollars in thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||
Operating revenues: | |||||||
Insurance | $ 2,232,067 | $ 2,148,268 | $ 4,419,880 | $ 4,333,986 | |||
Investments: | |||||||
Net investment income | 228,126 | 220,454 | 463,727 | 437,658 | |||
Net investment gains (losses) | 580,223 | (130,017) | 431,152 | 772,264 | |||
Other | 14,064 | 9,357 | 9,454 | 30,203 | |||
Total Investments | 822,413 | 99,794 | 904,333 | 1,240,125 | |||
Markel Ventures | 1,548,286 | 1,453,781 | 2,677,658 | 2,594,387 | |||
Total operating revenues | $ 4,602,766 | $ 3,701,843 | $ 8,001,871 | $ 8,168,498 | |||
Operating income: | |||||||
Insurance (1) | $ 128,412 | $ 176,925 | $ 273,448 | $ 312,750 | |||
Investments: | |||||||
Net investment income | 228,126 | 220,454 | 463,727 | 437,658 | |||
Net investment gains (losses) | 580,223 | (130,017) | 431,152 | 772,264 | |||
Other | 14,064 | 9,357 | 9,454 | 30,203 | |||
Total Investments | 822,413 | 99,794 | 904,333 | 1,240,125 | |||
Markel Ventures | 207,728 | 177,498 | 310,238 | 281,413 | |||
Consolidated segment operating income (2) | 1,158,553 | 454,217 | 1,488,019 | 1,834,288 | |||
Amortization of acquired intangible assets | (51,213) | (44,237) | (98,155) | (88,522) | |||
Total operating income | $ 1,107,340 | $ 409,980 | $ 1,389,864 | $ 1,745,766 | |||
Comprehensive income to shareholders | $ 867,511 | $ 244,356 | $ 1,215,181 | $ 1,152,741 | |||
Diluted net income per common share | $ 49.67 | $ 18.62 | $ 61.60 | $ 94.24 | |||
Markel Insurance combined ratio | 96.9 % | 93.8 % | 96.5 % | 94.5 % | |||
(1) See "Supplemental Financial Information" for the components of our Insurance engine operating income. |
(2) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. |
Highlights of results from the quarter and six months:
- The changes in operating revenues and operating income for both the quarter and six months ended June 30, 2025 were largely driven by market value movements within our equity portfolio. Generally accepted accounting principles (GAAP) require that we include unrealized gains and losses on equity securities in net income. This may lead to short-term volatility in revenues and operating income that temporarily obscures our underlying operating performance.
- Net investment income increased
3% and6% for the quarter and six months ended June 30, 2025, respectively, reflecting a higher yield and higher average holdings of fixed maturity securities in 2025. - Markel Ventures operating revenues and operating income for the quarter and six months ended June 30, 2025 increased, reflecting contributions from the acquisitions of Valor and EPI, as well as improved performance at our construction services businesses.
- The increase in Markel Insurance's combined ratio for the quarter ended June 30, 2025 was primarily driven by adverse development in 2025 on our run-off risk-managed directors and officers product lines and on the Global Reinsurance division, which we announced is being placed into run-off. This adverse development in the second quarter of 2025 resulted in less overall net favorable development on prior accident years loss reserves in the second quarter of 2025 compared to the second quarter of 2024.
- Underwriting results for the first half of 2025 included
$60.9 million California (California Wildfires) compared to no catastrophe losses in the first half of 2024. Excluding losses attributed to the California Wildfires, the Markel Insurance combined ratio in the first half of 2025 was consistent with the same period of 2024.
We believe our financial performance is most meaningfully measured over longer periods of time, which tends to mitigate the effects of short-term volatility and also aligns with the long-term perspective we apply to operating our businesses and making investment decisions. The following table presents a long-term view of our performance.
Six Months Ended June 30, | Years Ended December 31, | ||||||||
(dollars in thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | ||||
Operating income (loss): | |||||||||
Insurance (1) | $ 273,448 | $ 601,002 | $ 348,145 | $ 928,709 | $ 718,800 | ||||
Investments (2) | 904,333 | 2,772,950 | 2,241,419 | (1,167,548) | 2,353,124 | ||||
Markel Ventures | 310,238 | 520,082 | 519,878 | 404,281 | 330,120 | ||||
Consolidated segment operating income (3) | 1,488,019 | 3,894,034 | 3,109,442 | 165,442 | 3,402,044 | ||||
Amortization and impairment | (98,155) | (181,472) | (180,614) | (258,778) | (160,539) | ||||
Total operating income (loss) | $ 1,389,864 | $ 3,712,562 | $ 2,928,828 | $ (93,336) | $ 3,241,505 | ||||
Net investment gains (losses) (2) | $ 431,152 | $ 1,807,219 | $ 1,524,054 | $ 1,978,534 | |||||
Compound annual growth rate in closing stock price per share from December 31, 2020 to June 30, 2025 | 16 % | ||||||||
(1) See "Supplemental Financial Information" for the components of our Insurance engine operating income. |
(2) Investments engine operating income includes net investment gains (losses), which are primarily comprised of unrealized gains and losses on equity securities. |
(3) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. |
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A copy of our Form 10-Q is available on our website at mklgroup.com, under Investor Relations-Financials, or on the SEC website at www.sec.gov. Readers are urged to review the Form 10-Q for a more complete discussion of our financial performance. Our quarterly conference call, which will involve discussion of our financial results and business developments and may include forward-looking information, will be held Thursday, July 31, 2025, beginning at 9:30 a.m. (Eastern Time). Investors, analysts and the general public may listen to the call via live webcast at ir.mklgroup.com. The call may be accessed telephonically by dialing (888) 660-9916 in the
Supplemental Financial Information
The following table presents the components of our Insurance engine operating income.
Quarter Ended June 30, | Six Months Ended June 30, | Years Ended December 31, | |||||||||||||
(dollars in thousands) | 2025 | 2024 | 2025 | 2024 | 2024 | 2023 | 2022 | 2021 | |||||||
Markel Insurance segment | $ 60,337 | $ 123,896 | $ 136,619 | $ 218,624 | $ 374,223 | $ 101,432 | $ 600,087 | $ 603,450 | |||||||
Other insurance operations | 68,075 | 53,029 | 136,829 | 94,126 | 226,779 | 246,713 | 328,622 | 115,350 | |||||||
Insurance | $ 128,412 | $ 176,925 | $ 273,448 | $ 312,750 | $ 601,002 | $ 348,145 | $ 928,709 | $ 718,800 | |||||||
Non-GAAP Financial Measures
Consolidated segment operating income is a non-GAAP financial measure as it represents the total of the segment operating income from each of our operating segments and excludes items included in operating income. Consolidated segment operating income excludes amortization of acquired intangible assets and goodwill impairments arising from purchase accounting as they do not represent costs of operating the underlying businesses. The following table reconciles operating income to consolidated segment operating income.
Quarter Ended June 30, | Six Months Ended June 30, | Years Ended December 31, | |||||||||||||
(dollars in thousands) | 2025 | 2024 | 2025 | 2024 | 2024 | 2023 | 2022 | 2021 | |||||||
Operating income (loss) | $ 1,107,340 | $ 409,980 | $ 1,389,864 | $ 1,745,766 | $ 3,712,562 | $ 2,928,828 | $ (93,336) | $ 3,241,505 | |||||||
Amortization of acquired intangible assets | 51,213 | 44,237 | 98,155 | 88,522 | 181,472 | 180,614 | 178,778 | 160,539 | |||||||
Impairment of goodwill | — | — | — | — | — | — | 80,000 | — | |||||||
Consolidated segment operating income | $ 1,158,553 | $ 454,217 | $ 1,488,019 | $ 1,834,288 | $ 3,894,034 | $ 3,109,442 | $ 165,442 | $ 3,402,044 | |||||||
About Markel Group
Markel Group Inc. is a diverse family of companies that includes everything from insurance to bakery equipment, building supplies, houseplants, and more. The leadership teams of these businesses operate with a high degree of independence, while at the same time living the values that we call the Markel Style. Our specialty insurance business sits at the core of our company. Through decades of sound underwriting, the Markel Insurance team has provided the capital base from which we built a system of businesses and investments that collectively increase Markel Group's durability and adaptability. It's a system that provides diverse income streams, access to a wide range of investment opportunities, and the ability to efficiently move capital to the best ideas across the company. Most importantly though, this system enables each of our businesses to advance our shared goal of helping our customers, associates, and shareholders win over the long term. Visit mklgroup.com to learn more.
Cautionary Statement
Certain of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Statements that are not historical facts, including statements about our beliefs, plans or expectations, are forward-looking statements. These statements are based on our current plans, estimates and expectations. There are risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by such statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additional factors that could cause actual results to differ from those predicted are set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, including under "Business Overview," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," and "Quantitative and Qualitative Disclosures About Market Risk," and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, including under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," "Quantitative and Qualitative Disclosures About Market Risk," and "Risk Factors." We assume no obligation to update this release (including any forward-looking statements) as a result of new information, developments, or otherwise. This release speaks only as of the date issued.
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SOURCE Markel Group
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