Markel Group reports 2025 second quarter and six-months results
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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
News Market Reaction – MKL
On the day this news was published, MKL gained 0.09%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"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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