Markel Group reports 2025 third quarter and nine-months results

Rhea-AI Summary

Markel Group (NYSE:MKL) reported third-quarter 2025 results on October 29, 2025, and filed Form 10-Q for the quarter ended September 30, 2025.

Key points: Operating revenues were $3.93B for the quarter, up 7% vs. prior year; adjusted operating income was $621.0M, up 24% for the quarter; operating income was $1.01B, down 26% for the quarter; net investment gains declined 53% quarter-over-quarter. Markel Insurance combined ratio improved to 93%. Year-to-date highlights include $2.1B operating cash flow, $344M share repurchases, and 12.6M shares outstanding at September 30, 2025.

Positive

• Operating revenues +7% quarter to $3.934B
• Adjusted operating income +24% quarter to $621.0M
• Markel Insurance adjusted income +55% quarter to $428.5M
• Markel Insurance combined ratio improved to 93%
• Operating cash flow of $2.1B year-to-date
• Share repurchases of $344M year-to-date

Negative

• Operating income down 26% quarter to $1.010B
• Net investment gains down 53% quarter ($432.9M)
• Net investment gains down 49% year-to-date ($864.0M)
• Financial segment adjusted income down 23% quarter to $61.4M
• Comprehensive income to shareholders down ~19% year-to-date to $2.008B

Insights

Insurance operations analyst

Markel's insurance underwriting shows clear improvement; combined ratio and underwriting profit drive higher adjusted operating income.

Markel Insurance reported a quarterly combined ratio of 93%, improving from 97% year‑ago, and underwriting profit rose to $155,479 (quarter), driving a 55% increase in segment adjusted operating income to $428,475. The underwriting premium base grew: underwriting gross premium volume increased 11% quarter‑over‑quarter and 4% year‑to‑date, supporting revenue growth and underwriting leverage.

Key dependencies include continued maintenance of the improved loss ratio and sustained premium growth; reversion in loss experience or elevated large losses would reverse the gains. Watch the quarterly combined ratio, underwriting profit, and net investment income over the next Q4 2025–Q1 2026 period for confirmation of the trend.

Corporate finance analyst

Overall results mix operational improvement with weaker investment returns, but cash flow and buybacks underpin shareholder capital allocation.

Consolidated adjusted operating income rose 24% for the quarter to $621,017, while reported operating income fell due to lower net investment gains ($432,886 vs prior $917,530). The company generated $2.1 billion of operating cash flow year‑to‑date and repurchased $344 million of shares, maintaining active capital deployment.

Risks center on investment portfolio volatility driving swings in reported operating income and comprehensive income; adjusted metrics exclude these swings by design. Monitor reported net investment gains/losses and the Form 10‑Q disclosures on the investment portfolio and the announced reporting changes for clarity over the next 30–90 days.

RICHMOND, Va., Oct. 29, 2025 /PRNewswire/ -- Markel Group Inc. (NYSE:MKL) today reported its financial results for the third quarter of 2025. The Company also announced today it filed its Form 10-Q for the quarter ended September 30, 2025 with the Securities and Exchange Commission.

"I'm very pleased with our overall results and the progress we've made as a company this year," said Tom Gayner, Chief Executive Officer. "Revenues and adjusted operating income of our businesses are both up for the year and for the quarter. We're seeing improvement in our insurance combined ratio. And $2.1 billion in operating cash flow has helped fund continued steady share repurchases. In short, the strength of our diversified approach is on display, and we're seeing tangible signs of improvement in areas we've been focused on."

Summary of our third quarter results:

• Operating revenues increased 7% for the quarter and 4% year to date.
• Operating income, which is affected by market movements in our equity portfolio, decreased 26% for the quarter and 23% year to date.
• Adjusted operating income, which excludes the impact of market movements in our equity portfolio, increased 24% for the quarter and 7% year to date.
• For Markel Insurance, our cornerstone business:
  • Underwriting gross premium volume increased 11% for the quarter and 4% year to date.
  • Operating revenues increased 6% for the quarter and 3% year to date.
  • Adjusted operating income increased 55% for the quarter and 11% year to date due to increases in underwriting profitability and net investment income.
  • The combined ratio improved by more than four points in the quarter to 93%. For the year-to-date period, Markel Insurance's combined ratio was consistent period-over-period at 95%.
• Comprehensive income to shareholders was over $2 billion year to date.
• Operating cash flows were $2.1 billion year to date.
• Share repurchases were $344 million year to date, and we had 12.6 million shares outstanding at September 30, 2025.

The following table presents summary consolidated financial data.

	Quarter Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024
Operating revenues	$         3,934,549		$         3,693,734		$       11,505,268		$       11,089,968
Operating income	$         1,009,842		$         1,371,326		$         2,399,706		$         3,117,092
Add: Amortization of acquired intangible assets	44,061		46,459		142,216		134,981
Less: Net investment gains	432,886		917,530		864,038		1,689,794
Adjusted operating income (1)	$            621,017		$            500,255		$         1,677,884		$         1,562,279
Comprehensive income to shareholders	$            793,126		$         1,329,458		$         2,008,307		$         2,482,199

(1)	See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.

 

We made notable changes to our financial reporting in the third quarter of 2025. Please refer to the "Reporting Changes Guide" posted to our website at ir.mklgroup.com and furnished as Exhibit 99.3 in the Form 8-K that was filed by the Company on October 29, 2025.

Markel Insurance Segment

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025		2024		% Change		2025		2024		% Change
Gross premium volume:
Underwriting	$ 2,720,406		$  2,455,776		11 %		$ 8,322,635		$  8,006,824		4 %
Fronting	$    166,705		$       95,686		74 %		$ 1,838,499		$  1,216,410		51 %
Operating revenues:
Earned premiums	$ 2,127,648		$  2,035,773		5 %		$ 6,207,809		$  6,086,418		2 %
Net investment income	223,409		203,767		10 %		638,654		583,349		9 %
Services and other revenues	47,349		18,085		162 %		58,252		35,449		64 %
Operating revenues	$ 2,398,406		$  2,257,625		6 %		$ 6,904,715		$  6,705,216		3 %
Adjusted operating income:
Underwriting profit	$    155,479		$       62,156		150 %		$    298,841		$     283,250		6 %
Net investment income	223,409		203,767		10 %		638,654		583,349		9 %
Other income	49,587		9,680		412 %		42,850		13,882		209 %
Adjusted operating income	$    428,475		$     275,603		55 %		$    980,345		$     880,481		11 %
Combined ratio	93 %		97 %				95 %		95 %

 

Industrial Segment

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025		2024		% Change		2025		2024		% Change
Operating revenues	$      1,049,961		$         998,308		5 %		$      2,895,250		$      2,784,548		4 %
Adjusted operating income	$         101,302		$         111,773		(9) %		$         263,579		$         257,226		2 %

 

Financial Segment

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025		2024		% Change		2025		2024		% Change
Operating revenues	$         161,501		$         138,850		16 %		$         512,834		$         434,011		18 %
Adjusted operating income	$           61,407		$           79,652		(23) %		$         219,440		$         194,206		13 %

 

Consumer and Other Segment

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025		2024		% Change		2025		2024		% Change
Operating revenues	$         291,414		$         265,299		10 %		$      1,108,426		$      1,063,863		4 %
Adjusted operating income (loss)	$           17,372		$               (425)		NM (1)		$         151,283		$         128,036		18 %

(1)     NM - Not meaningful

 

* * * * * * * *

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, October 30, 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 U.S., or +1 (646) 960-0452 internationally, and providing Conference ID: 4614568. A replay of the call will be available on our website approximately one hour after the conclusion of the call. Any person needing additional information can contact Markel Group's Investor Relations Department at IR@markel.com.

Supplemental Financial Information

The following table summarizes our results by segment.

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025		2024		% Change		2025		2024		% Change
Operating revenues:
Markel Insurance	$     2,398,406		$     2,257,625		6 %		$     6,904,715		$     6,705,216		3 %
Industrial	1,049,961		998,308		5 %		2,895,250		2,784,548		4 %
Financial	161,501		138,850		16 %		512,834		434,011		18 %
Consumer and Other	291,414		265,299		10 %		1,108,426		1,063,863		4 %
Corporate and eliminations	33,267		33,652		(1) %		84,043		102,330		(18) %
Total operating revenues	$     3,934,549		$     3,693,734		7 %		$    11,505,268		$    11,089,968		4 %
Operating income	$     1,009,842		$     1,371,326		(26) %		$     2,399,706		$     3,117,092		(23) %
Add: Amortization of acquired intangible assets	44,061		46,459		(5) %		142,216		134,981		5 %
Less: Net investment gains	432,886		917,530		(53) %		864,038		1,689,794		(49) %
Adjusted operating income (1)	$        621,017		$        500,255		24 %		$     1,677,884		$     1,562,279		7 %
Markel Insurance	$        428,475		$        275,603		55 %		$        980,345		$        880,481		11 %
Industrial	101,302		111,773		(9) %		263,579		257,226		2 %
Financial	61,407		79,652		(23) %		219,440		194,206		13 %
Consumer and Other	17,372		(425)		NM (2)		151,283		128,036		18 %
Corporate and eliminations	12,461		33,652		(63) %		63,237		102,330		(38) %
Adjusted operating income (1)	$        621,017		$        500,255		24 %		$     1,677,884		$     1,562,279		7 %

(1)     See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.

(2)     NM - Not meaningful

 

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 better 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.

	Nine Months Ended September 30, 2025		Years Ended December 31,
(dollars in thousands)			2024		2023		2022		2021
Operating income (loss)	$            2,399,706		$    3,712,562		$    2,928,828		$       (93,336)		$    3,241,505
Add: Amortization of acquired intangible assets	142,216		181,472		180,614		178,778		160,539
Add: Impairment of goodwill	—		—		—		80,000		—
Less: Net investment gains (losses)	864,038		1,807,219		1,524,054		(1,595,733)		1,978,534
Adjusted operating income (1)	$            1,677,884		$    2,086,815		$    1,585,388		$    1,761,175		$    1,423,510
Markel Insurance	$               980,345		$    1,184,488		$       747,175		$    1,007,913		$       963,623
Industrial	263,579		365,034		378,331		285,712		169,123
Financial	219,440		262,082		260,235		354,520		133,621
Consumer and Other	151,283		145,372		136,465		112,548		148,751
Corporate and eliminations	63,237		129,839		63,182		482		8,392
Adjusted operating income (1)	$            1,677,884		2,086,815		1,585,388		1,761,175		1,423,510

(1)	See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.

 

Non-GAAP Financial Measures
Consolidated adjusted operating income, which excludes net investment gains and losses, amortization of acquired intangible assets, and impairment of goodwill, is a non-GAAP financial measure. We believe adjusted operating income is generally an accurate representation of the operating performance of our businesses in our periodic results. Net investment gains and losses are predominantly derived from our investments in publicly traded equity securities and include significant unrealized gains and losses from market value movements. We believe that net investment gains and losses, whether realized from sales or unrealized from market value movements, are distortive in understanding the short-term operating performance of our businesses. We do not view amortization of intangible assets and impairment of goodwill, which arise from purchase accounting for acquisitions, as ongoing costs of operating our businesses, and therefore exclude those amounts from our adjusted operating income metric.

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 September 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

FAQ

What did Markel (MKL) report for operating revenues in Q3 2025?

Markel reported $3.934 billion in operating revenues for the quarter ended September 30, 2025, a 7% increase year-over-year.

How did Markel's adjusted operating income (MKL) perform in Q3 2025?

Adjusted operating income was $621.0 million for Q3 2025, up 24% compared with Q3 2024.

Why did Markel's operating income (MKL) fall in Q3 2025 despite higher revenue?

Operating income fell 26% for the quarter primarily because net investment gains declined 53% versus prior year quarter.

What was Markel Insurance's combined ratio and underwriting trend in Q3 2025?

Markel Insurance's combined ratio improved to 93% in Q3 2025, with underwriting gross premium volume up 11% for the quarter.

How much cash flow and share buybacks did Markel (MKL) report year-to-date through Sept. 30, 2025?

Year-to-date operating cash flow was $2.1 billion and share repurchases totaled $344 million through September 30, 2025.

Where can investors find Markel's Q3 2025 Form 10-Q and replay of the earnings call?

The Form 10-Q is available at mklgroup.com under Investor Relations and a replay of the October 30, 2025 call will be on the company's IR website.