Markel Group reports 2026 second quarter and six-months results
Rhea-AI Summary
Markel Group (NYSE: MKL) reported 2026 second quarter operating revenues of $4.0 billion and operating income of $1.6 billion, with year-to-date operating revenues of $7.6 billion and operating income of $1.3 billion. Adjusted operating income was $436 million for the quarter, down from $578 million in 2025, and $934 million year to date versus $1.1 billion a year earlier. Share repurchases totaled $237 million in Q2 and $371 million year to date.
Markel Insurance delivered adjusted operating income of $376 million, up 40%, with a 93% combined ratio and adjusted underwriting gross premium volume up 10%. Industrial segment adjusted operating income declined 27%, the Financial segment posted a $149 million adjusted operating loss, while Consumer and Other adjusted operating income increased 20%. Trailing-twelve-month adjusted operating income reached $2.18 billion, and five-year average adjusted operating income nearly doubled versus the prior five-year period, while shares outstanding fell 10% since 2021.
Positive
- Operating income $1.56 billion in Q2 2026, up from $1.11 billion in 2025
- Markel Insurance adjusted operating income up 40% to $376 million in Q2
- Markel Insurance combined ratio improved to 93% in Q2 2026 from 97%
- Adjusted underwriting gross premium volume in Markel Insurance up 10% for quarter and year-to-date
- Consumer and Other segment adjusted operating income up 20% in Q2 and 21% year-to-date
- Share repurchases of $237 million in Q2 and $371 million year-to-date 2026
Negative
- Consolidated adjusted operating income down 25% in Q2 and 12% year-to-date versus 2025
- Markel Insurance earned premiums declined 3% for both Q2 and year-to-date
- Industrial segment adjusted operating income down 27% in Q2 and 23% year-to-date
- Financial segment adjusted operating income swung to a $148.9 million loss in Q2 from a $78.4 million profit
- Financial segment year-to-date adjusted operating income declined to a $112.7 million loss from $158.0 million profit
- Reported underwriting gross premium volume in Markel Insurance down 15% in Q2 and 18% year-to-date due to reinsurance and Hagerty changes
News Explained
Markel Group has filed its Form 10-Q for the quarter ended
AI-generated analysis. How Rhea-AI works. Not financial advice.
"In the first half of 2026, our insurance underwriting improved, our businesses generated strong cash flow, and we continued to allocate capital with discipline, including ongoing share repurchases funded from net earnings," said Tom Gayner, Chief Executive Officer. "Also, our diversified array of businesses generated nearly
Highlights of our 2026 second quarter and six-months results:
- Operating revenues were
$4.0 billion $7.6 billion - Operating income, which includes market movements in our equity portfolio, was
$1.6 billion $1.3 billion - Adjusted operating income, which excludes market movements in our equity portfolio, was
$436 million $578 million $934 million $1.1 billion - Share repurchases were
$237 million $371 million - For Markel Insurance, our cornerstone business:
- Underwriting gross premium volume increased by
10% for both the quarter and year to date when excluding the impact of the sale of the renewal rights of our Global Reinsurance division in 2025 and the transition of our Hagerty business to a fronting arrangement in 2026. - Adjusted operating income increased
40% for the quarter to$376 million - The combined ratio for the quarter was
93% , which includes two points of losses related to theMiddle East conflict and a two point unfavorable impact from our exited Global Reinsurance division.
- Underwriting gross premium volume increased by
The following table presents summary consolidated financial data.
Quarter Ended June 30, | Six Months Ended June 30, | ||||||
(dollars in thousands) | 2026 | 2025 | 2026 | 2025 | |||
Operating revenues | $ 4,018,437 | $ 4,022,543 | $ 7,569,042 | $ 7,570,719 | |||
Operating income | $ 1,560,345 | $ 1,107,340 | $ 1,287,016 | $ 1,389,864 | |||
Add: Amortization of acquired intangible assets | 43,301 | 51,213 | 86,814 | 98,155 | |||
Less: Net investment gains | 1,167,525 | 580,223 | 439,963 | 431,152 | |||
Adjusted operating income (1) | $ 436,121 | $ 578,330 | $ 933,867 | $ 1,056,867 | |||
Comprehensive income to shareholders | $ 1,101,325 | $ 867,511 | $ 760,895 | $ 1,215,181 | |||
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. | |||||||
Markel Insurance Segment
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||
Gross premium volume: | |||||||||||
Underwriting | $ 2,808,823 | (15) % | $ 5,602,229 | (18) % | |||||||
Adjusted underwriting (1) | $ 2,183,041 | 10 % | $ 4,179,593 | 10 % | |||||||
Fronting | $ 1,293,649 | (1) % | $ 1,671,794 | 12 % | |||||||
Operating revenues: | |||||||||||
Earned premiums | $ 2,063,622 | (3) % | $ 4,080,161 | (3) % | |||||||
Net investment income | 231,223 | 207,728 | 11 % | 460,842 | 415,245 | 11 % | |||||
Services and other revenues | 10,330 | 8,283 | 25 % | 13,057 | 10,903 | 20 % | |||||
Operating revenues | $ 2,279,633 | (2) % | $ 4,506,309 | (2) % | |||||||
Adjusted operating income: | |||||||||||
Underwriting profit | $ 142,119 | $ 63,200 | 125 % | $ 284,368 | $ 143,362 | 98 % | |||||
Net investment income | 231,223 | 207,728 | 11 % | 460,842 | 415,245 | 11 % | |||||
Services and other income | 3,148 | (1,173) | NM (2) | 770 | (6,737) | NM (2) | |||||
Adjusted operating income | $ 376,490 | $ 269,755 | 40 % | $ 745,980 | $ 551,870 | 35 % | |||||
Combined ratio | 93 % | 97 % | 93 % | 96 % | |||||||
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. (2) NM - Not meaningful. | |||||||||||
Industrial Segment
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||
Operating revenues | $ 1,038,068 | $ 1,015,715 | 2 % | $ 1,921,126 | $ 1,845,289 | 4 % | |||||
Adjusted operating income | $ 75,434 | $ 103,513 | (27) % | $ 124,720 | $ 162,277 | (23) % | |||||
Financial Segment
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||
Operating revenues | $ 171,348 | $ 172,852 | (1) % | $ 332,878 | $ 351,333 | (5) % | |||||
Adjusted operating income (loss) | $ (148,940) | $ 78,422 | NM (1) | $ (112,735) | $ 158,033 | NM (1) | |||||
(1) NM - Not meaningful. | |||||||||||
Consumer and Other Segment
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||
Operating revenues | $ 551,974 | $ 529,226 | 4 % | $ 832,471 | $ 817,012 | 2 % | |||||
Adjusted operating income | $ 122,146 | $ 101,523 | 20 % | $ 161,901 | $ 133,911 | 21 % | |||||
* * * * * * * *
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 30, 2026, 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 +1 (833) 461-5787 in the
Supplemental Financial Information
Markel Group manages the business and assesses performance using a variety of performance metrics, each reflecting a different time horizon and serving a different purpose, rather than relying upon a single metric.
Short-term Performance Metrics
In analyzing our current period performance, we believe adjusted operating income is the best metric to assess the performance of our operating businesses. Adjusted operating income excludes the market value movement in our equity portfolio and amortization of acquired intangible assets.
The following table summarizes adjusted operating income by segment.
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||
Markel Insurance | $ 376,490 | $ 269,755 | 40 % | $ 745,980 | $ 551,870 | 35 % | |||||
Industrial | 75,434 | 103,513 | (27) % | 124,720 | 162,277 | (23) % | |||||
Financial | (148,940) | 78,422 | NM (1) | (112,735) | 158,033 | NM (1) | |||||
Consumer and Other | 122,146 | 101,523 | 20 % | 161,901 | 133,911 | 21 % | |||||
Corporate and eliminations | 10,991 | 25,117 | (56) % | 14,001 | 50,776 | (72) % | |||||
Adjusted operating income (2) | $ 436,121 | $ 578,330 | (25) % | $ 933,867 | $ 1,056,867 | (12) % | |||||
(1) NM - Not meaningful. (2) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. | |||||||||||
Long-term Performance Metrics
We believe our financial performance is most meaningfully measured over longer periods of time, which helps mitigate the effects of short-term volatility and better aligns with the long-term perspective we apply to operating our businesses, making capital allocation decisions, and determining executive compensation.
The following tables present a long-term view of our performance over multiple time periods. These metrics drive the growth in intrinsic value per share.
Twelve Months Ended June 30, | |||||||||
(dollars in thousands) | 2026 | 2025 | 2024 | 2023 | 2022 | ||||
Operating revenues | |||||||||
Operating income | $ 3,092,004 | $ 3,356,660 | $ 2,950,634 | $ 2,847,678 | $ 201,819 | ||||
Add: Amortization of acquired intangible assets | 173,666 | 191,105 | 180,314 | 176,028 | 172,829 | ||||
Add: Impairment of goodwill | — | — | — | 80,000 | — | ||||
Less: Net investment gains (losses) | 1,084,892 | 1,466,107 | 1,439,228 | 1,174,399 | (1,136,132) | ||||
Adjusted operating income (1) | $ 2,180,778 | $ 2,081,658 | $ 1,691,720 | $ 1,929,307 | $ 1,510,780 | ||||
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. | |||||||||
Five-Year Period From | Five-Year Compound Annual | ||||
(dollars in thousands, except per share data) | Q3 2021 - Q2 2026 | Q3 2016 - Q2 2021 | |||
Average operating income (1) | $ 2,489,759 | $ 1,239,056 | 15 % | ||
Average operating income per share (2) | $ 188.94 | $ 88.99 | 16 % | ||
Average adjusted operating income (1) (3) | $ 1,878,849 | $ 805,208 | 18 % | ||
Average shareholders' equity (4) | $ 15,585,105 | $ 10,275,658 | 9 % | ||
Average debt (4) | $ 4,204,538 | $ 3,195,020 | 6 % | ||
(in thousands) | June 30, 2026 | June 30, 2021 | % Change | ||
Shares outstanding | 12,409 | 13,734 | (10) % | ||
(1) Represents the average of the five trailing-twelve-month periods. (2) Represents average operating income divided by the average of the quarterly weighted average diluted shares outstanding. (3) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. (4) Represents the average of quarter-end balances in the trailing five-year period. | |||||
Non-GAAP Financial Measures
Markel Group utilizes certain non-GAAP measures that we believe enhance the understanding of our performance. These measures should not be viewed as a substitute for measures determined in accordance with
Consolidated Adjusted Operating Income
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 typically 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.
The following table reconciles average operating income to average adjusted operating income for the last two trailing-five-year periods.
Five-Year Period From | |||
(dollars in thousands) | Q3 2021 - Q2 2026 | Q3 2016 - Q2 2021 | |
Average operating income | $ 2,489,759 | $ 1,239,056 | |
Add: Average amortization of acquired intangible assets | 178,788 | 123,598 | |
Add: Average impairment of goodwill and acquired intangible assets | 16,000 | 43,584 | |
Less: Average net investment gains | 805,699 | 601,031 | |
Average adjusted operating income | $ 1,878,848 | $ 805,208 | |
Adjusted Underwriting Gross Premium Volume
Adjusted underwriting gross premium volume is a non-GAAP measure that excludes underwriting gross premium volume from the Global Reinsurance division and our business with Hagerty for both periods. In August 2025, Markel Insurance sold the renewal rights for contracts written through its Global Reinsurance division, and the division entered into run-off, which resulted in a significant decline in underwriting gross premium volume. Beginning on January 1, 2026, Markel Insurance's business written on behalf of Hagerty transitioned from being an underwriting product to a fronting arrangement, which resulted in a change in the presentation of the related gross premium volume and therefore, a significant decline in underwriting gross premium volume. We believe adjusted underwriting gross premium volume is a meaningful measure when comparing underwriting gross premium volume from period-to-period as it adjusts for the impact of these significant contractual restructuring changes within the Markel Insurance segment.
The following table reconciles underwriting gross premium volume to adjusted underwriting gross premium volume.
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||
Underwriting gross premium volume | $ 2,808,823 | (15) % | $ 5,602,229 | (18) % | |||||||
Less: Global Reinsurance division | (15,228) | 321,676 | 7,352 | 898,603 | |||||||
Less: Hagerty underwriting gross premium | — | 304,106 | — | 524,033 | |||||||
Adjusted underwriting gross premium volume | $ 2,183,041 | 10 % | $ 4,179,593 | 10 % | |||||||
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, 2025, 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, 2026, 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