Markel Group reports 2026 third quarter and nine-months results

Quarterly adjusted earnings improved, but investment losses weighed on operating income and nine-month adjusted earnings declined.

Rhea-AI Summary

Markel Group (MKL) reported third-quarter adjusted operating income of $707 million, up 14% from the same quarter in 2025. Operating revenues rose 6% to $4.158 billion, while operating income fell to $383 million from $1.010 billion. Net investment losses were $281 million, versus gains of $433 million a year earlier.

For the first nine months, revenues increased 2% to $11.727 billion, while adjusted operating income declined 2% to $1.641 billion. Insurance adjusted operating income rose 19% year to date, although it fell 2% in the quarter. Its combined ratio, measuring claims and expenses against earned premiums, improved to 92% for both periods. Industrial quarterly revenue grew 13%, with 10.4% organic growth, excluding acquisition and disposal effects. Financial recorded a nine-month adjusted operating loss despite quarterly improvement. Share repurchases totaled $685 million year to date, including $315 million in the quarter.

16 points · 0 major

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Positive

• Moderate pointOperating revenues increased 6% in Q3 and 2% in the first nine months versus 2025.
• Moderate pointQuarterly adjusted operating income increased 14% to $707 million versus Q3 2025.
• Moderate pointShare repurchases totaled $685 million in the first nine months, including $315 million in Q3. 3% of market cap
• Moderate pointInsurance adjusted underwriting premiums grew 9% quarterly and 10% year to date, excluding Global Reinsurance and Hagerty.
• Moderate pointInsurance underwriting profit increased 15% quarterly and 55% year to date versus 2025.
• Moderate pointInsurance combined ratio improved to 92%, from 93% quarterly and 95% year to date in 2025.
• Moderate pointInsurance net investment income rose 5% quarterly and 9% year to date versus 2025.
• Moderate pointIndustrial revenues grew 13% quarterly and 7% year to date; quarterly organic growth was 10.4%.
• Moderate pointIndustrial quarterly adjusted operating income increased 29% versus Q3 2025.
• Moderate pointFinancial quarterly adjusted operating income increased 30% versus Q3 2025.

6 minor points

• Minor pointFronting gross premiums increased 151% quarterly and 24% year to date versus 2025.
• Minor pointInsurance quarterly earned premiums increased 3% versus Q3 2025.
• Minor pointFinancial quarterly revenues increased 13% versus Q3 2025.
• Minor pointConsumer and Other revenues increased 2% quarterly and year to date versus 2025.
• Minor pointConsumer and Other adjusted operating income increased 80% quarterly and 28% year to date versus 2025.
• Minor pointTrailing-twelve-month adjusted operating income reached $2,267.158 million, versus $2,202.420 million a year earlier.

Negative

• Moderate pointQuarterly operating income fell to $383.232 million from $1,009.842 million; nine-month income fell to $1,670.248 million from $2,399.706 million.
• Moderate pointQuarterly comprehensive shareholder loss was $156.334 million, versus $793.126 million income; nine-month income fell to $604.561 million from $2,008.307 million.
• Moderate pointReported underwriting gross premiums fell 9% quarterly and 15% year to date, reflecting Global Reinsurance and Hagerty changes.
• Minor pointQuarterly net investment losses were $280.909 million, versus $432.886 million in gains a year earlier.
• Minor pointNine-month net investment gains declined to $159.054 million from $864.038 million in 2025.

8 minor points

• Minor pointNine-month adjusted operating income declined 2% to $1.641 billion versus the first nine months of 2025.
• Minor pointInsurance quarterly adjusted operating income declined 2%, despite a 19% year-to-date increase versus 2025.
• Minor pointExited Global Reinsurance added three unfavorable points to the quarterly combined ratio.
• Minor pointInsurance services and other revenues declined 58% quarterly and 43% year to date versus 2025.
• Minor pointInsurance services and other income declined 82% quarterly and 77% year to date versus 2025.
• Minor pointInsurance nine-month earned premiums declined 1% versus the first nine months of 2025.
• Minor pointIndustrial nine-month adjusted operating income declined 3% versus the first nine months of 2025.
• Minor pointFinancial nine-month adjusted operating loss was $32.661 million, versus $219.440 million income in 2025.

News Explained

Markel’s five-year comparison shows shares outstanding at 12,250 thousand on September 30, 2026, versus 13,685 thousand on September 30, 2021, a 10% decrease, providing a direct measure of how the outstanding share base changed over that period.

Key Figures

Adjusted operating income: $707 million; increased 14% Adjusted operating income: $1.6 billion; down 2% Share repurchases: $315 million +5 more

Adjusted operating income

$707 million; increased 14%

Third quarter 2026, compared with $621 million in third quarter 2025

Adjusted operating income

$1.6 billion; down 2%

First nine months of 2026, compared with $1.7 billion in first nine months of 2025

Share repurchases

$315 million

Third quarter 2026

Share repurchases

$685 million

Year to date 2026

Adjusted underwriting gross premium volume growth

9%

Markel Insurance, third quarter 2026

Adjusted underwriting gross premium volume growth

10%

Markel Insurance, year to date 2026

Combined ratio

92%

Markel Insurance, third quarter 2026; includes a three-point unfavorable impact from the exited Global Reinsurance division

Industrial segment revenue growth

13%

Third quarter 2026

Key Terms

non-gaap financial measure, combined ratio, reinsurance

3 terms

non-gaap financial measure financial

"Adjusted operating income ... is a non-GAAP financial measure."

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

combined ratio financial

"The combined ratio for the quarter was 92%"

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

reinsurance financial

"our exited Global Reinsurance division"

Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.

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RICHMOND, Va., Oct. 28, 2026 /PRNewswire/ -- Markel Group Inc. (NYSE: MKL) today reported its financial results for the third quarter of 2026. The Company also announced today it filed its Form 10-Q for the quarter ended September 30, 2026 with the Securities and Exchange Commission.

"We build Markel to relentlessly compound value over the long-term, by serving our customers and policyholders, owning businesses with staying power, underwriting with discipline, and reinvesting patiently through cycles," said Tom Gayner, Chairman and Chief Executive Officer. "Our third quarter results demonstrate we continue to do exactly that. Markel Insurance increased profitability, our Industrial, Financial, and Consumer and Other businesses delivered strong returns, and we continued to deploy capital where we believe it creates the most long-term value."

Highlights of our 2026 third quarter and nine-months results:

• Operating revenues increased 6% for the quarter and 2% year to date.
• Operating income, which includes market movements in our equity portfolio, was $383 million in the quarter and $1.7 billion year to date.
• Adjusted operating income, which excludes market movements in our equity portfolio, increased 14% to $707 million for the quarter compared to $621 million in the third quarter of 2025. Adjusted operating income was $1.6 billion year to date, down 2% compared to $1.7 billion in the first nine months of 2025.
• Share repurchases were $315 million in the quarter and $685 million year to date.
• For Markel Insurance:
  • Adjusted underwriting gross premium volume increased by 9% for the quarter and 10% year to date, which excludes the impact of our exited Global Reinsurance division in 2025 and the transition of our Hagerty business to a fronting arrangement in 2026.
  •  Adjusted operating income increased 19% year to date to $1.2 billion, due to improved underwriting profitability and higher net investment income.
  • The combined ratio for the quarter was 92%, which includes a three point unfavorable impact from our exited Global Reinsurance division.
• The Industrial segment delivered 13% revenue growth, including 10% organic growth, and a 29% increase in adjusted operating income for the quarter. Adjusted operating income in our Financial segment increased 30%.

The following table presents summary consolidated financial data.

	Quarter Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2026		2025		2026		2025
Operating revenues	$  4,158,203		$    3,934,549		$ 11,727,245		$  11,505,268
Operating income	$     383,232		$    1,009,842		$  1,670,248		$    2,399,706
Add: Amortization of acquired intangible assets	43,256		44,061		130,070		142,216
Less: Net investment gains (losses)	(280,909)		432,886		159,054		864,038
Adjusted operating income (1)	$     707,397		$       621,017		$  1,641,264		$    1,677,884
Comprehensive income (loss) to shareholders	$   (156,334)		$       793,126		$    604,561		$    2,008,307
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.

Markel Insurance Segment

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2026		2025		% Change		2026		2025		% Change
Gross premium volume:
Underwriting	$ 2,486,250		$   2,720,406		(9) %		$ 7,088,913		$   8,322,635		(15) %
Adjusted underwriting (1)	$ 2,482,498		$   2,269,006		9 %		$ 7,077,809		$   6,448,598		10 %
Fronting	$    419,040		$     166,705		151 %		$ 2,288,488		$   1,838,499		24 %
Operating revenues:
Earned premiums	$ 2,190,244		$   2,127,648		3 %		$ 6,151,944		$   6,207,809		(1) %
Net investment income	233,569		223,409		5 %		694,411		638,654		9 %
Services and other revenues	20,095		47,349		(58) %		33,152		58,252		(43) %
Operating revenues	$ 2,443,908		$   2,398,406		2 %		$ 6,879,507		$   6,904,715		0 %
Adjusted operating income:
Underwriting profit	$    178,254		$     155,479		15 %		$   462,622		$     298,841		55 %
Net investment income	233,569		223,409		5 %		694,411		638,654		9 %
Services and other income	9,074		49,587		(82) %		9,844		42,850		(77) %
Adjusted operating income	$    420,897		$     428,475		(2) %		$ 1,166,877		$     980,345		19 %
Combined ratio	92 %		93 %				92 %		95 %
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.

Industrial Segment

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2026		2025		% Change		2026		2025		% Change
Operating revenues	$  1,181,602		$    1,049,961		13 %		$  3,102,728		$    2,895,250		7 %
Adjusted operating income	$     131,142		$       101,302		29 %		$     255,862		$       263,579		(3) %

Financial Segment

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2026		2025		% Change		2026		2025		% Change
Operating revenues	$    182,032		$      161,501		13 %		$    514,910		$      512,834		0 %
Adjusted operating income (loss)	$      80,074		$       61,407		30 %		$    (32,661)		$      219,440		NM (1)
(1) NM - Not meaningful.

Consumer and Other Segment

	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2026		2025		% Change		2026		2025		% Change
Operating revenues	$    296,309		$      291,414		2 %		$  1,128,780		$    1,108,426		2 %
Adjusted operating income	$      31,221		$        17,372		80 %		$     193,122		$       151,283		28 %

* * * * * * * *

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 29, 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 U.S., or +44 808 196 8935 internationally, and providing Meeting ID: 576 810 349. 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

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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2026		2025		% Change		2026		2025		% Change
Markel Insurance	$    420,897		$      428,475		(2) %		$  1,166,877		$      980,345		19 %
Industrial	131,142		101,302		29 %		255,862		263,579		(3) %
Financial	80,074		61,407		30 %		(32,661)		219,440		NM (1)
Consumer and Other	31,221		17,372		80 %		193,122		151,283		28 %
Corporate and eliminations	44,063		12,461		254 %		58,064		63,237		(8) %
Adjusted operating income (2)	$    707,397		$      621,017		14 %		$  1,641,264		$    1,677,884		(2) %
(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 September 30,
(dollars in thousands)	2026		2025		2024		2023		2022
Operating revenues	$ 15,735,210		$ 15,228,844		$ 14,799,606		$ 14,181,893		$ 12,614,475
Operating income	$   2,465,394		$   2,995,176		$   4,249,150		$   2,853,560		$        27,059
Add: Amortization of acquired intangible assets	172,861		188,707		179,228		180,155		176,979
Add: Impairment of goodwill	—		—		—		80,000		—
Less: Net investment gains (losses)	371,097		981,463		2,622,675		1,189,965		(1,391,782)
Adjusted operating income (1)	$  2,267,158		$  2,202,420		$  1,805,703		$  1,923,750		$  1,595,820
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.

 

	Five-Year Period From				Five-Year Compound Annual Growth Rate
(dollars in thousands, except per share data)	Q4 2021 - Q3 2026		Q4 2016 - Q3 2021
Average operating income (1)	$      2,518,068		$      1,256,867		15 %
Average operating income per share (2)	$           192.06		$             90.37		16 %
Average adjusted operating income (1) (3)	$      1,958,970		$         838,120		19 %
Average shareholders' equity (4)	$    15,809,632		$    10,550,132		8 %
Average debt (4)	$      4,209,113		$      3,278,967		5 %
(in thousands)	September 30, 2026		September 30, 2021		% Change
Shares outstanding	12,250		13,685		(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 U.S. GAAP.

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)	Q4 2021 - Q3 2026		Q4 2016 - Q3 2021
Average operating income	$          2,518,068		$          1,256,867
Add: Average amortization of acquired intangible assets	179,586		128,050
Add: Average impairment of goodwill and acquired intangible assets	16,000		43,583
Less: Average net investment gains	754,684		590,381
Average adjusted operating income	$          1,958,970		$            838,120

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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2026		2025		% Change		2026		2025		% Change
Underwriting gross premium volume	$   2,486,250		$   2,720,406		(9) %		$   7,088,913		$   8,322,635		(15) %
Less: Global Reinsurance division underwriting gross premium volume	3,752		166,770				11,104		1,065,374
Less: Hagerty underwriting gross premium volume	—		284,630				—		808,663
Adjusted underwriting gross premium volume	$   2,482,498		$   2,269,006		9 %		$   7,077,809		$   6,448,598		10 %

Organic Revenue Growth

Organic revenue growth is a non-GAAP measure. We believe organic revenue growth is a meaningful measure as it provides growth in comparable revenues from period-to-period by adjusting for the impact of acquisitions and dispositions. For acquisitions and dispositions, the calculation of organic revenue growth excludes the revenue of the business from the two periods being compared unless our consolidated results include a full period of revenue from the business for both periods. The following table reconciles revenue growth to organic revenue growth for our Industrial segment.

	Quarter Ended September 30, 2026
Revenue growth	12.5 %
Impact of inorganic activity	(2.1) %
Organic revenue growth	10.4 %

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 September 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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Markel Group's third-quarter 2026 earnings results?

Markel reported $707 million in adjusted operating income, up 14% from Q3 2025, while operating income fell to $383 million from $1.010 billion. Quarterly operating revenues increased 6% to $4.158 billion.

What does Markel Group exclude from adjusted operating income?

Markel's adjusted operating income excludes net investment gains and losses, amortization of acquired intangible assets, and goodwill impairment. It is a non-GAAP measure, rather than a substitute for results prepared under U.S. generally accepted accounting principles.

Why did Markel Group adjust its underwriting premium growth figures?

Adjusted underwriting gross premiums exclude Global Reinsurance and Hagerty from both comparison periods. Global Reinsurance sold renewal rights and entered run-off in August 2025. Hagerty business transitioned from an underwriting product to a fronting arrangement on January 1, 2026, changing how its gross premiums were presented.