RICHMOND, Va., Feb. 4, 2026 /CNW/ -- Markel Group Inc. $(MKL)$ today reported its financial results for the quarter and year ended December 31, 2025.
"In 2025, the Markel Group delivered meaningful progress. Operating income was $3.2 billion and adjusted operating income exceeded $2.3 billion, with every reportable segment making meaningful contributions," said Tom Gayner, Chief Executive Officer. "Within Markel Insurance, we took a series of decisive actions to simplify and refocus the business. Thank you to that team, and to everyone across the Markel Group. By staying true to our values, while providing exceptional businesses and leaders a home in which to grow and thrive, we believe the Markel Group is well-positioned to continue compounding shareholder value across generations."
Summary of our fourth quarter and full year results:
-- Operating revenues increased 8% for the quarter and 5% for the year.
-- Operating income, which includes market movements in our equity portfolio,
increased 34% for the quarter and decreased 14% for the year.
-- Adjusted operating income, which excludes market movements in our equity
portfolio, increased 19% for the quarter and 10% for the year.
-- For Markel Insurance, our cornerstone business:
-- Operating revenues increased 7% for the quarter and 4% for the
year.
-- Adjusted operating income increased 31% for the quarter and 16%
for the year due to improved underwriting profitability and higher
net investment income.
-- The combined ratio improved by three points for the quarter to 93%
and one point for the year to 95%.
-- The average annual return on equity was 13% for the past five
years and 14% for 2025.
-- Comprehensive income to shareholders was $2.6 billion for the year.
-- Operating cash flows were $2.8 billion for the year.
-- Share repurchases totaled $429.5 million for the year, and we had 12.6
million shares outstanding at December 31, 2025 compared to 12.8 million
at December 31, 2024.
The following table presents summary consolidated financial data.
Quarter Ended December Year Ended December 31,
31,
(dollars in thousands) 2025 2024 2025 2024
-----------------------
Operating revenues $ 4,007,965 $ 3,723,576 $ 15,513,233 $ 14,813,544
Operating income $ 795,146 $ 595,470 $ 3,194,852 $ 3,712,562
Add: Amortization of
acquired intangible
assets 42,791 46,491 185,007 181,472
Less: Net investment
gains 212,043 117,425 1,076,081 1,807,219
Adjusted operating
income (1) $ 625,894 $ 524,536 $ 2,303,778 $ 2,086,815
Comprehensive income to
shareholders $ 606,325 $ 125,951 $ 2,614,632 $ 2,608,150
(1) See "Supplemental Financial Information - Non-GAAP
Financial Measures" for additional information on
this non-GAAP measure.
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.
Year Ended December 31,
(dollars in thousands) 2025 2024 2023 2022 2021
-----------------------
Operating revenues $ 15,513,233 $ 14,813,544 $ 14,279,576 $ 13,271,068 $ 10,867,891
Operating income (loss) $ 3,194,852 $ 3,712,562 $ 2,928,828 $ (93,336) $ 3,241,505
Add: Amortization of
acquired intangible
assets 185,007 181,472 180,614 178,778 160,539
Add: Impairment of -- -- -- 80,000 --
goodwill
Less: Net investment
gains (losses) 1,076,081 1,807,219 1,524,054 (1,595,733) 1,978,534
Adjusted operating
income (1) $ 2,303,778 $ 2,086,815 $ 1,585,388 $ 1,761,175 $ 1,423,510
5-year compound annual
growth rate:
Closing stock price per
share 16 %
Intrinsic value per
share (2) 15 %
(1) See "Supplemental Financial Information - Non-GAAP
Financial Measures" for additional information on
this non-GAAP measure.
(2) See "Supplemental Financial Information - Growth in
Intrinsic Value per Share" for additional information
on this metric.
The following table summarizes our results by segment. We report our business operations in four segments: Markel Insurance, Industrial, Financial, and Consumer and Other. Our corporate operations are comprised of our holding company activities.
Year Ended December 31,
(dollars in thousands) 2025 2024 % Change
------------------------------------
Operating revenues:
Markel Insurance $ 9,352,891 $ 8,983,443 4 %
Industrial 3,928,249 3,779,616 4 %
Financial 736,964 593,313 24 %
Consumer and Other 1,382,912 1,327,333 4 %
Corporate and eliminations 112,217 129,839 (14) %
Total operating revenues $ 15,513,233 $ 14,813,544 5 %
Adjusted operating income:
Markel Insurance $ 1,379,067 $ 1,184,488 16 %
Industrial 343,183 365,034 (6) %
Financial 326,572 262,082 25 %
Consumer and Other 174,636 145,372 20 %
Corporate and eliminations 80,320 129,839 (38) %
Total adjusted operating income (1) $ 2,303,778 $ 2,086,815 10 %
(1) See "Supplemental Financial Information - Non-GAAP
Financial Measures" for additional information on
this non-GAAP measure.
Markel Insurance
Year Ended December 31,
(dollars in thousands) 2025 2024 % Change
------------------------------------
Gross premium volume:
Underwriting $ 10,643,703 $ 10,259,862 4 %
Fronting $ 1,854,944 $ 1,306,022 42 %
Operating revenues:
Earned premiums $ 8,401,323 $ 8,130,712 3 %
Net investment income 871,531 797,907 9 %
Services and other revenues 80,037 54,824 46 %
Operating revenues $ 9,352,891 $ 8,983,443 4 %
Adjusted operating income:
Underwriting profit $ 455,671 $ 366,976 24 %
Net investment income 871,531 797,907 9 %
Services and other income 51,865 19,605 165 %
Adjusted operating income $ 1,379,067 $ 1,184,488 16 %
Net investment gains $ 976,740 $ 1,447,686 (33) %
Combined ratio 94.6 % 95.5 %
Return on equity (1) 14 % 18 %
5-Year average annual return on
equity (1) 13 % 12 %
(1) Markel Insurance return on equity includes adjusted
operating income and net investment gains and losses
attributed to investments held by Markel Insurance,
which are not included in segment profit. See "Supplemental
Financial Information - Markel Insurance Return on
Equity" for additional information on this metric.
The increase in underwriting gross premium volume in our Markel Insurance segment was driven by significant growth within our personal lines and international professional liability product lines, as well as growth within our programs, marine and energy, and general liability product lines. These increases were partially offset by the impact of lower premium volume in our U.S. professional liability product lines, as a result of exiting our risk-managed directors and officers product line from our U.S. and Europe-based platforms. The increase in earned premiums was primarily due to the impact of the changes in underwriting gross premium volume in recent periods.
The increase in fronting gross premium volume was driven by growth within our property catastrophe programs with Nephila and resulted in an increase in services and other revenues and income.
For further details of Markel Insurance's investment performance, see "Consolidated Investment Results."
Underwriting Results
Year Ended December 31,
(dollars in thousands) 2025 2024 % Change
--------------------------------
Underwriting gross premium
volume $ 10,643,703 $ 10,259,862 4 %
Net written premiums $ 8,399,735 $ 8,004,788 5 %
Earned premiums $ 8,401,323 $ 8,130,712 3 %
Underwriting profit $ 455,671 $ 366,976 24 %
Underwriting Ratios (1) Point Change
Loss ratio
Current accident year loss ratio 64.2 % 65.6 % (1.4)
Prior accident years loss ratio (5.8) % (5.6) % (0.2)
Loss ratio 58.4 % 60.0 % (1.6)
Expense ratio 36.1 % 35.5 % 0.6
Combined ratio 94.6 % 95.5 % (0.9)
Current accident year loss ratio
catastrophe impact
(2) 0.7 % 0.9 % (0.2)
Current accident year loss
ratio, excluding catastrophe
impact (3) 63.5 % 64.7 % (1.2)
Combined ratio, excluding
current accident year
catastrophe
impact (3) 93.8 % 94.6 % (0.8)
(1) Amounts may not reconcile due to rounding.
(2) The point impact of catastrophes is calculated as
the associated net losses and loss adjustment expenses
divided by total earned premiums.
(3) This metric is a non-GAAP financial measure. See "Supplemental
Financial Information - Non-GAAP Financial Measures"
for additional details.
Global Reinsurance
In August 2025, Markel Insurance sold the renewal rights for business written in its Global Reinsurance division, and the division entered into run-off. Gross premium volume in 2025 attributed to the Global Reinsurance division was $1.0 billion. Underwriting results attributable to the Global Reinsurance division had a two point unfavorable impact on the Markel Insurance segment combined ratio in 2025 and a one point unfavorable impact in 2024.
Natural Catastrophes
Underwriting results included $61.9 million and $70.6 million of net losses and loss adjustment expenses in 2025 and 2024, respectively, attributed to natural catastrophes. Losses from natural catastrophes in 2025 were attributed to the series of wildfires that occurred in southern California in January 2025.
Combined Ratio
Excluding losses attributed to natural catastrophes, the decrease in the Markel Insurance segment combined ratio was primarily attributable to a lower attritional loss ratio, which was driven by lower losses on our discontinued intellectual property collateral protection insurance (IP CPI) product line. Net losses and loss adjustment expenses on our IP CPI product line totaled $64.3 million and $168.5 million in 2025 and 2024, respectively. We believe any losses on our discontinued IP CPI product line in 2026 will not be material to the Markel Insurance segment.
Additionally, the Markel Insurance segment attritional loss ratio was unfavorably impacted by large losses within our credit and surety product line in the fourth quarter of 2025 and higher attritional loss ratios on our personal umbrella product line. Large losses within our credit and surety product line totaled $63.3 million in the fourth quarter of 2025, inclusive of the impact of ceded reinstatement premiums. These unfavorable impacts on our attritional loss ratio were largely offset by a favorable impact from changes in mix of business, as our growing lines of business generally have lower attritional loss ratios than the lines of business for which we have reduced our premium writings.
The 2025 combined ratio included $484.0 million of favorable development on prior accident years loss reserves compared to $454.9 million in 2024. In 2025, favorable development was most significant within our marine and energy, property, workers' compensation, programs, and general liability product lines. Favorable development in 2025 was net of adverse development on our run-off risk-managed directors and officers professional liability product lines.
The increase in the expense ratio was primarily attributable to higher personnel costs, including increased severance costs related to recent organizational changes, higher professional fees, and changes in mix of business. Many of the product lines and markets in which we are growing within our International division carry higher expense ratios and lower loss ratios than the rest of the segment. The expense ratio also reflects costs associated with our growth and expansion efforts in these targeted markets.
Industrial
Year Ended December 31,
(dollars in thousands) 2025 2024 % Change
--------------------------
Operating revenues $ 3,928,249 $ 3,779,616 4 %
Adjusted operating income $ 343,183 $ 365,034 (6) %
The increase in operating revenues reflected organic growth and a full-year contribution from our June 2024 Valor Environmental (Valor) acquisition compared to 2024. The Industrial segment results in 2024 included five months of results from Valor. Organic revenue growth of our Industrial segment was 2%. Organic revenue growth is a non-GAAP financial measure. See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional details.
Organic revenue growth was primarily attributable to increased demand for our equipment leasing services within the wind energy market, as well as a combination of higher prices and sales volume for our services and products in the commercial and residential construction markets. These increases were partially offset by lower sales volume of our products within the transportation industry due to a down cycle in demand for the industry.
The decrease in adjusted operating income was primarily attributable to lower margins, due to higher materials and labor costs, and lower revenues within our industrial products businesses, partially offset by the impact of higher revenues within our industrial services businesses.
Financial
Year Ended December 31,
(dollars in thousands) 2025 2024 % Change
------------------------------
Operating revenues $ 736,964 $ 593,313 24 %
Adjusted operating income (1) $ 326,572 $ 262,082 25 %
(1) Adjusted operating income for the year ended December
31, 2024 included $58.1 million from Markel CATCo
Re Ltd (MCRe), all of which was attributable to noncontrolling
interests. MCRe results in 2025 were minimal.
The increase in operating revenues reflected strong organic growth, as well as the impact of $41.4 million of income related to our minority investment in Velocity Holdco LLC (Velocity) resulting from the sales of its managing general agent operations and insurance carrier in 2025. Organic revenue growth of our Financial segment was 17%. Organic revenue growth is a non-GAAP financial measure. See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional details.
Organic revenue growth was primarily attributable to the impact of performance fees earned in 2025 and a higher effective management fee rate for our insurance-linked securities investment management services, as well as higher premium volume within our program services and lender services offerings.
The increase in adjusted operating income was driven by the impact of higher revenues, including the income related to our minority investment in Velocity, as previously discussed. These increases were partially offset by the impact in 2024 of $58.1 million of favorable loss development on the run off of reinsurance contracts written by MCRe, all of which was attributable to noncontrolling interests.
Consumer and Other
Year Ended December 31,
(dollars in thousands) 2025 2024 % Change
--------------------------
Operating revenues $ 1,382,912 $ 1,327,333 4 %
Adjusted operating income $ 174,636 $ 145,372 20 %
The increase in operating revenues reflected the contribution from our acquisition of Education Partners International $(EPI)$. Organic revenue growth of our Consumer and Other segment was 1%, primarily attributable to higher sales volume of ornamental plants driven by higher demand and prices. Organic revenue growth is a non-GAAP financial measure. See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional details. The increase in adjusted operating income was driven by the contribution from EPI.
Corporate
Year Ended December 31,
(dollars in thousands) 2025 2024
-------------------------------------------------
Net investment income $ 108,672 $ 130,931
Other revenues 52,020 46,591
Operating revenues 160,692 177,522
Operating expenses (1) (31,897) --
Corporate adjusted operating income $ 128,795 $ 177,522
Markel Group consolidating eliminations (48,475) (47,683)
Corporate and eliminations adjusted operating
income $ 80,320 $ 129,839
(1) Prior to the third quarter of 2025, corporate expenses
were fully allocated to our segments.
Consolidated Investment Results
We hold investments across our operating businesses and at our holding company, with the majority of our investments held at our Markel Insurance business in support of its underwriting activities. For investment performance by segment, see "Supplemental Financial Information - Consolidating Investment Results."
Year Ended December 31,
(dollars in thousands) 2025 2024
-------------------------------------------------
Net investment income $ 970,427 $ 920,496
Yield on fixed maturity securities (1) 3.5 % 3.2 %
Yield on short-term investments (1) 3.7 % 4.8 %
Yield on cash and cash equivalents and restricted
cash and cash equivalents (1) 3.3 % 3.7 %
Net realized investment gains (losses) $ (4,076) $ 4,423
Change in fair value of equity securities 1,080,157 1,802,796
Net investment gains $ 1,076,081 $ 1,807,219
Return on equity securities (2)
One-year annual return 10.5 % 20.1 %
Five-year annual return 11.9 % 12.8 %
Ten-year annual return 13.5 % 12.1 %
Twenty-year annual return 11.0 % 10.5 %
(1) Yield reflects the applicable annualized interest
income as a percentage of the applicable monthly average
invested assets at amortized cost.
(2) Return on equity securities is calculated by dividing
dividends and the change in fair value of equity securities
by the monthly average equity securities at fair value
and considers the timing of net purchases and sales.
The 5% increase in net investment income was primarily driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities. These increases were partially offset by lower interest income on our short-term investments due to lower average short-term investment holdings and lower short-term interest rates.
Financial Condition and Capital Allocation
Investments, cash and cash equivalents, and restricted cash and cash equivalents (invested assets) were $37.4 billion at December 31, 2025 compared to $34.2 billion at December 31, 2024. The increase was primarily attributable to $2.8 billion of operating cash flows and a $1.7 billion increase in the fair value of our investment portfolio. In 2025, we deployed capital into $1.4 billion of net fixed maturity securities purchases and $206.9 million of capital expenditures. We made net investments of $142.9 million in equity securities and $170.4 million for acquisitions and purchases of noncontrolling interests in our majority-owned businesses. We also used $600.0 million to redeem our outstanding preferred shares and $429.5 million to repurchase common shares.
At December 31, 2025, our holding company held $4.4 billion of invested assets compared to $4.3 billion of invested assets at December 31, 2024.
* * * * * * * *
Our previously announced conference call, which will involve discussion of our financial results and business developments and may include forward-looking information, will be held Thursday, February 5, 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 (888) 660-9916 in the U.S., or (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.
Additionally, we will be discussing financial results and related business and investments updates at our shareholders meeting on May 20, 2026 at the University of Richmond Robins Center at 2:00 p.m. (Eastern Time). The shareholders meeting will be part of the 2026 Reunion, which is open to shareholders, employees, and friends of Markel Group. More information on the 2026 Reunion, including a sign-up form to receive event updates, is available at mklreunion.com.
Safe Harbor and Cautionary Statement
This release, and any related oral statements, contain statements concerning or incorporating our expectations, assumptions, plans, objectives, future financial or operating performance and other statements that are not historical facts. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intend," "predict," "project," and similar expressions as they relate to us or our management.
There are risks and uncertainties that may cause actual results to differ materially from predicted results in forward-looking 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 under Business, Risk Factors, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Quantitative and Qualitative Disclosures About Market Risk in our 2024 Annual Report on Form 10-K, or our most recent Quarterly Report on Form 10-Q, or are included in the items listed below:
-- the effect of cyclical trends or changes in market conditions on our
operations, including demand and pricing in the markets in which we
operate;
-- actions by competitors, including the use of technology (e.g., artificial
intelligence) and innovation to simplify the customer experience,
increase efficiencies, redesign products, alter models and effect other
potentially disruptive changes, and the effect of competition on market
trends and pricing;
-- our efforts to develop new products, expand in targeted markets or
improve business processes and workflows, including through the use of
artificial intelligence, may not be successful, may cost more, or take
longer than expected and may increase or create new risks (e.g.,
insufficient demand, change to risk exposures, distribution channel
conflicts, execution risk, regulatory risk, increased expenditures);
-- the frequency and severity of man-made, health-related, and natural
catastrophes may exceed expectations, are unpredictable and, in the case
of some natural catastrophes, may be exacerbated by changing conditions
in the climate, oceans and atmosphere, resulting in increased frequency
and/or severity of extreme weather-related events;
-- we offer coverage against terrorist acts in connection with some of our
programs, and in other instances we are legally required to offer
terrorism insurance; in both circumstances, we actively manage our
exposure, but if there is a covered terrorist attack, we could sustain
material losses;
-- emerging claim and coverage issues, changing industry practices, and
evolving legal, judicial, social, and other claims, and coverage trends
or conditions, can increase the scope of coverage, the frequency and
severity of claims, and the period over which claims may be reported;
these factors, as well as uncertainties in the loss estimation process,
can adversely impact the adequacy of our loss reserves and our allowance
for reinsurance recoverables;
-- reserves for our runoff reinsurance business are subject to greater
uncertainty than insurance reserves, primarily because of reliance upon
the original underwriting decisions made by ceding companies and the
longer lapse of time from the occurrence of loss events to their
reporting to the reinsurer for ultimate resolution;
-- failures, inadequacies or inaccuracies (whether due to data error, human
error or otherwise) in the various methods, modeling techniques, and data
analytics (e.g., scenarios, predictive and stochastic modeling, and
forecasting) we use to analyze and estimate exposures, loss trends, and
other risks associated with our insurance businesses could cause us to
misprice our products or fail to appropriately estimate the risks to
which we are exposed;
-- changes in the assumptions and estimates used in establishing reserves
for our life and annuity reinsurance book (which is in runoff), for
example, changes in assumptions and estimates of mortality, longevity,
morbidity, and interest rates, could result in material changes in our
estimated loss reserves for that business;
-- adverse developments in insurance coverage litigation or other legal or
administrative proceedings could result in material increases in our
estimates of loss reserves;
-- initial estimates for catastrophe losses and other significant,
infrequent events are often based on limited information, are dependent
on broad assumptions about the nature and extent of losses, coverage,
liability and reinsurance, and those losses may ultimately differ
materially from our expectations;
-- changes in the availability, costs, quality, and providers of reinsurance
coverage, which may impact our ability to write, or continue to write,
certain lines of business or to mitigate the volatility of losses on our
results of operations and financial condition;
-- the ability or willingness of reinsurers to pay balances due may be
adversely affected by industry and economic conditions, deterioration in
reinsurer credit quality and coverage disputes, and collateral we hold,
if any, may not be sufficient to cover a reinsurer's obligation to us;
-- regulatory actions affecting our insurance operations can impede our
ability to charge adequate rates and efficiently allocate capital;
-- general economic and market conditions and industry specific conditions,
including: extended economic recessions or expansions; prolonged periods
of slow economic growth; inflation or deflation; significant fluctuations
in foreign currency exchange rates, commodity and energy prices, and
interest rates; volatility in the credit and capital markets; the
imposition of duties, tariffs and other changes in international trade
regulation, and other factors;
-- economic conditions, actual or potential defaults in corporate bonds,
municipal bonds, mortgage-backed securities or sovereign debt obligations,
volatility in interest and foreign currency exchange rates, changes in
U.S. government debt ratings, and changes in market value of concentrated
investments can have a significant impact on the fair value of our fixed
maturity securities and equity securities, as well as the carrying value
of our other assets and liabilities, and this impact may be heightened by
market volatility and our ability to mitigate our sensitivity to these
changing conditions;
-- the effects of government intervention, including material changes in the
monetary policies of central banks, to address financial downturns,
inflation, and other economic and currency concerns;
-- the impacts that political and civil unrest and regional and military
conflicts may have on our businesses and the markets they serve or that
any disruptions in regional or worldwide economic conditions generally
arising from these situations may have on our businesses, industries, or
investments;
-- the impacts of liability, transition, and physical risks associated with
climate change;
-- the significant volatility, uncertainty, and disruption caused by health
epidemics and pandemics, as well as governmental, legislative, judicial,
or regulatory actions or developments in response thereto;
-- changes in U.S. tax laws, regulations, or interpretations, or in the tax
laws, regulations, or interpretations of other jurisdictions in which we
operate, and adjustments we may make in our operations or tax strategies
in response to those changes;
-- a failure or security breach of, or cyberattack on, enterprise
information technology systems that we, or third parties who perform
certain functions for us, use, or a failure to comply with data
protection or privacy regulations or regulations related to the use of
artificial intelligence or machine learning technology;
-- third-party providers may perform poorly, breach their obligations to us,
or expose us to enhanced risks;
-- our acquisitions may increase our operational and internal control risks
for a period of time;
-- we may not realize the contemplated benefits, including cost savings and
synergies, of our acquisitions;
-- any developments requiring the write-off of a significant portion of our
goodwill and intangible assets;
-- the loss of services of any senior executive or other key personnel, or
an inability to attract and retain qualified leaders to run any of our
businesses could adversely impact one or more of our operations;
-- the manner in which our businesses operate through independent local
management teams could result in inconsistent management, governance, and
oversight practices;
-- our substantial international operations and investments expose us to
increased political, civil, operational, and economic risks, including
foreign currency exchange rate and credit risk;
-- our ability to obtain additional capital for our operations on terms
favorable to us;
-- economic conditions, which may adversely affect our access to capital and
credit markets;
-- the compliance, or failure to comply, with covenants and other
requirements under our credit facilities, senior debt, and other
indebtedness;
-- our ability to maintain or raise third-party capital for existing or new
investment vehicles and risks related to our management of third-party
capital;
-- the effectiveness of our procedures for compliance with existing and
future guidelines, policies and legal and regulatory standards, rules,
laws, and regulations;
-- the impact of economic and trade sanctions and embargo programs on our
businesses, including instances in which the requirements and limitations
imposed on the global operations of our companies by one or more
jurisdictions are more restrictive than, or conflict with, applicable
requirements and limitations imposed by other jurisdictions;
-- regulatory changes or challenges by regulators, including regarding the
use of certain issuing carrier or fronting arrangements;
-- our dependence on a limited number of brokers for a large portion of our
insurance revenues;
-- adverse changes in our assigned financial strength or debt ratings, or
outlook, could adversely impact us, including our ability to attract and
retain business, the amount of capital our insurance subsidiaries must
hold, and the availability and cost of capital;
-- changes in the amount of statutory capital our insurance subsidiaries are
required to hold, which can vary significantly and is based on many
factors, some of which are outside our control;
-- market fluctuations in the value of the equity securities we hold, both
at our insurance subsidiaries and our holding company, can significantly
impact our periodic results and the amount of statutory capital our
insurance subsidiaries are required to hold;
-- losses from litigation and regulatory investigations and actions;
-- disruptions resulting from a threatened proxy contest or other actions by
activist shareholders;
-- considerations and limitations relating to the use of growth in intrinsic
value as a performance metric, including the possibility that
shareholders, analysts, or other market participants may have a different
perception of our intrinsic value, which may result in growth in our
stock price varying significantly from our growth in intrinsic value
calculations; and
-- a number of additional factors may adversely affect our Industrial,
Financial, and Consumer and Other businesses, and the markets they serve,
and negatively impact their revenues and profitability, including, among
others: adverse weather conditions, plant disease and other contaminants;
changes in government support for education, healthcare and
infrastructure projects; changes in capital spending levels; changes in
the housing, commercial and industrial construction markets; liability
for environmental matters; supply chain and shipping issues, including
increases in freight costs; volatility in the market prices for their
products; and volatility in commodity, wholesale and raw materials prices,
and interest and foreign currency exchange rates.
Results from our operations have been and will continue to be potentially materially affected by these factors.
By making forward-looking statements, we do not intend to become obligated to publicly update or revise any such statements whether as a result of new information, future events, or other changes. Readers are cautioned not to place undue reliance on any forward-looking statements, which are based on our current knowledge and speak only as at their dates.
* * * * * * * *
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.
MARKEL GROUP INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
Consolidated Statements of Income and Comprehensive Income
Quarter Ended December Year Ended December 31,
31,
(dollars in thousands, 2025 2024 2025 2024
except per share data)
-----------------------
OPERATING REVENUES
Earned premiums $ 2,278,829 $ 2,117,578 $ 8,715,667 $ 8,432,412
Net investment income 257,648 243,689 970,427 920,496
Products revenues 563,002 575,323 2,578,544 2,635,659
Services and other
revenues 908,486 786,986 3,248,595 2,824,977
Total Operating
Revenues 4,007,965 3,723,576 15,513,233 14,813,544
Net investment gains 212,043 117,425 1,076,081 1,807,219
OPERATING EXPENSES
Losses and loss
adjustment expenses 1,283,320 1,241,815 5,079,845 5,052,749
Underwriting,
acquisition, and
insurance expenses 829,013 784,786 3,133,163 2,977,389
Products expenses 524,612 505,289 2,287,394 2,272,219
Services and other
expenses 745,126 667,150 2,709,053 2,424,372
Amortization of
acquired intangible
assets 42,791 46,491 185,007 181,472
Total Operating
Expenses 3,424,862 3,245,531 13,394,462 12,908,201
Operating Income 795,146 595,470 3,194,852 3,712,562
Interest expense (50,016) (52,794) (205,910) (204,300)
Net foreign exchange
gains (losses) (10,971) 180,839 (256,234) 129,438
Income Before Income
Taxes 734,159 723,515 2,732,708 3,637,700
Income tax expense (152,073) (162,083) (580,303) (790,294)
Net Income 582,086 561,432 2,152,405 2,847,406
Net income attributable
to noncontrolling
interests (5,274) (12,254) (45,395) (100,384)
Net Income to
Shareholders 576,812 549,178 2,107,010 2,747,022
Preferred stock
dividends and redemption premiums -- (18,000) (26,109) (36,000) Net Income to Common Shareholders $ 576,812 $ 531,178 $ 2,080,901 $ 2,711,022 OTHER COMPREHENSIVE INCOME (LOSS) Change in net unrealized losses on available-for-sale investments, net of taxes $ 22,183 $ (413,287) $ 490,350 $ (130,295) Other, net of taxes 7,330 (9,918) 17,237 (8,459) Total Other Comprehensive Income (Loss) 29,513 (423,205) 507,587 (138,754) Comprehensive Income 611,599 138,227 2,659,992 2,708,652 Comprehensive income attributable to noncontrolling interests (5,274) (12,276) (45,360) (100,502) Comprehensive Income to Shareholders $ 606,325 $ 125,951 $ 2,614,632 $ 2,608,150 NET INCOME PER COMMON SHARE Basic $ 48.95 $ 38.83 $ 169.74 $ 199.69 Diluted $ 48.75 $ 38.74 $ 169.22 $ 199.32
Fourth Quarter Financial Data
Quarter Ended December 31,
(dollars in thousands) 2025 2024 % Change
------------------------------------
Operating revenues:
Markel Insurance $ 2,448,176 $ 2,278,227 7 %
Industrial 1,032,999 995,068 4 %
Financial 224,130 159,302 41 %
Consumer and Other 274,486 263,470 4 %
Corporate and eliminations 28,174 27,509 2 %
Total operating revenues $ 4,007,965 $ 3,723,576 8 %
Adjusted operating income:
Markel Insurance $ 398,722 $ 304,007 31 %
Industrial 79,604 107,808 (26) %
Financial 107,132 67,876 58 %
Consumer and Other 23,353 17,336 35 %
Corporate and eliminations 17,083 27,509 (38) %
Total adjusted operating income (1) $ 625,894 $ 524,536 19 %
(1) See "Non-GAAP Financial Measures" for additional information
on this non-GAAP measure.
Markel Insurance Segment
Quarter Ended December 31,
(dollars in thousands) 2025 2024 % Change
----------------------------
Gross premium volume:
Underwriting $ 2,321,068 $ 2,253,038 3 %
Fronting $ 16,445 $ 89,612 (82) %
Operating revenues:
Earned premiums $ 2,193,514 $ 2,044,294 7 %
Net investment income 232,877 214,558 9 %
Services and other revenues 21,785 19,375 12 %
Operating revenues $ 2,448,176 $ 2,278,227 7 %
Adjusted operating income:
Underwriting profit $ 156,830 $ 83,726 87 %
Net investment income 232,877 214,558 9 %
Services and other income 9,015 5,723 58 %
Adjusted operating income $ 398,722 $ 304,007 31 %
Net investment gains $ 230,924 $ 147,253 57 %
Combined ratio 92.9 % 95.9 %
Underwriting Results
Quarter Ended December 31,
(dollars in thousands) 2025 2024 % Change
----------------------------------
Underwriting gross premium volume $ 2,321,068 $ 2,253,038 3 %
Net written premiums $ 1,839,079 $ 1,733,648 6 %
Earned premiums $ 2,193,514 $ 2,044,294 7 %
Underwriting profit $ 156,830 $ 83,726 87 %
Underwriting Ratios (1) Point Change
Loss ratio
Current accident year loss ratio 61.9 % 64.1 % (2.2)
Prior accident years loss ratio (5.8) % (5.5) % (0.3)
Loss ratio 56.1 % 58.7 % (2.6)
Expense ratio 36.7 % 37.2 % (0.5)
Combined ratio 92.9 % 95.9 % (3.0)
Current accident year loss ratio
catastrophe impact
(2) 0.2 % 0.4 % (0.2)
Current accident year loss ratio,
excluding catastrophe
impact (3) 61.7 % 63.7 % (2.0)
Combined ratio, excluding current
accident year catastrophe
impact (3) 92.6 % 95.5 % (2.9)
(1) Amounts may not reconcile due to rounding.
(2) The point impact of catastrophes is calculated as
the associated net losses and loss adjustment expenses
divided by total earned premiums.
(3) This metric is a non-GAAP financial measure. See "Non-GAAP
Financial Measures" for additional details.
Industrial Segment
Quarter Ended December 31,
(dollars in thousands) 2025 2024 % Change
--------------------------
Operating revenues $ 1,032,999 $ 995,068 4 %
Adjusted operating income $ 79,604 $ 107,808 (26) %
Financial Segment
Quarter Ended December 31,
(dollars in thousands) 2025 2024 % Change
--------------------------
Operating revenues $ 224,130 $ 159,302 41 %
Adjusted operating income $ 107,132 $ 67,876 58 %
Consumer and Other Segment
Quarter Ended December 31,
(dollars in thousands) 2025 2024 % Change
--------------------------
Operating revenues $ 274,486 $ 263,470 4 %
Adjusted operating income $ 23,353 $ 17,336 35 %
Corporate
Quarter Ended December 31,
(dollars in thousands) 2025 2024
----------------------------------------------
Net investment income $ 26,588 $ 32,011
Other revenues 13,524 7,922
Operating revenues 40,112 39,933
Operating expenses (1) (11,091) --
Corporate adjusted operating income $ 29,021 $ 39,933
Markel Group consolidating eliminations (11,938) (12,424)
Corporate and eliminations adjusted operating
income $ 17,083 $ 27,509
(1) Prior to the third quarter of 2025, corporate expenses
were fully allocated to our segments.
Consolidated Key Financial Metrics
(dollars in millions, 2025 2024 2023 2022 2021
except per share data)
Operating Performance
Operating revenues $ 15,513 $ 14,814 $ 14,280 $ 13,271 $ 10,868
Operating cash flows 2,761 2,594 2,787 2,709 2,274
Operating income
(loss) 3,195 3,713 2,929 (93) 3,242
Less: Net investment
gains (losses) 1,076 1,807 1,524 (1,596) 1,979
Add: Amortization and
impairment 185 181 181 259 161
Adjusted operating
income (1) 2,304 2,087 1,585 1,761 1,424
Financial Position (at
year end)
Equity securities $ 13,004 $ 11,785 $ 9,578 $ 7,672 $ 9,024
Invested assets 37,439 34,247 30,854 27,420 28,292
Insurance float (2) 18,827 17,519 16,733 14,947 13,543
Total assets 68,905 61,898 55,046 49,791 48,477
Shareholders' equity 18,598 16,916 14,984 13,151 14,700
Senior long-term debt
and other debt 4,304 4,330 3,780 4,104 4,361
Debt to capital ratio 19 % 20 % 20 % 24 % 23 %
Per Share Data
Common shares
outstanding (at year
end, in thousands) 12,590 12,790 13,132 13,423 13,632
5-Year CAGR in closing
stock price 16 % 9 % 6 % 3 % 6 %
5-Year CAGR in
intrinsic value per
share (3) 15 % 17 % 19 % 12 % 9 %
Invested assets per
share (at year end) $ 2,974 $ 2,678 $ 2,350 $ 2,043 $ 2,075
Diluted net income
(loss) per share 169 199 147 (24) 176
Operating income
(loss) per share 253 290 223 (7) 238
Adjusted operating
income per share (1) 182 163 121 131 104
(1) Consolidated adjusted operating income and adjusted
operating income per share are non-GAAP financial
measures. See "Non-GAAP Financial Measures" for additional
information on these metrics.
(2) Insurance float, or net policyholder funds, is a subset
of our invested assets and is comprised of unpaid
losses and loss adjustment expenses, unearned premiums,
payables to insurance and reinsurance companies, and
life and annuity benefits, net of premium receivables,
reinsurance recoverables, prepaid reinsurance premiums,
and deferred policy acquisition costs.
(3) See "Growth in Intrinsic Value per Share" for additional
information on this metric.
Segment Key Financial Metrics
(dollars in millions) 2025 2024 2023 2022 2021
Markel Insurance
Operating revenues $ 9,353 $ 8,983 $ 8,688 $ 7,804 $ 6,736
Adjusted operating
income (1) $ 1,379 $ 1,184 $ 747 $ 1,008 $ 964
Combined ratio 95 % 95 % 99 % 92 % 90 %
Return on equity (2) 14 % 18 % 16 % (3) % 20 %
5-Year average annual
return on equity (2) 13 % 12 %
Total investment return
(3) 7 % 10 % 9 % (4) % 8 %
Total equity $ 12,923 $ 11,516 $ 9,968 $ 8,490 $ 8,872
Industrial
Operating revenues $ 3,928 $ 3,780 $ 3,729 $ 3,400 $ 2,379
Revenue growth 4 % 1 % 10 % 43 % 52 %
Organic revenue growth
(4) 2 % 0 % 8 % 18 % 21 %
Adjusted operating
income (1) $ 343 $ 365 $ 378 $ 286 $ 169
Tangible capital (5) $ 1,475 $ 1,437 $ 1,417 $ 1,315 $ 1,023
Total capital (5) $ 2,772 $ 2,771 $ 2,657 $ 2,604 $ 2,297
Financial
Operating revenues $ 737 $ 593 $ 553 $ 718 $ 495
Revenue growth 24 % 7 % (23) % 45 % 4 %
Organic revenue growth
(4) 17 % 8 % 21 % 19 % 4 %
Adjusted operating
income (1) $ 327 $ 262 $ 260 $ 355 $ 134
Tangible capital (5) $ 1,119 $ 950 $ 936 $ 825 $ 838
Total capital (5) $ 2,012 $ 1,901 $ 1,946 $ 1,899 $ 2,187
Consumer and Other
Operating revenues $ 1,383 $ 1,327 $ 1,247 $ 1,349 $ 1,250
Revenue growth 4 % 6 % (8) % 8 % 3 %
Organic revenue growth
(4) 1 % 2 % (8) % 8 % 9 %
Adjusted operating
income (1) $ 175 $ 145 $ 136 $ 113 $ 149
Tangible capital (5) $ 657 $ 649 $ 691 $ 680 $ 602
Total capital (5) $ 1,423 $ 1,162 $ 1,227 $ 1,245 $ 1,193
(1) Adjusted operating income represents the segment profitability
metric for each of our reportable segments. This metric
excludes net investment gains and losses, amortization
of acquired intangible assets, and impairment of goodwill
and intangible assets, which are not considered when
evaluating segment profitability.
(2) Markel Insurance return on equity includes adjusted
operating income and net investment gains and losses
attributed to investments held by Markel Insurance,
which are not included in segment profit. See "Markel
Insurance Return on Equity" for additional information
on this metric. Markel Insurance 5-year average annual
return on equity is presented beginning in 2024 due
to the impracticality of calculating return on equity
prior to 2020 for the newly defined Markel Insurance
business.
(3) Markel Insurance total investment return reflects
net investment income and net investment gains and
losses attributed to investments held by Markel Insurance
as a percentage of monthly average invested assets.
(4) Organic revenue growth is a non-GAAP financial measure.
See "Non-GAAP Financial Measures" for additional information
on this metric.
(5) Total capital is comprised of total equity, redeemable
noncontrolling interests, debt, and obligations for
finance leases. Tangible capital represents total
capital less goodwill and intangible assets, net of
deferred taxes.
Growth in Intrinsic Value per Share
As a diverse holding company, we use growth in intrinsic value as a measure to help us evaluate the value created by our businesses over five-year periods of time. While intrinsic value does not represent a precise valuation of our business, we believe growth in intrinsic value, considered among an array of other qualitative and quantitative factors, offers a useful tool to investors and management in understanding long-term value creation trends. A straightforward methodology can be used to measure intrinsic value growth using data from our financial statements.
First, we take an adjusted earnings metric and apply a consistent multiple to arrive at an earnings valuation. We exclude certain non-cash items from our adjusted earnings metric, such as amortization, as well as income attributed to our public equity portfolio and income from our cash and short-term investments, which are valued separately in our calculation. Using a three-year average of earnings in our calculation helps mitigate the impact of cyclicality and non-recurring items in the earnings valuation.
We consider a range of multiples in our earnings valuation calculation that reflects the diversity of our sources of cash flows, with 12x as the midpoint. Regardless of the multiple used, we believe using a consistent multiple for each year in the calculation is important when assessing the five-year compound annual growth rate in intrinsic value per share.
Second, we add certain items from our balance sheet that are not included in the earnings valuation. The balance sheet component of the valuation consists of adding cash, short term investments, and equity securities, then subtracting debt, preferred stock, and noncontrolling interests.
The sum of the earnings and balance sheet valuations divided by the number of shares outstanding represents our estimate of intrinsic value per share from which to calculate growth.
Our simplified intrinsic value growth calculation may differ from calculations that others may perform, and our stock price growth may vary significantly from our intrinsic value growth calculation. We believe that the key with any calculation is consistently applying a methodology to measure the compound annual growth in intrinsic value per share over five-year periods, which is aligned with our long-term aim of relentlessly compounding shareholder capital.
Year Ended December 31, 2025
8x Multiple 12x Multiple 16x Multiple
5-Year CAGR in intrinsic value
per share 14.5 % 15.2 % 15.7 %
The following table shows the calculation of adjusted earnings used for our earnings valuation.
(dollars in thousands) Year Ended December 31,
-----------------------
2025 2024 2023 2022 2021 2020 2019 2018
-----------------------
Operating income (loss) $ 3,194,852 $ 3,712,562 $ 2,928,828 $ (93,336) $ 3,241,505 $ 1,273,884 $ 2,477,346 $ 39,759
Add: Amortization and
impairment 185,007 181,472 180,614 258,778 160,539 159,315 148,638 315,128
Less: Net investment
gains (losses) 1,076,081 1,807,219 1,524,054 (1,595,733) 1,978,534 617,979 1,601,722 (437,596)
Adjusted operating
income $ 2,303,778 $ 2,086,815 $ 1,585,388 $ 1,761,175 $ 1,423,510 $ 815,220 $ 1,024,262 $ 792,483
Less: Dividends on
equity securities 156,169 142,367 116,911 107,213 98,099 89,303 100,222 90,840
Less: Interest on cash
and short-term
investments 228,120 286,063 251,821 62,383 2,954 14,321 50,425 48,765
Adjusted earnings $ 1,919,489 $ 1,658,385 $ 1,216,656 $ 1,591,579 $ 1,322,457 $ 711,596 $ 873,615 $ 652,878
Adjusted earnings -
3-year average $ 1,598,177 $ 1,488,873 $ 1,376,897 $ 1,208,544 $ 969,223 $ 746,030
The following table shows the components of our balance sheet valuation and common shares outstanding.
(in thousands) December 31,
---------------
2025 2024 2023 2022 2021 2020
---------------
Equity
securities $ 13,004,312 $ 11,784,521 $ 9,577,871 $ 7,671,912 $ 9,023,927 $ 6,994,110
Short-term
investments
and cash and
cash
equivalents 5,998,367 6,217,577 6,318,442 6,806,694 5,778,478 6,375,835
Senior
long-term debt
and other debt (4,303,811) (4,330,341) (3,779,796) (4,103,629) (4,361,266) (3,484,023)
Preferred stock -- (591,891) (591,891) (591,891) (591,891) (591,891)
Redeemable
noncontrolling
interests and
noncontrolling
interests (504,433) (553,075) (541,965) (585,945) (484,238) (260,534)
Balance sheet
valuation $ 14,194,435 $ 12,526,791 $ 10,982,661 $ 9,197,141 $ 9,365,010 $ 9,033,497
Common shares
outstanding 12,590 12,790 13,132 13,423 13,632 13,783
Markel Insurance Return on Equity
We believe return on equity is an important metric to evaluate the overall performance of Markel Insurance. This metric is representative of the total return generated by the business on the capital that it holds and provides a metric by which to evaluate Markel Insurance's capital efficiency.
Although we do not consider net investment gains and losses when assessing the periodic performance of our Markel Insurance segment, we believe it is important to consider the full contribution of the publicly traded equity securities held by Markel Insurance subsidiaries when evaluating the capital efficiency of the business due to the additional capital required to hold such investments.
Over the five-year period ended December 31, 2025, the average annual return on equity from Markel Insurance was 13%. The following table summarizes the calculation of return on equity for Markel Insurance.
Year Ended December 31,
(dollars in thousands) 2025 2024 2023 2022 2021
-----------------------
Underwriting profit $ 455,671 $ 366,976 $ 92,786 $ 594,289 $ 614,331
Net investment income 871,531 797,907 642,676 407,826 360,173
Services and other
income (loss) 51,865 19,605 11,713 5,798 (10,881)
Adjusted operating
income $ 1,379,067 $ 1,184,488 $ 747,175 $ 1,007,913 $ 963,623
Net investment gains
(losses) 976,740 1,447,686 1,249,362 (1,203,958) 1,440,295
Interest expense (1) (187,541) (178,385) (156,521) (172,256) (173,952)
Income tax expense (2) (477,019) (539,834) (404,804) 81,026 (490,593)
$ 1,691,247 $ 1,913,955 $ 1,435,212 $ (287,275) $ 1,739,373
Average equity $ 12,219,695 $ 10,742,094 $ 9,229,143 $ 8,681,108 $ 8,555,403
Return on equity 14 % 18 % 16 % (3) % 20 %
5-Year average annual
return on equity 13 % 12 %
(1) Interest expense on our senior notes is attributed
to the return on equity of Markel Insurance.
(2) Income tax expense is based on a 22% tax rate, which
is representative of our typical effective rate, however,
it does not represent actual income tax expense of
Markel Insurance. Income taxes are managed on a consolidated
basis across Markel Group and are only attributed
to Markel Insurance when assessing its return on equity.
Markel Insurance Divisional Results
The following tables present the divisional results of the Markel Insurance segment's underwriting and other insurance-related activities.
Quarter Ended December 31, 2025
(dollars in thousands) U.S. Programs International Global Other Markel
Wholesale and Reinsurance Insurance
Solutions
and
Specialty
-----------------------
Gross premium volume -
underwriting $ 723,054 $ 873,855 $ 743,388 $ (19,263) $ 34 $ 2,321,068
Gross premium volume -
fronting -- 16,445 -- -- -- 16,445
Gross premium volume $ 723,054 $ 890,300 $ 743,388 $ (19,263) $ 34 $ 2,337,513
Net written premiums $ 608,752 $ 590,122 $ 660,450 $ (20,254) $ 9 $ 1,839,079
Earned premiums $ 647,462 $ 622,854 $ 679,427 $ 240,598 $ 3,173 $ 2,193,514
Losses and loss
adjustment expenses:
Current accident year -
attritional (400,482) (437,565) (329,784) (173,856) (11,761) (1,353,448)
Current accident year -
catastrophe (942) 107 (4,500) 1 -- (5,334)
Prior accident years 18,215 38,670 61,433 15,023 (6,212) 127,129
Underwriting,
acquisition, and
insurance expenses (217,433) (236,073) (273,891) (76,277) (1,357) (805,031)
Underwriting profit
(loss) $ 46,820 $ (12,007) $ 132,685 $ 5,489 $ (16,157) $ 156,830
Services and other
revenues $ -- $ 13,988 $ 7,385 $ 3 $ 638 $ 22,014
Services and other
expenses -- (5,274) (6,407) -- (1,089) (12,770)
Services and other
income (loss) $ -- $ 8,714 $ 978 $ 3 $ (451) $ 9,244
Current accident year
loss ratio 62.0 % 70.2 % 49.2 % 72.3 % 61.9 %
Prior accident years
loss ratio (2.8) % (6.2) % (9.0) % (6.2) % (5.8) %
Loss ratio 59.2 % 64.0 % 40.2 % 66.0 % 56.1 %
Expense ratio 33.6 % 37.9 % 40.3 % 31.7 % 36.7 %
Combined ratio 92.8 % 101.9 % 80.5 % 97.7 % 92.9 %
Quarter Ended December 31, 2024
(dollars in thousands) U.S. Programs International Global Other Markel
Wholesale and Reinsurance Insurance
and Solutions
Specialty
-----------------------
Gross premium volume -
underwriting $ 770,534 $ 861,014 $ 590,765 $ 32,524 $ (1,799) $ 2,253,038
Gross premium volume -
fronting -- 89,612 -- -- -- 89,612
Gross premium volume $ 770,534 $ 950,626 $ 590,765 $ 32,524 $ (1,799) $ 2,342,650
Net written premiums $ 621,357 $ 590,130 $ 497,151 $ 28,801 $ (3,791) $ 1,733,648
Earned premiums $ 667,722 $ 561,565 $ 551,942 $ 262,055 $ 1,010 $ 2,044,294
Losses and loss
adjustment expenses:
Current accident year -
attritional (445,629) (360,254) (266,533) (201,250) (28,644) (1,302,310)
Current accident year -
catastrophe (10,409) 430 3,810 (2,480) -- (8,649)
Prior accident years (87,647) 80,649 102,531 14,580 1,309 111,422
Underwriting,
acquisition, and
insurance expenses (226,541) (203,940) (251,529) (79,371) 350 (761,031)
Underwriting profit
(loss) $ (102,504) $ 78,450 $ 140,221 $ (6,466) $ (25,975) $ 83,726
Services and other
revenues $ -- $ 13,606 $ 4,243 $ -- $ (122) $ 17,727
Services and other
expenses -- (1,333) (3,063) -- (9,256) (13,652)
Services and other
income (loss) $ -- $ 12,273 $ 1,180 $ -- $ (9,378) $ 4,075
Current accident year
loss ratio 68.3 % 64.1 % 47.6 % 77.7 % 64.1 %
Prior accident years
loss ratio 13.1 % (14.4) % (18.6) % (5.6) % (5.5) %
Loss ratio 81.4 % 49.7 % 29.0 % 72.2 % 58.7 %
Expense ratio 33.9 % 36.3 % 45.6 % 30.3 % 37.2 %
Combined ratio 115.4 % 86.0 % 74.6 % 102.5 % 95.9 %
Year Ended December 31, 2025
(dollars in thousands) U.S. Programs International Global Other Markel
Wholesale and Reinsurance Insurance
and Solutions
Specialty
-----------------------
Gross premium volume -
underwriting $ 3,060,929 $ 3,708,179 $ 2,834,504 $ 1,046,111 $ (6,020) $ 10,643,703
Gross premium volume -
fronting -- 1,854,944 -- -- -- 1,854,944
Gross premium volume $ 3,060,929 $ 5,563,123 $ 2,834,504 $ 1,046,111 $ (6,020) $ 12,498,647
Net written premiums $ 2,523,178 $ 2,475,396 $ 2,459,485 $ 943,686 $ (2,010) $ 8,399,735
Earned premiums $ 2,623,318 $ 2,378,265 $ 2,317,475 $ 1,070,031 $ 12,234 $ 8,401,323
Losses and loss
adjustment expenses:
Current accident year -
attritional (1,742,412) (1,557,973) (1,165,087) (798,556) (67,155) (5,331,183)
Current accident year -
catastrophe (19,036) (11,781) (29,630) (1,449) -- (61,896)
Prior accident years 130,081 155,904 229,012 (18,635) (12,362) 484,000
Underwriting,
acquisition, and
insurance expenses (882,271) (875,021) (957,763) (314,511) (7,007) (3,036,573)
Underwriting profit
(loss) $ 109,680 $ 89,394 $ 394,007 $ (63,120) $ (74,290) $ 455,671
Services and other
revenues $ -- $ 50,261 $ 17,214 $ 6,807 $ 823 $ 75,105
Services and other
expenses -- (11,304) (13,549) -- (3,319) (28,172)
Services and other
income (loss) $ -- $ 38,957 $ 3,665 $ 6,807 $ (2,496) $ 46,933
Current accident year
loss ratio 67.1 % 66.0 % 51.6 % 74.8 % 64.2 %
Prior accident years
loss ratio (5.0) % (6.6) % (9.9) % 1.7 % (5.8) %
Loss ratio 62.2 % 59.4 % 41.7 % 76.5 % 58.4 %
Expense ratio 33.6 % 36.8 % 41.3 % 29.4 % 36.1 %
Combined ratio 95.8 % 96.2 % 83.0 % 105.9 % 94.6 %
Year Ended December 31, 2024
(dollars in thousands) U.S. Programs International Global Other Markel
Wholesale and Reinsurance Insurance
and Solutions
Specialty
-----------------------
Gross premium volume -
underwriting $ 3,200,616 $ 3,440,216 $ 2,482,038 $ 1,166,247 $ (29,255) $ 10,259,862 Gross premium volume - fronting -- 1,306,022 -- -- -- 1,306,022 Gross premium volume $ 3,200,616 $ 4,746,238 $ 2,482,038 $ 1,166,247 $ (29,255) $ 11,565,884 Net written premiums $ 2,561,336 $ 2,280,620 $ 2,114,780 $ 1,055,569 $ (7,517) $ 8,004,788 Earned premiums $ 2,783,439 $ 2,195,619 $ 2,060,926 $ 1,067,468 $ 23,260 $ 8,130,712 Losses and loss adjustment expenses: Current accident year - attritional (1,887,518) (1,371,624) (1,088,544) (778,503) (135,816) (5,262,005) Current accident year - catastrophe (37,309) (19,670) (10,190) (3,480) -- (70,649) Prior accident years (11,390) 144,836 367,278 (554) (45,238) 454,932 Underwriting, acquisition, and insurance expenses (925,798) (773,920) (860,746) (313,378) (12,172) (2,886,014) Underwriting profit (loss) $ (78,576) $ 175,241 $ 468,724 $ (28,447) $ (169,966) $ 366,976 Services and other revenues $ -- $ 33,760 $ 10,531 $ -- $ (715) $ 43,576 Services and other expenses -- (6,199) (10,581) -- (18,439) (35,219) Services and other income (loss) $ -- $ 27,561 $ (50) $ -- $ (19,154) $ 8,357 Current accident year loss ratio 69.2 % 63.4 % 53.3 % 73.3 % 65.6 % Prior accident years loss ratio 0.4 % (6.6) % (17.8) % 0.1 % (5.6) % Loss ratio 69.6 % 56.8 % 35.5 % 73.3 % 60.0 % Expense ratio 33.3 % 35.2 % 41.8 % 29.4 % 35.5 % Combined ratio 102.8 % 92.0 % 77.3 % 102.7 % 95.5 %
Consolidating Investment Results
The following tables summarize our investing results by segment.
Quarter Ended December 31, 2025
(dollars in thousands) Markel Other Corporate Eliminations Total
Insurance Reportable
Segments
-----------------------
Interest:
Fixed maturity
securities $ 154,681 $ 3,102 $ 1,917 $ -- $ 159,700
Short-term investments 7,448 2,461 9,298 -- 19,207
Cash and cash
equivalents, including
restricted 26,470 4,751 6,053 -- 37,274
Intercompany loans
receivable 7,076 -- 4,862 (11,938) --
Dividends on equity
securities 40,313 -- 5,087 -- 45,400
Investment expenses (3,111) (193) (629) -- (3,933)
Net investment income $ 232,877 $ 10,121 $ 26,588 $ (11,938) $ 257,648
Net investment gains
(losses) $ 230,924 $ -- $ (18,881) $ -- $ 212,043
Quarter Ended December 31, 2024
(dollars in thousands) Markel Other Corporate Eliminations Total
Insurance Reportable
Segments
-----------------------
Interest:
Fixed maturity
securities $ 134,892 $ 1,819 $ 1,244 $ -- $ 137,955
Short-term investments 10,452 3,134 16,180 -- 29,766
Cash and cash
equivalents, including
restricted 27,397 4,628 6,623 -- 38,648
Intercompany loans
receivable 7,508 -- 4,916 (12,424) --
Dividends on equity
securities 37,450 -- 3,654 -- 41,104
Investment expenses (3,141) (37) (606) -- (3,784)
Net investment income $ 214,558 $ 9,544 $ 32,011 $ (12,424) $ 243,689
Net investment gains
(losses) $ 147,253 $ 8 $ (29,836) $ -- $ 117,425
Year Ended December 31, 2025
(dollars in thousands) Markel Other Corporate Eliminations Total
Insurance Reportable
Segments
-----------------------
Interest:
Fixed maturity
securities $ 590,307 $ 8,369 $ 5,843 $ -- $ 604,519
Short-term investments 29,123 10,486 38,257 -- 77,866
Cash and cash
equivalents, including
restricted 100,250 20,207 29,797 -- 150,254
Intercompany loans
receivable 28,895 -- 19,580 (48,475) --
Dividends on equity
securities 138,773 -- 17,396 -- 156,169
Investment expenses (15,817) (363) (2,201) -- (18,381)
Net investment income $ 871,531 $ 38,699 $ 108,672 $ (48,475) $ 970,427
Net investment gains $ 976,740 $ -- $ 99,341 $ -- $ 1,076,081
Year Ended December 31, 2024
(dollars in thousands) Markel Other Corporate Eliminations Total
Insurance Reportable
Segments
-----------------------
Interest:
Fixed maturity
securities $ 498,196 $ 7,192 $ 4,656 $ -- $ 510,044
Short-term investments 47,331 14,334 62,910 -- 124,575
Cash and cash
equivalents, including
restricted 114,268 17,995 29,225 -- 161,488
Intercompany loans
receivable 27,711 -- 19,972 (47,683) --
Dividends on equity
securities 125,322 -- 17,045 -- 142,367
Investment expenses (14,921) (180) (2,877) -- (17,978)
Net investment income $ 797,907 $ 39,341 $ 130,931 $ (47,683) $ 920,496
Net investment gains
(losses) $ 1,447,686 $ (150) $ 359,683 $ -- $ 1,807,219
Consolidated Underwriting Reconciliation
The following tables reconcile our Markel Insurance segment underwriting results to our consolidated underwriting operations. State National's underwriting results are included in our Financial segment.
Quarter Ended December 31, 2025
(dollars in thousands) Markel State Eliminations Consolidated
Insurance National
-----------------------
Gross premium volume -
underwriting $ 2,321,068 $ 86,282 $ -- $ 2,407,350
Gross premium volume -
fronting 16,445 931,613 (53,585) 894,473
Gross premium volume $ 2,337,513 $ 1,017,895 $ (53,585) $ 3,301,823
Earned premiums $ 2,193,514 $ 85,315 $ -- $ 2,278,829
Losses and loss
adjustment expenses (1,231,653) (51,667) -- (1,283,320)
Underwriting,
acquisition, and
insurance expenses (805,031) (23,982) -- (829,013)
Underwriting profit $ 156,830 $ 9,666 $ -- $ 166,496
Combined Ratio 92.9 % 88.7 % 92.7 %
Quarter Ended December 31, 2024
(dollars in thousands) Markel State Eliminations Consolidated
Insurance National
-----------------------
Gross premium volume -
underwriting $ 2,253,038 $ 69,693 $ -- $ 2,322,731
Gross premium volume -
fronting 89,612 1,017,063 (59,013) 1,047,662
Gross premium volume $ 2,342,650 $ 1,086,756 $ (59,013) $ 3,370,393
Earned premiums $ 2,044,294 $ 73,284 $ -- $ 2,117,578
Losses and loss
adjustment expenses (1,199,537) (42,278) -- (1,241,815)
Underwriting,
acquisition, and
insurance expenses (761,031) (23,755) -- (784,786)
Underwriting profit $ 83,726 $ 7,251 $ -- $ 90,977
Combined Ratio 95.9 % 90.1 % 95.7 %
Year Ended December 31, 2025
(dollars in thousands) Markel State Eliminations Consolidated
Insurance National
-----------------------
Gross premium volume -
underwriting $ 10,643,703 $ 317,751 $ -- $ 10,961,454
Gross premium volume -
fronting 1,854,944 3,928,671 (221,632) 5,561,983
Gross premium volume $ 12,498,647 $ 4,246,422 $ (221,632) $ 16,523,437
Earned premiums $ 8,401,323 $ 314,344 $ -- $ 8,715,667
Losses and loss
adjustment expenses (4,909,079) (170,766) -- (5,079,845)
Underwriting,
acquisition, and
insurance expenses (3,036,573) (96,590) -- (3,133,163)
Underwriting profit $ 455,671 $ 46,988 $ -- $ 502,659
Combined Ratio 94.6 % 85.1 % 94.2 %
Year Ended December 31, 2024
(dollars in thousands) Markel State Eliminations Consolidated
Insurance National
-----------------------
Gross premium volume -
underwriting $ 10,259,862 $ 292,011 $ -- $ 10,551,873
Gross premium volume -
fronting 1,306,022 3,781,697 (144,961) 4,942,758
Gross premium volume $ 11,565,884 $ 4,073,708 $ (144,961) $ 15,494,631 Earned premiums $ 8,130,712 $ 301,700 $ -- $ 8,432,412 Losses and loss adjustment expenses (4,877,722) (175,027) -- (5,052,749) Underwriting, acquisition, and insurance expenses (2,886,014) (91,375) -- (2,977,389) Underwriting profit $ 366,976 $ 35,298 $ -- $ 402,274 Combined Ratio 95.5 % 88.3 % 95.2 %
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 and Adjusted Operating Income Per Share
Consolidated adjusted operating income and adjusted operating income per share, which exclude net investment gains and losses, amortization of acquired intangible assets, and impairment of goodwill, are non-GAAP financial measures. 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 metrics.
The following table reconciles operating income to adjusted operating income on both a consolidated and per share basis.
Year Ended December 31,
(dollars in thousands, 2025 2024 2023 2022 2021
except per share data)
-----------------------
Operating income (loss) $ 3,194,852 $ 3,712,562 $ 2,928,828 $ (93,336) $ 3,241,505
Add: Amortization of
acquired intangible
assets 185,007 181,472 180,614 178,778 160,539
Add: Impairment of -- -- -- 80,000 --
goodwill
Less: Net investment
gains (losses) 1,076,081 1,807,219 1,524,054 (1,595,733) 1,978,534
Adjusted operating
income $ 2,303,778 $ 2,086,815 $ 1,585,388 $ 1,761,175 $ 1,423,510
Operating income (loss)
per share $ 253 $ 290 $ 223 $ (7) $ 238
Add: Amortization of
acquired intangible
assets impact 15 14 14 13 12
Add: Impairment of -- -- -- 6 --
goodwill impact
Less: Net investment
gains (losses) impact 85 141 116 (119) 145
Adjusted operating
income per share (1) $ 182 $ 163 $ 121 $ 131 $ 104
(1) Amounts may not reconcile due to rounding.
Combined Ratio and Current Accident Year Loss Ratio, Excluding Current Year Catastrophe Events
We use underwriting profit or loss and the combined ratio as a basis for evaluating our underwriting performance. The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses, and underwriting acquisition and insurance expenses to earned premiums. The combined ratio is the sum of the loss ratio and the expense ratio.
When analyzing our loss ratio, we typically evaluate losses and loss adjustment expenses attributable to the current accident year separately from losses and loss adjustment expenses attributable to prior accident years. Prior accident year reserve development, which can be either favorable or unfavorable, represents changes in our estimates of losses and loss adjustment expenses related to loss events that occurred in prior years. We believe a discussion of the current accident year loss ratio that excludes prior accident year reserve development is helpful in most cases since it provides more insight into estimates of current underwriting performance and excludes changes in estimates related to prior year loss reserves.
In addition to the U.S. GAAP combined ratio, loss ratio, and expense ratio, we also evaluate our underwriting performance using measures that exclude the impacts of certain items on these ratios. We believe these adjusted measures, which are non--GAAP measures, provide financial statement users with a better understanding of the significant factors that comprise our underwriting results and how management evaluates underwriting performance.
When analyzing our combined ratio, we exclude current accident year losses and loss adjustment expenses attributed to natural catastrophes and certain other significant, infrequent loss events. Gross and ceded losses for certain events may also result in receipt or payment of reinstatement premiums, which, if significant, may also be excluded when analyzing our combined ratio. Due to the unique characteristics of these events, there is inherent variability as to the timing and amount of the loss, which cannot be predicted in advance. We believe measures that exclude the effects of such events are meaningful to understand the underlying trends and variability in our underwriting results that may be obscured by these items.
We also analyze our current accident year loss ratio excluding losses and loss adjustment expenses attributable to catastrophes and other significant, infrequent loss events. The current accident year loss ratio excluding the impact of catastrophes and other significant, infrequent loss events is commonly referred to as an attritional loss ratio within the property and casualty insurance industry.
The components of Markel Insurance's combined ratios, including these non-GAAP measures, are included in "Markel Insurance".
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.
Year Ended December 31,
2025 2024 2023 2022 2021
Industrial segment:
Revenue growth 3.9 % 1.4 % 9.7 % 42.9 % 51.5 %
Impact of inorganic
activity (1.4) % (1.3) % (2.0) % (25.2) % (30.4) %
Organic revenue growth 2.5 % 0.1 % 7.7 % 17.7 % 21.1 %
Financial segment:
Revenue growth 24.2 % 7.3 % (23.0) % 45.2 % 3.5 %
Impact of inorganic
activity (7.0) % 0.5 % 43.6 % (25.8) % -- %
Organic revenue growth 17.2 % 7.8 % 20.6 % 19.4 % 3.5 %
Consumer and Other
segment:
Revenue growth 4.2 % 6.4 % (7.5) % 7.9 % 2.6 %
Impact of inorganic
activity (3.2) % (4.6) % -- % 0.6 % 6.2 %
Organic revenue growth 1.0 % 1.8 % (7.5) % 8.5 % 8.8 %
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SOURCE Markel Group
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February 04, 2026 16:36 ET (21:36 GMT)