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MKL · Markel Group

26 filings

10-K

MKL 10-K Annual Reports

Markel Group - 26 annual reports

Filing record · 2016–202610-K1110-Q338-K100

2025
Markel Group Annual Report, Year Ended Dec 31, 2025
Markel Group Inc. (NYSE: MKL) reported operating revenues of $15.51 billion for 2025, up from $14.81 billion in 2024, and operating income of $3.19 billion versus $3.71 billion. Adjusted operating income, a non-GAAP measure that excludes net investment gains and losses and amortization, rose to $2.30 billion from $2.09 billion, and adjusted operating income per share was $182 compared with $163. Net income to shareholders was $2.11 billion, compared with $2.75 billion in 2024, and diluted net income per share was $169.22 versus $199.32. Shareholders' equity increased to $18.60 billion, the debt-to-capital ratio was 19%, and the five-year compound annual growth rate in intrinsic value per share was 15%. The cornerstone Markel Insurance segment produced a 95% combined ratio in 2025, its eighteenth underwriting profit in the last 20 years, and adjusted operating income of $1.38 billion. Its five-year average return on equity was 13%. Gross premium volume reached $12.50 billion, including $1.85 billion of fronting premiums that grew substantially. The company placed its Global Reinsurance division into run-off after selling its renewal rights in August 2025, and it discontinued the intellectual property collateral protection insurance product line. Equity securities represented 70% of shareholders' equity at year end, and the ten largest equity holdings made up 45% of the equity portfolio, which creates earnings volatility. The Industrial, Financial, and Consumer and Other segments produced revenues of $3.93 billion, $737 million, and $1.38 billion, respectively. The company repurchased $429.5 million of common stock in 2025, redeemed its $600 million Series A preferred shares, and had $1.5 billion remaining under its $2 billion repurchase authorization. The company does not pay a cash dividend, and its corporate revolving credit facility had no borrowings outstanding.
Feb 26, 2026
2024
Markel Group Annual Report, Year Ended Dec 31, 2024
Markel Group Inc. (MKL) reported 2024 operating income of $3.71 billion on operating revenues of $16.62 billion, up from $2.93 billion and $15.80 billion in 2023. Comprehensive income to shareholders was $2.61 billion, compared with $2.29 billion in 2023, driven primarily by pre-tax net investment gains of $1.8 billion on equity securities. The company describes three engines: Insurance (underwriting, program services and insurance-linked securities), Investments, and Markel Ventures. Insurance operating income rose to $601.0 million, with a combined ratio of 95% for underwriting operations, the seventh consecutive year of underwriting profit. Gross premium volume reached $15.49 billion, up from $14.00 billion, with program services and ILS fronting volume growing 33%. Reserve development was favorable at $455.3 million for 2024 versus $38.6 million in 2023, though the filing notes continued adverse trends in U.S. professional liability lines. Management also disclosed estimated January 2025 southern California wildfire underwriting losses of $90 million to $130 million before income taxes, to be recorded in the first quarter of 2025. Shareholders' equity grew to $16.92 billion, and the company repurchased $572.7 million of common stock during 2024 under a new $2 billion program, with $1.9 billion remaining at year-end. The filing also notes that JANA Partners, an activist shareholder, publicly called for a Board-led review of a potential simplification of Markel Group.
Feb 24, 2025
2023
Markel Group Annual Report, Year Ended Dec 31, 2023
Markel Group Inc. (MKL) reported 2023 total operating revenues of $15.80 billion, up from $11.68 billion in 2022, and operating income of $2.93 billion versus a loss of $93.3 million in 2022. Net income to common shareholders was $1.96 billion ($146.98 diluted per share), compared with a loss of $252.3 million in 2022. The swing was driven mainly by net investment gains of $1.52 billion in 2023 versus losses of $1.60 billion in 2022, along with a $80.0 million Nephila goodwill impairment in 2022 that did not recur. Book value per common share rose to $1,095.95 from $935.65, and shareholders' equity reached $14.98 billion. Underwriting results were weaker. The combined ratio was 98.4% versus 91.7% in 2022, and underwriting profit fell to $132.7 million from $626.6 million. Adverse development of $330.7 million on U.S. and Bermuda general liability and professional liability lines, plus $95.5 million of general liability development and $53.7 million on the public entity line in the Reinsurance segment, pressured results. The company also recognized $65.0 million of credit losses tied to fraudulent letters of credit provided by an affiliate of Vesttoo Ltd. Gross premium volume in underwriting grew 4% to $10.28 billion. Markel Ventures revenues rose to $4.99 billion and operating income to $437.5 million. The company retired $250.0 million of 3.625% senior notes in March 2023 and repurchased $445.5 million of common stock. Its share repurchase authorization was $750 million, with $713.0 million remaining at year end. No cash dividend on common stock was paid, and the company declared $36.0 million of preferred dividends. Management also reported that the Yeransian contingent value rights lawsuit was decided in the company's favor at the district court in June 2023, and the plaintiff has appealed.
Feb 23, 2024
2022
Markel Group Annual Report, Year Ended Dec 31, 2022
Markel Corporation, a diverse financial holding company serving a variety of niche markets, reported a net loss to common shareholders of $250.1 million for 2022, compared with net income to common shareholders of $2.39 billion in 2021. Total operating revenues were $11.68 billion versus $12.85 billion in 2021. The decline was driven mainly by pre-tax net investment losses of $1.6 billion in 2022 versus gains of $2.0 billion in 2021, along with pre-tax net unrealized losses on fixed maturity securities of $1.5 billion. Diluted loss per share was $23.57, compared with diluted income of $176.51 per share in 2021. Book value per common share declined 10% to $929.27, and shareholders' equity fell to $13.07 billion from $14.72 billion. Underlying underwriting remained profitable. Underwriting profit was $626.6 million, and the combined ratio was 91.7% compared with 90.3% in 2021. Gross premium volume rose 16% to $9.84 billion, driven by growth across the Insurance segment. Favorable prior-year reserve development fell to $167.4 million from $479.8 million, and the Insurance segment's professional and general liability lines recorded adverse development of $70.9 million. The company also recorded an $80.0 million goodwill impairment at its Nephila insurance-linked securities unit. Markel Ventures, the controlling-interest business group, grew revenues 31% to $4.76 billion, aided by the Metromont and Buckner acquisitions. The company's balance sheet remains substantial, with invested assets of $27.4 billion and cash and cash equivalents of $4.14 billion at December 31, 2022. The company repurchased $290.8 million of common stock during 2022 and holds $511.7 million remaining under its $750 million repurchase program. Markel does not pay a cash dividend on common stock. Its debt-to-capital ratio rose to 24% from 23%. Investors should weigh the earnings volatility from the equity portfolio, which made up 59% of shareholders' equity, against the strength of the underwriting franchise.
Feb 17, 2023
2021
Markel Group Annual Report, Year Ended Dec 31, 2021
Markel Corporation's 2021 Form 10-K reports total operating revenues of $12.85 billion, up from $9.74 billion in 2020, and net income to common shareholders of $2.39 billion, versus $797.6 million in 2020. Diluted net income per share was $176.51, compared with $55.63. Results were driven largely by net investment gains of $1.98 billion, against $618.0 million in 2020, along with a meaningful improvement in underwriting profit to $628.1 million from $127.6 million. The consolidated U.S. GAAP combined ratio improved to 90% from 98%, and the company reports $358.3 million of COVID-19 losses in 2020 versus $15.7 million of additional COVID-19 losses in 2021. Book value per common share rose 17% to $1,034.56, and shareholders' equity reached $14.70 billion. The Insurance segment generated gross premium volume of $7.2 billion and an underwriting profit of $696.4 million, while the Reinsurance segment reported an underwriting loss of $55.2 million. Management discontinued writing property reinsurance on a risk-bearing basis effective January 2021 and stopped retrocessional property business effective January 1, 2022, shifting that exposure toward third-party-capital insurance-linked securities (ILS) operations managed through Nephila. Markel Ventures, the non-insurance operating group, reported revenues of $3.6 billion and operating income of $272.6 million, and completed acquisitions of Metromont LLC and Buckner HeavyLift Cranes in 2021. Balance-sheet and capital items include unpaid losses and loss adjustment expenses of $18.2 billion, senior long-term debt and other debt of $4.36 billion (including $600 million of 3.45% senior notes issued in May 2021), and a $750 million share repurchase program authorized in February 2022. The filing also discloses the Markel CATCo run-off, a proposed transaction to accelerate return of capital to its investors, and the Yeransian contingent value rights litigation, which management considers without merit.
Feb 18, 2022
2020
Markel Group Annual Report, Year Ended Dec 31, 2020
Markel Corporation, now Markel Group Inc. (MKL), reported a 2020 U.S. GAAP combined ratio of 98% and net income to shareholders of $816.0 million, down from $1.79 billion in 2019, as lower net investment gains on its equity portfolio offset growth in operating results. Total operating revenues rose to $9.74 billion from $9.53 billion. Book value per common share grew to $885.72 at December 31, 2020, up from $802.59, and the company describes a five-year compound annual growth rate of 10% in book value per share. The company attributed $360.4 million, or six points, of underwriting losses to COVID-19 and $168.9 million, or three points, to 2020 catastrophes, including Hurricanes Isaias, Laura, Sally, Delta and Zeta. The company operates three engines: Insurance (gross premium volume of $6.0 billion and an underwriting profit of $169.0 million), Investing (net investment income of $371.8 million and net investment gains of $618.0 million), and Markel Ventures (revenues of $2.8 billion and operating income of $254.1 million). Insurance-linked securities and program services generated total revenues of $212.3 million and $104.2 million, respectively. In late 2020 the company decided to stop writing catastrophe-exposed property reinsurance on a risk-bearing basis, shifting that business to its ILS operations. Shareholders' equity rose to $12.80 billion after a $600 million preferred stock issuance in May 2020, and the company recommenced share repurchases in February 2021 under a program with $240.8 million remaining. The filing also notes the Markel CATCo inquiries by the U.S. Department of Justice, U.S. Securities and Exchange Commission and Bermuda Monetary Authority, which the company says it cannot yet predict, and the Thomas Yeransian contingent value rights litigation, which the company believes is without merit. Equity securities represented 55% of shareholders' equity at December 31, 2020, compared with 69% a year earlier, which the risk factors identify as a source of earnings and equity volatility.
Feb 19, 2021
2019
Markel Group Annual Report, Year Ended Dec 31, 2019
Markel Corporation, a diverse financial holding company serving niche markets, reported strong 2019 results in its Form 10-K filed February 21, 2020. Net income to shareholders was $1.79 billion, compared with a net loss of $128.2 million in 2018, driven largely by $1.60 billion of net investment gains from equity securities. Total operating revenues rose to $9.53 billion from $6.84 billion, and the U.S. GAAP combined ratio improved to 94% from 98%. Shareholders' equity increased to $11.07 billion, and book value per share rose 23% to $802.59. Underwriting performance was solid but mixed by segment. The Insurance segment produced an underwriting profit of $309.8 million on gross premium volume of $5.3 billion, while the Reinsurance segment posted an underwriting loss of $40.0 million on $1.1 billion of gross premium volume. Favorable development on prior years' loss reserves totaled $535.3 million, and 2019 catastrophes (Hurricane Dorian and Typhoons Faxai and Hagibis) cost $100.4 million of underwriting results, compared with $287.3 million from 2018 catastrophes. Markel Ventures, the non-insurance businesses, generated $2.1 billion of operating revenues and $263.9 million of EBITDA. The filing also highlights risks investors should weigh. Equity securities represented 69% of shareholders' equity at year-end 2019, creating significant earnings volatility. The Markel CATCo inquiries by the U.S. Department of Justice, SEC and Bermuda Monetary Authority remain ongoing, and the company placed the Markel CATCo funds into run-off in July 2019.
Feb 21, 2020
2018
Markel Group Annual Report, Year Ended Dec 31, 2018
Markel Corporation (now Markel Group Inc.) reported a 2018 net loss to shareholders of $128.2 million, compared with net income to shareholders of $395.3 million in 2017. The decline was primarily driven by an increase in net investment losses, which were $437.6 million in 2018 versus $5.3 million in 2017, largely from a $425.6 million decrease in the fair value of equity securities under the newly adopted ASU No. 2016-01. The 2017 results had also benefited from a one-time $339.9 million tax benefit from the Tax Cuts and Jobs Act. Total operating revenues rose to $6.84 billion from $6.06 billion, and the consolidated U.S. GAAP combined ratio improved to 98% from 105%, with underwriting profit of $113.8 million versus an underwriting loss of $207.2 million in 2017. Shareholders' equity declined to $9.08 billion, and book value per share decreased 4% to $653.85. The company completed the acquisitions of Nephila Holdings Ltd. for $972.6 million and Brahmin Leather Works (90% interest) for $193.8 million during 2018. It recorded a combined $179.0 million goodwill and intangible impairment at its Markel CATCo Investment Management unit, following U.S. Department of Justice, SEC and Bermuda Monetary Authority inquiries into loss reserves at Markel CATCo Re, the departure of two senior MCIM executives, and a special redemption offer to fund investors. Shareholder class action and executive lawsuits were filed in early 2019, and management believes the claims are without merit. The company also reported $551.0 million of favorable development on prior years' loss reserves and $287.3 million of underwriting losses from 2018 catastrophes. Looking ahead, the filing highlights risks tied to Brexit, which the company says could affect its U.K. and E.U. operations, and notes that the revolving credit facility matures on August 1, 2019. The company amended its leverage covenant in February 2019 to address the impact of the Nephila acquisition and fourth-quarter 2018 losses. Markel Ventures, the non-insurance operating group, generated $1.9 billion of revenues and $169.9 million of EBITDA in 2018.
Feb 28, 2019
2017
Markel Group Annual Report, Year Ended Dec 31, 2017
Markel Corporation reported a 2017 underwriting loss of $205.2 million, driven largely by $565.3 million of underwriting losses from the 2017 Catastrophes (Hurricanes Harvey, Irma, Maria and Nate, the Mexico earthquakes and California wildfires). The consolidated U.S. GAAP combined ratio rose to 105% from 92% in 2016. Net income to shareholders fell 13% to $395.3 million, held up by a one-time $339.9 million tax benefit from the Tax Cuts and Jobs Act. Gross premium volume in the underwriting segments grew 10% to $5.25 billion, and total gross written premium reached $5.51 billion including $253.9 million from the newly acquired program services business. Book value per share rose 13% to $683.55, and shareholders' equity reached $9.50 billion, supported by a $763.0 million after-tax increase in net unrealized gains on investments. Invested assets grew to $20.57 billion, with a taxable equivalent total investment return of 10.2%. The company completed major acquisitions in 2017, including State National Companies ($918.8 million), SureTec ($246.9 million) and a majority stake in Costa Farms ($417.2 million), and total goodwill and intangible assets reached $3.1 billion, or 33.0% of shareholders' equity. Beginning in 2018, changes in the fair value of equity securities will flow through net income rather than other comprehensive income, which the filing expects to increase earnings volatility. The filing also notes that favorable development on prior years' loss reserves of $501.5 million partly offset the catastrophe losses, though the filing cautions that the property and casualty market remains soft. The company's Markel Ventures operations reported revenues of $1.3 billion and EBITDA of $177.6 million in 2017.
Feb 23, 2018
2016
Markel Group Annual Report, Year Ended Dec 31, 2016
Markel Corporation, now Markel Group Inc., is a diverse financial holding company that underwrites specialty insurance and reinsurance in niche markets and owns industrial and service businesses through its Markel Ventures subsidiary. In 2016 it reported gross premium volume of $4.80 billion, net income to shareholders of $455.7 million (down from $582.8 million in 2015), and a U.S. GAAP combined ratio of 92%. Underwriting profit was $316.5 million, which included $505.2 million of favorable development on prior years' loss reserves, partly offset by $71.2 million of adverse development on medical malpractice and specified medical lines. Book value per share rose to $606.30, an 8% increase, and the company reported a five-year compound annual growth rate of 11%. Invested assets reached $19.06 billion at year end, with a taxable equivalent total investment return of 4.4% and an investment yield of 2.4%. Equity securities represented 56% of shareholders' equity at December 31, 2016. Net income was reduced by a $44.1 million loss on early extinguishment of debt, tied to the issuance of $500 million of 5.0% senior notes due 2046. Total shareholders' equity was $8.46 billion. The company also agreed on February 1, 2017 to acquire SureTec Financial Corp. for approximately $250 million, with closing expected in the first half of 2017. The filing describes a soft property and casualty market, with softening prices across most property lines and in marine and energy since 2013. It also flags risks including the June 2016 Brexit vote, which could affect Markel International's and Lloyd's operations in EU markets, and possible U.S. tax reform that could affect tax-exempt municipal bond holdings.
Feb 24, 2017
2015
Markel Group Annual Report, Year Ended Dec 31, 2015
Markel Corporation reported 2015 net income to shareholders of $582.8 million, up from $321.2 million in 2014, driven by more favorable underwriting results and higher net realized investment gains. Consolidated gross premium volume was $4.63 billion, down from $4.81 billion in 2014, with the decline attributed mainly to the Reinsurance segment, where auto reinsurance was reduced. The consolidated U.S. GAAP combined ratio improved to 89% from 95% in 2014, and underwriting profit rose to $429.7 million from $177.6 million. Favorable development on prior years' loss reserves totaled $627.8 million in 2015, including $82.7 million of reserve reductions tied to two retroactive reinsurance transactions that ceded a significant portion of asbestos and environmental (A&E) exposures. Book value per share increased 3% to $561.23, while comprehensive income to shareholders fell to $232.7 million from $935.9 million because net unrealized gains on investments declined $320.5 million net of taxes. Net investment income was $353.2 million, and the taxable equivalent total investment return was (0.7)%. Markel Ventures, the non-insurance subsidiary group, generated revenues of $1.0 billion and EBITDA of $91.3 million. In December 2015 the company acquired substantially all assets of CATCo Investment Management and 80% of CapTech Ventures, and it expects Markel CATCo IM to manage more than $3 billion of assets in 2016. The filing describes a company with $7.8 billion of shareholders' equity and $2.2 billion of senior long-term debt and other debt at year-end 2015. Equity securities were 52% of shareholders' equity, and the company identifies its concentrated equity portfolio, including a $414.1 million investment in Berkshire Hathaway common stock, as a source of earnings volatility. Management reports that the property and casualty market remains soft, that prices have softened in property, marine and energy lines, and that future prior-year reserve movements in 2016 could range from a deficiency of less than 1% to a redundancy of about 5% of net loss reserves.
Feb 26, 2016
2014
Markel Group Annual Report, Year Ended Dec 31, 2014
Markel Corporation, now Markel Group Inc., is a diverse financial holding company that underwrites specialty insurance products in niche markets and also owns industrial and service businesses through its wholly-owned subsidiary Markel Ventures, Inc. For 2014, the company reported earned premiums of $3.84 billion, net income to shareholders of $321.2 million (up from $281.0 million in 2013), and a U.S. GAAP combined ratio of 95%, compared with 97% in 2013. Gross premium volume rose to $4.81 billion from $3.92 billion, largely reflecting the May 2013 acquisition of Alterra Capital Holdings Limited and the inclusion of its premiums for a full year. Book value per share increased 14% to $543.96, driven by net income and a $661.7 million increase in net unrealized gains on investments, net of taxes. Total invested assets grew to $18.64 billion, and shareholders' equity reached $7.59 billion. The company recorded $435.5 million of favorable development on prior years' loss reserves in 2014, though it also cautioned that this favorable trend should not be relied upon, and it recorded a $13.7 million goodwill impairment related to the Diamond Healthcare reporting unit. The filing also highlights ongoing exposure to asbestos and environmental claims, with A&E net reserves of $287.7 million, and to equity market risk, since equity securities represented 54% of shareholders' equity at year end. Debt to capital was 23%, down from 25% in 2013, and the company reported approximately 8,600 employees.
Feb 27, 2015
2013
Markel Group Annual Report, Year Ended Dec 31, 2013
Markel Corporation reported a transformative 2013 driven by its acquisition of Alterra Capital Holdings Limited, completed May 1, 2013 for total purchase consideration of $3.3 billion. The company describes itself as a diverse financial holding company serving niche specialty insurance markets, and it also owns industrial and service businesses through Markel Ventures. Net income to shareholders rose to $281.0 million in 2013 from $253.4 million in 2012, and total operating revenues increased to $4.32 billion from $3.00 billion. The U.S. GAAP combined ratio was 97% in 2013, flat with 2012, and included $411.1 million of favorable development on prior years' loss reserves. Balance sheet size expanded sharply. Total assets rose to $23.96 billion from $12.56 billion, invested assets reached $17.6 billion, and shareholders' equity grew to $6.67 billion from $3.89 billion, largely reflecting equity issued for Alterra. Book value per share increased 18% to $477.16, and the company stated a five-year compound annual growth rate of 17%. Gross premium volume grew to $3.92 billion from $2.51 billion, with the Alterra segment contributing $1.04 billion. The filing also highlights integration and concentration risks. Alterra integration costs totaled $75.1 million in 2013, and the company noted that equity securities were 49% of shareholders' equity at year end, down from 62% a year earlier. Management said the property and casualty market remains soft, with softening prices on catastrophe-exposed property and reinsurance lines in the fourth quarter of 2013. The company also agreed to acquire Abbey Protection plc for $190.0 million, completed January 17, 2014.
Feb 28, 2014
2012
Markel Group Annual Report, Year Ended Dec 31, 2012
Markel Corporation (now Markel Group Inc., NYSE: MKL) is a diverse financial holding company that underwrites specialty insurance across three segments: Excess and Surplus Lines, Specialty Admitted, and the London Insurance Market, and also owns industrial and service businesses through Markel Ventures. In 2012 the company reported gross premium volume of $2.51 billion, up from $2.29 billion in 2011, a consolidated U.S. GAAP combined ratio of 97% versus 102% in 2011, and net income to shareholders of $253.4 million versus $142.0 million. Book value per share rose 15% to $403.85, and favorable development on prior years' loss reserves totaled $399.0 million. The most significant pending event is the agreement, announced December 2012, to merge Alterra Capital Holdings Limited into a Markel subsidiary for approximately $3.1 billion in stock and cash, with closing expected in the first half of 2013 subject to regulatory approvals. Current shareholders would own roughly 69% of the combined company. The filing also describes the completed acquisition of Essentia Insurance Company, effective January 1, 2013, and several 2012 acquisitions including Thompson Insurance Enterprises and non-insurance businesses such as Havco, Tromp and Reading. Balance-sheet highlights include total assets of $12.56 billion, shareholders' equity of $3.89 billion, senior long-term debt and other debt of $1.49 billion, and invested assets of $9.33 billion. The company reported a 2012 taxable equivalent total investment return of 9.0%, and it noted that equity securities were 62% of shareholders' equity. Management described market conditions as having improved during 2012, with mid-single digit favorable rate changes across the portfolio.
Feb 28, 2013
2011
Markel Group Annual Report, Year Ended Dec 31, 2011
Markel Corporation's 2011 Form 10-K describes the company as a diverse financial holding company that underwrites specialty insurance across three segments (Excess and Surplus Lines, Specialty Admitted and London Insurance Market) and owns industrial and service businesses through Markel Ventures. In 2011, gross premium volume was $2.29 billion, earned premiums were $1.98 billion, and the U.S. GAAP combined ratio was 102%, indicating an underwriting loss of $40.8 million. The company attributed the deterioration largely to natural catastrophes, which contributed $152.4 million, or eight points, of underwriting loss, while favorable development on prior years' loss reserves totaled $354.0 million. Net income to shareholders fell to $142.0 million, or $14.60 per diluted share, from $266.8 million in 2010. Investment results were supported by net investment income of $263.7 million and net realized investment gains of $35.9 million, and net unrealized gains on investments increased $182.7 million. Book value per share rose 8% to $352.10, and shareholders' equity reached $3.39 billion. Senior long-term debt and other debt increased to $1.29 billion, reflecting a $250 million issuance of 5.35% senior notes in June 2011. The filing highlights ongoing soft-market pricing pressure, particularly in professional and products liability within the Excess and Surplus Lines segment, and acquisitions including Aspen Holdings' FirstComp workers' compensation unit and several non-insurance businesses. Management also disclosed that its best estimate of net reserves exceeded the actuarial point estimate by $365 million at year-end 2011.
Feb 28, 2012
2010
Markel Group Annual Report, Year Ended Dec 31, 2010
Markel Corporation (now Markel Group Inc.) reported a solid 2010 with net income to shareholders of $266.8 million, up from $201.6 million in 2009, and diluted net income per share of $27.27. Book value per share rose to $326.36 from $282.55, and shareholders' equity reached $3.17 billion. The company's U.S. GAAP combined ratio was 97% in 2010, compared with 95% in 2009, reflecting higher catastrophe losses (including the Chilean earthquake and Deepwater Horizon explosion), higher expense ratios tied to the Atlas system initiative, and losses on two mortgage-related programs. Favorable development on prior years' loss reserves of $278.0 million helped offset these pressures. Gross premium volume rose to $1.98 billion from $1.91 billion, driven by the acquisition of Aspen Holdings (FirstComp workers' compensation) in October 2010 and growth in the London Insurance Market segment, while the Excess and Surplus Lines segment declined. Net investment income was $272.5 million and net realized investment gains were $36.4 million, with a taxable equivalent total investment return of 7.9% for 2010. Management highlighted that the company remains in a soft insurance market, with price deterioration across many product lines, and that the company has not paid a cash dividend on its common stock. Investors should note the concentration of equity holdings, with equity securities at 54% of shareholders' equity at year-end 2010, and the company's exposure to asbestos and environmental claims, with net A&E reserves of $216.0 million. The company also authorized a share repurchase program of up to $200 million in November 2010, of which $2.8 million had been used by year-end.
Feb 28, 2011
2009-A
Markel Group Annual Report (Amendment), Year Ended Dec 31, 2009
This Form 10-K/A (Amendment No. 1) from Markel Corporation for the fiscal year ended December 31, 2009 was filed in response to SEC staff comments. It does not contain full financial statements or a business overview. Its purpose is narrow: it restates Item 9A (Controls and Procedures) to state more clearly the CEO and CFO conclusions on disclosure controls, and it amends portions of Part III information incorporated from the 2010 Proxy Statement, including nominee biographies for Alan I. Kirshner, Anthony F. Markel, Steven A. Markel and Jay M. Weinberg, and a paragraph on the Nominating/Corporate Governance Committee. The CEO and CFO concluded that effective Disclosure Controls were in place as of December 31, 2009. The filing states that there were no changes in internal control over financial reporting during the fourth quarter of 2009 that materially affected, or were reasonably likely to materially affect, those controls. The reference to the auditor's attestation report on internal control is left blank in this amendment. The governance disclosures show a board of ten directors, with the company describing itself as having grown from approximately $60 million in total assets to over $10 billion under the senior management team of Mr. Kirshner, Anthony Markel and Steven Markel. The filing identifies the Board's independence determinations under NYSE rules, the committee memberships, and Section 16(a) late Form 4 reports for two transactions. The original Form 10-K, filed March 1, 2010, contains the financial results and is referenced but not included here.
Jun 17, 2010
2009
Markel Group Annual Report, Year Ended Dec 31, 2009
Markel Corporation's 2009 annual report describes a specialty insurer that markets and underwrites niche P&C products through three segments: Excess and Surplus Lines, Specialty Admitted, and London Insurance Market. In 2009 gross premium volume fell to $1.91 billion from $2.21 billion in 2008, and earned premiums declined to $1.82 billion from $2.02 billion, reflecting continued soft-market competition and the economic downturn. The company reported a U.S. GAAP combined ratio of 95% in 2009, compared with 99% in 2008, and an underwriting profit of $86.3 million. Net income to shareholders was $201.6 million, versus a net loss of $58.8 million in 2008, driven mainly by lower net realized investment losses of $96.1 million (versus $407.6 million in 2008) and favorable development of $235.3 million on prior-year loss reserves. Investment results improved sharply. The taxable equivalent total portfolio return was 13.2% in 2009 after -9.6% in 2008, and net unrealized gains rose $566.7 million. Book value per share increased 27% to $282.55, and shareholders' equity reached $2.77 billion. Total investments and cash were $7.85 billion at year-end. Debt rose to $964 million after the issuance of $350 million of 7.125% senior notes due 2019, and the company acquired Elliott Special Risks and several non-insurance businesses during the fourth quarter. The filing also flags risks that matter to investors: management's best estimate of net reserves exceeded the actuarial point estimate by $371 million (8.9%), a pending Guaranty Bank lawsuit against subsidiary Evanston Insurance Company, and the One Markel initiative, now expected to cost about $140 million and take longer than originally planned. Equity securities represented 49% of shareholders' equity at year-end.
Mar 1, 2010
2008
Markel Group Annual Report, Year Ended Dec 31, 2008
Markel Corporation's 2008 annual report reports a net loss of $58.8 million, compared with net income of $405.7 million in 2007, as results were hit by $339.2 million of other-than-temporary impairment write-downs on investments and a 2008 combined ratio of 99%. Underwriting profit fell to $14.6 million from $264.4 million, largely because of $94.8 million of underwriting losses from Hurricanes Gustav and Ike. Net investment income was $283.7 million, while net realized investment losses were $407.6 million, and net unrealized holding gains fell by $507.5 million. Book value per share declined 16% to $222.20, and shareholders' equity dropped to $2.18 billion from $2.64 billion. The company operates three specialty insurance segments: Excess and Surplus Lines (gross premium volume of $1.16 billion, underwriting profit of $88.2 million), Specialty Admitted ($355.1 million gross premium, underwriting loss of $18.2 million), and London Insurance Market ($693.1 million gross premium, underwriting loss of $27.3 million). Management is pursuing a multi-year "One Markel" initiative to move the Excess and Surplus Lines units to a customer-focused regional structure, and it is aggressively pursuing price increases in many product lines. Favorable prior-year reserve development was $163.8 million, but the filing also disclosed $24.9 million of adverse asbestos and environmental development. Equity securities were 49% of shareholders' equity at year-end 2008, versus 70% a year earlier, and the filing notes that a 35% decline in equity prices could cause a material decrease in shareholders' equity. The filing also discloses a pending lawsuit filed February 10, 2009 by Guaranty Bank against subsidiary Evanston Insurance Company, with the limit of additional liability estimated at about $135 million. Management believes the plaintiff is not entitled to the relief sought but says the outcome cannot be predicted at this time.
Mar 2, 2009
2007
Markel Group Annual Report, Year Ended Dec 31, 2007
Markel Corporation (now Markel Group Inc.) reported 2007 net income of $405.7 million, up from $392.5 million in 2006, and diluted net income per share of $40.64. Book value per share rose 15% to $265.26, driven by net income partially offset by a $74.0 million decrease in net unrealized holding gains, net of taxes. Over the past five years, book value per share has compounded at an annual rate of 18%. The company operates in three specialty insurance segments: Excess and Surplus Lines, Specialty Admitted and London Insurance Market. Gross premium volume fell to $2.36 billion in 2007 from $2.54 billion in 2006, reflecting increased competition and the company's underwriting discipline in softening market conditions. The U.S. GAAP combined ratio was 88% in 2007, compared with 87% in 2006, and underwriting profit was $264.4 million. Favorable development on prior years' loss reserves totaled $197.3 million, though this was partially offset by $34.0 million of adverse development on asbestos and environmental exposures. Net investment income rose to $306.5 million, and net realized investment gains were $59.5 million. Total investments and cash reached $7.79 billion, and shareholders' equity grew to $2.64 billion. The company expects competition in the property and casualty industry to remain strong in 2008, and management notes that rates in several lines have declined. Risk factors highlighted in the filing include potential catastrophe losses, uncertainty in loss reserve estimates (particularly for asbestos and environmental claims), and a pending Louisiana Supreme Court question on flood coverage related to Hurricane Katrina, whose adverse ruling could materially increase losses. The company paid no cash dividend, choosing to retain earnings, and its debt-to-total-capital ratio decreased to 20% from 27% after 2007 debt redemptions.
Feb 29, 2008
2006
Markel Group Annual Report, Year Ended Dec 31, 2006
Markel Corporation (now Markel Group Inc.) reported a strong 2006 in its 10-K filed March 1, 2007. Net income rose to $392.5 million from $147.9 million in 2005, and the U.S. GAAP combined ratio improved to 87% from 101%. Underwriting profit was $283.9 million, compared with an underwriting loss of $11.8 million in 2005. The filing attributes the improvement to a benign hurricane season relative to 2005, lower losses from the 2005 Hurricanes (Katrina, Rita and Wilma), and favorable development on prior years' loss reserves of $132.3 million. Gross premium volume grew to $2.54 billion from $2.40 billion, and earned premiums reached $2.18 billion. The company operates in three segments: Excess and Surplus Lines, Specialty Admitted, and the London Insurance Market. Shareholders' equity increased to $2.30 billion from $1.71 billion, and book value per share rose 32% to $229.78. Net investment income was $271.0 million, and the taxable equivalent total investment return was 11.2%. The filing also flags material risks. Louisiana court rulings on flood coverage after Hurricane Katrina could increase losses, and the company said the impact "may be material" but could not yet quantify it. Asbestos and environmental reserves were increased, and the company noted continuing competitive pressure on pricing in 2007.
Mar 1, 2007
2005
Markel Group Annual Report, Year Ended Dec 31, 2005
Markel Corporation's 2005 Form 10-K reports net income of $147.9 million, down from $165.4 million in 2004, with diluted net income per share of $14.80 versus $16.41. The decline was driven primarily by an underwriting loss of $11.8 million, compared with an underwriting profit of $72.1 million in 2004, largely due to losses from Hurricanes Katrina, Rita and Wilma. The consolidated U.S. GAAP combined ratio rose to 101% from 96%, and the filing attributes $246.3 million of estimated hurricane losses, or 12 points on the combined ratio, to the 2005 hurricanes. Partially offsetting this, net investment income rose to $242.0 million from $204.0 million, and book value per share increased 3% to $174.04. The company operates in three specialty insurance segments: Excess and Surplus Lines (gross premium volume of $1.44 billion, underwriting profit of $96.2 million), Specialty Admitted ($318.7 million gross premium volume, underwriting profit of $50.3 million), and the London Insurance Market ($641.0 million gross premium volume, underwriting loss of $129.5 million). Total shareholders' equity was $1.71 billion, and total assets were $9.81 billion. Net cash from operating activities declined to $551.3 million from $690.7 million. The filing also discloses a Securities and Exchange Commission subpoena received in October 2005 relating to an inquiry into certain loss mitigation insurance products, which the company says it has fully cooperated with. Management also disclosed a pending investment in First Market Bank, expected to close in 2006, and a share repurchase program of up to $200 million approved in August 2005. The company states it has not paid a cash dividend and does not expect to do so, choosing instead to retain earnings.
Mar 3, 2006
2004
Markel Group Annual Report, Year Ended Dec 31, 2004
Markel Corporation reported 2004 net income of $165.4 million, up from $123.5 million in 2003, on earned premiums of $2.05 billion and total operating revenues of $2.26 billion. Diluted net income per share was $16.41, versus $12.31 in 2003. The company's U.S. GAAP combined ratio improved to 96% from 99%, and the company reported an underwriting profit of $72.1 million. Book value per share rose to $168.22 from $140.38, and shareholders' equity reached $1.66 billion at year end. The company operates in three specialty segments: Excess and Surplus Lines, Specialty Admitted, and London Insurance Market. The London segment posted an underwriting loss of $99.9 million in 2004, driven partly by $46.1 million of hurricane losses and $30.0 million of prior-year reserve increases. Growth and earnings quality were mixed. Gross premium volume fell about 2% to $2.52 billion, as the Excess and Surplus Lines segment declined 3% and the London segment declined 5%, reflecting increased competition and pricing pressure. Net investment income rose to $204.0 million, and the investment portfolio grew to $6.3 billion. Prior-year reserve increases were $33.9 million in 2004, down sharply from $128.6 million in 2003, though the company did strengthen reserves at Investors Brokered Excess and Surplus Lines and at Markel International. Management noted continued pricing pressure expected in 2005. The balance sheet expanded, with total assets of $9.40 billion and senior long-term debt of $610.3 million after a $200 million issuance of 7.35% senior notes due 2034. The company sold its Corifrance subsidiary on January 11, 2005 for approximately $60 million, and it does not pay a cash dividend, choosing to retain earnings. The filing also discloses $1.8 billion of reinsurance recoverables, with the ten largest reinsurers representing 57% of that balance.
Mar 1, 2005
2003
Markel Group Annual Report, Year Ended Dec 31, 2003
Markel Corporation filed this Form 10-K for the fiscal year ended December 31, 2003, describing itself as a seller of specialty insurance products and programs in niche markets across three segments: Excess and Surplus Lines, Specialty Admitted, and London. In 2003 the company reported net income of $123.5 million, or $12.52 per diluted share, up from $75.3 million in 2002. Gross premium volume rose to $2.57 billion from $2.22 billion, and earned premiums reached $1.86 billion. The consolidated U.S. GAAP combined ratio improved to 99% from 103%, producing an underwriting profit of $10.0 million compared with an underwriting loss of $52.7 million in 2002. Book value per share increased 19% to $140.38, and shareholders' equity rose to $1.38 billion. The results were shaped by reserve strengthening. Prior-year loss reserve increases totaled $128.6 million, including $55.0 million for asbestos and environmental exposures and $91.1 million at the Investors Brokered Excess and Surplus Lines unit. The Other segment posted an underwriting loss of $96.1 million, and the London Insurance Market segment had an underwriting loss of $25.2 million. Net investment income was $182.6 million and net realized gains were $45.0 million. Operating cash flow was $631.5 million. Balance sheet items to note include total assets of $8.53 billion, unpaid losses and loss adjustment expenses of $4.93 billion, and senior long-term debt of $521.5 million after the issuance of $250 million of 6.80% senior notes due 2013. Reinsurance recoverables totaled $1.77 billion, with the ten largest reinsurers representing about 60%. The company paid no cash dividend and stated its strategy is to retain earnings.
Mar 15, 2004
2002
Markel Group Annual Report, Year Ended Dec 31, 2002
Markel Corporation, a Virginia corporation listed on the New York Stock Exchange, reported for fiscal 2002 net income of $75.3 million, or $7.65 per diluted share, compared with a net loss of $125.7 million in 2001. Total operating revenues rose to $1.77 billion from $1.40 billion, and earned premiums increased to $1.55 billion from $1.21 billion. Gross premium volume reached $2.2 billion, up from $1.8 billion, driven by the Excess and Surplus Lines and Specialty Admitted segments. The U.S. GAAP combined ratio improved to 103% from 124% in 2001, and the London Insurance Market segment improved to 107% from 134%. Book value per share rose 7% to $117.89. The result still carries notable reserve pressure. The company recorded $131.6 million of prior-year reserve increases in 2002, including $66.3 million in Other (Discontinued Lines), of which $35.0 million related to asbestos exposures. Gross asbestos-related reserves were $255.7 million at year end. Other (Discontinued Lines) produced an underwriting loss of $68.9 million, and the company disclosed that its IRS examination of 1997 to 1999 returns includes an assessment based on alleged reserve overstatements, which it is appealing. Liquidity improved, with operating cash flow of $507.4 million versus $164.5 million in 2001. Debt to total capital was 27%, and the company issued $200 million of 6.80% senior notes due 2013 in February 2003 to repay revolver borrowings. The company stated it does not intend to pay cash dividends and expects its combined ratio to improve during 2003 as rate increases are earned.
Mar 26, 2003
2000
Markel Group Annual Report, Year Ended Dec 31, 2000
Markel Corporation, an insurance holding company, reported a 2000 net loss of $27.6 million (diluted loss of $3.99 per share), compared with net income of $40.6 million in 1999, while comprehensive income rose to $81.5 million on unrealized investment gains. The result was driven by the March 2000 acquisition of Terra Nova (Bermuda) Holdings Ltd., now Markel International, whose continuing operations posted a 116% combined ratio. Consolidated combined ratio reached 114% versus 101% in 1999, with North America at 97%. Gross premium volume nearly doubled to $1.13 billion, and earned premiums rose to $938.5 million from $437.2 million. Book value per share increased 50% to $102.63, and shareholders' equity rose to $752.4 million. Total investments and cash grew to $3.14 billion, and the investment portfolio returned 12% in 2000. Debt to total capital (Capital Securities as debt) was 49%, or 39% with the Capital Securities treated as equity. Management noted that in February 2001 the company completed an offering of 1,288,940 shares with net proceeds of about $198.5 million, which it expects to use to repay or retire long-term debt. Management describes the North American specialty business as performing well in a firming market, with gross written premiums up 27%. Management attributes the International underwriting losses to business on the books before the acquisition and says it is repricing and reunderwriting that business. The filing also notes a lawsuit seeking approximately $27 million against Terra Nova, which the company intends to defend vigorously.
Mar 27, 2001