01—Abstract
Summary
Summary of the 10-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Markel Group Inc. (NYSE: MKL) reported operating revenues of $15.51 billiona 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 billionb 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 billionc. 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 billiond, $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.
02—Key points
Key Highlights
- Operating revenues rose to $15.51 billion in 2025 from $14.81 billion in 2024, while operating income declined to $3.19 billion from $3.71 billion.
- Adjusted operating income increased to $2.30 billion ($182 per share) from $2.09 billion ($163 per share), excluding net investment gains of $1.08 billion.
- Markel Insurance posted a 95% combined ratio and $1.38 billion of adjusted operating income, with favorable prior accident year development of $484.0 million.
- Gross premium volume at Markel Insurance grew to $12.50 billion, with fronting premiums rising to $1.85 billion from $1.31 billion.
- Net income to shareholders fell to $2.11 billion from $2.75 billion, and diluted net income per share was $169.22 versus $199.32.
- Equity securities were 70% of shareholders' equity, and the ten largest equity holdings represented 45% of the equity portfolio, increasing earnings volatility.
- The company repurchased $429.5 million of shares, redeemed its $600 million Series A preferred shares, and retained $1.5 billion of its repurchase authorization.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 26, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $15.51B$14.81B | +4.7% |
| Operating Expenses | $13.39B$12.91B | +3.8% |
| Operating Income | $3.19B$3.71B | −13.9% |
| Interest Expense | $205.91M$204.30M | +0.8% |
| Net Income | $2.11B$2.75B | −23.3% |
| EPS (Basic) | $169.74$199.69 | −15.0% |
| EPS (Diluted) | $169.22$199.32 | −15.1% |
| Shares Outstanding (Basic) | 12.61M13.02M | −3.1% |
| Shares Outstanding (Diluted) | 12.65M13.04M | −3.0% |
05—Questions
Frequently Asked Questions
Why did net income decline in 2025 despite higher adjusted operating income?
Net investment gains were $1.08 billion in 2025 compared with $1.81 billion in 2024, and net foreign exchange moved from a $129.4 million gain to a $256.2 million loss. Operating income also fell to $3.19 billion from $3.71 billion, even as adjusted operating income, which excludes investment gains, rose to $2.30 billion.
How is the Markel Insurance underwriting business performing?
Markel Insurance achieved a 95% combined ratio in 2025, compared with 95% in 2024 and 99% in 2023, and underwriting profit rose to $455.7 million from $367.0 million. Favorable development on prior accident years was $484.0 million, partly offset by $128.8 million of adverse development on run-off risk-managed directors and officers lines.
What is the company's exposure to equity market volatility?
Equity securities were $13.00 billion at December 31, 2025, or 70% of shareholders' equity. A hypothetical 35% decrease in equity prices would reduce shareholders' equity by an estimated 19.3%. The filing notes that the portfolio is concentrated, with $1.6 billion in Berkshire Hathaway common stock.
Does Markel Group pay dividends, and how is it returning capital?
The company has not paid and does not expect to pay a cash dividend on common stock, and it intends to retain earnings. It repurchased 223,288 shares in 2025 for $429.5 million under a $2 billion program, leaving $1.5 billion available as of December 31, 2025.
What are the main risks to the Global Reinsurance run-off and reserves?
After selling renewal rights in August 2025, the Global Reinsurance division's gross premium volume was $1.0 billion in 2025, and its loss reserves are expected to take several more years to run off. The division had a two-point unfavorable impact on the Markel Insurance combined ratio in 2025, and the company recorded $18.6 million of adverse development on it.
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