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MKL · Markel Group

50 filings

10-Q

MKL 10-Q Quarterly Reports

Markel Group - 50 quarterly reports

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

MKL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 100 current reports (8-K) between 2016 and 2026.

  1. FY2015 annual report10-K · Feb ’16Feb ’16
  2. Material agreement8-K · Apr ’19Apr ’19
  3. Leadership change8-K · Aug ’21Aug ’21
  4. Leadership change8-K · May ’25May ’25
  1. 2026-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2026

    Markel Group Inc. reported net income to shareholders of $259.3 million for the quarter ended September 30, 2026, compared with $751.3 million in the same quarter of 2025, and $1.22 billion for the nine months ended September 30, 2026, compared with $1.53 billion a year earlier. Quarterly results were pressured by a $280.9 million net investment loss, compared with a $432.9 million gain in the prior-year quarter, and by $74.6 million of net losses from the Middle East conflict. Total operating revenues rose to $4.16 billion for the quarter from $3.93 billion, and adjusted operating income was $707.4 million versus $621.0 million. Markel Insurance's combined ratio was 91.9% for the quarter and 92.5% for the nine months, and the company recorded a $205.3 million provision for expected credit losses tied to a capacity provider in bankruptcy within its State National fronting operations. Balance sheet and capital activity were also notable. Total equity was $18.51 billion at September 30, 2026, down from $18.60 billion at year-end 2025, as accumulated other comprehensive loss grew to $(720.7) million on unrealized losses in the fixed maturity portfolio. The company repurchased $685.3 million of common stock in the first nine months, and $832.6 million remained available under its $2 billion repurchase program. Operating cash flow was $1.39 billion for the nine months, down from $2.10 billion, reflecting a $240.9 million decline in premium collections from the run-off Global Reinsurance division. A subsequent event disclosed in the filing is an adverse development cover reinsurance agreement, entered into October 27, 2026, with Cavello Bay Reinsurance Limited, a subsidiary of Enstar Group Limited. The agreement covers $4.8 billion of subject reserves, with Markel retaining the first $2.6 billion and providing $1.2 billion of coverage above that, in exchange for a $120 million risk premium. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals.

    Oct 28, 2026
  2. 2026-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2026

    Markel Group Inc. reported second-quarter 2026 operating income of $1.56 billion and net income to common shareholders of $1.17 billion, compared with $631.0 million in the second quarter of 2025. Net investment gains were $1.17 billion versus $580.2 million a year earlier, while adjusted operating income fell to $436.1 million from $578.3 million, reflecting a $205.3 million provision for expected credit losses in the State National fronting operations. Markel Insurance adjusted operating income rose to $376.5 million from $269.8 million, with the combined ratio improving to 93% from 97%, though the Middle East conflict added $41.0 million of net losses in the quarter. For the six months ended June 30, 2026, net income to common shareholders was $956.6 million versus $752.8 million, and adjusted operating income was $933.9 million versus $1.06 billion. Total assets were $71.26 billion and total equity was $19.00 billion at June 30, 2026. Net cash provided by operating activities was $444.8 million for the six months, down from $880.6 million, and the company repurchased $370.7 million of common stock during the period. The filing states that the Middle East conflict is ongoing and that additional losses may be material. The provision for the bankrupt capacity provider in the fronting business, along with the Hagerty and Global Reinsurance transitions, are the main drivers of lower premium volume and changes in the segment mix that investors should monitor.

    Jul 29, 2026
  3. 2026-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2026

    Markel Group Inc. reported a net loss to shareholders of $212.3 million, or $(18.90) per diluted share, for the first quarter of 2026, compared with net income to shareholders of $121.7 million, or $12.08 per diluted share, in the first quarter of 2025. The swing was driven by net investment losses of $727.6 million, largely from a $729.6 million change in fair value of equity securities, compared with net investment losses of $149.1 million a year earlier. Operating results were steadier: adjusted operating income rose to $497.7 million from $478.5 million, led by Markel Insurance, whose adjusted operating income increased to $369.5 million from $282.1 million and whose combined ratio improved to 93% from 96%. The Markel Insurance results were affected by $35.0 million of net losses from the Middle East conflict, which the company said represented two points on the combined ratio. The filing states that additional losses may be incurred in subsequent periods and could be material. Favorable prior-year reserve development was $104.1 million, down from $150.1 million in the prior-year quarter. Net cash provided by operating activities fell to $15.9 million from $376.2 million, which the company attributed mainly to higher net claims payments and lower net premiums collected in Markel Insurance, including $107.7 million of payments tied to the Hagerty fronting transition. At March 31, 2026, total equity was $18.13 billion, down from $18.60 billion at year-end 2025, and invested assets were $36.5 billion. The debt-to-capital ratio was 19%. The company repurchased $133.9 million of common stock during the quarter and had $1.4 billion remaining under its $2 billion repurchase authorization. Management also disclosed that the Global Reinsurance division is in run-off following the August 2025 sale of its renewal rights, and that Hagerty business moved to a fronting arrangement effective January 1, 2026.

    Apr 28, 2026
  4. 2025-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2025

    Markel Group Inc. reported third-quarter 2025 net income to shareholders of $751.3 million, or $59.44 basic earnings per common share, compared with $905.0 million, or $66.40 per share, in the third quarter of 2024. For the nine months ended September 30, 2025, net income to common shareholders was $1.50 billion, or $120.92 per basic share, versus $2.18 billion, or $160.71, a year earlier. Results were affected by net investment gains of $432.9 million in the quarter (versus $917.5 million) and foreign exchange losses of $245.3 million for the nine months. Adjusted operating income rose to $621.0 million in the quarter from $500.3 million and to $1.68 billion for the nine months from $1.56 billion. Markel Insurance's combined ratio was 92.7% in the quarter versus 96.9% a year earlier, and its nine-month combined ratio was 95.2%, consistent with 95.3% in 2024. The company made several structural changes this quarter. It reorganized into four reportable segments (Markel Insurance, Industrial, Financial, and Consumer and Other), stopped allocating certain corporate expenses to segments, and changed the presentation of net investment gains to sit outside operating revenues. In August 2025, Markel Insurance sold the renewal rights for its Global Reinsurance division, which entered run-off. Capital actions in 2025 included the June redemption of all 600,000 Series A preferred shares for $600.0 million and common share repurchases of $344.0 million for the nine months, leaving $1.6 billion available under the $2 billion program. Total assets were $67.39 billion at September 30, 2025, and total equity was $18.06 billion. The balance sheet and reserves moved as well. Gross unpaid losses and loss adjustment expenses rose to $29.14 billion from $26.63 billion at year-end 2024. The company recorded $360.5 million of favorable prior-year reserve development for the nine months, net of $142.3 million of adverse development on run-off directors and officers lines. A July 2025 commutation of ceded reinsurance contracts with Nephila Reinsurers reduced reserves by $312.2 million and produced a cash payment of $292.6 million. The filing also estimates $56.6 million of net losses from the January 2025 California wildfires.

    Oct 29, 2025
  5. 2025-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2025

    Markel Group Inc. reported a strong second quarter of 2025, with net income to common shareholders of $631.0 million, or $49.80 per basic share, compared with $249.7 million, or $18.66 per basic share, in the second quarter of 2024. For the six months ended June 30, 2025, net income to common shareholders was $752.8 million, or $61.76 per basic share, versus $1.27 billion, or $94.40 per basic share, a year earlier. Operating income for the quarter was $1.11 billion, up from $410.0 million, though the company's Investing segment drove much of the swing, with net investment gains of $580.2 million versus losses of $130.0 million in the prior-year quarter. Insurance operations were weaker: the Markel Insurance segment's operating income fell to $60.3 million from $123.9 million, and its combined ratio rose to 96.9% from 93.8%, reflecting $127.0 million of adverse development on run-off risk-managed directors and officers product lines and $49.5 million of adverse development tied to the Global Reinsurance division. The balance sheet grew, with total assets of $66.79 billion at June 30, 2025, up from $61.90 billion at December 31, 2024, and total shareholders' equity of $17.32 billion. During the period the company redeemed all 600,000 of its 6.00% Series A preferred shares for $600.0 million and repurchased $269.6 million of common stock. Markel Ventures segment operating income rose to $207.7 million for the quarter from $177.5 million. Net cash provided by operating activities was $880.6 million for the six months, compared with $1.21 billion a year earlier. A subsequent event disclosed in the filing is an announced agreement, made July 30, 2025, to sell the renewal rights for the Global Reinsurance division's business, which will then enter run-off. The division's 2024 gross premium volume was $1.2 billion, and the transaction is expected to close in August 2025.

    Jul 30, 2025
  6. 2025-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2025

    Markel Group Inc. reported a first-quarter 2025 net income to common shareholders of $121.7 million, or $12.08 diluted net income per common share, compared with $1.03 billion, or $75.43 diluted, in the first quarter of 2024. The decline was driven primarily by pre-tax net investment losses of $147.3 million on equity securities in 2025, versus pre-tax net investment gains of $906.8 million on equity securities in the prior-year period. Operating income fell to $282.5 million from $1.34 billion. Underwriting profit decreased to $87.3 million from $101.1 million, with a combined ratio of 95.8% compared with 95.2%, which included $80.6 million of underwriting losses from the California Wildfires in January 2025. Balance sheet growth was notable: total assets rose to $64.60 billion from $61.90 billion at year-end 2024, and total shareholders' equity increased to $17.15 billion from $16.92 billion, helped by a $225.9 million other comprehensive income swing. Cash flow from operations was $376.2 million, down from $630.7 million, which the filing attributes to lower net premium collections and higher gross claims payments. The company repurchased $170.3 million of common stock during the quarter, and $1.7 billion remained available under its $2 billion share repurchase program. The filing also highlights the consolidation of Educational Partners International (EPI) on January 16, 2025, and the finalization of the Valor Environmental purchase price allocation, which reduced goodwill by a net $34.2 million. Favorable prior-year reserve development of $150.1 million supported underwriting results, and the company noted that its 6.0% senior notes issued in May 2024 drove higher interest expense, with the 600,000 preferred shares eligible for redemption on June 1, 2025.

    Apr 30, 2025
  7. 2024-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2024

    Markel Group Inc. reported a strong third quarter of 2024, with net income to shareholders of $904.96 million (diluted EPS of $66.25) versus $42.59 million in the same quarter of 2023. Total operating revenues rose to $4.61 billion from $3.38 billion, driven mainly by net investment gains of $917.5 million, largely from equity securities. Operating income was $1.37 billion versus $72.8 million a year earlier. For the nine months, net income to shareholders was $2.20 billion, with diluted EPS of $160.42, compared with $1.23 billion a year earlier. The Insurance segment's quarterly combined ratio improved to 94.1% from 98.6%, though Reinsurance worsened to 113.4%, and the company said it discontinued writing its public entity reinsurance product line in the third quarter. Balance sheet and capital activity were active during the period. Total assets reached $62.28 billion and total equity $17.15 billion at September 30, 2024. The company issued $600 million of 6.0% senior notes due 2054 in May 2024, with proceeds of $592.6 million, and completed the acquisition of 98% of Valor Environmental for $156.4 million. It repurchased $389.1 million of common stock in the first nine months, with $332.1 million remaining under its $750 million authorization. Operating cash flow was $2.10 billion for the nine months. The filing also flags risks. Markel recognized ongoing losses on its discontinued intellectual property collateral protection insurance product and states that additional claims over the next 12 to 18 months are reasonably possible and could be material. As a subsequent event, the company estimated net losses from Hurricane Milton of $40 million to $80 million before income taxes, to be recorded in the fourth quarter of 2024.

    Oct 30, 2024
  8. 2024-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2024

    Markel Group Inc. (MKL) reported a second quarter 2024 net income to shareholders of $267.7 million, down from $695.5 million in the prior-year quarter, with comprehensive income to shareholders of $244.4 million. The filing attributes the decline primarily to pre-tax net investment losses of $116.0 million on equity securities in the quarter, compared with pre-tax net investment gains of $483.4 million in the same period of 2023. Underlying operating results were steadier: operating income for the six months rose modestly to $1.75 billion, driven by higher interest income on fixed maturity securities, and the company's Markel Ventures segment operating income increased to $281.4 million for the six months. Underwriting results weakened, with the consolidated combined ratio rising to 94.4% for the six months from 93.4%, mainly due to losses on the discontinued intellectual property collateral protection insurance (IP CPI) product. The balance sheet grew, with total assets of $59.71 billion at June 30, 2024, up from $55.05 billion at December 31, 2023. The company issued $600 million of 6.0% unsecured senior notes due 2054 in May 2024, lifting its consolidated debt to capital ratio to 22% from 20%, and the proceeds may be used to redeem preferred shares that become callable on June 1, 2025. The company also acquired 98% of Valor Environmental for $156.4 million in cash in June 2024 and repurchased $260.2 million of common stock in the first six months. Management stated that it believes IP CPI losses in any future quarter are unlikely to be significantly more than those recognized in each of the past two quarters, though additional claims over the next 12 to 18 months are reasonably possible and could be material.

    Jul 31, 2024
  9. 2024-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2024

    Markel Group Inc. reported net income to shareholders of $1.03 billion, or $75.43 per diluted share, for the three months ended March 31, 2024, compared with $488.7 million, or $37.26 per diluted share, in the prior-year quarter. The filing attributes the increase in operating income and comprehensive income primarily to pre-tax net investment gains on equity securities of $906.8 million, compared with $375.8 million in 2023. Operating income rose to $1.34 billion from $753.9 million. Underwriting profit fell to $101.1 million from $119.0 million, with the consolidated combined ratio rising to 95.2% from 94.0%, driven mainly by a higher attritional loss ratio in the Insurance segment. Gross premium volume in the underwriting operations increased 4%, and program services and other fronting gross premium volume rose 50%. Net investment income increased 37% to $218.3 million, reflecting higher yields on fixed maturity securities and higher average holdings. Total invested assets were $32.0 billion at March 31, 2024, up from $30.9 billion at year-end 2023. Net cash provided by operating activities was $630.7 million. The company repurchased $160.9 million of common stock in the quarter and had $553.5 million remaining under its $750 million repurchase authorization. Total shareholders' equity increased to $15.73 billion from $14.98 billion at December 31, 2023. The filing reports that the Markel Ventures segment's operating income rose 13% to $103.9 million and EBITDA rose 12% to $133.6 million. The consolidated debt-to-capital ratio was 20% at both dates. Management also disclosed that it discontinued two professional liability product lines during the quarter because they could not meet profitability targets.

    May 1, 2024
  10. 2023-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2023

    Markel Group Inc. (formerly Markel Corporation; renamed May 26, 2023) reported net income to shareholders of $42.6 million for the quarter ended September 30, 2023, compared with $59.6 million in the third quarter of 2022, and net income to shareholders of $1.23 billion for the nine months, compared with a net loss of $907.9 million a year earlier. Total operating revenues were $3.38 billion for the quarter and $11.16 billion for the nine months. The nine-month swing was driven mainly by $629.3 million of pre-tax net investment gains on equity securities in 2023 versus $2.2 billion of losses in 2022. Book value per common share rose to $1,013.25 from $935.65 at December 31, 2022. Underwriting profit fell sharply in the quarter to $19.3 million from $128.2 million, and the combined ratio rose to 99.1% from 93.4%. Management attributed the deterioration to higher attritional loss ratios in general and professional liability lines, $44.3 million of Insurance segment losses from the 2023 Catastrophes (the Hawaiian wildfires and Hurricane Idalia), $25.0 million of credit losses tied to a fraudulent letter of credit from a Vesttoo Ltd. affiliate, and $23.3 million of adverse prior-year development in the Reinsurance segment. Net investment income rose to $192.2 million for the quarter from $112.6 million, reflecting higher short-term rates. The balance sheet shows total assets of $52.75 billion and total equity of $14.06 billion at September 30, 2023. Senior long-term debt declined to $3.77 billion following the March 2023 retirement of $250.0 million of 3.625% notes, and the company repurchased $269.6 million of common stock in the first nine months. The filing also notes a $125.1 million retroactive reinsurance transaction covering its U.K. motor casualty run-off book and a court ruling in the company's favor in the Yeransian litigation, which Mr. Yeransian has appealed.

    Nov 1, 2023
  11. 2023-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2023

    Markel Group Inc. (formerly Markel Corporation; name changed effective May 26, 2023) reported a sharp swing to profitability in the second quarter of 2023. Net income to shareholders was $695.5 million for the quarter, compared with a net loss to shareholders of $915.8 million in the second quarter of 2022, and net income to shareholders for the six months was $1.18 billion versus a $967.5 million loss a year earlier. The improvement was driven mainly by net investment gains on equity securities of $483.4 million in the quarter (versus losses of $1.6 billion in 2022). Total operating revenues were $4.14 billion for the quarter, and Insurance segment underwriting profit was $134.7 million, with a combined ratio of 92.8% for the consolidated underwriting operations. Underwriting results were solid but slightly weaker than the prior year: the consolidated combined ratio rose to 92.8% from 91.0% in the quarter, driven by a higher current accident year loss ratio and expense ratio, partly offset by more favorable prior accident year development. Gross premium volume grew 15% in the quarter, led by the program services and other fronting business. Markel Ventures reported operating income of $150.2 million for the quarter, up 40%, with improved consumer and building products margins. Balance sheet and capital metrics improved. Total shareholders' equity rose to $14.19 billion from $13.15 billion at year-end 2022, and book value per common share was $1,023.23 versus $935.65 at December 31, 2022. The consolidated debt-to-capital ratio fell to 21% from 24%, following the repayment of $250.0 million of 3.625% senior notes in March 2023. Share repurchases totaled $187.2 million in the first half of 2023, and $323.8 million remained available under the $750 million program at June 30, 2023.

    Aug 2, 2023
  12. 2023-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2023

    Markel Corporation, now Markel Group Inc., reported first-quarter 2023 net income to shareholders of $488.7 million, or $37.26 per diluted share, compared with a net loss to shareholders of $51.7 million in the prior-year quarter. The swing was driven mainly by net investment gains of $372.6 million, versus net investment losses of $358.4 million a year earlier, as equity securities rose in value. Total operating revenues increased to $3.64 billion from $2.61 billion, and underwriting profit was $119.0 million, down from $197.0 million. The combined ratio rose to 94.0% from 88.8%, reflecting a higher attritional loss ratio and less favorable prior-year reserve development, while the Insurance segment's gross premium volume grew and Markel Ventures operating income rose to $72.6 million. Book value per common share was $984.33 at March 31, 2023, up from $935.65 at December 31, 2022. Total shareholders' equity rose to $13.74 billion, and total assets reached $50.94 billion. The company retired its $250.0 million 3.625% senior notes due March 2023 and repurchased $82.0 million of common stock during the quarter. Management noted a $125.1 million payment to complete a retroactive reinsurance transaction ceding its run-off U.K. motor casualty book, which reduced operating cash flow to $284.2 million from $414.9 million. The filing also reflects adoption of ASU 2018-12 for long-duration contracts, with prior periods restated. The Markel CATCo Re run-off produced $44.8 million of favorable reserve development attributable to noncontrolling interests, and the company disclosed that the consolidated debt-to-capital ratio fell to 22% from 24%.

    Apr 26, 2023
  13. 2022-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2022

    Markel Corporation (now Markel Group Inc.) reported a sharply weaker third quarter and nine months of 2022, driven by investment losses rather than underwriting. For the nine months ended September 30, 2022, the company recorded a net loss to shareholders of $903.8 million (net loss to common shareholders of $921.8 million, or $(72.31) per diluted share), compared with net income to shareholders of $1.55 billion in the prior-year period. Net investment losses were $2.19 billion, compared with net investment gains of $1.18 billion a year earlier, reflecting declines in the fair value of the equity portfolio and rising interest rates that reduced fixed maturity values. Total shareholders' equity fell to $12.29 billion from $14.72 billion at December 31, 2021, and book value per common share decreased 16% to $868.68. The underlying insurance business remained profitable. Underwriting profit for the nine months was $490.1 million, with a combined ratio of 91.2%, and gross premium volume grew 19% to $7.53 billion. The Insurance segment's combined ratio was 90.7% and the Reinsurance segment's was 92.5% for the period. Results included $70.0 million of net losses from Hurricane Ian and $35.0 million from the Russia-Ukraine conflict, and the Insurance segment's favorable prior-year reserve development fell to $196.1 million from $397.7 million. Markel Ventures operating income rose 1% to $217.2 million, helped by acquisitions and higher construction-services demand, though rising material and labor costs weighed on margins. Capital and portfolio actions included the March 2022 buy-out of Markel CATCo Funds, which led to consolidation of Markel CATCo Re, the February 2022 sale of Velocity, and the October 2022 agreement to sell Volante for an estimated $155 million. The company retired its $350.0 million 4.90% senior notes in July 2022 and repurchased $208.1 million of common stock during the nine months, with $585.6 million remaining under its $750 million authorization.

    Nov 1, 2022
  14. 2022-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2022

    Markel Corporation (now Markel Group Inc.) reported a sharp swing to losses in the second quarter and first half of 2022, driven mainly by investment results rather than underwriting. The company posted a net loss to shareholders of $916.4 million for the quarter and $969.2 million for the six months ended June 30, 2022, compared with net income to shareholders of $792.1 million and $1,365.8 million in the same periods of 2021. Net investment losses were $1,554.6 million for the quarter and $1,913.0 million for the six months, reflecting declines in the fair value of the equity portfolio and rising interest rates, which also drove a $1.1 billion pre-tax net unrealized loss on fixed maturity securities for the first half. Total shareholders' equity fell to $12.76 billion at June 30, 2022 from $14.72 billion at December 31, 2021, and book value per common share decreased 13%, from $1,036.20 to $898.53. Underwriting continued to grow. Gross premium volume rose 20% in the quarter to $2.53 billion and 18% in the six months to $5.05 billion, and earned premiums increased 17% in both periods. The combined ratio was 91.0% for the quarter, up from 86.9%, while the six-month combined ratio improved to 89.9% from 90.4%. Underwriting results absorbed $35.0 million of net losses from the Russia-Ukraine conflict in the first quarter, and prior-year reserve development was favorable by $122.7 million for the six months, though the filing notes less favorable development than in 2021. Operating cash flow was $921.0 million for the six months. The balance sheet and capital actions also shaped the period. Markel prefunded $350.0 million of 4.90% senior notes that were retired on July 1, 2022, and the debt-to-capital ratio rose to 26% from 23%. The company repurchased $126.3 million of common stock in the first half under a $750 million program, with $668.2 million remaining at June 30, 2022. Strategic activity included the February 2022 sale of most of its Velocity managing general agent business for $181.3 million in cash, a $107.3 million gain, and a pending sale of its Volante operations for an expected $155 million, expected to close in the fourth quarter of 2022. The Markel CATCo buy-out, completed in March 2022, required $101.9 million of payments to investors that were recognized as an expense.

    Aug 2, 2022
  15. 2022-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2022

    Markel Corporation reported a net loss to common shareholders of $52.8 million, or $(6.58) per diluted share, for the three months ended March 31, 2022, compared with net income of $573.7 million, or $42.02 per diluted share, in the prior-year period. The swing was driven mainly by net investment losses of $358.4 million (versus gains of $526.9 million in 2021) on its equity portfolio, along with $665.8 million of pre-tax net unrealized losses on fixed maturity securities. Total operating revenues were $2.61 billion versus $2.90 billion a year earlier. Underwriting profit rose to $197.0 million from $91.0 million, with a consolidated combined ratio of 88.8% compared with 93.9%. Comprehensive loss to shareholders was $529.0 million, and book value per common share fell 4% to $995.53 from $1,036.20 at December 31, 2021. Underwriting performance improved, with gross premium volume up 16% to $2.52 billion and earned premiums up 17% to $1.76 billion, driven by professional liability and general liability growth. The filing discloses $35.0 million of net losses from the Russia-Ukraine conflict and states that additional losses are likely in subsequent periods. In the Markel CATCo buy-out completed March 28, 2022, the company provided $45.1 million of cash funding and $142.7 million of tail risk cover, and made $101.9 million of additional payments recognized as an expense. The company also sold a majority controlling interest in Velocity for $181.3 million in cash, recognizing a $107.3 million gain, and agreed in March 2022 to sell its Volante managing general agent operations for an estimated $155 million, expected to close in the third quarter of 2022. Liquidity remained substantial, with cash and cash equivalents of $3.89 billion and invested assets of $28.3 billion at March 31, 2022. Operating cash flow was $414.9 million, and the board approved a new share repurchase program of up to $750 million, under which $79.3 million of common stock was repurchased in the quarter.

    Apr 26, 2022
  16. 2021-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2021

    Markel Corporation filed this Form 10-Q for the quarter ended September 30, 2021 on November 2, 2021. For the nine months ended September 30, 2021, net income to shareholders was $1.55 billion, compared with a net loss to shareholders of $31.3 million in the same period of 2020. The swing was driven mainly by pre-tax net investment gains of $1.18 billion (versus losses of $230.9 million in 2020) and underwriting profit of $408.3 million (versus an underwriting loss of $44.8 million). For the quarter, net income to shareholders was $188.1 million, down from $452.7 million, as net investment losses of $25.8 million replaced prior-year gains of $539.3 million. Underwriting profit for the quarter rose to $112.5 million from $38.4 million, and the consolidated combined ratio improved to 93.1% from 97.2%. The balance sheet grew, with total assets of $46.70 billion at September 30, 2021 versus $41.71 billion at December 31, 2020, and total shareholders' equity of $14.02 billion. Book value per common share rose 11% to $980.99. Senior long-term and other debt increased to $4.27 billion after the company issued $600 million of 3.45% senior notes due 2052 in May 2021. In August 2021 the company acquired 90% of Buckner HeavyLift Cranes for total consideration of $237.9 million in cash, which is reported within Markel Ventures. The filing also discloses ongoing matters affecting the Markel CATCo operations. The SEC and the U.S. Department of Justice concluded their investigations in late September 2021 without enforcement action. The company has proposed a transaction to accelerate the return of capital to Markel CATCo Funds investors, which would involve cash funding of up to $270 million, tail risk cover of $100 million and $75 million in investor payments, and is expected to close in the fourth quarter of 2021 if approvals are obtained. Net reserves for 2021 catastrophes and COVID-19 development remain estimates that may change.

    Nov 2, 2021
  17. 2021-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2021

    Markel Corporation (now Markel Group Inc.) reported strong second-quarter and first-half 2021 results in its Form 10-Q filed August 3, 2021. Net income to shareholders for the quarter was $792.1 million, versus $921.8 million in the second quarter of 2020, and for the six months was $1.37 billion, compared with a loss of $484.0 million in the first half of 2020. The swing was driven largely by investment results: pre-tax net investment gains were $1.2 billion for the six months of 2021 versus losses of $770.2 million in 2020. Underwriting also improved, with a six-month combined ratio of 90.4% compared with 103.1% a year earlier, and underwriting profit of $295.8 million versus a loss of $83.2 million. The 2020 period included $325.0 million of pre-tax COVID-19 losses, while 2021 included $67.9 million of net losses from Winter Storm Uri. Gross premium volume grew 15% for the six months and 18% for the quarter, led by professional and general liability lines in the Insurance and Reinsurance segments. The company also discontinued writing risk-bearing property reinsurance effective January 1, 2021. Book value per common share rose 10% from $885.72 at December 31, 2020 to $974.45 at June 30, 2021, and the debt-to-capital ratio increased to 23% from 21%, reflecting $600 million of 3.45% senior notes due 2052 issued in May 2021. Total assets were $45.64 billion at June 30, 2021, up from $41.71 billion at year-end 2020. Cash flow from operations was $813.2 million for the six months, and the company repurchased $60.8 million of common stock. The filing also notes ongoing Yeransian litigation relating to contingent value rights, which has been stayed pending arbitration, and continued Markel CATCo inquiries by U.S. and Bermuda regulators.

    Aug 3, 2021
  18. 2021-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2021

    Markel Corporation reported net income to shareholders of $573.7 million for the three months ended March 31, 2021, compared with a net loss to shareholders of $1.41 billion in the same period of 2020. The swing was driven primarily by net investment gains of $526.9 million, versus net investment losses of $1.68 billion a year earlier, as the equity portfolio rose in value. Total operating revenues were $2.90 billion, up from $335.7 million, and diluted net income per common share was $42.02, compared with a loss of $100.60 per share in 2020. Comprehensive income to shareholders was $359.0 million, reduced by a $214.7 million decline in other comprehensive income tied to rising interest rates on fixed maturity securities. Underwriting results improved meaningfully. Underwriting profit was $91.0 million, against a loss of $240.8 million in the prior year, and the consolidated combined ratio was 93.9%, compared with 118.1%. The current quarter included $64.3 million of net losses from Winter Storm Uri and $18.6 million of net COVID-19 losses on the Reinsurance segment, while the prior-year quarter included $325.0 million of net COVID-19 losses. Gross premium volume rose 13% to $2.17 billion, and prior accident years produced $90.9 million of favorable reserve development, partly offset by $18.6 million of adverse COVID-19 development within Reinsurance. Book value per common share rose 3% to $913.33 from $885.72 at December 31, 2020. Invested assets were $25.6 billion, and the debt-to-capital ratio was 21%. The filing notes continuing uncertainty from the COVID-19 pandemic and an ongoing government inquiry into loss reserves at Markel CATCo Re, for which the company cannot predict the outcome, along with the Markel CATCo run-off and a $64.3 million Winter Storm Uri estimate that remains subject to change.

    Apr 28, 2021
  19. 2020-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2020

    Markel Corporation (now Markel Group Inc.) reported a sharp swing in profitability for the nine months ended September 30, 2020. Net loss to shareholders was $31.3 million, compared with net income to shareholders of $1.28 billion in the same period of 2019. The decline was driven by a $230.9 million net investment loss, reflecting a $242.8 million decline in the fair value of the equity portfolio, and by underwriting losses tied to COVID-19 of $373.9 million (including $356.8 million of direct losses) and 2020 catastrophes of $101.0 million. Total operating revenues were $6.38 billion for the nine months, and the consolidated combined ratio was 101% versus 95% a year earlier. For the quarter ended September 30, 2020, net income to shareholders was $452.7 million, aided by a $539.3 million net investment gain, while the combined ratio rose to 97% from 94%. The balance sheet grew over the period. Total assets were $40.17 billion at September 30, 2020, compared with $37.47 billion at December 31, 2019, and total shareholders' equity was $11.89 billion. Book value per common share was $819.71, up 2% from $802.59 at year-end 2019. The company issued 600,000 6.00% Series A preferred shares in May 2020 for net proceeds of $591.9 million, and it acquired a 91% controlling interest in Lansing Building Products for total consideration of $556.2 million. Cash and cash equivalents rose to $4.59 billion. The company suspended share repurchases in March 2020 and reported total investments of $18.33 billion, with equity securities making up $6.18 billion of that total. Management states that it believes it has adequate liquidity and that COVID-19 reserve estimates are adequate based on current information, but it cautions that these estimates are subject to a wide range of variability and that future adjustments may be material. The filing also discloses ongoing matters, including the Markel CATCo government inquiries, the Yeransian contingent value rights litigation, and COVID-19 impacts on the Markel Ventures businesses.

    Oct 27, 2020
  20. 2020-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2020

    Markel Corporation (now Markel Group Inc.) reported a sharply different first half of 2020 from 2019. For the six months ended June 30, 2020, the company posted a net loss to shareholders of $483,995 thousand ($(34.83) per diluted share), compared with net income of $1,073,725 thousand in the prior-year period. The swing was driven mainly by $770,198 thousand of net investment losses, versus $1,037,844 thousand of net investment gains in 2019, reflecting the decline in the equity portfolio's fair value. Underwriting also turned to a loss of $83,206 thousand, including $325.0 million of net losses directly attributed to COVID-19, and the combined ratio rose to 103% from 95%. For the quarter ended June 30, 2020, results recovered, with net income to shareholders of $921,768 thousand and a consolidated combined ratio of 88%. The balance sheet shows total assets of $39.07 billion and shareholders' equity of $11.39 billion at June 30, 2020. Equity securities fell to $5.66 billion from $7.59 billion at year-end 2019, and the company issued $600 million of 6.00% Series A preferred shares in May 2020, with net proceeds of $591.9 million. Cash and cash equivalents rose to $4.83 billion from $3.07 billion. The company also completed the acquisition of a controlling interest in Lansing Building Products (91% ownership) for total consideration of $556.2 million, and it recorded $777.1 million of equity portfolio declines in the six-month period. Management states it cannot reasonably estimate the extent or duration of the pandemic's impact, and the filing flags further potential effects on premiums, Markel Ventures revenues, insurance-linked securities management fees, and goodwill and intangible assets totaling $4.5 billion. The company also disclosed ongoing government inquiries into Markel CATCo Re loss reserves, a pending arbitration settlement expected to be recorded in the third quarter of 2020, and continuing litigation from a contingent value rights holder.

    Jul 28, 2020
  21. 2020-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2020

    Markel Corporation (now Markel Group Inc.) reported a sharply negative first quarter of 2020. Net loss to shareholders was $1,405.8 million, compared with net income to shareholders of $576.4 million in the first quarter of 2019. The swing was driven primarily by a $1.7 billion decline in the fair value of equity securities (net investment losses of $1,681.4 million versus gains of $612.2 million a year earlier) and by underwriting losses in both underwriting segments, which included $325.0 million of net losses and loss adjustment expenses attributed to COVID-19. The consolidated U.S. GAAP combined ratio was 118% for the quarter, compared with 95% in the prior-year period. Book value per share was $705.68 at March 31, 2020, down from $802.59 at December 31, 2019. Total shareholders' equity fell from $11.07 billion to $9.72 billion, and the debt-to-capital ratio rose to 27% from 24%. Equity securities declined to $5.7 billion, or 28% of invested assets, from $7.6 billion, or 34%. Management reports that holding company invested assets were $3.3 billion, down from $4.0 billion, and that statutory capital at all insurance subsidiaries exceeded required capital. The company suspended share repurchases in March 2020, and it reports having no unsecured senior notes maturing in the next 24 months. Management states that it believes it has sufficient liquidity to meet its capital needs. The filing highlights several open risks. Management says the COVID-19 reserve estimate is subject to a wide range of variability and that further adjustments could be material. Pending matters include the Markel CATCo government inquiries, the Belisle arbitration (hearing scheduled for August 2020), the Yeransian litigation, and the Lansing Building Products acquisition, for which total consideration is estimated at $546.7 million and closing is scheduled for the second quarter of 2020.

    Apr 28, 2020
  22. 2019-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2019

    Markel Corporation's Form 10-Q for the quarter ended September 30, 2019 reports nine-month net income to shareholders of $1.28 billion ($92.84 diluted net income per share), compared with $623.4 million ($44.21 per share) in the prior-year period. Results were lifted by net investment gains of $1.07 billion, driven mainly by a $1.07 billion change in fair value of equity securities. Third-quarter net income to shareholders was $205.6 million ($13.95 per diluted share), down from $409.4 million in the year-earlier quarter, as net investment gains fell to $32.1 million from $426.1 million. Quarterly underwriting profit rose to $72.7 million from $6.5 million, and the consolidated U.S. GAAP combined ratio improved to 94% from 99%. Book value per share increased to $768.98 from $653.85 at December 31, 2018. Total assets were $37.04 billion at September 30, 2019, and total shareholders' equity was $10.62 billion. Senior long-term debt and other debt rose to $3.90 billion from $3.01 billion, reflecting the issuance of $600 million of 5.0% notes due 2049, $300 million of 3.35% notes due 2029 and $500 million of 4.15% notes due 2050, partly offset by debt repurchases and redemptions. The company disclosed ongoing inquiries by the U.S. Department of Justice, the SEC and the Bermuda Monetary Authority into loss reserves recorded in late 2017 and early 2018 at Markel CATCo Re, an unconsolidated subsidiary managed by MCIM. Markel CATCo Funds and Markel CATCo Re have been placed into run-off, and the company states that an unfavorable outcome in these matters could have a material adverse effect on results and financial condition. The filing also describes favorable prior-year reserve development of $336.9 million for the nine months and $42.6 million of underwriting losses from Hurricane Dorian and Typhoon Faxai in 2019, along with the company's Brexit-related preparations, including its Munich-based carrier Markel Insurance SE.

    Oct 29, 2019
  23. 2019-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2019

    Markel Corporation (now Markel Group Inc.) reported a strong second quarter and first half of 2019, with net income to shareholders of $497.3 million for the quarter and $1.07 billion for the six months, compared to $278.2 million and $213.9 million a year earlier. The results were driven largely by net investment gains of $1.04 billion for the six months, mainly from a $1.04 billion change in fair value of equity securities, and by total operating revenues of $4.91 billion for the six months versus $3.56 billion in the prior-year period. Shareholders' equity rose to $10.40 billion at June 30, 2019 from $9.08 billion at December 31, 2018, and book value per share increased to $751.94 from $653.85. Underwriting results were weaker. The consolidated combined ratio was 95% for both the quarter and six months, up from 92% and 91% a year earlier, mainly because of less favorable development on prior accident years' loss reserves in the Insurance segment. Gross premium volume in underwriting operations grew 10% for the quarter and 9% for the six months. In May 2019 the company issued $600 million of 5.0% unsecured senior notes due 2049, and the debt-to-capital ratio was 26% at June 30, 2019. The filing also highlights significant legal and regulatory matters tied to Markel CATCo Investment Management. U.S. Department of Justice, SEC and Bermuda Monetary Authority inquiries into loss reserves at Markel CATCo Re are ongoing, and a securities class action is pending in the Southern District of New York. In July 2019 the company announced that the Markel CATCo Funds and Markel CATCo Re would be placed into run-off. The company states that an unfavorable outcome could have a material adverse effect on results and financial condition, but it considers the claims against it without merit.

    Jul 30, 2019
  24. 2019-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2019

    Markel Corporation (now Markel Group Inc.) reported a first quarter 2019 net income to shareholders of $576.4 million, or $42.76 per diluted share, compared with a net loss to shareholders of $64.3 million in the first quarter of 2018. The swing was driven mainly by net investment gains of $612.2 million, primarily from a $611.5 million change in fair value of equity securities, versus net investment losses of $123.0 million a year earlier. Total operating revenues rose to $2.47 billion from $1.58 billion, and earned premiums increased to $1.20 billion from $1.15 billion. Underwriting profit fell to $61.0 million from $111.5 million, and the consolidated U.S. GAAP combined ratio rose to 95% from 90%, reflecting less favorable prior-year reserve development in the Insurance segment and a higher expense ratio. Book value per share increased to $706.98 at March 31, 2019 from $653.85 at December 31, 2018, and total shareholders' equity reached $9.80 billion. Equity securities were $6.4 billion, or 32% of invested assets, which were $20.1 billion. Operating cash flow was only $18.7 million, compared with $57.7 million a year earlier. Management attributed the lower figure to higher claims settlements in both underwriting segments and lower Markel Ventures cash flows, partly offset by net tax refunds. The filing is dominated by disclosures about the Markel CATCo operations. The U.S. Department of Justice, SEC and Bermuda Monetary Authority are inquiring into loss reserves recorded in late 2017 and early 2018 at Markel CATCo Re. An internal review found no evidence of bad faith, but the company says the inquiries are ongoing and cannot predict their outcome. Securities class actions were filed in the Southern District of New York, and two former MCIM executives have sued for incentive compensation of $66.0 million and $7.5 million. Management states that an unfavorable outcome could have a material adverse effect on results and financial condition.

    Apr 30, 2019
  25. 2018-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2018

    Markel Corporation (now Markel Group Inc.) reported net income to shareholders of $409.4 million for the quarter ended September 30, 2018, compared with a net loss of $259.1 million in the prior-year quarter, and $623.4 million for the nine months ended September 30, 2018, versus a net loss of $39.6 million a year earlier. Diluted net income per share was $28.50 for the quarter and $44.21 for the nine months. The largest driver of the swing was a $426.6 million quarterly gain from the change in fair value of equity securities, which now flows through net income following the adoption of ASU No. 2016-01 on January 1, 2018. Underwriting results also improved: the consolidated combined ratio was 99% for the quarter versus 134% a year earlier, and 94% for the nine months versus 108%, with lower catastrophe losses from Hurricane Florence and Typhoon Jebi ($75.7 million underwriting loss in 2018) compared with the 2017 Catastrophes ($503.0 million). Book value per share rose to $704.70 from $683.55 at December 31, 2017. The filing also highlights pending and completed acquisitions. Markel agreed in August 2018 to acquire Nephila Holdings Limited for an estimated $975.0 million in cash, expected to close in the fourth quarter of 2018, and in October 2018 it acquired 90% of Brahmin Leather Works for total consideration of $194.0 million, including $173.3 million in cash. Total assets were $33.96 billion at September 30, 2018, and shareholders' equity was $9.78 billion. The company disclosed a $33.5 million expense and a $14.9 million impairment related to an investigation at one Markel Ventures products business, and continuing Brexit-related planning, including establishing Markel Insurance SE in Germany. The company also disclosed that it is defending a lawsuit from the former Aspen contingent value rights holder representative, seeking $47.3 million in damages plus interest and default interest, which management believes is without merit and whose material loss is considered remote. Share repurchases during the nine months totaled $30.8 million under the 2013 and 2018 programs, and $289.8 million remained available under the $300 million 2018 program as of September 30, 2018.

    Oct 30, 2018
  26. 2018-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2018

    Markel Corporation (now Markel Group Inc.) reported net income to shareholders of $278.2 million for the quarter ended June 30, 2018, compared to $149.7 million in the same quarter of 2017, and $213.9 million for the six months ended June 30, 2018, compared to $219.5 million a year earlier. Total operating revenues were $1.99 billion for the quarter and $3.56 billion for the six months. The quarter benefited from a $112.9 million gain on the change in fair value of equity securities, a result of the adoption of ASU No. 2016-01, while the six-month period included a $9.2 million fair value loss on equity securities. Diluted net income per share was $19.97 for the quarter and $15.72 for the six months. Book value per share decreased to $682.76 at June 30, 2018 from $683.55 at December 31, 2017, primarily due to a $10.5 million comprehensive loss to shareholders for the six months. Underwriting performance was solid in the quarter, with a consolidated U.S. GAAP combined ratio of 92% compared to 89% a year earlier, and 91% for the six months compared to 95%. Gross premium volume in the underwriting operations rose, with the Insurance segment up 11% for the quarter and Reinsurance down 16%. Markel Ventures results were weaker, as operating income fell to $13.0 million for the quarter from $35.7 million, largely due to a $33.5 million expense related to an investigation and remediation at one of its product businesses and a $14.9 million impairment of intangible assets at that unit. The six-month effective tax rate rose to 47% from 27%, reflecting a $102.0 million provision for deferred U.S. income taxes tied to the election to treat two significant U.K. subsidiaries as domestic corporations. The balance sheet remained substantial, with total assets of $33.25 billion and shareholders' equity of $9.48 billion at June 30, 2018. Total investments were $18.15 billion, of which equity securities comprised $6.07 billion. The debt-to-capital ratio was 24%. The company repurchased 10,064 shares in the quarter, and in May 2018 its board approved a new program authorizing up to $300 million of repurchases to replace the 2013 program.

    Jul 31, 2018
  27. 2018-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2018

    Markel Corporation reported a net loss to shareholders of $64.3 million, or $(4.25) per diluted share, for the quarter ended March 31, 2018, compared with net income to shareholders of $69.9 million, or $3.90 per diluted share, in the prior-year quarter. The swing was driven mainly by investment results: following the adoption of ASU No. 2016-01, changes in the fair value of equity securities are now recognized in net income, and this produced a $122.1 million decrease in the fair value of equity securities in the quarter. Net investment losses totaled $123.0 million. Total operating revenues rose to $1.58 billion from $1.41 billion, and earned premiums increased to $1.15 billion from $982.6 million. Underwriting performance improved. The consolidated U.S. GAAP combined ratio was 90% compared with 100% a year earlier, reflecting $108.1 million of favorable development on prior years' loss reserves and a lower current accident year loss ratio. The Insurance segment's combined ratio was 89% (92% prior year) and the Reinsurance segment's was 97% (131% prior year). Income tax expense was $108.4 million, which includes a $99.5 million provision for deferred U.S. income taxes after the company decided to treat two significant U.K. subsidiaries as domestic corporations for U.S. tax purposes. Comprehensive loss to shareholders was $174.8 million, and book value per share decreased to $671.05 from $683.55 at December 31, 2017. The balance sheet remained large, with total assets of $32.87 billion and shareholders' equity of $9.3 billion at March 31, 2018. Net cash provided by operating activities was $57.7 million. The company also completed the first-quarter 2018 functional currency reassessment and changed its segment reporting, now reporting Insurance and Reinsurance as underwriting segments and Markel Ventures as a single operating segment. The filing also discloses ongoing litigation over Aspen contingent value rights, which management believes is without merit.

    Apr 24, 2018
  28. 2017-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2017

    Markel Corporation (now Markel Group Inc.) reported a net loss to shareholders of $259.1 million for the third quarter of 2017 compared with net income of $83.8 million in the same quarter of 2016, and a net loss to shareholders of $39.6 million for the nine months ended September 30, 2017 versus net income of $323.0 million a year earlier. The results were driven primarily by the 2017 Catastrophes (Hurricanes Harvey, Irma and Maria and the earthquakes in Mexico), which produced an underwriting loss of $503.0 million for the nine months. Consolidated underwriting results were a loss of $371.5 million for the quarter, with a U.S. GAAP combined ratio of 134% for the quarter and 108% for the nine months. Net losses on the ILS Funds of $51.6 million in the quarter and $39.5 million for the nine months also weighed on results, along with $85.0 million of adverse development from the decrease in the U.K. Ogden Rate, partially offset by $335.5 million of favorable development on prior years' loss reserves for the nine months. Balance sheet strength remained substantial. Total assets were $28.52 billion at September 30, 2017, and shareholders' equity was $8.91 billion, up from $8.46 billion at December 31, 2016, with book value per share increasing to $641.20 from $606.30. Accumulated other comprehensive income rose to $2.15 billion, reflecting higher unrealized gains on investments. Net cash provided by operating activities was $598.7 million for the nine months, and the debt-to-capital ratio was 22%. The company completed the SureTec surety acquisition in April 2017 and the 81% acquisition of Costa Farms in August 2017, and it entered into a merger agreement to acquire State National Companies for an estimated $919 million, expected to close in the fourth quarter of 2017. The filing also describes a pending lawsuit by the CVR holder representative seeking $47.3 million plus interest, which the company believes is without merit and which has been ordered to arbitration.

    Oct 25, 2017
  29. 2017-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2017

    Markel Corporation (now Markel Group Inc.) reported a strong first half of 2017, with net income to shareholders of $219.5 million for the six months ended June 30, 2017, compared to $239.2 million in the same period of 2016, and net income to shareholders of $149.7 million for the second quarter versus $78.8 million a year earlier. Diluted net income per share was $14.20 for the six months and $10.31 for the quarter. Total operating revenues were $2.89 billion for the six months. The consolidated U.S. GAAP combined ratio was 95% for the six months, compared to 90% a year earlier, and 89% for the quarter, compared to 93%. The six-month result was pressured by $85.0 million of adverse development from a decrease in the U.K. Ogden Rate, which was partially offset by $184.4 million of favorable development on prior years' loss reserves overall. Total assets grew to $27.20 billion at June 30, 2017, from $25.88 billion at December 31, 2016, and shareholders' equity rose to $8.95 billion from $8.46 billion, driven primarily by comprehensive income. Book value per share increased to $643.37 from $606.30. Growth was supported by the April 2017 acquisition of SureTec Financial Corp. for total consideration of $246.9 million, and gross premium volume increased 6% for the quarter and six months. Subsequent to the quarter, the company agreed to acquire 81% of Costa Farms for an estimated cash consideration of about $255 million, expected to close in the third quarter of 2017, and entered into a definitive merger agreement to acquire State National Companies, Inc. for an aggregate merger consideration of approximately $919 million, expected to close in the fourth quarter of 2017. The filing also discloses a pending lawsuit by the holder representative of Aspen CVRs seeking $47.3 million in damages plus interest, which the company believes is without merit.

    Jul 26, 2017
  30. 2017-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2017

    Markel Corporation (now Markel Group Inc.) reported a first-quarter 2017 net income to shareholders of $69.9 million, or $3.90 diluted net income per share, compared with $160.4 million, or $11.15 per diluted share, in the first quarter of 2016. Total operating revenues rose to $1.41 billion from $1.38 billion, but the decline in profit was driven by underwriting results: the consolidated U.S. GAAP combined ratio was 100% versus 88% a year earlier, and the company recorded a small underwriting loss of $2.3 million. The filing attributes the deterioration to $85.0 million of adverse prior-year reserve development from a decrease in the U.K. Ogden Rate (from plus 2.5% to minus 0.75%, effective March 20, 2017), concentrated in the Reinsurance segment, whose combined ratio was 132%. Balance sheet and investment results remained strong. Total assets were $26.40 billion and shareholders' equity was $8.65 billion, with book value per share rising to $620.30 from $606.30 at December 31, 2016. Net investment income increased to $100.4 million from $91.3 million, and net unrealized gains on investments, net of taxes, rose $151.1 million in other comprehensive income. Gross premium volume grew 5% to $1.46 billion, led by a 21% increase in the Reinsurance segment, including $136.5 million from two large specialty quota share treaties. The filing also discloses a pending acquisition of SureTec Financial Corp. for approximately $250 million, expected to close early in the second quarter of 2017, and the April 12, 2017 repayment of $90.6 million of 7.20% senior notes. Management also disclosed Brexit-related uncertainty for its U.K.-based international operations and a lawsuit by the CVR holder representative seeking $47.3 million in damages plus interest, which management believes is without merit.

    Apr 26, 2017
  31. 2016-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2016

    Markel Corporation (now Markel Group Inc.) reported a quarterly net income to shareholders of $83.8 million for the third quarter of 2016, compared to $102.5 million in the third quarter of 2015, and net income to shareholders of $323.0 million for the nine months ended September 30, 2016, versus $384.9 million a year earlier. The combined ratio worsened to 98% for the quarter from 88% and 93% for the nine months from 89%. The filing attributes the quarter's deterioration largely to $50.1 million of losses and loss adjustment expenses (five points on the combined ratio) from management actions in response to claim trends in medical malpractice and specified medical product lines within U.S. Insurance, of which $36.5 million was reserve strengthening on prior accident years. Book value per share rose to $609.48 at September 30, 2016 from $561.23 at December 31, 2015, driven by $696.1 million of comprehensive income to shareholders for the nine months. Total shareholders' equity was $8.5 billion, and the debt-to-capital ratio was 23%, up from 22% at year-end 2015. Invested assets were $19.4 billion, with equity securities making up 23% of that total. Net cash provided by operating activities fell to $324.4 million for the nine months from $550.4 million a year earlier, reflecting higher claims payments in U.S. Insurance and a $51.9 million commutation payment. During the second quarter the company issued $500 million of 5.0% senior notes due 2046 and used the proceeds to tender for portions of its 7.35% and 7.125% senior notes, which produced a $44.1 million loss on early extinguishment of debt for the nine months. The filing also notes the Brexit vote as a new risk factor, citing possible effects on its London-based international insurance operations and Lloyd's syndicate.

    Nov 1, 2016
  32. 2016-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2016

    Markel Corporation (now Markel Group Inc.) reported net income to shareholders of $78.8 million for the quarter ended June 30, 2016, compared to $91.4 million in the same quarter of 2015, and $239.2 million for the six months ended June 30, 2016, compared to $282.4 million a year earlier. Total operating revenues were $1.38 billion for the quarter and $2.75 billion for the six months. Underwriting profit for the quarter was $63.7 million, with a consolidated U.S. GAAP combined ratio of 93% for the quarter and 90% for the six months, versus 96% and 90% in the prior-year periods. The filing attributes $25.3 million of underwriting losses in the quarter to Canadian wildfires, and notes that management reduced its best estimates of ultimate loss ratios across product lines. The balance sheet grew, with total assets of $26.34 billion at June 30, 2016 versus $24.94 billion at December 31, 2015, and shareholders' equity of $8.44 billion versus $7.83 billion. Book value per share rose to $603.13 from $561.23, driven by $606.9 million of comprehensive income to shareholders for the six months. Equity securities totaled $4.4 billion, or 23% of invested assets, and the company recorded a $44.1 million loss on early extinguishment of debt tied to a tender offer, funded by $400 million and $100 million issuances of 5.0% senior notes due 2046. Operating cash flow fell to $70.2 million for the six months from $238.0 million, reflecting higher claims payments. The filing also discloses a Brexit-related risk factor added since the 2015 Form 10-K, noting possible effects on its London-based international insurance operations and Lloyd's syndicate. It further discloses limited Iran-related activity under General License H, including two energy construction reinsurance contracts with an expected premium of approximately $2 million in aggregate.

    Aug 2, 2016
  33. 2016-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2016

    Markel Corporation (now Markel Group Inc.) reported net income to shareholders of $160.4 million for the three months ended March 31, 2016, down from $191.0 million in the same period of 2015. Total operating revenues were $1.38 billion versus $1.30 billion a year earlier, with earned premiums of $957.7 million. Comprehensive income to shareholders rose to $397.0 million from $281.8 million, driven by a $225.8 million increase in net unrealized gains on investments, net of taxes. The combined ratio was 88% compared with 83% in the prior-year quarter, as prior-year loss reserve development was less favorable and the expense ratio rose. Underwriting profit was $119.0 million versus $156.0 million in 2015. Gross premium volume grew to $1.39 billion from $1.25 billion, with the Reinsurance segment up 20%. Book value per share increased to $589.86 from $561.23 at December 31, 2015. Cash flow from operations was negative, with net cash used by operating activities of $104.6 million, reflecting higher claims payments. Shareholders' equity reached $8.2 billion, and the debt-to-capital ratio was 22%. Subsequent to quarter-end, the company issued $400.0 million of 5.0% unsecured senior notes due 2046 on April 5, 2016, with net proceeds of $392.3 million. It used part of the proceeds for tender offers on its 7.35% Senior Notes due 2034 and 7.125% Senior Notes due 2019, and expects a loss on early extinguishment of debt of approximately $44 million in the second quarter. The filing also flags Brexit as a new risk factor, given the referendum scheduled for June 23, 2016.

    May 3, 2016
  34. 2015-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2015

    Markel Corporation (now Markel Group Inc.) reported third-quarter 2015 net income to shareholders of $102.5 million, or $7.39 per diluted share, compared with $75.8 million, or $5.30 per diluted share, in the same quarter of 2014. For the nine months ended September 30, 2015, net income to shareholders was $384.9 million, or $27.60 per diluted share, versus $203.6 million, or $14.21 per diluted share, a year earlier. Results were driven mainly by underwriting, where the consolidated U.S. GAAP combined ratio improved to 88% for the quarter and 89% for the nine months, from 97% in both 2014 periods. Management attributed the improvement to favorable prior-year reserve development and a lower current accident year loss ratio, and reduced prior years' loss reserves by $36.0 million in the first quarter to reflect lower reserve volatility after the A&E cession. Investment results were weaker. Net realized investment losses were $14.7 million for the quarter, including $18.3 million of other-than-temporary impairments on equity securities, and net unrealized gains fell by $396.9 million for the nine months, driven by a decline in the equity portfolio. Total shareholders' equity rose modestly to $7.70 billion, and book value per share increased to $551.63 from $543.96 at December 31, 2014. Comprehensive income to shareholders for the nine months was $97.7 million, sharply lower than $517.4 million a year earlier, because of the decline in unrealized gains. The company also completed two retrospective reinsurance transactions ceding asbestos and environmental (A&E) exposures, one in March 2015 for $89.0 million and one on October 30, 2015 for $86.5 million, which management says reduced uncertainty around those reserves. Markel Ventures, the non-insurance operating group, grew revenues on the Cottrell acquisition, although its net income to shareholders fell in the quarter because of a $9.0 million increase in the Cottrell contingent consideration estimate. A pending purchase of CATCo Investment Management and CATCo-Re assets for about $200 million in cash was expected to close in the fourth quarter of 2015.

    Nov 4, 2015
  35. 2015-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2015

    Markel Corporation (now Markel Group Inc.) reported a second quarter 2015 net income to shareholders of $91.4 million, up from $40.1 million in the second quarter of 2014, and six-month net income to shareholders of $282.4 million versus $127.8 million a year earlier. Diluted net income per share was $6.72 for the quarter and $20.21 for the six months, compared with $2.66 and $8.91 in the prior-year periods. Results were driven by underwriting profit of $41.7 million for the quarter and $197.7 million for the six months, with the consolidated U.S. GAAP combined ratio at 96% for the quarter and 90% for the six months. The six-month figures include a $36.0 million reduction to prior years' loss reserves recorded in the first quarter following a reduced volatility estimate after the asbestos and environmental reserve cession. Comprehensive results were weaker. Comprehensive loss to shareholders was $132.9 million for the quarter, as net unrealized gains on investments fell $235.2 million, largely from a decline in fixed maturity fair values. Shareholders' equity rose to $7.7 billion at June 30, 2015, and book value per share increased to $554.97 from $543.96 at December 31, 2014. Gross premium volume declined 6% for the quarter and 7% for the six months, mainly due to lower Reinsurance segment volume, while Markel Ventures operating revenues rose to $239.6 million for the quarter, reflecting the July 2014 acquisition of Cottrell, Inc. The balance sheet remained large, with total assets of $25.37 billion and invested assets of $18.5 billion, of which equity securities were $4.4 billion, or 24%. The company reduced its secured credit facility capacity from $650 million to $550 million and expects to let it expire in December 2015. Management also noted that the effective tax rate for the six months was 16%, aided by foreign tax credits that it cautioned may not recur in future years.

    Aug 5, 2015
  36. 2015-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2015

    Markel Corporation (now Markel Group Inc.) reported net income to shareholders of $191.0 million for the three months ended March 31, 2015, compared to $87.7 million in the same period of 2014, and total operating revenues of $1.30 billion versus $1.24 billion. The combined ratio improved to 83% from 95%, driven mainly by $36.0 million of reductions to prior years' loss reserves (about four points on the consolidated combined ratio) and a lower expense ratio. Earned premiums were $943.7 million, down slightly from $949.4 million, while gross premium volume fell 8% to $1.25 billion, largely due to lower reinsurance volume tied to the auto reinsurance book. Investment results were mixed. Net investment income rose to $92.9 million from $86.7 million, and net realized investment gains were $5.6 million, including $5.1 million of other-than-temporary impairment write-downs on equity securities. Change in net unrealized gains on investments was $164.7 million. Taxable equivalent total investment return was 0.5%, down from 2.0%. Shareholders' equity increased to $7.87 billion from $7.59 billion, and book value per share rose to $564.29 from $543.96. Markel Ventures operating revenues were $245.4 million, up from $171.2 million, largely from the Cottrell acquisition. The company also completed a retrospective reinsurance transaction on March 9, 2015, ceding asbestos and environmental exposures that originated before 1992 for payments totaling $89.0 million, with reserves of $94.1 million ceded and a deferred gain of $5.1 million. The transaction reduced operating cash flow for the quarter, which was $22.8 million. Management noted the effective tax rate fell to 19% from 25%, supported by foreign tax credits that it said may not recur in future years.

    May 6, 2015
  37. 2014-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2014

    Markel Corporation's Form 10-Q for the quarter ended September 30, 2014 (filed November 5, 2014) reports net income to shareholders of $75.8 million for the third quarter of 2014, up from $65.6 million a year earlier, and $203.6 million for the nine months, up from $182.3 million. Total operating revenues were $1.30 billion for the quarter and $3.80 billion for the nine months. Diluted net income per share was $5.30 for the quarter and $14.21 for the nine months. Total assets were $25.08 billion at September 30, 2014, and shareholders' equity was $7.18 billion, with book value per share of $514.06 compared to $477.16 at December 31, 2013. The company describes itself as a diverse financial holding company serving niche specialty insurance markets, alongside Markel Ventures, which owns controlling interests in industrial and service businesses. Underwriting performance was steady, with a consolidated U.S. GAAP combined ratio of 97% for both the quarter and nine months, compared with 96% and 97% in the prior-year periods. Gross premium volume rose to $3.80 billion for the nine months from $2.92 billion, reflecting the inclusion of Alterra from May 1, 2013, and the Reinsurance segment grew substantially. The filing notes that the increase in the loss ratio was mainly due to less favorable development on prior years' loss reserves, and that the company recorded $27.2 million of adverse asbestos and environmental development in the Other Insurance (Discontinued Lines) segment during the second quarter. Net investment income rose to $91.1 million for the quarter and $270.0 million for the nine months. During 2014 the company completed the acquisitions of Abbey Protection plc for $190.7 million and Cottrell, Inc. as part of a $187.0 million total for non-insurance acquisitions. It also put in place a new $300 million revolving credit facility expiring in August 2019 and reduced its $900 million secured credit facility to $650 million. The debt-to-capital ratio was 24% at September 30, 2014, and the company repurchased $25.9 million of common stock during the nine months.

    Nov 5, 2014
  38. 2014-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2014

    Markel Corporation (now Markel Group Inc.) reported a quarter ended June 30, 2014 with total operating revenues of $1.26 billion, up from $1.03 billion in the second quarter of 2013, and net income to shareholders of $40.1 million, compared with $27.8 million a year earlier. Diluted net income per share was $2.66 for the quarter and $8.91 for the six months. Earned premiums rose to $965.6 million in the quarter, reflecting the full-period inclusion of Alterra Capital Holdings, which Markel acquired on May 1, 2013. The consolidated U.S. GAAP combined ratio was 101% for the quarter, compared with 103% a year earlier, and 98% for the six months. Management attributed the higher quarterly ratio, excluding 2013 acquisition costs and catastrophes, to less favorable development on prior years' loss reserves. Results included $27.2 million of adverse development on asbestos and environmental exposures in the Other Insurance (Discontinued Lines) segment. Shareholders' equity reached $7.14 billion at June 30, 2014, up from $6.67 billion at December 31, 2013, and book value per share rose to $511.28 from $477.16. Total investments were $15.7 billion, and invested assets were $18.2 billion. Comprehensive income to shareholders for the six months was $480.9 million, driven largely by a $344.9 million increase in net unrealized gains on investments. Subsequent to the quarter, Markel acquired Cottrell, Inc. for $130.0 million in cash, entered into a new $300 million revolving credit facility on August 1, 2014, and reduced its secured credit facility from $900 million to $650 million.

    Aug 6, 2014
  39. 2014-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2014

    Markel Corporation (now Markel Group Inc.) reported its first-quarter 2014 results in this Form 10-Q filed May 7, 2014. Net income to shareholders was $87.7 million, or $6.25 diluted per share, compared with $88.9 million, or $9.50 diluted per share, in the first quarter of 2013. Total operating revenues rose to $1.24 billion from $819.9 million, driven largely by the May 1, 2013 acquisition of Alterra Capital Holdings Limited, which was purchased for total consideration of $3.3 billion. Earned premiums increased to $949.4 million from $564.6 million, and gross premium volume reached $1.36 billion versus $743.3 million a year earlier. Underwriting profit was $51.6 million, and the consolidated U.S. GAAP combined ratio worsened to 95% from 91%. The filing attributes the deterioration to a higher current accident year loss ratio, including legacy Alterra business, and a less favorable prior-year reserve development, partly offset by a lower expense ratio. Favorable development on prior years' loss reserves was $107.4 million, compared with $84.8 million in the prior-year quarter. Net investment income rose to $86.7 million from $64.6 million, and comprehensive income to shareholders was $230.3 million, reflecting a $141.3 million increase in net unrealized investment gains. At March 31, 2014, total assets were $24.45 billion and shareholders' equity was $6.90 billion, with book value per share of $493.96, up from $477.16 at December 31, 2013. The company also completed the acquisition of Abbey Protection plc for $190.7 million in January 2014 and repurchased $17.3 million of common stock during the quarter. The debt-to-capital ratio was 25%, against a target of approximately 30%.

    May 7, 2014
  40. 2013-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2013

    Markel Corporation's quarterly report for the period ended September 30, 2013 shows a company that completed a major expansion during the quarter. On May 1, 2013, Markel acquired 100% of Alterra Capital Holdings Limited for total purchase consideration of $3.3 billion, consisting of $964.3 million in cash and 4.3 million shares of common stock. Total assets rose to $23.81 billion at September 30, 2013 from $12.56 billion at December 31, 2012, and shareholders' equity rose to $6.46 billion from $3.89 billion, largely reflecting the $2.33 billion of common stock issued for Alterra. Book value per share increased to $462.33 from $403.85 at year-end 2012. Third-quarter results improved on the prior year. Net income to shareholders was $65.6 million for the quarter versus $49.7 million in the third quarter of 2012, and the consolidated U.S. GAAP combined ratio was 96% compared to 101%. For the nine months, net income to shareholders was $182.3 million versus $196.6 million, with the decline attributed to higher amortization, interest and income tax expense. Earned premiums rose to $919.7 million for the quarter from $530.5 million, and the Alterra segment recorded a combined ratio of 104% for the quarter after $8.5 million of acquisition-related costs. Investors should note the integration costs and the larger balance sheet. Transaction and acquisition-related costs totaled $70.3 million for the nine months, and the company expects to recognize further stay-bonus costs of $8.9 million through May 1, 2014. Senior long-term debt rose to $2.25 billion, and the debt-to-capital ratio was 26%. The company also agreed on October 9, 2013 to acquire Abbey Protection plc for approximately $187.4 million, with closing expected in January 2014.

    Nov 6, 2013
  41. 2013-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2013

    Markel Corporation (now Markel Group Inc.) reported a sharply changed balance sheet and earnings profile for the quarter ended June 30, 2013, driven mainly by its May 1, 2013 acquisition of Alterra Capital Holdings Limited, a Bermuda-headquartered specialty insurer and reinsurer. The total purchase consideration was $3.3 billion, consisting of $964.3 million in cash and 4.3 million shares of Markel common stock. Total assets rose to $23.50 billion at June 30, 2013 from $12.56 billion at December 31, 2012, and shareholders' equity increased to $6.32 billion from $3.89 billion. Goodwill of $371.6 million and intangible assets of $187.5 million were recorded from the acquisition, and the figures are provisional. Earnings weakened in the quarter. Net income to shareholders was $27.8 million for the quarter, down from $89.7 million a year earlier, and $116.7 million for the six months, down from $146.9 million. The consolidated U.S. GAAP combined ratio rose to 103% for the quarter from 87%, and the filing attributes this to Alterra's catastrophe losses, $61.8 million of transaction and acquisition-related costs, and less favorable prior-year reserve development. The Alterra segment's combined ratio was 136% for the period from May 1 to June 30, 2013. Book value per share increased to $451.72 from $403.85 at year-end 2012. The company also increased its debt and invested assets substantially. Senior long-term debt and other debt rose to $2.25 billion, including $500 million of new 3.625% and 5.0% senior notes issued in March 2013. Invested assets were $16.6 billion at June 30, 2013, compared with $9.3 billion at December 31, 2012. Net unrealized investment gains, net of taxes, were $949.8 million.

    Aug 7, 2013
  42. 2013-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2013

    Markel Corporation (now Markel Group Inc.) reported first-quarter 2013 net income to shareholders of $88.9 million, or $9.50 per diluted share, compared with $57.3 million, or $5.92 per diluted share, in the first quarter of 2012. Total operating revenues rose to $819.9 million from $733.1 million. The combined ratio improved to 91% from 100%, driven mainly by favorable development of prior-year loss reserves in the Excess and Surplus Lines segment and lower attritional losses across segments. Earned premiums increased to $564.6 million from $529.6 million, and gross premium volume grew 15% to $743.3 million, largely from the Specialty Admitted segment, which included Thomco and Hagerty. Total assets reached $13.12 billion at March 31, 2013, up from $12.56 billion at December 31, 2012, and shareholders' equity rose to $4.15 billion from $3.89 billion, reflecting $257.7 million of comprehensive income to shareholders. Book value per share increased to $431.10 from $403.85. Net cash provided by operating activities was $55.6 million, and the company issued $500 million of senior notes in March 2013 (3.625% due 2023 and 5.0% due 2043), repaid its 6.80% notes, and increased short-term investments, which the filing attributes to a more defensive posture in the low interest rate environment. The filing also highlights the pending acquisition of Alterra Capital Holdings Limited, expected to close May 1, 2013. The transaction is valued at approximately $3.1 billion, including about $1.0 billion in cash, and the company estimates its current shareholders would own about 69% of the combined company. The filing notes that the company must keep its senior notes obligations in mind if the deal does not close by November 1, 2013.

    Apr 30, 2013
  43. 2012-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2012

    Markel Corporation's quarterly report on Form 10-Q for the period ended September 30, 2012 (filed November 8, 2012) shows a diversified financial holding company that operates in specialty insurance and owns industrial and service businesses through Markel Ventures. For the nine months ended September 30, 2012, net income to shareholders was $196.6 million, up from $91.9 million a year earlier, driven primarily by more favorable underwriting results. Underwriting profit was $64.8 million versus an underwriting loss of $66.6 million in the prior-year period, and the consolidated U.S. GAAP combined ratio improved to 96% from 105%. For the third quarter alone, net income to shareholders fell to $49.7 million from $53.3 million, as underwriting results were less favorable, including $31.1 million of unfavorable asbestos and environmental reserve development and a $6.5 million adoption-related expense. Total assets rose to $12.38 billion at September 30, 2012 from $11.53 billion at December 31, 2011, and shareholders' equity increased to $3.81 billion, with book value per share at $395.48 compared to $352.10 at year-end 2011. Comprehensive income to shareholders for the nine months was $426.8 million, reflected largely by a $225.8 million increase in net unrealized gains on investments. Acquisitions, including THOMCO and several non-insurance businesses, used $246.2 million of net cash during the nine months, and the company issued $350 million of 4.90% senior notes due 2022 while redeeming $150 million of 7.50% debentures. The filing also notes exposure to losses from the remnants of Hurricane Sandy, for which the company did not yet have a loss estimate.

    Nov 8, 2012
  44. 2012-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2012

    Markel Corporation (now Markel Group Inc.) reported second-quarter 2012 net income to shareholders of $89.7 million, or $8.42 per diluted share, compared with $30.3 million in the second quarter of 2011. For the six months ended June 30, 2012, net income to shareholders was $146.9 million, or $14.35 per diluted share, versus $38.6 million a year earlier. The combined ratio improved to 87% for the quarter and 93% for the six months, compared with 103% and 107% in the prior-year periods. The filing attributes the improvement primarily to improved underwriting results, including lower current accident year losses and more favorable development on prior years' loss reserves, while noting that the adoption of ASU No. 2010-26 added about three points to the combined ratio in both 2012 periods. Gross premium volume rose 8% for the quarter and 9% for the six months, and earned premiums increased 5% and 9%, respectively. Total assets were $11.97 billion at June 30, 2012, up from $11.53 billion at December 31, 2011, and book value per share increased to $379.88 from $352.10. Shareholders' equity reached $3.66 billion. The company also completed acquisitions during the period, including THOMCO for $108.5 million in total consideration and an 85% controlling interest in Havco WP LLC. Subsequent to quarter-end, Markel issued $350 million of 4.90% unsecured senior notes due 2022 on July 2, 2012, redeemed $150 million of 7.50% senior debentures on August 1, 2012, and is using the remaining proceeds to pre-fund the $246.7 million 6.80% notes maturing February 15, 2013. The debt-to-capital ratio was 26% at June 30, 2012, compared with a target of approximately 30%.

    Aug 8, 2012
  45. 2012-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2012

    Markel Corporation reported first-quarter 2012 net income to shareholders of $57.3 million, or $5.92 per diluted share, compared to $8.3 million, or $0.85 per diluted share, in the first quarter of 2011. Total operating revenues rose to $733.1 million from $621.6 million, driven by earned premiums of $529.6 million (up from $463.1 million) and other revenues of $111.8 million (up from $77.1 million). The consolidated U.S. GAAP combined ratio was 100% compared to 112% a year earlier, though the filing notes that the prospective adoption of ASU No. 2010-26 added approximately $20.3 million to underwriting, acquisition and insurance expenses, or 4 points on the combined ratio. Gross premium volume increased 10% to $648.6 million. Total assets were $11.86 billion at March 31, 2012, up from $11.53 billion at December 31, 2011, and shareholders' equity rose to $3.6 billion, with book value per share increasing to $373.20 from $352.10, primarily due to $205.9 million of comprehensive income to shareholders. Net unrealized gains on investments, net of taxes, reached $850.1 million. Net investment income of $79.8 million included a favorable $11.1 million change in the fair value of a credit default swap, which the filing attributes to improved financial markets and narrower credit spreads. The company acquired Thompson Insurance Enterprises (THOMCO) on January 1, 2012 for total consideration of $108.5 million, and it used net cash of $64.4 million in operating activities during the quarter, mainly due to claims settlement activity in the London Insurance Market segment. The company repurchased 5,286 shares at an average price of $405.63 during the quarter, leaving $153.3 million available under its $200 million repurchase program.

    May 9, 2012
  46. 2011-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2011

    Markel Corporation's third-quarter 2011 Form 10-Q reports net income to shareholders of $53.3 million for the quarter, down from $63.3 million a year earlier, and $91.9 million for the nine months, down from $126.7 million. The filing attributes the decline mainly to deterioration in underwriting results, partly offset by a lower estimated effective tax rate, and cites higher catastrophe losses. The combined ratio was 100% for the quarter and 105% for the nine months, compared with 93% and 99% in 2010. Catastrophe losses were $34.0 million for the quarter and $133.0 million for the nine months, including Hurricane Irene, U.S. storms, the Japanese earthquake and tsunami, and the New Zealand earthquake. Gross premium volume rose to $584.6 million for the quarter and $1.77 billion for the nine months, driven largely by the FirstComp workers' compensation operations in Specialty Admitted and higher London Insurance Market volume. Shareholders' equity was $3.21 billion at September 30, 2011, and book value per share increased to $333.11 from $326.36 at year-end 2010. Investment results were steadier, with net investment income of $62.2 million for the quarter. Net realized investment gains were $12.8 million after $10.0 million of other-than-temporary impairment write-downs. In June 2011 the company issued $250 million of 5.35% senior notes due 2021, and debt to total capital rose to 28% from 24%. The company also completed several acquisitions in 2011 (PartnerMD, BAKE-TECH and a controlling interest in Weldship), and it reported that it is taking a more defensive investment posture with higher liquidity. Management noted that gross premium volume in the Excess and Surplus Lines segment declined due to competitive pricing, and the filing states that the company would not write business that does not support its underwriting profit targets.

    Nov 7, 2011
  47. 2011-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2011

    Markel Corporation, now Markel Group Inc., reported second-quarter 2011 net income to shareholders of $30.3 million, or $3.11 per diluted share, compared with $20.8 million, or $2.12 per diluted share, in the second quarter of 2010. For the six months ended June 30, 2011, net income to shareholders was $38.6 million, or $3.95 per diluted share, down from $63.4 million, or $6.46 per diluted share, a year earlier. The filing attributes the six-month decline primarily to deterioration in underwriting results driven by higher catastrophe losses. The combined ratio was 103% for the quarter and 107% for the six months, compared with 103% and 102% in the prior-year periods. Management cites U.S. storms, the Japanese earthquake and tsunami, the New Zealand earthquake and Australian floods as the main catastrophe items, with $122.0 million of significant losses in the first half, including $99.0 million from catastrophes. Balance sheet growth was supported by financing activity. Total assets rose to $11.46 billion at June 30, 2011 from $10.83 billion at December 31, 2010, and the company issued $250 million of 5.35% unsecured senior notes due 2021 on June 1, 2011, with net proceeds of $247.9 million. Shareholders' equity reached $3.28 billion, and book value per share increased to $338.66 from $326.36. The debt-to-total-capital ratio was 27%, versus a stated target of approximately 30%. The company also repurchased 31,860 shares in the second quarter, and the remaining authorization under its $200 million program was $184.2 million at June 30, 2011. Investment and non-insurance results were mixed. Net investment income was $64.3 million for the quarter, flat year over year, and net realized investment gains were $1.3 million. Other-than-temporary impairment charges were $4.9 million in the quarter. Non-insurance operations, Markel Ventures, generated revenues of $79.0 million for the quarter, up from $35.0 million, largely due to the RetailData and Diamond Healthcare acquisitions made in late 2010. Management also noted a more defensive investment posture, with higher short-term investments and cash, and continued intense competition that has reduced gross premium volume in the Excess and Surplus Lines segment.

    Aug 8, 2011
  48. 2011-Q1

    Markel Group Quarterly Report for Q1 Ended Mar 31, 2011

    Markel Corporation (now Markel Group Inc.) reported a sharply lower first quarter of 2011, with net income to shareholders of $8.3 million, or $0.85 per diluted share, compared to $42.6 million, or $4.33 per diluted share, in the first quarter of 2010. The decline was driven primarily by a deterioration in underwriting results. The consolidated U.S. GAAP combined ratio rose to 112% from 101%, and the quarter included $68.7 million, or 15 points, of underwriting losses from the Australian floods, the New Zealand earthquake, and the earthquake and subsequent tsunami in Japan. The London Insurance Market segment also absorbed $13.0 million of losses related to storm damage to the Gryphon vessel. Total operating revenues rose to $621.6 million from $536.7 million, helped by higher earned premiums and a $77.1 million increase in other revenues, largely from the RetailData and Diamond Healthcare acquisitions completed in late 2010. Gross premium volume grew 21% to $590.8 million, including $58.2 million from FirstComp in the Specialty Admitted segment, but management stated that competitive pricing has led to declining volume in many Excess and Surplus Lines product lines. Investment results were steady, with net investment income of $70.1 million and net realized gains of $11.2 million, and no other-than-temporary impairment write-downs were recorded in the quarter. Total assets grew to $11.04 billion, and shareholders' equity was $3.20 billion, with book value per share rising to $329.09 from $326.36. Net cash used by operating activities was $9.2 million, reflecting the seasonal timing of incentive and pension payments.

    May 5, 2011
  49. 2010-Q3

    Markel Group Quarterly Report for Q3 Ended Sep 30, 2010

    Markel Corporation (now Markel Group Inc.) reported third-quarter 2010 net income to shareholders of $63.3 million, up from $59.1 million in the same quarter of 2009, and nine-month net income to shareholders of $126.7 million versus $108.3 million a year earlier. Results were driven by improved investment returns and a combined ratio of 93% for the quarter (96% in 2009) and 99% for the nine months (97% in 2009). Earned premiums declined to $435.4 million for the quarter from $448.4 million, reflecting lower Excess and Surplus Lines volume, while net investment income rose to $68.7 million. Book value per share increased to $314.74 from $282.55 at December 31, 2009, primarily due to $326.0 million of comprehensive income to shareholders for the nine months. The quarter included $32.9 million of underwriting losses on two residential mortgage-related programs, including a $19.9 million loss from settling the Guaranty Bank litigation, and no other-than-temporary impairment write-downs, compared with $22.4 million in the third quarter of 2009. For the nine months, the combined ratio also absorbed losses from the Chilean earthquake and the Deepwater Horizon explosion, and Atlas system costs of $7.7 million were expensed after the project was re-scoped. Subsequent to quarter-end, on October 15, 2010, the company completed the acquisition of Aspen Holdings, Inc., a Nebraska-based workers' compensation insurer, for approximately $125 million in cash plus contingent value rights. Shareholders' equity reached $3.1 billion and the debt-to-total-capital ratio was 25% at September 30, 2010.

    Nov 5, 2010
  50. 2010-Q2

    Markel Group Quarterly Report for Q2 Ended Jun 30, 2010

    Markel Corporation's second-quarter 2010 Form 10-Q reports net income to shareholders of $20.8 million for the quarter ended June 30, 2010, down from $32.8 million in the same period of 2009, and $63.4 million for the six months ended June 30, 2010, up from $49.2 million. The quarterly decline was driven mainly by deterioration in underwriting results and higher interest expense, partly offset by improved investment returns. The combined ratio rose to 103% for the quarter from 99% a year earlier, and to 102% for the six months from 97%. Underwriting losses from the Chilean earthquake and the Deepwater Horizon drilling rig explosion totaled $32.7 million, or 4 points, for the six months, and the London Insurance Market segment's combined ratio reached 115% for the quarter. Book value per share increased to $291.71 at June 30, 2010 from $282.55 at December 31, 2009, primarily due to $100.6 million of comprehensive income to shareholders. Total shareholders' equity was $2.85 billion, and the debt-to-total-capital ratio was 26%, against a target of approximately 30% debt. The company entered a new $270 million revolving credit facility on June 9, 2010, with no borrowings outstanding at quarter-end, and repurchased 57,000 shares in May 2010. Subsequent events include a July 12, 2010 agreement to acquire Aspen Holdings, Inc. for upfront consideration of approximately $135 million plus contingent value rights, expected to close before year end. A significant open item is the Guaranty Bank litigation against subsidiary Evanston Insurance Company, in which the company does not believe the bank is entitled to the relief it seeks, though the outcome cannot be predicted. Mediation took place July 19-20, 2010, and settlement discussions have continued. Covered losses on the policy were approximately $54 million through June 30, 2010, against approximately $72 million of premiums paid, and the policy's remaining liability limit is estimated at approximately $103 million.

    Aug 6, 2010