Original source text
Update! What Is Congress Trading So Far In 2025? Markel Group NYSE: MKL reported second-quarter adjusted operating income of $436 million, down from $578 million a year earlier, while net income to common shareholders rose to $1.2 billion, or $93 per diluted share, from $631 million, or $50 per diluted share. The company said quarterly net income was aided by $1.2 billion of net investment gains, which more than offset investment losses recorded in the first quarter.
Operating revenue, excluding net investment gains, was flat at $4 billion in the quarter. For the first half of 2026, adjusted operating income totaled $934 million, compared with $1.1 billion in the prior-year period, while net income to common shareholders increased to $957 million from $753 million.
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Buffett's latest portfolio additions, trims and cuts in Q3Chief Executive Officer Tom Gayner said the company evaluates near-term progress using adjusted operating income, which excludes public-equity market swings and amortization expense, while using a longer time horizon to assess operating performance and capital allocation.
For the five years ended June 2026, Gayner said average annual operating income was $2.5 billion, up from $1.2 billion in the prior five-year period, representing a 15% compound annual growth rate. Average operating income per share rose at a 16% compound annual rate to $188.94, while the company reduced its outstanding share count by just under 10% over the period.
Insurance underwriting improved, despite catastrophe losses Don't Overlook Hidden Gem Kinsale As Rallies To New HighsMarkel Insurance reported a 93% combined ratio for the fourth consecutive quarter, improving from 97% in the second quarter of 2025. The result reflected favorable prior-year reserve development and a slightly lower expense ratio, partly offset by $41 million, or 2 points on the combined ratio, of catastrophe losses tied to the Middle East conflict.
Underwriting gross written premiums declined to $2.4 billion from $2.8 billion. However, premiums grew 10% excluding the company’s exit from Global Reinsurance and the transition of its Hagerty program to a fronting model. Adjusted operating income in the insurance operation rose to $376 million from $270 million, supported by improved underwriting profitability and higher net investment income.
International gross written premiums rose 31% to $890 million, led by marine and energy, general liability, and professional liability. Its combined ratio was 82%, including 6 points of Middle East-related losses. U.S. wholesale and specialty premiums fell 4% to $799 million amid intentional reductions in binding contractors and casualty lines and softer property pricing. Its combined ratio improved to 97% from 102%. Programs and solutions premiums fell 27% to $717 million due primarily to the Hagerty shift. Excluding that effect, premiums grew 6%. The combined ratio increased to 94% from 91%, reflecting a higher accident-year loss ratio in personal umbrella and certain delegated programs. Markel Insurance CEO Simon Wilson said the company has prioritized “the sanity of bottom-line profit over the vanity of top-line growth.” He said the insurer has reorganized into three divisions and 14 business units, each with assigned leadership and financial and strategic plans.
Wilson also described a series of technology initiatives, including the launch of Cortex, a new business unit focused on hard-to-place U.S. casualty risks. Markel partnered with Bain & Co. on the initiative. The insurer also said it has applied agentic AI to six classes of business totaling more than $500 million of existing gross written premiums, with initial risk-assessment time declining by 50% to 90%, depending on the line of business.
State National charge weighs on financial segment The financial segment recorded an adjusted operating loss of $149 million in the quarter, compared with adjusted operating income of $78 million a year earlier. The decline stemmed primarily from a $205 million bad-debt charge at State National, related to a collateral shortfall associated with a capacity provider in bankruptcy.
Gayner said the affected business began in 2012 and Markel stopped writing on the programs in 2021. He described the event as State National’s first substantial credit loss in more than 40 years and said Markel’s reserve estimate was intended to be conservative.
During the question-and-answer session, Chief Financial Officer Brian Costanzo said the company obtained more granular program data, completed an internal actuarial review and engaged an outside third party. The business was primarily primary habitational casualty, with a smaller excess-casualty component concentrated in a handful of states.
Gayner said the collateral itself was sound, but loss estimates had developed faster than the collateral level. Executive Vice President Andrew Crowley added that the company’s review would result in collateral increases from other financially healthy reinsurers for similar lines of business.
Investments, consumer operations and capital allocation Net investment income increased 11% to $256 million, reflecting a higher average book yield and larger average fixed-maturity balances. The fair value of Markel’s public-equity portfolio rose to $13.5 billion at quarter-end from $12.3 billion at the end of the first quarter. The company reported cumulative pretax unrealized gains of $9.3 billion on its equity holdings.
Industrial revenue increased 2% to $1 billion, supported by a December 2025 bolt-on acquisition, while adjusted operating income declined to $75 million from $105 million. Costanzo cited tighter margins and softer demand in the car-hauling equipment business. Crowley said the segment was also affected by cyclical declines in car hauling and industrial bakery equipment, as well as long-term selling, general and administrative investments at some businesses.
Consumer and other segment revenue rose 4% to $552 million, driven by ornamental plants during its seasonally strongest period. Adjusted operating income increased to $122 million from $102 million, primarily due to higher sales volume.
Markel repurchased $237 million of its shares during the quarter and $371 million year to date, reducing shares outstanding to 12.4 million. Gayner said the company has repurchased more than $2 billion of stock since the start of 2022 and funded the buybacks through earnings rather than borrowing.
About Markel Group (NYSE:MKL)Markel Group NYSE: MKL is a diversified insurance holding company best known for underwriting specialty insurance products. Founded in 1930 and headquartered in Richmond, Virginia, the company provides a wide range of commercial property and casualty coverages tailored to niche and hard-to-place risks. Its underwriting operations focus on specialty lines across multiple industries, delivering customized policy structures, program administration, and claims management services for complex exposures.
In addition to primary specialty insurance, Markel operates reinsurance and alternative risk-transfer activities and manages invested assets derived from underwriting float.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Original source text
, /PRNewswire/ -- Markel Group Inc. (NYSE: MKL) today reported its financial results for the second quarter of 2026. The Company also announced today it filed its Form 10-Q for the quarter ended June 30, 2026 with the Securities and Exchange Commission.
"In the first half of 2026, our insurance underwriting improved, our businesses generated strong cash flow, and we continued to allocate capital with discipline, including ongoing share repurchases funded from net earnings," said Tom Gayner, Chief Executive Officer. "Also, our diversified array of businesses generated nearly $1 billion of adjusted operating income. For the balance of 2026, the improvement of our insurance operations should continue."
Highlights of our 2026 second quarter and six-months results:
Operating revenues were $4.0 billion in the quarter and $7.6 billion year to date, both of which are consistent with the comparable periods of 2025. Operating income, which includes market movements in our equity portfolio, was $1.6 billion in the quarter and $1.3 billion year to date. Adjusted operating income, which excludes market movements in our equity portfolio, was $436 million for the quarter compared to $578 million in the second quarter of 2025. Adjusted operating income was $934 million year to date compared to $1.1 billion in the first half of 2025. Share repurchases were $237 million in the quarter and $371 million year to date. For Markel Insurance, our cornerstone business:
Underwriting gross premium volume increased by 10% for both the quarter and year to date when excluding the impact of the sale of the renewal rights of our Global Reinsurance division in 2025 and the transition of our Hagerty business to a fronting arrangement in 2026. Adjusted operating income increased 40% for the quarter to $376 million, due to improved underwriting profitability and higher net investment income, reflecting the continued progress on our reorganization and refocused strategy, which began last year. The combined ratio for the quarter was 93%, which includes two points of losses related to the Middle East conflict and a two point unfavorable impact from our exited Global Reinsurance division. The following table presents summary consolidated financial data.
Quarter Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2026
2025
2026
2025
Operating revenues
$ 4,018,437
$ 4,022,543
$ 7,569,042
$ 7,570,719
Operating income
$ 1,560,345
$ 1,107,340
$ 1,287,016
$ 1,389,864
Add: Amortization of acquired intangible assets
43,301
51,213
86,814
98,155
Less: Net investment gains
1,167,525
580,223
439,963
431,152
Adjusted operating income (1)
$ 436,121
$ 578,330
$ 933,867
$ 1,056,867
Comprehensive income to shareholders
$ 1,101,325
$ 867,511
$ 760,895
$ 1,215,181
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
Markel Insurance Segment
Quarter Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2026
2025
% Change
2026
2025
% Change
Gross premium volume:
Underwriting
$ 2,387,090
$ 2,808,823
(15) %
$ 4,602,663
$ 5,602,229
(18) %
Adjusted underwriting (1)
$ 2,402,318
$ 2,183,041
10 %
$ 4,595,311
$ 4,179,593
10 %
Fronting
$ 1,282,026
$ 1,293,649
(1) %
$ 1,869,448
$ 1,671,794
12 %
Operating revenues:
Earned premiums
$ 1,992,361
$ 2,063,622
(3) %
$ 3,961,700
$ 4,080,161
(3) %
Net investment income
231,223
207,728
11 %
460,842
415,245
11 %
Services and other revenues
10,330
8,283
25 %
13,057
10,903
20 %
Operating revenues
$ 2,233,914
$ 2,279,633
(2) %
$ 4,435,599
$ 4,506,309
(2) %
Adjusted operating income:
Underwriting profit
$ 142,119
$ 63,200
125 %
$ 284,368
$ 143,362
98 %
Net investment income
231,223
207,728
11 %
460,842
415,245
11 %
Services and other income
3,148
(1,173)
NM (2)
770
(6,737)
NM (2)
Adjusted operating income
$ 376,490
$ 269,755
40 %
$ 745,980
$ 551,870
35 %
Combined ratio
93 %
97 %
93 %
96 %
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
(2) NM - Not meaningful.
Industrial Segment
Quarter Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2026
2025
% Change
2026
2025
% Change
Operating revenues
$ 1,038,068
$ 1,015,715
2 %
$ 1,921,126
$ 1,845,289
4 %
Adjusted operating income
$ 75,434
$ 103,513
(27) %
$ 124,720
$ 162,277
(23) %
Financial Segment
Quarter Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2026
2025
% Change
2026
2025
% Change
Operating revenues
$ 171,348
$ 172,852
(1) %
$ 332,878
$ 351,333
(5) %
Adjusted operating income (loss)
$ (148,940)
$ 78,422
NM (1)
$ (112,735)
$ 158,033
NM (1)
(1) NM - Not meaningful.
Consumer and Other Segment
Quarter Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2026
2025
% Change
2026
2025
% Change
Operating revenues
$ 551,974
$ 529,226
4 %
$ 832,471
$ 817,012
2 %
Adjusted operating income
$ 122,146
$ 101,523
20 %
$ 161,901
$ 133,911
21 %
* * * * * * * *
A copy of our Form 10-Q is available on our website at mklgroup.com, under Investor Relations-Financials, or on the SEC website at www.sec.gov. Readers are urged to review the Form 10-Q for a more complete discussion of our financial performance. Our quarterly conference call, which will involve discussion of our financial results and business developments and may include forward-looking information, will be held Thursday, July 30, 2026, beginning at 9:30 a.m. (Eastern Time). Investors, analysts, and the general public may listen to the call via live webcast at ir.mklgroup.com. The call may be accessed telephonically by dialing +1 (833) 461-5787 in the U.S., or +44 808 196 8935 internationally, and providing Meeting ID: 332 635 047. A replay of the call will be available on our website approximately one hour after the conclusion of the call. Any person needing additional information can contact Markel Group's Investor Relations Department at [email protected].
Supplemental Financial Information
Markel Group manages the business and assesses performance using a variety of performance metrics, each reflecting a different time horizon and serving a different purpose, rather than relying upon a single metric.
Short-term Performance Metrics
In analyzing our current period performance, we believe adjusted operating income is the best metric to assess the performance of our operating businesses. Adjusted operating income excludes the market value movement in our equity portfolio and amortization of acquired intangible assets.
The following table summarizes adjusted operating income by segment.
Quarter Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2026
2025
% Change
2026
2025
% Change
Markel Insurance
$ 376,490
$ 269,755
40 %
$ 745,980
$ 551,870
35 %
Industrial
75,434
103,513
(27) %
124,720
162,277
(23) %
Financial
(148,940)
78,422
NM (1)
(112,735)
158,033
NM (1)
Consumer and Other
122,146
101,523
20 %
161,901
133,911
21 %
Corporate and eliminations
10,991
25,117
(56) %
14,001
50,776
(72) %
Adjusted operating income (2)
$ 436,121
$ 578,330
(25) %
$ 933,867
$ 1,056,867
(12) %
(1) NM - Not meaningful.
(2) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
Long-term Performance Metrics
We believe our financial performance is most meaningfully measured over longer periods of time, which helps mitigate the effects of short-term volatility and better aligns with the long-term perspective we apply to operating our businesses, making capital allocation decisions, and determining executive compensation.
The following tables present a long-term view of our performance over multiple time periods. These metrics drive the growth in intrinsic value per share.
Twelve Months Ended June 30,
(dollars in thousands)
2026
2025
2024
2023
2022
Operating revenues
$ 15,511,556
$ 14,988,029
$ 14,746,975
$ 13,888,418
$ 11,980,034
Operating income
$ 3,092,004
$ 3,356,660
$ 2,950,634
$ 2,847,678
$ 201,819
Add: Amortization of acquired intangible assets
173,666
191,105
180,314
176,028
172,829
Add: Impairment of goodwill
—
—
—
80,000
—
Less: Net investment gains (losses)
1,084,892
1,466,107
1,439,228
1,174,399
(1,136,132)
Adjusted operating income (1)
$ 2,180,778
$ 2,081,658
$ 1,691,720
$ 1,929,307
$ 1,510,780
(1) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
Five-Year Period From
Five-Year
Compound Annual
Growth Rate
(dollars in thousands, except per share data)
Q3 2021 -
Q2 2026
Q3 2016 -
Q2 2021
Average operating income (1)
$ 2,489,759
$ 1,239,056
15 %
Average operating income per share (2)
$ 188.94
$ 88.99
16 %
Average adjusted operating income (1) (3)
$ 1,878,849
$ 805,208
18 %
Average shareholders' equity (4)
$ 15,585,105
$ 10,275,658
9 %
Average debt (4)
$ 4,204,538
$ 3,195,020
6 %
(in thousands)
June 30, 2026
June 30, 2021
% Change
Shares outstanding
12,409
13,734
(10) %
(1) Represents the average of the five trailing-twelve-month periods.
(2) Represents average operating income divided by the average of the quarterly weighted average diluted shares outstanding.
(3) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
(4) Represents the average of quarter-end balances in the trailing five-year period.
Non-GAAP Financial Measures
Markel Group utilizes certain non-GAAP measures that we believe enhance the understanding of our performance. These measures should not be viewed as a substitute for measures determined in accordance with U.S. GAAP.
Consolidated Adjusted Operating Income
Consolidated adjusted operating income, which excludes net investment gains and losses, amortization of acquired intangible assets, and impairment of goodwill, is a non-GAAP financial measure. We believe adjusted operating income is generally an accurate representation of the operating performance of our businesses in our periodic results. Net investment gains and losses are predominantly derived from our investments in publicly traded equity securities and typically include significant unrealized gains and losses from market value movements. We believe that net investment gains and losses, whether realized from sales or unrealized from market value movements, are distortive in understanding the short-term operating performance of our businesses. We do not view amortization of intangible assets and impairment of goodwill, which arise from purchase accounting for acquisitions, as ongoing costs of operating our businesses, and therefore exclude those amounts from our adjusted operating income metric.
The following table reconciles average operating income to average adjusted operating income for the last two trailing-five-year periods.
Five-Year Period From
(dollars in thousands)
Q3 2021 -
Q2 2026
Q3 2016 -
Q2 2021
Average operating income
$ 2,489,759
$ 1,239,056
Add: Average amortization of acquired intangible assets
178,788
123,598
Add: Average impairment of goodwill and acquired intangible assets
16,000
43,584
Less: Average net investment gains
805,699
601,031
Average adjusted operating income
$ 1,878,848
$ 805,208
Adjusted Underwriting Gross Premium Volume
Adjusted underwriting gross premium volume is a non-GAAP measure that excludes underwriting gross premium volume from the Global Reinsurance division and our business with Hagerty for both periods. In August 2025, Markel Insurance sold the renewal rights for contracts written through its Global Reinsurance division, and the division entered into run-off, which resulted in a significant decline in underwriting gross premium volume. Beginning on January 1, 2026, Markel Insurance's business written on behalf of Hagerty transitioned from being an underwriting product to a fronting arrangement, which resulted in a change in the presentation of the related gross premium volume and therefore, a significant decline in underwriting gross premium volume. We believe adjusted underwriting gross premium volume is a meaningful measure when comparing underwriting gross premium volume from period-to-period as it adjusts for the impact of these significant contractual restructuring changes within the Markel Insurance segment.
The following table reconciles underwriting gross premium volume to adjusted underwriting gross premium volume.
Quarter Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2026
2025
% Change
2026
2025
% Change
Underwriting gross premium volume
$ 2,387,090
$ 2,808,823
(15) %
$ 4,602,663
$ 5,602,229
(18) %
Less: Global Reinsurance division
underwriting gross premium volume
(15,228)
321,676
7,352
898,603
Less: Hagerty underwriting gross premium
volume
—
304,106
—
524,033
Adjusted underwriting gross premium volume
$ 2,402,318
$ 2,183,041
10 %
$ 4,595,311
$ 4,179,593
10 %
About Markel Group
Markel Group Inc. is a diverse family of companies that includes everything from insurance to bakery equipment, building supplies, houseplants, and more. The leadership teams of these businesses operate with a high degree of independence, while at the same time living the values that we call the Markel Style. Our specialty insurance business sits at the core of our company. Through decades of sound underwriting, the Markel Insurance team has provided the capital base from which we built a system of businesses and investments that collectively increase Markel Group's durability and adaptability. It's a system that provides diverse income streams, access to a wide range of investment opportunities, and the ability to efficiently move capital to the best ideas across the company. Most importantly though, this system enables each of our businesses to advance our shared goal of helping our customers, associates, and shareholders win over the long term. Visit mklgroup.com to learn more.
Cautionary Statement
Certain of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Statements that are not historical facts, including statements about our beliefs, plans or expectations, are forward-looking statements. These statements are based on our current plans, estimates, and expectations. There are risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by such statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additional factors that could cause actual results to differ from those predicted are set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, including under "Business Overview," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," and "Quantitative and Qualitative Disclosures About Market Risk," and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, including under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," "Quantitative and Qualitative Disclosures About Market Risk," and "Risk Factors." We assume no obligation to update this release (including any forward-looking statements) as a result of new information, developments, or otherwise. This release speaks only as of the date issued.
SOURCE Markel Group
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