RICHMOND, Va., May 1, 2024
/CNW/ -- Markel Group Inc. (NYSE:MKL) today reported its financial
results for the first quarter of 2024. The Company also announced
today it filed its Form 10-Q for the quarter ended March 31,
2024 with the Securities and Exchange Commission. Markel Group
aspires to build one of the world's great companies and deploys
three financial engines in pursuit of this goal: Insurance,
Investments and Markel Ventures.
"We are pleased with the overall performance of our businesses
as we start the year," said Tom
Gayner, Chief Executive Officer. "Our insurance team
grew the top line year over year, and both operating income and the
combined ratio improved significantly from the close of last year
as we work towards our long-term profitability objectives. Net
investment income increased amid higher interest rates, and our
public investments were up meaningfully. Lastly, our Markel
Ventures businesses had another terrific quarter, and we couldn't
be more pleased with the results of their efforts. Our promise to
shareholders is to drive strong performance over the long-term, and
with quarters like these, we continue to make progress towards that
goal."
The following table presents summary financial data, by engine,
for the three months ended March 31, 2024 and 2023.
|
Three Months Ended
March 31,
|
(dollars in
thousands, except per share amounts)
|
2024
|
|
2023
|
Operating
revenues:
|
|
|
|
Insurance
|
$
2,185,718
|
|
$
2,009,932
|
Investments
|
1,140,331
|
|
528,777
|
Markel
Ventures
|
1,140,606
|
|
1,104,680
|
Total operating
revenues
|
$
4,466,655
|
|
$
3,643,389
|
|
|
|
|
Operating
income:
|
|
|
|
Insurance
(1)
|
$
135,825
|
|
$
177,340
|
Investments
|
1,140,331
|
|
528,777
|
Markel
Ventures
|
103,915
|
|
92,178
|
Consolidated segment
operating income (2)
|
1,380,071
|
|
798,295
|
Amortization of
acquired intangible assets
|
(44,285)
|
|
(44,399)
|
Total operating
income
|
$
1,335,786
|
|
$
753,896
|
|
|
|
|
Comprehensive income to
shareholders
|
$
908,385
|
|
$
646,365
|
Diluted net income per
common share
|
$
75.43
|
|
$
37.26
|
Combined
ratio
|
95.2 %
|
|
94.0 %
|
(1)
|
See "Supplemental
Financial Information" for the components of our Insurance engine
operating income.
|
(2)
|
See "Non-GAAP Financial
Measures" for additional information on this non-GAAP
measure.
|
Highlights of results from the quarter:
- Operating revenue and operating income growth of 23% and 77%,
respectively, was primarily driven by our Investments engine.
- Our Investments engine benefited from the impact of more
favorable market value movements within our equity portfolio in
2024 compared to 2023, as well as a 37% increase in net investment
income reflecting higher interest rates in 2024 compared to 2023.
Generally accepted accounting principles (GAAP) require that we
include unrealized gains and losses on equity securities in net
income. This may lead to short-term volatility in revenues and
operating income that temporarily obscures our underlying operating
performance.
- Our Markel Ventures engine grew segment operating income by 13%
in 2024 as a result of revenue growth and improved operating
margins across a number of our businesses.
- Growth in our Insurance engine revenues of 9% was primarily
attributable to an increase in earned premiums driven by new
business growth and more favorable rates on select lines of
business.
- The higher combined ratio in 2024 compared to 2023 was
primarily driven by a higher attritional loss ratio on our U.S.
general liability and professional liability product lines.
We believe our financial performance is most meaningfully
measured over longer periods of time, which tends to mitigate the
effects of short-term volatility and also aligns with the long-term
perspective we apply to operating our businesses and making
investment decisions. The following table presents a long-term view
of our performance.
|
Three Months
Ended March 31,
|
|
Years Ended
December 31,
|
(dollars in
thousands)
|
2024
|
|
2023
|
|
2022
|
|
2021
|
|
2020
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
Insurance
(1)
|
$
135,825
|
|
$
348,145
|
|
$
928,709
|
|
$
718,800
|
|
$
136,985
|
Investments
(2)
|
1,140,331
|
|
2,241,419
|
|
(1,167,548)
|
|
2,353,124
|
|
989,564
|
Markel
Ventures
|
103,915
|
|
519,878
|
|
404,281
|
|
330,120
|
|
306,650
|
Consolidated segment
operating income (3)
|
1,380,071
|
|
3,109,442
|
|
165,442
|
|
3,402,044
|
|
1,433,199
|
Amortization and
impairment
|
(44,285)
|
|
(180,614)
|
|
(258,778)
|
|
(160,539)
|
|
(159,315)
|
Total operating income
(loss)
|
$
1,335,786
|
|
$
2,928,828
|
|
$
(93,336)
|
|
$
3,241,505
|
|
$
1,273,884
|
|
|
|
|
|
|
|
|
|
|
Net investment gains
(losses) (2)
|
$
902,281
|
|
$
1,524,054
|
|
$
(1,595,733)
|
|
$
1,978,534
|
|
$
617,979
|
|
|
|
|
|
|
|
|
|
|
CAGR in closing stock
price per share (4)
|
|
|
|
|
|
|
|
|
|
December 31, 2019 to
March 31, 2024
|
7 %
|
|
|
|
|
|
|
|
|
(1)
|
See "Supplemental
Financial Information" for the components of our Insurance engine
operating income.
|
(2)
|
Investments engine
operating income includes net investment gains (losses), which are
primarily comprised of unrealized gains and losses on equity
securities.
|
(3)
|
See "Non-GAAP Financial
Measures" for additional information on this non-GAAP
measure.
|
(4)
|
CAGR - compound annual
growth rate.
|
* * * * * * * *
A copy of our Form 10-Q is available on our website
at mklgroup.com 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, May 2, 2024,
beginning at 9:30 a.m. (Eastern
Time). Investors, analysts and the general public may listen
to the call via live webcast at ir.mklgroup.com. The call
may be accessed telephonically by dialing (888) 660-9916 in the
U.S., or (646) 960-0452 internationally, and providing Conference
ID: 4614568. A replay of the call will be available on our website
approximately one hour after the conclusion of the call. Any person
needing additional information can contact Markel Group's Investor
Relations Department at IR@markel.com.
Additionally, our shareholders meeting will be held on
May 22, 2024 at the University of Richmond Robins Center at
2:00 p.m. (Eastern Time). The
shareholders meeting will be part of a two-day event we are calling
the 2024 Reunion, which is open to shareholders, employees, and
friends of Markel Group. More information on the agenda and
registration for the 2024 Reunion is available at
mklreunion.com.
Supplemental Financial Information
The following
table presents the components of our Insurance engine operating
income.
|
Three Months Ended
March 31,
|
|
Years Ended December
31,
|
(dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
|
2022
|
|
2021
|
|
2020
|
Insurance operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
segment
|
$
107,310
|
|
$
96,504
|
|
$
162,176
|
|
$
549,871
|
|
$
696,413
|
|
$
169,001
|
Reinsurance
segment
|
12,010
|
|
24,234
|
|
(19,265)
|
|
83,859
|
|
(55,129)
|
|
(75,470)
|
Other insurance
operations
|
16,505
|
|
56,602
|
|
205,234
|
|
294,979
|
|
77,516
|
|
43,454
|
Insurance
|
$
135,825
|
|
$
177,340
|
|
$
348,145
|
|
$
928,709
|
|
$
718,800
|
|
$
136,985
|
Non-GAAP Financial Measures
Consolidated segment
operating income is a non-GAAP financial measure as it
represents the total of the segment operating income from each of
our operating segments and excludes items included in operating
income. Consolidated segment operating income excludes amortization
of acquired intangible assets and goodwill impairments arising from
purchase accounting as they do not represent costs of operating the
underlying businesses. The following table reconciles operating
income to consolidated segment operating income.
|
Three Months Ended
March 31,
|
|
Years Ended December
31,
|
(dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
|
2022
|
|
2021
|
|
2020
|
Operating income
(loss)
|
$
1,335,786
|
|
$
753,896
|
|
$
2,928,828
|
|
$ (93,336)
|
|
$
3,241,505
|
|
$
1,273,884
|
Amortization of
acquired intangible assets
|
44,285
|
|
44,399
|
|
180,614
|
|
178,778
|
|
160,539
|
|
159,315
|
Impairment of
goodwill
|
—
|
|
—
|
|
—
|
|
80,000
|
|
—
|
|
—
|
Consolidated segment
operating income
|
$
1,380,071
|
|
$
798,295
|
|
$
3,109,442
|
|
$ 165,442
|
|
$
3,402,044
|
|
$
1,433,199
|
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
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, 2023, 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 March 31, 2024, including under "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". 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/markel-group-reports-2024-first-quarter-results-302133701.html
SOURCE Markel Group