Markel Group reports 2025 financial results
RICHMOND, Va., Feb. 4, 2026 /PRNewswire/ -- Markel Group Inc. (NYSE: MKL) today reported its financial results for the quarter and year ended December 31, 2025.
"In 2025, the Markel Group delivered meaningful progress. Operating income was $3.2 billion and adjusted operating income exceeded $2.3 billion, with every reportable segment making meaningful contributions," said Tom Gayner, Chief Executive Officer. "Within Markel Insurance, we took a series of decisive actions to simplify and refocus the business. Thank you to that team, and to everyone across the Markel Group. By staying true to our values, while providing exceptional businesses and leaders a home in which to grow and thrive, we believe the Markel Group is well-positioned to continue compounding shareholder value across generations."
Summary of our fourth quarter and full year results:
The following table presents summary consolidated financial data.
Quarter Ended December 31,
Year Ended December 31,
(dollars in thousands)
2025
2024
2025
2024
Operating revenues
$ 4,007,965
$ 3,723,576
$ 15,513,233
$ 14,813,544
Operating income
$ 795,146
$ 595,470
$ 3,194,852
$ 3,712,562
Add: Amortization of acquired intangible assets
42,791
46,491
185,007
181,472
Less: Net investment gains
212,043
117,425
1,076,081
1,807,219
Adjusted operating income (1)
$ 625,894
$ 524,536
$ 2,303,778
$ 2,086,815
Comprehensive income to shareholders
$ 606,325
$ 125,951
$ 2,614,632
$ 2,608,150
(1)
See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
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 better 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.
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
2022
2021
Operating revenues
$ 15,513,233
$ 14,813,544
$ 14,279,576
$ 13,271,068
$ 10,867,891
Operating income (loss)
$ 3,194,852
$ 3,712,562
$ 2,928,828
$ (93,336)
$ 3,241,505
Add: Amortization of acquired intangible assets
185,007
181,472
180,614
178,778
160,539
Add: Impairment of goodwill
—
—
—
80,000
—
Less: Net investment gains (losses)
1,076,081
1,807,219
1,524,054
(1,595,733)
1,978,534
Adjusted operating income (1)
$ 2,303,778
$ 2,086,815
$ 1,585,388
$ 1,761,175
$ 1,423,510
5-year compound annual growth rate:
Closing stock price per share
16 %
Intrinsic value per share (2)
15 %
(1)
See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
(2)
See "Supplemental Financial Information - Growth in Intrinsic Value per Share" for additional information on this metric.
The following table summarizes our results by segment. We report our business operations in four segments: Markel Insurance, Industrial, Financial, and Consumer and Other. Our corporate operations are comprised of our holding company activities.
Year Ended December 31,
(dollars in thousands)
2025
2024
% Change
Operating revenues:
Markel Insurance
$ 9,352,891
$ 8,983,443
4 %
Industrial
3,928,249
3,779,616
4 %
Financial
736,964
593,313
24 %
Consumer and Other
1,382,912
1,327,333
4 %
Corporate and eliminations
112,217
129,839
(14) %
Total operating revenues
$ 15,513,233
$ 14,813,544
5 %
Adjusted operating income:
Markel Insurance
$ 1,379,067
$ 1,184,488
16 %
Industrial
343,183
365,034
(6) %
Financial
326,572
262,082
25 %
Consumer and Other
174,636
145,372
20 %
Corporate and eliminations
80,320
129,839
(38) %
Total adjusted operating income (1)
$ 2,303,778
$ 2,086,815
10 %
(1)
See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
Markel Insurance
Year Ended December 31,
(dollars in thousands)
2025
2024
% Change
Gross premium volume:
Underwriting
$ 10,643,703
$ 10,259,862
4 %
Fronting
$ 1,854,944
$ 1,306,022
42 %
Operating revenues:
Earned premiums
$ 8,401,323
$ 8,130,712
3 %
Net investment income
871,531
797,907
9 %
Services and other revenues
80,037
54,824
46 %
Operating revenues
$ 9,352,891
$ 8,983,443
4 %
Adjusted operating income:
Underwriting profit
$ 455,671
$ 366,976
24 %
Net investment income
871,531
797,907
9 %
Services and other income
51,865
19,605
165 %
Adjusted operating income
$ 1,379,067
$ 1,184,488
16 %
Net investment gains
$ 976,740
$ 1,447,686
(33) %
Combined ratio
94.6 %
95.5 %
Return on equity (1)
14 %
18 %
5-Year average annual return on equity (1)
13 %
12 %
(1)
Markel Insurance return on equity includes adjusted operating income and net investment gains and losses attributed to investments held by Markel Insurance, which are not included in segment profit. See "Supplemental Financial Information - Markel Insurance Return on Equity" for additional information on this metric.
The increase in underwriting gross premium volume in our Markel Insurance segment was driven by significant growth within our personal lines and international professional liability product lines, as well as growth within our programs, marine and energy, and general liability product lines. These increases were partially offset by the impact of lower premium volume in our U.S. professional liability product lines, as a result of exiting our risk-managed directors and officers product line from our U.S. and Europe-based platforms. The increase in earned premiums was primarily due to the impact of the changes in underwriting gross premium volume in recent periods.
The increase in fronting gross premium volume was driven by growth within our property catastrophe programs with Nephila and resulted in an increase in services and other revenues and income.
For further details of Markel Insurance's investment performance, see "Consolidated Investment Results."
Underwriting Results
Year Ended December 31,
(dollars in thousands)
2025
2024
% Change
Underwriting gross premium volume
$ 10,643,703
$ 10,259,862
4 %
Net written premiums
$ 8,399,735
$ 8,004,788
5 %
Earned premiums
$ 8,401,323
$ 8,130,712
3 %
Underwriting profit
$ 455,671
$ 366,976
24 %
Underwriting Ratios (1)
Point Change
Loss ratio
Current accident year loss ratio
64.2 %
65.6 %
(1.4)
Prior accident years loss ratio
(5.8) %
(5.6) %
(0.2)
Loss ratio
58.4 %
60.0 %
(1.6)
Expense ratio
36.1 %
35.5 %
0.6
Combined ratio
94.6 %
95.5 %
(0.9)
Current accident year loss ratio catastrophe impact (2)
0.7 %
0.9 %
(0.2)
Current accident year loss ratio, excluding catastrophe impact (3)
63.5 %
64.7 %
(1.2)
Combined ratio, excluding current accident year catastrophe impact (3)
93.8 %
94.6 %
(0.8)
(1)
Amounts may not reconcile due to rounding.
(2)
The point impact of catastrophes is calculated as the associated net losses and loss adjustment expenses divided by total earned premiums.
(3)
This metric is a non-GAAP financial measure. See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional details.
Global Reinsurance
In August 2025, Markel Insurance sold the renewal rights for business written in its Global Reinsurance division, and the division entered into run-off. Gross premium volume in 2025 attributed to the Global Reinsurance division was $1.0 billion. Underwriting results attributable to the Global Reinsurance division had a two point unfavorable impact on the Markel Insurance segment combined ratio in 2025 and a one point unfavorable impact in 2024.
Natural Catastrophes
Underwriting results included $61.9 million and $70.6 million of net losses and loss adjustment expenses in 2025 and 2024, respectively, attributed to natural catastrophes. Losses from natural catastrophes in 2025 were attributed to the series of wildfires that occurred in southern California in January 2025.
Combined Ratio
Excluding losses attributed to natural catastrophes, the decrease in the Markel Insurance segment combined ratio was primarily attributable to a lower attritional loss ratio, which was driven by lower losses on our discontinued intellectual property collateral protection insurance (IP CPI) product line. Net losses and loss adjustment expenses on our IP CPI product line totaled $64.3 million and $168.5 million in 2025 and 2024, respectively. We believe any losses on our discontinued IP CPI product line in 2026 will not be material to the Markel Insurance segment.
Additionally, the Markel Insurance segment attritional loss ratio was unfavorably impacted by large losses within our credit and surety product line in the fourth quarter of 2025 and higher attritional loss ratios on our personal umbrella product line. Large losses within our credit and surety product line totaled $63.3 million in the fourth quarter of 2025, inclusive of the impact of ceded reinstatement premiums. These unfavorable impacts on our attritional loss ratio were largely offset by a favorable impact from changes in mix of business, as our growing lines of business generally have lower attritional loss ratios than the lines of business for which we have reduced our premium writings.
The 2025 combined ratio included $484.0 million of favorable development on prior accident years loss reserves compared to $454.9 million in 2024. In 2025, favorable development was most significant within our marine and energy, property, workers' compensation, programs, and general liability product lines. Favorable development in 2025 was net of adverse development on our run-off risk-managed directors and officers professional liability product lines.
The increase in the expense ratio was primarily attributable to higher personnel costs, including increased severance costs related to recent organizational changes, higher professional fees, and changes in mix of business. Many of the product lines and markets in which we are growing within our International division carry higher expense ratios and lower loss ratios than the rest of the segment. The expense ratio also reflects costs associated with our growth and expansion efforts in these targeted markets.
Industrial
Year Ended December 31,
(dollars in thousands)
2025
2024
% Change
Operating revenues
$ 3,928,249
$ 3,779,616
4 %
Adjusted operating income
$ 343,183
$ 365,034
(6) %
The increase in operating revenues reflected organic growth and a full-year contribution from our June 2024 Valor Environmental (Valor) acquisition compared to 2024. The Industrial segment results in 2024 included five months of results from Valor. Organic revenue growth of our Industrial segment was 2%. Organic revenue growth is a non-GAAP financial measure. See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional details.
Organic revenue growth was primarily attributable to increased demand for our equipment leasing services within the wind energy market, as well as a combination of higher prices and sales volume for our services and products in the commercial and residential construction markets. These increases were partially offset by lower sales volume of our products within the transportation industry due to a down cycle in demand for the industry.
The decrease in adjusted operating income was primarily attributable to lower margins, due to higher materials and labor costs, and lower revenues within our industrial products businesses, partially offset by the impact of higher revenues within our industrial services businesses.
Financial
Year Ended December 31,
(dollars in thousands)
2025
2024
% Change
Operating revenues
$ 736,964
$ 593,313
24 %
Adjusted operating income (1)
$ 326,572
$ 262,082
25 %
(1)
Adjusted operating income for the year ended December 31, 2024 included $58.1 million from Markel CATCo Re Ltd (MCRe), all of which was attributable to noncontrolling interests. MCRe results in 2025 were minimal.
The increase in operating revenues reflected strong organic growth, as well as the impact of $41.4 million of income related to our minority investment in Velocity Holdco LLC (Velocity) resulting from the sales of its managing general agent operations and insurance carrier in 2025. Organic revenue growth of our Financial segment was 17%. Organic revenue growth is a non-GAAP financial measure. See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional details.
Organic revenue growth was primarily attributable to the impact of performance fees earned in 2025 and a higher effective management fee rate for our insurance-linked securities investment management services, as well as higher premium volume within our program services and lender services offerings.
The increase in adjusted operating income was driven by the impact of higher revenues, including the income related to our minority investment in Velocity, as previously discussed. These increases were partially offset by the impact in 2024 of $58.1 million of favorable loss development on the run off of reinsurance contracts written by MCRe, all of which was attributable to noncontrolling interests.
Consumer and Other
Year Ended December 31,
(dollars in thousands)
2025
2024
% Change
Operating revenues
$ 1,382,912
$ 1,327,333
4 %
Adjusted operating income
$ 174,636
$ 145,372
20 %
The increase in operating revenues reflected the contribution from our acquisition of Education Partners International (EPI). Organic revenue growth of our Consumer and Other segment was 1%, primarily attributable to higher sales volume of ornamental plants driven by higher demand and prices. Organic revenue growth is a non-GAAP financial measure. See "Supplemental Financial Information - Non-GAAP Financial Measures" for additional details. The increase in adjusted operating income was driven by the contribution from EPI.
Corporate
Year Ended December 31,
(dollars in thousands)
2025
2024
Net investment income
$ 108,672
$ 130,931
Other revenues
52,020
46,591
Operating revenues
160,692
177,522
Operating expenses (1)
(31,897)
—
Corporate adjusted operating income
$ 128,795
$ 177,522
Markel Group consolidating eliminations
(48,475)
(47,683)
Corporate and eliminations adjusted operating income
$ 80,320
$ 129,839
(1)
Prior to the third quarter of 2025, corporate expenses were fully allocated to our segments.
Consolidated Investment Results
We hold investments across our operating businesses and at our holding company, with the majority of our investments held at our Markel Insurance business in support of its underwriting activities. For investment performance by segment, see "Supplemental Financial Information - Consolidating Investment Results."
Year Ended December 31,
(dollars in thousands)
2025
2024
Net investment income
$ 970,427
$ 920,496
Yield on fixed maturity securities (1)
3.5 %
3.2 %
Yield on short-term investments (1)
3.7 %
4.8 %
Yield on cash and cash equivalents and restricted cash and cash equivalents (1)
3.3 %
3.7 %
Net realized investment gains (losses)
$ (4,076)
$ 4,423
Change in fair value of equity securities
1,080,157
1,802,796
Net investment gains
$ 1,076,081
$ 1,807,219
Return on equity securities (2)
One-year annual return
10.5 %
20.1 %
Five-year annual return
11.9 %
12.8 %
Ten-year annual return
13.5 %
12.1 %
Twenty-year annual return
11.0 %
10.5 %
(1)
Yield reflects the applicable annualized interest income as a percentage of the applicable monthly average invested assets at amortized cost.
(2)
Return on equity securities is calculated by dividing dividends and the change in fair value of equity securities by the monthly average equity securities at fair value and considers the timing of net purchases and sales.
The 5% increase in net investment income was primarily driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities. These increases were partially offset by lower interest income on our short-term investments due to lower average short-term investment holdings and lower short-term interest rates.
Financial Condition and Capital Allocation
Investments, cash and cash equivalents, and restricted cash and cash equivalents (invested assets) were $37.4 billion at December 31, 2025 compared to $34.2 billion at December 31, 2024. The increase was primarily attributable to $2.8 billion of operating cash flows and a $1.7 billion increase in the fair value of our investment portfolio. In 2025, we deployed capital into $1.4 billion of net fixed maturity securities purchases and $206.9 million of capital expenditures. We made net investments of $142.9 million in equity securities and $170.4 million for acquisitions and purchases of noncontrolling interests in our majority-owned businesses. We also used $600.0 million to redeem our outstanding preferred shares and $429.5 million to repurchase common shares.
At December 31, 2025, our holding company held $4.4 billion of invested assets compared to $4.3 billion of invested assets at December 31, 2024.
* * * * * * * *
Our previously announced conference call, which will involve discussion of our financial results and business developments and may include forward-looking information, will be held Thursday, February 5, 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 (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 [email protected].
Additionally, we will be discussing financial results and related business and investments updates at our shareholders meeting on May 20, 2026 at the University of Richmond Robins Center at 2:00 p.m. (Eastern Time). The shareholders meeting will be part of the 2026 Reunion, which is open to shareholders, employees, and friends of Markel Group. More information on the 2026 Reunion, including a sign-up form to receive event updates, is available at mklreunion.com.
Safe Harbor and Cautionary Statement
This release, and any related oral statements, contain statements concerning or incorporating our expectations, assumptions, plans, objectives, future financial or operating performance and other statements that are not historical facts. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intend," "predict," "project," and similar expressions as they relate to us or our management.
There are risks and uncertainties that may cause actual results to differ materially from predicted results in forward-looking 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 under Business, Risk Factors, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Quantitative and Qualitative Disclosures About Market Risk in our 2024 Annual Report on Form 10-K, or our most recent Quarterly Report on Form 10-Q, or are included in the items listed below:
Results from our operations have been and will continue to be potentially materially affected by these factors.
By making forward-looking statements, we do not intend to become obligated to publicly update or revise any such statements whether as a result of new information, future events, or other changes. Readers are cautioned not to place undue reliance on any forward-looking statements, which are based on our current knowledge and speak only as at their dates.
* * * * * * * *
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.
MARKEL GROUP INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
Consolidated Statements of Income and Comprehensive Income
Quarter Ended December 31,
Year Ended December 31,
(dollars in thousands, except per share data)
2025
2024
2025
2024
OPERATING REVENUES
Earned premiums
$ 2,278,829
$ 2,117,578
$ 8,715,667
$ 8,432,412
Net investment income
257,648
243,689
970,427
920,496
Products revenues
563,002
575,323
2,578,544
2,635,659
Services and other revenues
908,486
786,986
3,248,595
2,824,977
Total Operating Revenues
4,007,965
3,723,576
15,513,233
14,813,544
Net investment gains
212,043
117,425
1,076,081
1,807,219
OPERATING EXPENSES
Losses and loss adjustment expenses
1,283,320
1,241,815
5,079,845
5,052,749
Underwriting, acquisition, and insurance expenses
829,013
784,786
3,133,163
2,977,389
Products expenses
524,612
505,289
2,287,394
2,272,219
Services and other expenses
745,126
667,150
2,709,053
2,424,372
Amortization of acquired intangible assets
42,791
46,491
185,007
181,472
Total Operating Expenses
3,424,862
3,245,531
13,394,462
12,908,201
Operating Income
795,146
595,470
3,194,852
3,712,562
Interest expense
(50,016)
(52,794)
(205,910)
(204,300)
Net foreign exchange gains (losses)
(10,971)
180,839
(256,234)
129,438
Income Before Income Taxes
734,159
723,515
2,732,708
3,637,700
Income tax expense
(152,073)
(162,083)
(580,303)
(790,294)
Net Income
582,086
561,432
2,152,405
2,847,406
Net income attributable to noncontrolling interests
(5,274)
(12,254)
(45,395)
(100,384)
Net Income to Shareholders
576,812
549,178
2,107,010
2,747,022
Preferred stock dividends and redemption premiums
—
(18,000)
(26,109)
(36,000)
Net Income to Common Shareholders
$ 576,812
$ 531,178
$ 2,080,901
$ 2,711,022
OTHER COMPREHENSIVE INCOME (LOSS)
Change in net unrealized losses on available-for-sale investments, net of taxes
$ 22,183
$ (413,287)
$ 490,350
$ (130,295)
Other, net of taxes
7,330
(9,918)
17,237
(8,459)
Total Other Comprehensive Income (Loss)
29,513
(423,205)
507,587
(138,754)
Comprehensive Income
611,599
138,227
2,659,992
2,708,652
Comprehensive income attributable to noncontrolling interests
(5,274)
(12,276)
(45,360)
(100,502)
Comprehensive Income to Shareholders
$ 606,325
$ 125,951
$ 2,614,632
$ 2,608,150
NET INCOME PER COMMON SHARE
Basic
$ 48.95
$ 38.83
$ 169.74
$ 199.69
Diluted
$ 48.75
$ 38.74
$ 169.22
$ 199.32
Fourth Quarter Financial Data
Quarter Ended December 31,
(dollars in thousands)
2025
2024
% Change
Operating revenues:
Markel Insurance
$ 2,448,176
$ 2,278,227
7 %
Industrial
1,032,999
995,068
4 %
Financial
224,130
159,302
41 %
Consumer and Other
274,486
263,470
4 %
Corporate and eliminations
28,174
27,509
2 %
Total operating revenues
$ 4,007,965
$ 3,723,576
8 %
Adjusted operating income:
Markel Insurance
$ 398,722
$ 304,007
31 %
Industrial
79,604
107,808
(26) %
Financial
107,132
67,876
58 %
Consumer and Other
23,353
17,336
35 %
Corporate and eliminations
17,083
27,509
(38) %
Total adjusted operating income (1)
$ 625,894
$ 524,536
19 %
(1)
See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure.
Markel Insurance Segment
Quarter Ended December 31,
(dollars in thousands)
2025
2024
% Change
Gross premium volume:
Underwriting
$ 2,321,068
$ 2,253,038
3 %
Fronting
$ 16,445
$ 89,612
(82) %
Operating revenues:
Earned premiums
$ 2,193,514
$ 2,044,294
7 %
Net investment income
232,877
214,558
9 %
Services and other revenues
21,785
19,375
12 %
Operating revenues
$ 2,448,176
$ 2,278,227
7 %
Adjusted operating income:
Underwriting profit
$ 156,830
$ 83,726
87 %
Net investment income
232,877
214,558
9 %
Services and other income
9,015
5,723
58 %
Adjusted operating income
$ 398,722
$ 304,007
31 %
Net investment gains
$ 230,924
$ 147,253
57 %
Combined ratio
92.9 %
95.9 %
Underwriting Results
Quarter Ended December 31,
(dollars in thousands)
2025
2024
% Change
Underwriting gross premium volume
$ 2,321,068
$ 2,253,038
3 %
Net written premiums
$ 1,839,079
$ 1,733,648
6 %
Earned premiums
$ 2,193,514
$ 2,044,294
7 %
Underwriting profit
$ 156,830
$ 83,726
87 %
Underwriting Ratios (1)
Point Change
Loss ratio
Current accident year loss ratio
61.9 %
64.1 %
(2.2)
Prior accident years loss ratio
(5.8) %
(5.5) %
(0.3)
Loss ratio
56.1 %
58.7 %
(2.6)
Expense ratio
36.7 %
37.2 %
(0.5)
Combined ratio
92.9 %
95.9 %
(3.0)
Current accident year loss ratio catastrophe impact (2)
0.2 %
0.4 %
(0.2)
Current accident year loss ratio, excluding catastrophe impact (3)
61.7 %
63.7 %
(2.0)
Combined ratio, excluding current accident year catastrophe impact (3)
92.6 %
95.5 %
(2.9)
(1)
Amounts may not reconcile due to rounding.
(2)
The point impact of catastrophes is calculated as the associated net losses and loss adjustment expenses divided by total earned premiums.
(3)
This metric is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional details.
Industrial Segment
Quarter Ended December 31,
(dollars in thousands)
2025
2024
% Change
Operating revenues
$ 1,032,999
$ 995,068
4 %
Adjusted operating income
$ 79,604
$ 107,808
(26) %
Financial Segment
Quarter Ended December 31,
(dollars in thousands)
2025
2024
% Change
Operating revenues
$ 224,130
$ 159,302
41 %
Adjusted operating income
$ 107,132
$ 67,876
58 %
Consumer and Other Segment
Quarter Ended December 31,
(dollars in thousands)
2025
2024
% Change
Operating revenues
$ 274,486
$ 263,470
4 %
Adjusted operating income
$ 23,353
$ 17,336
35 %
Corporate
Quarter Ended December 31,
(dollars in thousands)
2025
2024
Net investment income
$ 26,588
$ 32,011
Other revenues
13,524
7,922
Operating revenues
40,112
39,933
Operating expenses (1)
(11,091)
—
Corporate adjusted operating income
$ 29,021
$ 39,933
Markel Group consolidating eliminations
(11,938)
(12,424)
Corporate and eliminations adjusted operating income
$ 17,083
$ 27,509
(1)
Prior to the third quarter of 2025, corporate expenses were fully allocated to our segments.
Consolidated Key Financial Metrics
(dollars in millions, except per share data)
2025
2024
2023
2022
2021
Operating Performance
Operating revenues
$ 15,513
$ 14,814
$ 14,280
$ 13,271
$ 10,868
Operating cash flows
2,761
2,594
2,787
2,709
2,274
Operating income (loss)
3,195
3,713
2,929
(93)
3,242
Less: Net investment gains (losses)
1,076
1,807
1,524
(1,596)
1,979
Add: Amortization and impairment
185
181
181
259
161
Adjusted operating income (1)
2,304
2,087
1,585
1,761
1,424
Financial Position (at year end)
Equity securities
$ 13,004
$ 11,785
$ 9,578
$ 7,672
$ 9,024
Invested assets
37,439
34,247
30,854
27,420
28,292
Insurance float (2)
18,827
17,519
16,733
14,947
13,543
Total assets
68,905
61,898
55,046
49,791
48,477
Shareholders' equity
18,598
16,916
14,984
13,151
14,700
Senior long-term debt and other debt
4,304
4,330
3,780
4,104
4,361
Debt to capital ratio
19 %
20 %
20 %
24 %
23 %
Per Share Data
Common shares outstanding (at year end, in thousands)
12,590
12,790
13,132
13,423
13,632
5-Year CAGR in closing stock price
16 %
9 %
6 %
3 %
6 %
5-Year CAGR in intrinsic value per share (3)
15 %
17 %
19 %
12 %
9 %
Invested assets per share (at year end)
$ 2,974
$ 2,678
$ 2,350
$ 2,043
$ 2,075
Diluted net income (loss) per share
169
199
147
(24)
176
Operating income (loss) per share
253
290
223
(7)
238
Adjusted operating income per share (1)
182
163
121
131
104
(1)
Consolidated adjusted operating income and adjusted operating income per share are non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information on these metrics.
(2)
Insurance float, or net policyholder funds, is a subset of our invested assets and is comprised of unpaid losses and loss adjustment expenses, unearned premiums, payables to insurance and reinsurance companies, and life and annuity benefits, net of premium receivables, reinsurance recoverables, prepaid reinsurance premiums, and deferred policy acquisition costs.
(3)
See "Growth in Intrinsic Value per Share" for additional information on this metric.
Segment Key Financial Metrics
(dollars in millions)
2025
2024
2023
2022
2021
Markel Insurance
Operating revenues
$ 9,353
$ 8,983
$ 8,688
$ 7,804
$ 6,736
Adjusted operating income (1)
$ 1,379
$ 1,184
$ 747
$ 1,008
$ 964
Combined ratio
95 %
95 %
99 %
92 %
90 %
Return on equity (2)
14 %
18 %
16 %
(3) %
20 %
5-Year average annual return on equity (2)
13 %
12 %
Total investment return (3)
7 %
10 %
9 %
(4) %
8 %
Total equity
$ 12,923
$ 11,516
$ 9,968
$ 8,490
$ 8,872
Industrial
Operating revenues
$ 3,928
$ 3,780
$ 3,729
$ 3,400
$ 2,379
Revenue growth
4 %
1 %
10 %
43 %
52 %
Organic revenue growth (4)
2 %
0 %
8 %
18 %
21 %
Adjusted operating income (1)
$ 343
$ 365
$ 378
$ 286
$ 169
Tangible capital (5)
$ 1,475
$ 1,437
$ 1,417
$ 1,315
$ 1,023
Total capital (5)
$ 2,772
$ 2,771
$ 2,657
$ 2,604
$ 2,297
Financial
Operating revenues
$ 737
$ 593
$ 553
$ 718
$ 495
Revenue growth
24 %
7 %
(23) %
45 %
4 %
Organic revenue growth (4)
17 %
8 %
21 %
19 %
4 %
Adjusted operating income (1)
$ 327
$ 262
$ 260
$ 355
$ 134
Tangible capital (5)
$ 1,119
$ 950
$ 936
$ 825
$ 838
Total capital (5)
$ 2,012
$ 1,901
$ 1,946
$ 1,899
$ 2,187
Consumer and Other
Operating revenues
$ 1,383
$ 1,327
$ 1,247
$ 1,349
$ 1,250
Revenue growth
4 %
6 %
(8) %
8 %
3 %
Organic revenue growth (4)
1 %
2 %
(8) %
8 %
9 %
Adjusted operating income (1)
$ 175
$ 145
$ 136
$ 113
$ 149
Tangible capital (5)
$ 657
$ 649
$ 691
$ 680
$ 602
Total capital (5)
$ 1,423
$ 1,162
$ 1,227
$ 1,245
$ 1,193
(1)
Adjusted operating income represents the segment profitability metric for each of our reportable segments. This metric excludes net investment gains and losses, amortization of acquired intangible assets, and impairment of goodwill and intangible assets, which are not considered when evaluating segment profitability.
(2)
Markel Insurance return on equity includes adjusted operating income and net investment gains and losses attributed to investments held by Markel Insurance, which are not included in segment profit. See "Markel Insurance Return on Equity" for additional information on this metric. Markel Insurance 5-year average annual return on equity is presented beginning in 2024 due to the impracticality of calculating return on equity prior to 2020 for the newly defined Markel Insurance business.
(3)
Markel Insurance total investment return reflects net investment income and net investment gains and losses attributed to investments held by Markel Insurance as a percentage of monthly average invested assets.
(4)
Organic revenue growth is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional information on this metric.
(5)
Total capital is comprised of total equity, redeemable noncontrolling interests, debt, and obligations for finance leases. Tangible capital represents total capital less goodwill and intangible assets, net of deferred taxes.
Growth in Intrinsic Value per Share
As a diverse holding company, we use growth in intrinsic value as a measure to help us evaluate the value created by our businesses over five-year periods of time. While intrinsic value does not represent a precise valuation of our business, we believe growth in intrinsic value, considered among an array of other qualitative and quantitative factors, offers a useful tool to investors and management in understanding long-term value creation trends. A straightforward methodology can be used to measure intrinsic value growth using data from our financial statements.
First, we take an adjusted earnings metric and apply a consistent multiple to arrive at an earnings valuation. We exclude certain non-cash items from our adjusted earnings metric, such as amortization, as well as income attributed to our public equity portfolio and income from our cash and short-term investments, which are valued separately in our calculation. Using a three-year average of earnings in our calculation helps mitigate the impact of cyclicality and non-recurring items in the earnings valuation.
We consider a range of multiples in our earnings valuation calculation that reflects the diversity of our sources of cash flows, with 12x as the midpoint. Regardless of the multiple used, we believe using a consistent multiple for each year in the calculation is important when assessing the five-year compound annual growth rate in intrinsic value per share.
Second, we add certain items from our balance sheet that are not included in the earnings valuation. The balance sheet component of the valuation consists of adding cash, short term investments, and equity securities, then subtracting debt, preferred stock, and noncontrolling interests.
The sum of the earnings and balance sheet valuations divided by the number of shares outstanding represents our estimate of intrinsic value per share from which to calculate growth.
Our simplified intrinsic value growth calculation may differ from calculations that others may perform, and our stock price growth may vary significantly from our intrinsic value growth calculation. We believe that the key with any calculation is consistently applying a methodology to measure the compound annual growth in intrinsic value per share over five-year periods, which is aligned with our long-term aim of relentlessly compounding shareholder capital.
Year Ended December 31, 2025
8x Multiple
12x Multiple
16x Multiple
5-Year CAGR in intrinsic value per share
14.5 %
15.2 %
15.7 %
The following table shows the calculation of adjusted earnings used for our earnings valuation.
(dollars in thousands)
Year Ended December 31,
2025
2024
2023
2022
2021
2020
2019
2018
Operating income (loss)
$ 3,194,852
$ 3,712,562
$ 2,928,828
$ (93,336)
$ 3,241,505
$ 1,273,884
$ 2,477,346
$ 39,759
Add: Amortization and impairment
185,007
181,472
180,614
258,778
160,539
159,315
148,638
315,128
Less: Net investment gains (losses)
1,076,081
1,807,219
1,524,054
(1,595,733)
1,978,534
617,979
1,601,722
(437,596)
Adjusted operating income
$ 2,303,778
$ 2,086,815
$ 1,585,388
$ 1,761,175
$ 1,423,510
$ 815,220
$ 1,024,262
$ 792,483
Less: Dividends on equity securities
156,169
142,367
116,911
107,213
98,099
89,303
100,222
90,840
Less: Interest on cash and short-term investments
228,120
286,063
251,821
62,383
2,954
14,321
50,425
48,765
Adjusted earnings
$ 1,919,489
$ 1,658,385
$ 1,216,656
$ 1,591,579
$ 1,322,457
$ 711,596
$ 873,615
$ 652,878
Adjusted earnings - 3-year average
$ 1,598,177
$ 1,488,873
$ 1,376,897
$ 1,208,544
$ 969,223
$ 746,030
The following table shows the components of our balance sheet valuation and common shares outstanding.
(in thousands)
December 31,
2025
2024
2023
2022
2021
2020
Equity securities
$ 13,004,312
$ 11,784,521
$ 9,577,871
$ 7,671,912
$ 9,023,927
$ 6,994,110
Short-term investments and cash and cash equivalents
5,998,367
6,217,577
6,318,442
6,806,694
5,778,478
6,375,835
Senior long-term debt and other debt
(4,303,811)
(4,330,341)
(3,779,796)
(4,103,629)
(4,361,266)
(3,484,023)
Preferred stock
—
(591,891)
(591,891)
(591,891)
(591,891)
(591,891)
Redeemable noncontrolling interests and noncontrolling interests
(504,433)
(553,075)
(541,965)
(585,945)
(484,238)
(260,534)
Balance sheet valuation
$ 14,194,435
$ 12,526,791
$ 10,982,661
$ 9,197,141
$ 9,365,010
$ 9,033,497
Common shares outstanding
12,590
12,790
13,132
13,423
13,632
13,783
Markel Insurance Return on Equity
We believe return on equity is an important metric to evaluate the overall performance of Markel Insurance. This metric is representative of the total return generated by the business on the capital that it holds and provides a metric by which to evaluate Markel Insurance's capital efficiency.
Although we do not consider net investment gains and losses when assessing the periodic performance of our Markel Insurance segment, we believe it is important to consider the full contribution of the publicly traded equity securities held by Markel Insurance subsidiaries when evaluating the capital efficiency of the business due to the additional capital required to hold such investments.
Over the five-year period ended December 31, 2025, the average annual return on equity from Markel Insurance was 13%. The following table summarizes the calculation of return on equity for Markel Insurance.
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
2022
2021
Underwriting profit
$ 455,671
$ 366,976
$ 92,786
$ 594,289
$ 614,331
Net investment income
871,531
797,907
642,676
407,826
360,173
Services and other income (loss)
51,865
19,605
11,713
5,798
(10,881)
Adjusted operating income
$ 1,379,067
$ 1,184,488
$ 747,175
$ 1,007,913
$ 963,623
Net investment gains (losses)
976,740
1,447,686
1,249,362
(1,203,958)
1,440,295
Interest expense (1)
(187,541)
(178,385)
(156,521)
(172,256)
(173,952)
Income tax expense (2)
(477,019)
(539,834)
(404,804)
81,026
(490,593)
$ 1,691,247
$ 1,913,955
$ 1,435,212
$ (287,275)
$ 1,739,373
Average equity
$ 12,219,695
$ 10,742,094
$ 9,229,143
$ 8,681,108
$ 8,555,403
Return on equity
14 %
18 %
16 %
(3) %
20 %
5-Year average annual return on equity
13 %
12 %
(1)
Interest expense on our senior notes is attributed to the return on equity of Markel Insurance.
(2)
Income tax expense is based on a 22% tax rate, which is representative of our typical effective rate, however, it does not represent actual income tax expense of Markel Insurance. Income taxes are managed on a consolidated basis across Markel Group and are only attributed to Markel Insurance when assessing its return on equity.
Markel Insurance Divisional Results
The following tables present the divisional results of the Markel Insurance segment's underwriting and other insurance-related activities.
Quarter Ended December 31, 2025
(dollars in thousands)
U.S. Wholesale
and Specialty
Programs and
Solutions
International
Global
Reinsurance
Other
Markel
Insurance
Gross premium volume - underwriting
$ 723,054
$ 873,855
$ 743,388
$ (19,263)
$ 34
$ 2,321,068
Gross premium volume - fronting
—
16,445
—
—
—
16,445
Gross premium volume
$ 723,054
$ 890,300
$ 743,388
$ (19,263)
$ 34
$ 2,337,513
Net written premiums
$ 608,752
$ 590,122
$ 660,450
$ (20,254)
$ 9
$ 1,839,079
Earned premiums
$ 647,462
$ 622,854
$ 679,427
$ 240,598
$ 3,173
$ 2,193,514
Losses and loss adjustment expenses:
Current accident year - attritional
(400,482)
(437,565)
(329,784)
(173,856)
(11,761)
(1,353,448)
Current accident year - catastrophe
(942)
107
(4,500)
1
—
(5,334)
Prior accident years
18,215
38,670
61,433
15,023
(6,212)
127,129
Underwriting, acquisition, and insurance expenses
(217,433)
(236,073)
(273,891)
(76,277)
(1,357)
(805,031)
Underwriting profit (loss)
$ 46,820
$ (12,007)
$ 132,685
$ 5,489
$ (16,157)
$ 156,830
Services and other revenues
$ —
$ 13,988
$ 7,385
$ 3
$ 638
$ 22,014
Services and other expenses
—
(5,274)
(6,407)
—
(1,089)
(12,770)
Services and other income (loss)
$ —
$ 8,714
$ 978
$ 3
$ (451)
$ 9,244
Current accident year loss ratio
62.0 %
70.2 %
49.2 %
72.3 %
61.9 %
Prior accident years loss ratio
(2.8) %
(6.2) %
(9.0) %
(6.2) %
(5.8) %
Loss ratio
59.2 %
64.0 %
40.2 %
66.0 %
56.1 %
Expense ratio
33.6 %
37.9 %
40.3 %
31.7 %
36.7 %
Combined ratio
92.8 %
101.9 %
80.5 %
97.7 %
92.9 %
Quarter Ended December 31, 2024
(dollars in thousands)
U.S. Wholesale
and Specialty
Programs and
Solutions
International
Global
Reinsurance
Other
Markel
Insurance
Gross premium volume - underwriting
$ 770,534
$ 861,014
$ 590,765
$ 32,524
$ (1,799)
$ 2,253,038
Gross premium volume - fronting
—
89,612
—
—
—
89,612
Gross premium volume
$ 770,534
$ 950,626
$ 590,765
$ 32,524
$ (1,799)
$ 2,342,650
Net written premiums
$ 621,357
$ 590,130
$ 497,151
$ 28,801
$ (3,791)
$ 1,733,648
Earned premiums
$ 667,722
$ 561,565
$ 551,942
$ 262,055
$ 1,010
$ 2,044,294
Losses and loss adjustment expenses:
Current accident year - attritional
(445,629)
(360,254)
(266,533)
(201,250)
(28,644)
(1,302,310)
Current accident year - catastrophe
(10,409)
430
3,810
(2,480)
—
(8,649)
Prior accident years
(87,647)
80,649
102,531
14,580
1,309
111,422
Underwriting, acquisition, and insurance expenses
(226,541)
(203,940)
(251,529)
(79,371)
350
(761,031)
Underwriting profit (loss)
$ (102,504)
$ 78,450
$ 140,221
$ (6,466)
$ (25,975)
$ 83,726
Services and other revenues
$ —
$ 13,606
$ 4,243
$ —
$ (122)
$ 17,727
Services and other expenses
—
(1,333)
(3,063)
—
(9,256)
(13,652)
Services and other income (loss)
$ —
$ 12,273
$ 1,180
$ —
$ (9,378)
$ 4,075
Current accident year loss ratio
68.3 %
64.1 %
47.6 %
77.7 %
64.1 %
Prior accident years loss ratio
13.1 %
(14.4) %
(18.6) %
(5.6) %
(5.5) %
Loss ratio
81.4 %
49.7 %
29.0 %
72.2 %
58.7 %
Expense ratio
33.9 %
36.3 %
45.6 %
30.3 %
37.2 %
Combined ratio
115.4 %
86.0 %
74.6 %
102.5 %
95.9 %
Year Ended December 31, 2025
(dollars in thousands)
U.S. Wholesale
and Specialty
Programs and
Solutions
International
Global
Reinsurance
Other
Markel
Insurance
Gross premium volume - underwriting
$ 3,060,929
$ 3,708,179
$ 2,834,504
$ 1,046,111
$ (6,020)
$ 10,643,703
Gross premium volume - fronting
—
1,854,944
—
—
—
1,854,944
Gross premium volume
$ 3,060,929
$ 5,563,123
$ 2,834,504
$ 1,046,111
$ (6,020)
$ 12,498,647
Net written premiums
$ 2,523,178
$ 2,475,396
$ 2,459,485
$ 943,686
$ (2,010)
$ 8,399,735
Earned premiums
$ 2,623,318
$ 2,378,265
$ 2,317,475
$ 1,070,031
$ 12,234
$ 8,401,323
Losses and loss adjustment expenses:
Current accident year - attritional
(1,742,412)
(1,557,973)
(1,165,087)
(798,556)
(67,155)
(5,331,183)
Current accident year - catastrophe
(19,036)
(11,781)
(29,630)
(1,449)
—
(61,896)
Prior accident years
130,081
155,904
229,012
(18,635)
(12,362)
484,000
Underwriting, acquisition, and insurance expenses
(882,271)
(875,021)
(957,763)
(314,511)
(7,007)
(3,036,573)
Underwriting profit (loss)
$ 109,680
$ 89,394
$ 394,007
$ (63,120)
$ (74,290)
$ 455,671
Services and other revenues
$ —
$ 50,261
$ 17,214
$ 6,807
$ 823
$ 75,105
Services and other expenses
—
(11,304)
(13,549)
—
(3,319)
(28,172)
Services and other income (loss)
$ —
$ 38,957
$ 3,665
$ 6,807
$ (2,496)
$ 46,933
Current accident year loss ratio
67.1 %
66.0 %
51.6 %
74.8 %
64.2 %
Prior accident years loss ratio
(5.0) %
(6.6) %
(9.9) %
1.7 %
(5.8) %
Loss ratio
62.2 %
59.4 %
41.7 %
76.5 %
58.4 %
Expense ratio
33.6 %
36.8 %
41.3 %
29.4 %
36.1 %
Combined ratio
95.8 %
96.2 %
83.0 %
105.9 %
94.6 %
Year Ended December 31, 2024
(dollars in thousands)
U.S. Wholesale
and Specialty
Programs and
Solutions
International
Global
Reinsurance
Other
Markel
Insurance
Gross premium volume - underwriting
$ 3,200,616
$ 3,440,216
$ 2,482,038
$ 1,166,247
$ (29,255)
$ 10,259,862
Gross premium volume - fronting
—
1,306,022
—
—
—
1,306,022
Gross premium volume
$ 3,200,616
$ 4,746,238
$ 2,482,038
$ 1,166,247
$ (29,255)
$ 11,565,884
Net written premiums
$ 2,561,336
$ 2,280,620
$ 2,114,780
$ 1,055,569
$ (7,517)
$ 8,004,788
Earned premiums
$ 2,783,439
$ 2,195,619
$ 2,060,926
$ 1,067,468
$ 23,260
$ 8,130,712
Losses and loss adjustment expenses:
Current accident year - attritional
(1,887,518)
(1,371,624)
(1,088,544)
(778,503)
(135,816)
(5,262,005)
Current accident year - catastrophe
(37,309)
(19,670)
(10,190)
(3,480)
—
(70,649)
Prior accident years
(11,390)
144,836
367,278
(554)
(45,238)
454,932
Underwriting, acquisition, and insurance expenses
(925,798)
(773,920)
(860,746)
(313,378)
(12,172)
(2,886,014)
Underwriting profit (loss)
$ (78,576)
$ 175,241
$ 468,724
$ (28,447)
$ (169,966)
$ 366,976
Services and other revenues
$ —
$ 33,760
$ 10,531
$ —
$ (715)
$ 43,576
Services and other expenses
—
(6,199)
(10,581)
—
(18,439)
(35,219)
Services and other income (loss)
$ —
$ 27,561
$ (50)
$ —
$ (19,154)
$ 8,357
Current accident year loss ratio
69.2 %
63.4 %
53.3 %
73.3 %
65.6 %
Prior accident years loss ratio
0.4 %
(6.6) %
(17.8) %
0.1 %
(5.6) %
Loss ratio
69.6 %
56.8 %
35.5 %
73.3 %
60.0 %
Expense ratio
33.3 %
35.2 %
41.8 %
29.4 %
35.5 %
Combined ratio
102.8 %
92.0 %
77.3 %
102.7 %
95.5 %
Consolidating Investment Results
The following tables summarize our investing results by segment.
Quarter Ended December 31, 2025
(dollars in thousands)
Markel
Insurance
Other Reportable
Segments
Corporate
Eliminations
Total
Interest:
Fixed maturity securities
$ 154,681
$ 3,102
$ 1,917
$ —
$ 159,700
Short-term investments
7,448
2,461
9,298
—
19,207
Cash and cash equivalents, including restricted
26,470
4,751
6,053
—
37,274
Intercompany loans receivable
7,076
—
4,862
(11,938)
—
Dividends on equity securities
40,313
—
5,087
—
45,400
Investment expenses
(3,111)
(193)
(629)
—
(3,933)
Net investment income
$ 232,877
$ 10,121
$ 26,588
$ (11,938)
$ 257,648
Net investment gains (losses)
$ 230,924
$ —
$ (18,881)
$ —
$ 212,043
Quarter Ended December 31, 2024
(dollars in thousands)
Markel
Insurance
Other Reportable
Segments
Corporate
Eliminations
Total
Interest:
Fixed maturity securities
$ 134,892
$ 1,819
$ 1,244
$ —
$ 137,955
Short-term investments
10,452
3,134
16,180
—
29,766
Cash and cash equivalents, including restricted
27,397
4,628
6,623
—
38,648
Intercompany loans receivable
7,508
—
4,916
(12,424)
—
Dividends on equity securities
37,450
—
3,654
—
41,104
Investment expenses
(3,141)
(37)
(606)
—
(3,784)
Net investment income
$ 214,558
$ 9,544
$ 32,011
$ (12,424)
$ 243,689
Net investment gains (losses)
$ 147,253
$ 8
$ (29,836)
$ —
$ 117,425
Year Ended December 31, 2025
(dollars in thousands)
Markel
Insurance
Other Reportable
Segments
Corporate
Eliminations
Total
Interest:
Fixed maturity securities
$ 590,307
$ 8,369
$ 5,843
$ —
$ 604,519
Short-term investments
29,123
10,486
38,257
—
77,866
Cash and cash equivalents, including restricted
100,250
20,207
29,797
—
150,254
Intercompany loans receivable
28,895
—
19,580
(48,475)
—
Dividends on equity securities
138,773
—
17,396
—
156,169
Investment expenses
(15,817)
(363)
(2,201)
—
(18,381)
Net investment income
$ 871,531
$ 38,699
$ 108,672
$ (48,475)
$ 970,427
Net investment gains
$ 976,740
$ —
$ 99,341
$ —
$ 1,076,081
Year Ended December 31, 2024
(dollars in thousands)
Markel
Insurance
Other Reportable
Segments
Corporate
Eliminations
Total
Interest:
Fixed maturity securities
$ 498,196
$ 7,192
$ 4,656
$ —
$ 510,044
Short-term investments
47,331
14,334
62,910
—
124,575
Cash and cash equivalents, including restricted
114,268
17,995
29,225
—
161,488
Intercompany loans receivable
27,711
—
19,972
(47,683)
—
Dividends on equity securities
125,322
—
17,045
—
142,367
Investment expenses
(14,921)
(180)
(2,877)
—
(17,978)
Net investment income
$ 797,907
$ 39,341
$ 130,931
$ (47,683)
$ 920,496
Net investment gains (losses)
$ 1,447,686
$ (150)
$ 359,683
$ —
$ 1,807,219
Consolidated Underwriting Reconciliation
The following tables reconcile our Markel Insurance segment underwriting results to our consolidated underwriting operations. State National's underwriting results are included in our Financial segment.
Quarter Ended December 31, 2025
(dollars in thousands)
Markel Insurance
State National
Eliminations
Consolidated
Gross premium volume - underwriting
$ 2,321,068
$ 86,282
$ —
$ 2,407,350
Gross premium volume - fronting
16,445
931,613
(53,585)
894,473
Gross premium volume
$ 2,337,513
$ 1,017,895
$ (53,585)
$ 3,301,823
Earned premiums
$ 2,193,514
$ 85,315
$ —
$ 2,278,829
Losses and loss adjustment expenses
(1,231,653)
(51,667)
—
(1,283,320)
Underwriting, acquisition, and insurance expenses
(805,031)
(23,982)
—
(829,013)
Underwriting profit
$ 156,830
$ 9,666
$ —
$ 166,496
Combined Ratio
92.9 %
88.7 %
92.7 %
Quarter Ended December 31, 2024
(dollars in thousands)
Markel Insurance
State National
Eliminations
Consolidated
Gross premium volume - underwriting
$ 2,253,038
$ 69,693
$ —
$ 2,322,731
Gross premium volume - fronting
89,612
1,017,063
(59,013)
1,047,662
Gross premium volume
$ 2,342,650
$ 1,086,756
$ (59,013)
$ 3,370,393
Earned premiums
$ 2,044,294
$ 73,284
$ —
$ 2,117,578
Losses and loss adjustment expenses
(1,199,537)
(42,278)
—
(1,241,815)
Underwriting, acquisition, and insurance expenses
(761,031)
(23,755)
—
(784,786)
Underwriting profit
$ 83,726
$ 7,251
$ —
$ 90,977
Combined Ratio
95.9 %
90.1 %
95.7 %
Year Ended December 31, 2025
(dollars in thousands)
Markel Insurance
State National
Eliminations
Consolidated
Gross premium volume - underwriting
$ 10,643,703
$ 317,751
$ —
$ 10,961,454
Gross premium volume - fronting
1,854,944
3,928,671
(221,632)
5,561,983
Gross premium volume
$ 12,498,647
$ 4,246,422
$ (221,632)
$ 16,523,437
Earned premiums
$ 8,401,323
$ 314,344
$ —
$ 8,715,667
Losses and loss adjustment expenses
(4,909,079)
(170,766)
—
(5,079,845)
Underwriting, acquisition, and insurance expenses
(3,036,573)
(96,590)
—
(3,133,163)
Underwriting profit
$ 455,671
$ 46,988
$ —
$ 502,659
Combined Ratio
94.6 %
85.1 %
94.2 %
Year Ended December 31, 2024
(dollars in thousands)
Markel Insurance
State National
Eliminations
Consolidated
Gross premium volume - underwriting
$ 10,259,862
$ 292,011
$ —
$ 10,551,873
Gross premium volume - fronting
1,306,022
3,781,697
(144,961)
4,942,758
Gross premium volume
$ 11,565,884
$ 4,073,708
$ (144,961)
$ 15,494,631
Earned premiums
$ 8,130,712
$ 301,700
$ —
$ 8,432,412
Losses and loss adjustment expenses
(4,877,722)
(175,027)
—
(5,052,749)
Underwriting, acquisition, and insurance expenses
(2,886,014)
(91,375)
—
(2,977,389)
Underwriting profit
$ 366,976
$ 35,298
$ —
$ 402,274
Combined Ratio
95.5 %
88.3 %
95.2 %
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 and Adjusted Operating Income Per Share
Consolidated adjusted operating income and adjusted operating income per share, which exclude net investment gains and losses, amortization of acquired intangible assets, and impairment of goodwill, are non-GAAP financial measures. 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 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 metrics.
The following table reconciles operating income to adjusted operating income on both a consolidated and per share basis.
Year Ended December 31,
(dollars in thousands, except per share data)
2025
2024
2023
2022
2021
Operating income (loss)
$ 3,194,852
$ 3,712,562
$ 2,928,828
$ (93,336)
$ 3,241,505
Add: Amortization of acquired intangible assets
185,007
181,472
180,614
178,778
160,539
Add: Impairment of goodwill
—
—
—
80,000
—
Less: Net investment gains (losses)
1,076,081
1,807,219
1,524,054
(1,595,733)
1,978,534
Adjusted operating income
$ 2,303,778
$ 2,086,815
$ 1,585,388
$ 1,761,175
$ 1,423,510
Operating income (loss) per share
$ 253
$ 290
$ 223
$ (7)
$ 238
Add: Amortization of acquired intangible assets impact
15
14
14
13
12
Add: Impairment of goodwill impact
—
—
—
6
—
Less: Net investment gains (losses) impact
85
141
116
(119)
145
Adjusted operating income per share (1)
$ 182
$ 163
$ 121
$ 131
$ 104
(1)
Amounts may not reconcile due to rounding.
Combined Ratio and Current Accident Year Loss Ratio, Excluding Current Year Catastrophe Events
We use underwriting profit or loss and the combined ratio as a basis for evaluating our underwriting performance. The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses, and underwriting acquisition and insurance expenses to earned premiums. The combined ratio is the sum of the loss ratio and the expense ratio.
When analyzing our loss ratio, we typically evaluate losses and loss adjustment expenses attributable to the current accident year separately from losses and loss adjustment expenses attributable to prior accident years. Prior accident year reserve development, which can be either favorable or unfavorable, represents changes in our estimates of losses and loss adjustment expenses related to loss events that occurred in prior years. We believe a discussion of the current accident year loss ratio that excludes prior accident year reserve development is helpful in most cases since it provides more insight into estimates of current underwriting performance and excludes changes in estimates related to prior year loss reserves.
In addition to the U.S. GAAP combined ratio, loss ratio, and expense ratio, we also evaluate our underwriting performance using measures that exclude the impacts of certain items on these ratios. We believe these adjusted measures, which are non‑GAAP measures, provide financial statement users with a better understanding of the significant factors that comprise our underwriting results and how management evaluates underwriting performance.
When analyzing our combined ratio, we exclude current accident year losses and loss adjustment expenses attributed to natural catastrophes and certain other significant, infrequent loss events. Gross and ceded losses for certain events may also result in receipt or payment of reinstatement premiums, which, if significant, may also be excluded when analyzing our combined ratio. Due to the unique characteristics of these events, there is inherent variability as to the timing and amount of the loss, which cannot be predicted in advance. We believe measures that exclude the effects of such events are meaningful to understand the underlying trends and variability in our underwriting results that may be obscured by these items.
We also analyze our current accident year loss ratio excluding losses and loss adjustment expenses attributable to catastrophes and other significant, infrequent loss events. The current accident year loss ratio excluding the impact of catastrophes and other significant, infrequent loss events is commonly referred to as an attritional loss ratio within the property and casualty insurance industry.
The components of Markel Insurance's combined ratios, including these non-GAAP measures, are included in "Markel Insurance".
Organic Revenue Growth
Organic revenue growth is a non-GAAP measure. We believe organic revenue growth is a meaningful measure as it provides growth in comparable revenues from period-to-period by adjusting for the impact of acquisitions and dispositions. For acquisitions and dispositions, the calculation of organic revenue growth excludes the revenue of the business from the two periods being compared unless our consolidated results include a full period of revenue from the business for both periods. The following table reconciles revenue growth to organic revenue growth.
Year Ended December 31,
2025
2024
2023
2022
2021
Industrial segment:
Revenue growth
3.9 %
1.4 %
9.7 %
42.9 %
51.5 %
Impact of inorganic activity
(1.4) %
(1.3) %
(2.0) %
(25.2) %
(30.4) %
Organic revenue growth
2.5 %
0.1 %
7.7 %
17.7 %
21.1 %
Financial segment:
Revenue growth
24.2 %
7.3 %
(23.0) %
45.2 %
3.5 %
Impact of inorganic activity
(7.0) %
0.5 %
43.6 %
(25.8) %
— %
Organic revenue growth
17.2 %
7.8 %
20.6 %
19.4 %
3.5 %
Consumer and Other segment:
Revenue growth
4.2 %
6.4 %
(7.5) %
7.9 %
2.6 %
Impact of inorganic activity
(3.2) %
(4.6) %
— %
0.6 %
6.2 %
Organic revenue growth
1.0 %
1.8 %
(7.5) %
8.5 %
8.8 %
SOURCE Markel Group