RICHMOND, Va., Oct. 29, 2025 /PRNewswire/ -- Markel Group Inc. $(MKL)$ today reported its financial results for the third quarter of 2025. The Company also announced today it filed its Form 10-Q for the quarter ended September 30, 2025 with the Securities and Exchange Commission.
"I'm very pleased with our overall results and the progress we've made as a company this year," said Tom Gayner, Chief Executive Officer. "Revenues and adjusted operating income of our businesses are both up for the year and for the quarter. We're seeing improvement in our insurance combined ratio. And $2.1 billion in operating cash flow has helped fund continued steady share repurchases. In short, the strength of our diversified approach is on display, and we're seeing tangible signs of improvement in areas we've been focused on."
Summary of our third quarter results:
-- Operating revenues increased 7% for the quarter and 4% year to date.
-- Operating income, which is affected by market movements in our equity
portfolio, decreased 26% for the quarter and 23% year to date.
-- Adjusted operating income, which excludes the impact of market movements
in our equity portfolio, increased 24% for the quarter and 7% year to
date.
-- For Markel Insurance, our cornerstone business:
-- Underwriting gross premium volume increased 11% for the quarter
and 4% year to date.
-- Operating revenues increased 6% for the quarter and 3% year to
date.
-- Adjusted operating income increased 55% for the quarter and 11%
year to date due to increases in underwriting profitability and
net investment income.
-- The combined ratio improved by more than four points in the
quarter to 93%. For the year-to-date period, Markel Insurance's
combined ratio was consistent period-over-period at 95%.
-- Comprehensive income to shareholders was over $2 billion year to date.
-- Operating cash flows were $2.1 billion year to date.
-- Share repurchases were $344 million year to date, and we had 12.6 million
shares outstanding at September 30, 2025.
The following table presents summary consolidated financial data.
Quarter Ended September 30, Nine Months Ended September 30,
----------------------------------------
(dollars in thousands) 2025 2024 2025 2024
----------------------- ------------------- ------------------- ------------------ ------------------
Operating revenues $ 3,934,549 $ 3,693,734 $ 11,505,268 $ 11,089,968
Operating income $ 1,009,842 $ 1,371,326 $ 2,399,706 $ 3,117,092
Add: Amortization of
acquired intangible
assets 44,061 46,459 142,216 134,981
Less: Net investment
gains 432,886 917,530 864,038 1,689,794
------------------- ------------------- ------------------ ------------------
Adjusted operating
income (1) $ 621,017 $ 500,255 $ 1,677,884 $ 1,562,279
Comprehensive income to
shareholders $ 793,126 $ 1,329,458 $ 2,008,307 $ 2,482,199
(1) See "Non-GAAP Financial Measures" for additional information on this
non-GAAP measure.
We made notable changes to our financial reporting in the third quarter of 2025. Please refer to the "Reporting Changes Guide" posted to our website at ir.mklgroup.com and furnished as Exhibit 99.3 in the Form 8-K that was filed by the Company on October 29, 2025.
Markel Insurance Segment
Quarter Ended September 30, Nine Months Ended September 30,
---------------------------------- ----------------------------------
(dollars in thousands) 2025 2024 % Change 2025 2024 % Change
----------------------- ----------- ----------- -------- ----------- ----------- --------
Gross premium volume:
Underwriting $ 2,720,406 $ 2,455,776 11 % $ 8,322,635 $ 8,006,824 4 %
Fronting $ 166,705 $ 95,686 74 % $ 1,838,499 $ 1,216,410 51 %
Operating revenues:
Earned premiums $ 2,127,648 $ 2,035,773 5 % $ 6,207,809 $ 6,086,418 2 %
Net investment income 223,409 203,767 10 % 638,654 583,349 9 %
Services and other
revenues 47,349 18,085 162 % 58,252 35,449 64 %
----------- ----------- -------- ----------- ----------- --------
Operating revenues $ 2,398,406 $ 2,257,625 6 % $ 6,904,715 $ 6,705,216 3 %
Adjusted operating
income:
Underwriting profit $ 155,479 $ 62,156 150 % $ 298,841 $ 283,250 6 %
Net investment income 223,409 203,767 10 % 638,654 583,349 9 %
Other income 49,587 9,680 412 % 42,850 13,882 209 %
----------- ----------- -------- ----------- ----------- --------
Adjusted operating
income $ 428,475 $ 275,603 55 % $ 980,345 $ 880,481 11 %
Combined ratio 93 % 97 % 95 % 95 %
Industrial Segment
Quarter Ended September 30, Nine Months Ended September 30,
-------------------------------------------- --------------------------------------------
(dollars in thousands) 2025 2024 % Change 2025 2024 % Change
----------------------- ---------------- ---------------- -------- ---------------- ---------------- --------
Operating revenues $ 1,049,961 $ 998,308 5 % $ 2,895,250 $ 2,784,548 4 %
Adjusted operating
income $ 101,302 $ 111,773 (9) % $ 263,579 $ 257,226 2 %
Financial Segment
Quarter Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2025 2024 % Change 2025 2024 % Change
----------------------- ----------------- ----------------- -------- ---------------- ---------------- --------
Operating revenues $ 161,501 $ 138,850 16 % $ 512,834 $ 434,011 18 %
Adjusted operating
income $ 61,407 $ 79,652 (23) % $ 219,440 $ 194,206 13 %
Consumer and Other Segment
Quarter Ended September 30, Nine Months Ended September 30,
------------------------------------------------- --------------------------------------------
(dollars in thousands) 2025 2024 % Change 2025 2024 % Change
----------------------- ----------------- -------------------- -------- ---------------- ---------------- --------
Operating revenues $ 291,414 $ 265,299 10 % $ 1,108,426 $ 1,063,863 4 %
Adjusted operating
income (loss) $ 17,372 $ (425) NM (1) $ 151,283 $ 128,036 18 %
(1) NM - Not meaningful
* * * * * * * *
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, October 30, 2025, 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 +1 (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.
Supplemental Financial Information
The following table summarizes our results by segment.
Quarter Ended September 30, Nine Months Ended September 30,
------------------------------------------ ------------------------------------------
(dollars in thousands) 2025 2024 % Change 2025 2024 % Change
----------------------- --------------- --------------- -------- --------------- --------------- --------
Operating revenues:
Markel Insurance $ 2,398,406 $ 2,257,625 6 % $ 6,904,715 $ 6,705,216 3 %
Industrial 1,049,961 998,308 5 % 2,895,250 2,784,548 4 %
Financial 161,501 138,850 16 % 512,834 434,011 18 %
Consumer and Other 291,414 265,299 10 % 1,108,426 1,063,863 4 %
Corporate and
eliminations 33,267 33,652 (1) % 84,043 102,330 (18) %
--------------- --------------- -------- --------------- --------------- --------
Total operating
revenues $ 3,934,549 $ 3,693,734 7 % $ 11,505,268 $ 11,089,968 4 %
=============== =============== ======== =============== =============== ========
Operating income $ 1,009,842 $ 1,371,326 (26) % $ 2,399,706 $ 3,117,092 (23) %
Add: Amortization of
acquired intangible
assets 44,061 46,459 (5) % 142,216 134,981 5 %
Less: Net investment
gains 432,886 917,530 (53) % 864,038 1,689,794 (49) %
--------------- --------------- -------- --------------- --------------- --------
Adjusted operating
income (1) $ 621,017 $ 500,255 24 % $ 1,677,884 $ 1,562,279 7 %
Markel Insurance $ 428,475 $ 275,603 55 % $ 980,345 $ 880,481 11 %
Industrial 101,302 111,773 (9) % 263,579 257,226 2 %
Financial 61,407 79,652 (23) % 219,440 194,206 13 %
Consumer and Other 17,372 (425) NM (2) 151,283 128,036 18 %
Corporate and
eliminations 12,461 33,652 (63) % 63,237 102,330 (38) %
--------------- --------------- -------- --------------- --------------- --------
Adjusted operating
income (1) $ 621,017 $ 500,255 24 % $ 1,677,884 $ 1,562,279 7 %
(1) See "Non-GAAP Financial Measures" for additional information on this
non-GAAP measure.
(2) NM - Not meaningful
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.
Years Ended December 31,
---------------------- --------------------------------------------------------------
Nine Months Ended
(dollars in thousands) September 30, 2025 2024 2023 2022 2021
----------------------- ---------------------- ------------- -------------- --------------- --------------
Operating income (loss) $ 2,399,706 $ 3,712,562 $ 2,928,828 $ (93,336) $ 3,241,505
Add: Amortization of
acquired intangible
assets 142,216 181,472 180,614 178,778 160,539
Add: Impairment of
goodwill -- -- -- 80,000 --
Less: Net investment
gains (losses) 864,038 1,807,219 1,524,054 (1,595,733) 1,978,534
---------------------- ------------- -------------- --------------- --------------
Adjusted operating
income (1) $ 1,677,884 $ 2,086,815 $ 1,585,388 $ 1,761,175 $ 1,423,510
Markel Insurance $ 980,345 $ 1,184,488 $ 747,175 $ 1,007,913 $ 963,623
Industrial 263,579 365,034 378,331 285,712 169,123
Financial 219,440 262,082 260,235 354,520 133,621
Consumer and Other 151,283 145,372 136,465 112,548 148,751
Corporate and
eliminations 63,237 129,839 63,182 482 8,392
---------------------- ------------- -------------- --------------- --------------
Adjusted operating
income (1) $ 1,677,884 2,086,815 1,585,388 1,761,175 1,423,510
(1) See "Non-GAAP Financial Measures" for additional information on this
non-GAAP measure.
Non-GAAP Financial Measures
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 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.
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, 2024, 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 September 30, 2025, 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.
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SOURCE Markel Group
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October 29, 2025 16:37 ET (20:37 GMT)
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