RICHMOND, Va., July 29, 2026 /CNW/ -- Markel Group Inc. $(MKL)$ 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 IR@markel.com.
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.
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