Markel Group reports 2024 first quarter results
"We are pleased with the overall performance of our businesses as we start the year," said
The following table presents summary financial data, by engine, for the three months ended
|
Three Months Ended |
||
(dollars in thousands, except per share amounts) |
2024 |
|
2023 |
Operating revenues: |
|
|
|
Insurance |
$ 2,185,718 |
|
$ 2,009,932 |
Investments |
1,140,331 |
|
528,777 |
|
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 |
|
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 |
|
Years Ended |
||||||
(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 |
|
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) |
|
|
|
|
|
|
|
|
|
|
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
Additionally, our shareholders meeting will be held on
Supplemental Financial Information
The following table presents the components of our Insurance engine operating income.
|
Three Months Ended |
|
Years Ended |
||||||||
(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 |
|
Years Ended |
||||||||
(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
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/markel-group-reports-2024-first-quarter-results-302133701.html
SOURCE