Financial Performance - Operating income for 2025 was $3.2 billion, with adjusted operating income exceeding $2.3 billion, reflecting contributions from all reportable segments [3]. - Operating revenues increased by 8% for the fourth quarter and 5% for the full year, reaching $15.5 billion for 2025 compared to $14.8 billion in 2024 [6]. - Adjusted operating income rose by 19% for the fourth quarter and 10% for the year, totaling $2.3 billion for 2025 [6]. - Comprehensive income to shareholders was $2.6 billion for the year, with operating cash flows of $2.8 billion [6]. - Net income attributable to shareholders for the year was $2,107,010, compared to $2,747,022 in 2024, reflecting a decrease [42]. - The net income per common share for 2025 was $169.74, a decrease from $199.69 in 2024 [42]. - Adjusted operating income for the total company rose to $625,894, a 19% increase from $524,536 in the fourth quarter of 2024 [44]. - Adjusted earnings for 2025 are reported at $1,919,489, up from $1,658,385 in 2024 [62]. Insurance Segment Performance - The combined ratio for Markel Insurance improved to 93% for the fourth quarter and 95% for the full year, a three-point and one-point improvement respectively [6]. - The underwriting profit for Markel Insurance increased by 24% to $455.7 million, with a combined ratio of 94.6% [13]. - Earned premiums in the Markel Insurance segment increased to $2,193,514, reflecting a 7% growth from $2,044,294 in the previous year [45]. - The combined ratio for the Markel Insurance segment improved to 92.9% from 95.9% year-over-year, indicating better underwriting performance [45]. - The underwriting profit for Markel Insurance in 2025 is $455,671, an increase from $366,976 in 2024 [69]. - The current accident year loss ratio improved to 61.9%, down from 64.1% in the previous year, indicating better loss management [72]. - The combined ratio improved to 94.6% in 2025 from 95.5% in 2024, demonstrating enhanced underwriting performance [73]. Investment Performance - Net investment income for Markel Insurance rose by 9% to $871.5 million, contributing to overall financial performance [10]. - Net investment income for the year ended December 31, 2025, was $970,427, up from $920,496 in 2024 [42]. - The yield on fixed maturity securities improved to 3.5%, compared to 3.2% in the previous year [28]. - The one-year annual return on equity securities was 10.5%, down from 20.1% in the prior year [28]. - The company reported net investment gains of $1,076,081 for the year, down from $1,807,219 in the previous year [42]. - Net investment income for Markel Insurance was $970,427, up from $920,496 in 2024, marking an increase of about 5.4% [77]. Revenue Growth by Segment - Markel Insurance's gross premium volume increased by 4% to $10.6 billion, driven by growth in personal lines and international professional liability [10]. - Operating revenues for the Industrial segment increased by 4% to $3,928,249, driven by organic growth and a full-year contribution from the Valor Environmental acquisition [20]. - The Financial segment saw a 24% increase in operating revenues to $736,964, with organic revenue growth of 17% attributed to performance fees and higher management fees [23][24]. - Adjusted operating income for the Financial segment rose by 25% to $326,572, benefiting from higher revenues and a minority investment in Velocity Holdco LLC [25]. - The Consumer and Other segment reported a 4% increase in operating revenues to $1,382,912, with organic revenue growth of 1% driven by higher sales volume of ornamental plants [26]. Asset and Capital Management - Total invested assets reached $37.4 billion, up from $34.2 billion, driven by $2.8 billion in operating cash flows and a $1.7 billion increase in the fair value of the investment portfolio [30]. - The company deployed $1.4 billion into net fixed maturity securities purchases and $206.9 million in capital expenditures in 2025 [30]. - Total assets increased to $68,905,000,000 in 2025 from $61,898,000,000 in 2024, reflecting a growth of 12% [52]. - The debt to capital ratio improved to 19% in 2025 from 20% in 2024 [52]. - The balance sheet valuation for 2025 stands at $14,194,435, up from $12,526,791 in 2024 and $10,982,661 in 2023 [64]. - Common shares outstanding decreased to 12,590 in 2025 from 12,790 in 2024 [64]. Operational Efficiency - The total operating expenses for the year increased to $13,394,462, compared to $12,908,201 in 2024 [42]. - The expense ratio for the quarter was 36.7%, a slight increase from 37.2% in the prior year, indicating stable expense management [72]. - The expense ratio for Markel Insurance was 36.1%, compared to 35.5% in 2024, indicating a slight increase in operational costs [73].

Core Insights - Markel Group Inc. reported significant financial progress in 2025, with operating income reaching $3.2 billion and adjusted operating income exceeding $2.3 billion, driven by contributions from all reportable segments [2][4]. Financial Performance - Operating revenues for Q4 2025 were $4.0 billion, an increase of 8% from Q4 2024, while total operating revenues for the year were $15.5 billion, up 5% from 2024 [4][7]. - Operating income for Q4 2025 was $795.1 million, a 34% increase from Q4 2024, but decreased by 14% for the year to $3.2 billion [4][7]. - Adjusted operating income for Q4 2025 was $625.9 million, a 19% increase from Q4 2024, and for the year, it rose by 10% to $2.3 billion [4][7]. - Comprehensive income to shareholders for the year was $2.6 billion, with operating cash flows of $2.8 billion [7]. Segment Performance - Markel Insurance segment operating revenues increased by 4% to $9.4 billion in 2025, with adjusted operating income rising by 16% to $1.4 billion [10][11]. - The Industrial segment reported operating revenues of $3.9 billion, a 4% increase, while adjusted operating income decreased by 6% to $343.2 million [21][25]. - The Financial segment saw a 24% increase in operating revenues to $737.0 million, with adjusted operating income rising by 25% to $326.6 million [26][28]. - The Consumer and Other segment's operating revenues increased by 4% to $1.4 billion, with adjusted operating income growing by 20% to $174.6 million [29]. Investment Performance - Net investment income for 2025 was $970.4 million, reflecting a 5% increase, primarily due to higher interest income on fixed maturity securities [32][34]. - The yield on fixed maturity securities improved to 3.5% from 3.2% in 2024 [32]. - The company reported net investment gains of $1.1 billion, down from $1.8 billion in 2024 [32]. Capital Allocation - Total invested assets increased to $37.4 billion at the end of 2025, up from $34.2 billion in 2024, driven by $2.8 billion in operating cash flows and a $1.7 billion increase in the fair value of the investment portfolio [35][36]. - The company allocated $1.4 billion to net fixed maturity securities purchases and $206.9 million for capital expenditures in 2025 [35].

Core Insights - Markel Group (MKL) is positioned to continue its earnings-beat streak, having a strong history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 19.31% [1] Earnings Performance - In the most recent quarter, Markel Group reported earnings of $30.9 per share, exceeding the expected $22.77 per share by 35.70%. In the previous quarter, the company reported $25.46 per share against an estimate of $24.74 per share, resulting in a surprise of 2.91% [2] Earnings Estimates and Predictions - Recent estimates for Markel Group have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat. The current Earnings ESP stands at +2.55% [5][8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise, suggesting that Markel Group may follow this trend [6] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which are often more accurate [7] Importance of Earnings ESP - Monitoring a company's Earnings ESP before quarterly releases is crucial for increasing the odds of successful investment decisions. Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell prior to earnings reports [10]

Core Insights - Fenimore Asset Management's Q4 2025 investor letter highlights a solid yet volatile stock market influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1] Group 1: Market Performance - The S&P 500 Index rose by 2.66% in Q4 2025, driven by large-cap technology and communication services stocks [1] - Fenimore Small Cap Strategy returned -4.12%, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined by -4.41% compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy saw a decline of -1.17% against the Russell Midcap Index's 0.16% return, with underperformance attributed to investments in financial and industrial sectors [1] Group 2: Company Highlights - Markel Group Inc. (NYSE:MKL) was the top performer in Fenimore's Value Strategy for Q4 2025, with a stock price of $2,084.14 per share as of January 15, 2026 [2] - Markel Group Inc. experienced a one-month return of -3.81% but gained 17.48% over the last 52 weeks, with a market capitalization of $26.37 billion [2] - The insurance segment of Markel Group Inc. achieved a 93% combined ratio, and its equity portfolio benefited from the year-end market rally, supported by disciplined capital allocation and stock buybacks [3]

Core Insights - Markel Group Inc. (MKL) shares are trading at a discount compared to the Zacks Insurance - Multi-line industry, with a price-to-book ratio of 1.48X, lower than the industry average of 2.71X, the Finance sector's 4.36X, and the Zacks S&P 500 Composite's 8.67X [1] - MKL has a market capitalization of $26.81 billion and an average trading volume of 0.04 million shares over the last three months [1] Financial Performance - MKL's bottom line has surpassed earnings estimates in each of the last four quarters, with an average beat of 19.93% [2] - The stock has surged 27% over the past year, outperforming its industry and the Finance sector, which grew by 12% and 20.8% respectively [3] - MKL's earnings have grown 23.1% over the past five years, significantly higher than the industry average of 10.2% [8] Technical Analysis - MKL shares are trading above the 50-day and 200-day simple moving averages of $2,084.72 and $1,958.45, indicating solid upward momentum [4] Growth Drivers - MKL benefits from rising premiums, strong retention, and expanded product offerings, with higher yields and gains from acquisitions contributing to revenue growth [7] - The Zacks Consensus Estimate for MKL's 2026 earnings per share indicates a 5.8% increase from 2025 estimates [8] - Recent acquisitions, including a 68% ownership interest in Educational Partners International, have enhanced MKL's capabilities and contributed $28 million in revenues in the most recent quarter [11] Analyst Sentiment - Two of the four analysts covering MKL have raised their 2026 earnings estimates in the past 30 days, leading to a 1.4% increase in the Zacks Consensus Estimate for 2026 earnings [9] Capital Management - MKL has a share repurchase program authorized for up to $2 billion, with $1.6 billion remaining available as of September 30, 2025 [15] - The company maintains a solid cash position of $4.1 billion, ensuring it can meet short-term obligations [15] Conclusion - Given MKL's strong stock performance, solid retention levels, improving rate environment, favorable growth estimates, and robust capital position, current shareholders may find it wise to hold onto MKL shares [16]

Core Insights - Markel Insurance has appointed Preeti Gureja as Chief Risk Officer for the US and Bermuda, pending regulatory approvals [1] - Gureja's role will focus on integrating risk into decision-making processes and enhancing risk reporting and regulatory engagement [2] Group 1: Appointment and Role - Preeti Gureja will lead the risk agenda across Markel's US and Bermuda operations and report to Henry Gardener, the Chief Risk Officer of Markel Insurance [1] - Her responsibilities will include supporting underwriting, reinsurance, and capital decisions through forward-looking analysis and clear risk appetites [2] Group 2: Experience and Background - Gureja has extensive experience in enterprise risk management from her previous roles at Chubb and AIG, where she led risk reporting and advanced industry thinking on emerging risks [3] - She holds an MBA from the Indian Institute of Management, Ahmedabad, and a B.E. in Electrical Engineering from the Delhi College of Engineering [3] Group 3: Leadership Perspective - Henry Gardener praised Gureja as a proven enterprise risk leader who combines analytical rigor with practical judgment, emphasizing her ability to turn risk insights into better decisions [4] - Gureja expressed her alignment with Markel's entrepreneurial culture and her commitment to using data and scenarios to support sustainable growth [4] Group 4: Company Overview - Markel Insurance is a leading global specialty insurer known for its people-first approach and strong relationships with colleagues, brokers, and clients [5]

Core Insights - Markel Group (MKL) experienced significant developments in 2025, particularly with the involvement of activist investor JANA, which aimed to influence the company's direction [1] Group 1: Company Developments - The first quarter of 2025 marked the disclosure of JANA's involvement with Markel Group, indicating a potential shift in company strategy and governance [1] Group 2: Analyst Position - The analyst holds a beneficial long position in the shares of MKL, indicating confidence in the company's future performance [2]

Core Insights - Markel Group (MKL) experienced significant developments in 2025, particularly with the involvement of activist investor JANA, which aimed to influence the company's direction [1] Group 1: Company Developments - The first quarter of 2025 marked the disclosure of JANA's involvement with Markel Group, indicating a potential shift in company strategy [1] Group 2: Analyst Position - The analyst holds a beneficial long position in the shares of MKL, indicating confidence in the company's future performance [2]

Core Viewpoint - Markel Group (MKL) has shown strong performance, with shares up 2.1% over the past month and a year-to-date increase of 23.2%, outperforming the Zacks Finance sector and the Zacks Insurance - Multi line industry [1][3]. Financial Performance - In the last earnings report on October 29, 2025, Markel Group reported an EPS of $30.9, exceeding the consensus estimate of $22.77, and beat the revenue estimate by 5.66% [2]. - For the current fiscal year, earnings are expected to be $101.04 per share on revenues of $15.32 billion, reflecting a 23.22% increase in EPS and a 3.41% increase in revenues [3]. - For the next fiscal year, the company is projected to earn $110.01 per share on revenues of $15.22 billion, indicating a year-over-year change of 8.88% in EPS and a slight decline of 0.63% in revenues [3]. Valuation Metrics - Markel Group has a Value Score of B, with Growth and Momentum Scores of C and D, respectively, resulting in a combined VGM Score of B [6]. - The stock trades at 21 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 9.9 times [6]. - On a trailing cash flow basis, the stock trades at 20.6 times, compared to the peer group's average of 12.2 times, indicating it is not in the top echelon from a value perspective [6]. Zacks Rank - Markel Group holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7]. - The recommendation suggests that stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B are favorable, indicating potential for further gains for Markel Group [8]. Industry Comparison - SiriusPoint Ltd. (SPNT) is a notable peer with a Zacks Rank of 1 (Strong Buy) and a Value Score of B, indicating strong performance within the industry [9]. - SPNT reported earnings that beat consensus estimates by 41.18%, with expected earnings of $2.44 per share on revenues of $3.01 billion for the current fiscal year [10]. - The Insurance - Multi line industry is performing well, ranking in the top 18% of all industries, suggesting positive conditions for both MKL and SPNT [11].

Core Thesis - Markel Group Inc. is viewed positively due to its unique business model, strong management alignment, and potential for growth in the specialty insurance market [1][6]. Company Overview - Markel Group Inc. is often referred to as a "mini-Berkshire Hathaway" due to its combination of insurance, investments, and private businesses under Markel Ventures [2]. - The company focuses on niche property and casualty risks, such as equine, marine, and professional liability, which are typically avoided by traditional insurers [2]. Historical Performance - Since its IPO in 1986, Markel has achieved a 14.5% annualized return, consistently outperforming the S&P 500 [3]. - The company's "win-win-win" philosophy emphasizes the importance of customers, employees, and shareholders, leading to disciplined capital allocation and long-term compounding [3]. Current Strategy - Markel is refocusing its insurance business after previous underperformance, with a renewed emphasis on underwriting discipline and exiting loss-making reinsurance [4]. - The company holds only a 3% share of the U.S. excess and surplus market, indicating significant growth potential domestically [4]. - International operations now account for 25% of total gross written premiums, showcasing rapid expansion abroad [4]. Management and Culture - CEO Tom Gayner's personal investment of approximately $52 million in stock reflects strong management alignment and conviction in the company's future [5]. - The company maintains a shareholder-aligned culture, prudent underwriting practices, and disciplined capital allocation, positioning it for sustained long-term growth [5]. Recent Developments - The stock price of Markel has appreciated approximately 14.32% since previous bullish coverage, indicating ongoing investor confidence in its compounding model [6].