[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Markel Group Inc.'s unaudited consolidated financial statements for Q2 and H1 2025, along with accompanying notes Consolidated Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Investments** | $30,997,036 | $30,054,970 | | **Total Assets** | $66,791,177 | $61,897,982 | | **Total Liabilities** | $48,923,054 | $44,429,009 | | **Total Shareholders' Equity** | $17,318,158 | $16,915,898 | Consolidated Income Statement Highlights | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Six Months 2025 (in thousands) | Six Months 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $4,602,766 | $3,701,843 | $8,001,871 | $8,168,498 | | **Operating Income** | $1,107,340 | $409,980 | $1,389,864 | $1,745,766 | | **Net Income to Common Shareholders** | $631,039 | $249,701 | $752,753 | $1,274,885 | | **Diluted EPS** | $49.67 | $18.62 | $61.60 | $94.24 | Condensed Consolidated Cash Flow Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net Cash Provided By Operating Activities** | $880,588 | $1,209,279 | | **Net Cash Provided (Used) By Investing Activities** | $83,396 | $(1,558,289) | | **Net Cash Provided (Used) By Financing Activities** | $(927,747) | $255,195 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed disclosures cover accounting policies, segment reporting, acquisitions, investments, loss reserves, and capital actions, including insurance re-segmentation and preferred stock redemption - In the first half of 2025, the company changed its reportable segments, creating a new 'Markel Insurance' segment that combines the previous Insurance and Reinsurance segments, with prior periods recast to conform to this new presentation[29](index=29&type=chunk) - The company acquired a **68% interest** in Educational Partners International (EPI) and consolidated it on January 16, 2025, recognizing **$70.3 million** in goodwill, and also acquired **98%** of Valor Environmental in June 2024[41](index=41&type=chunk)[43](index=43&type=chunk) - For the six months ended June 30, 2025, current accident year losses included **$60.9 million** from the California Wildfires, and the company recognized **$228.8 million** of favorable development on prior years' loss reserves[72](index=72&type=chunk)[73](index=73&type=chunk) - In June 2025, the company redeemed all **600,000** outstanding shares of its 6.00% Series A preferred stock for an aggregate value of **$600.0 million**[89](index=89&type=chunk) - Subsequent to the quarter end, on July 30, 2025, the company announced an agreement to sell the renewal rights for its Global Reinsurance division, which will subsequently enter into run-off[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business overview, segment performance, financial condition, and critical accounting estimates, highlighting insurance re-segmentation and capital management [Business Overview](index=24&type=section&id=Business%20Overview) Markel Group operates through three financial engines: Insurance, Investments, and Markel Ventures, focusing on long-term growth through strategic capital allocation - The company is structured around three core financial engines: Insurance, Investments, and Markel Ventures[96](index=96&type=chunk) - The Markel Insurance business was reorganized into four divisions, and on July 30, 2025, the company announced the sale of renewal rights for its Global Reinsurance business, which will enter run-off[101](index=101&type=chunk)[106](index=106&type=chunk) - Markel Ventures acquired a majority interest in Valor Environmental in June 2024 and Educational Partners International (EPI) in September 2024, with EPI consolidated from January 16, 2025[117](index=117&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Consolidated operating income increased significantly in Q2 2025, driven by investment gains, despite decreased insurance underwriting profit, while Markel Ventures showed growth Segment Operating Income (in thousands) | Segment | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Six Months 2025 (in thousands) | Six Months 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Markel Insurance** | $60,337 | $123,896 | $136,619 | $218,624 | | **Investing** | $822,413 | $99,794 | $904,333 | $1,240,125 | | **Markel Ventures** | $207,728 | $177,498 | $310,238 | $281,413 | - The Markel Insurance segment's combined ratio increased to **96.9%** in Q2 2025 from **93.8%** in Q2 2024, unfavorably impacted by adverse loss reserve development on run-off directors and officers product lines (**$127.0 million**) and the Global Reinsurance division (**$49.5 million**)[129](index=129&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - The Investing segment's net investment income increased in H1 2025 due to higher yields on a larger fixed maturity portfolio, with net investment gains of **$431.2 million** in H1 2025 compared to **$772.3 million** in H1 2024[179](index=179&type=chunk)[181](index=181&type=chunk) - Markel Ventures' operating revenues grew **7%** in Q2 2025, and operating income grew **17%**, driven by contributions from recent acquisitions and increased demand at construction services businesses[183](index=183&type=chunk)[184](index=184&type=chunk) [Financial Condition](index=42&type=section&id=Financial%20Condition) The company maintained a strong financial position with a 20% debt-to-capital ratio, growing invested assets, and executed significant capital actions including preferred stock redemption and share repurchases - The consolidated debt-to-capital ratio was stable at **20%** as of June 30, 2025, remaining within the company's target range[194](index=194&type=chunk) - In June 2025, the company redeemed all of its outstanding 6.00% Series A preferred shares for an aggregate value of **$600.0 million**[195](index=195&type=chunk) - As of June 30, 2025, **$1.6 billion** remained available for repurchases under the company's **$2 billion** share repurchase program[197](index=197&type=chunk) - Net cash provided by operating activities decreased to **$880.6 million** for the first six months of 2025 from **$1.2 billion** in the prior year period, primarily due to higher gross claims payments and personnel costs[200](index=200&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's primary market risk exposures, including equity price, interest rate, and foreign currency risks, or credit risk during H1 2025 - The company's primary market risks are equity price risk, interest rate risk, and foreign currency exchange rate risk[212](index=212&type=chunk) - There were no material changes in market risk or credit risk exposures during the first six months of 2025 compared to year-end 2024[212](index=212&type=chunk)[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, following the implementation of a new actuarial reserving system and related internal control updates - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[215](index=215&type=chunk) - During Q2 2025, a new actuarial reserving system was implemented within Markel Insurance, leading to updates in internal controls over financial reporting[216](index=216&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) Potential adverse effects from U.S. tariffs and retaliatory measures are highlighted, which could impact product demand and increase inflationary pressure on insured losses - The company notes that new and changing U.S. tariffs and potential retaliatory actions by other countries may adversely affect its businesses, product demand, and insured losses[217](index=217&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common share repurchases during Q2 2025, totaling 49,140 shares for $90.5 million, with $1.65 billion remaining under the repurchase program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | April 2025 | 24,810 | $1,775.39 | | May 2025 | 15,312 | $1,886.29 | | June 2025 | 9,018 | $1,943.32 | | **Total** | **49,140** | **$1,840.76** | [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025[220](index=220&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including corporate governance documents, debt indentures, and CEO/CFO certifications

Core Insights - Markel Insurance has agreed to sell the renewal rights for its Global Reinsurance business to Nationwide as part of a strategy to simplify operations and focus on core specialty insurance markets [1][2][3] - The transaction will allow Markel to concentrate on its specialty insurance business while Nationwide will manage the renewal policies through Ryan Re Underwriting Managers [2][3] - Markel's Global Reinsurance division will enter runoff, with premiums expected to continue earning out over the next two to three years [2] Company Strategy - The sale is aimed at enhancing Markel's focus on its core specialty insurance business, which the CEO believes will allow the company to do more of what it does best [2] - Markel will not sell any insurance company entities as part of this transaction, indicating a commitment to its existing operations while streamlining its focus [2] Market Position - Nationwide and Ryan Re are expected to leverage the renewal rights effectively due to their scale, market presence, and expertise, which could strengthen their foundation for long-term success in the reinsurance market [3]

Wall Street analysts forecast that Markel Group (MKL) will report quarterly earnings of $24.74 per share in its upcoming release, pointing to a year-over-year decline of 4.7%. It is anticipated that revenues will amount to $3.99 billion, exhibiting an increase of 4.2% compared to the year-ago quarter. The current level reflects an upward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised th ...

Company Overview - Markel is an insurance company known for its specialty insurance offerings, particularly in the excess and surplus insurance market, covering unique risks not typically addressed by standard policies [4][5] - Founded in 1930, Markel has developed extensive experience in measuring and pricing risks, which is reflected in its strong underwriting performance [5][6] Financial Performance - Markel's combined ratio has averaged 95% over the past decade, indicating a consistent underwriting profit of $5 for every $100 in premiums collected [7] - In the first quarter, Markel reported a net investment income of $236 million, benefiting from higher yields on new investments, alongside an unrealized gain of $7.8 billion in its equity portfolio [11] Investment Strategy - Markel's investment philosophy is similar to that of Berkshire Hathaway, focusing on both insurance operations and acquiring non-insurance businesses [8][12] - The company has a venture segment that includes controlling interests in a diverse portfolio across various industries, operating with a high degree of independence [9] Growth Potential - Investing in Markel could yield significant returns over time; for instance, a $10,000 investment today could grow to nearly $300,000 in 30 years with a 12% annualized return [13] - While Markel is not expected to deliver explosive growth, it is considered a stable investment suitable for conservative investors or as part of a diversified portfolio [14]

Group 1 - Markel Insurance has appointed Chelsea Jiang as Managing Director for Greater China, aiming to enhance its operations in Hong Kong and Shanghai [1][2] - Jiang will focus on driving growth, improving product offerings, and strengthening relationships with brokers and clients in the dynamic Greater China market [2][3] - Her previous experience includes serving as Chief Technical & Innovation Officer at AXA for General Insurance in Greater China, providing her with a strong understanding of the market [2][3] Group 2 - Jiang will report to Sucheng Chang, the newly appointed Managing Director for Asia Pacific, indicating a strategic alignment within the leadership team [3] - Kevin Leung, Chief Underwriting Officer for Asia Pacific, expressed confidence in Jiang's ability to connect strategy with execution, which is expected to accelerate growth [3] - The leadership changes are aimed at fostering collaboration and unlocking the full potential of the teams in Hong Kong and Shanghai [3]

Core Insights - Markel Insurance has appointed Christian Stobbs as Chief Strategy and Corporate Development Officer to enhance strategic growth opportunities within its insurance operations [1][2] - Stobbs has over 17 years of experience in the insurance and financial services industry, which is expected to contribute to Markel Insurance's success [2] - Stobbs has a history with Markel, having joined in 2015 and held various leadership roles, including Managing Director for Abbey Tax and Managing Director for Asia Pacific [3][4] Company Background - Markel is a leading global specialty insurer known for its people-first approach and expertise in complex specialty insurance needs [5] - The company emphasizes the importance of relationships with colleagues, brokers, and clients as a key differentiator in the market [5] Achievements Under Stobbs - As Managing Director for Asia Pacific, Stobbs led significant expansion, with Gross Written Premium (GWP) increasing by approximately 600% since 2019, alongside improved underwriting profitability and a tripling of the employee count in the region [4]

Core Insights - Markel Group Inc. (MKL) shares are trading at a significant discount compared to the Zacks Diversified Operations industry, with a price-to-book ratio of 1.53X versus the industry average of 7.08X [1] - The company has a market capitalization of $25.29 billion and an average trading volume of 0.05 million shares over the last three months [1] Financial Performance - MKL's earnings have surpassed estimates in three of the last four quarters, with an average beat of 11.26% [2] - The stock has increased by 26.7% over the past year, outperforming the industry growth of 6.1%, the Finance sector's 18.2%, and the Zacks S&P 500 composite's 11.8% [3][7] - Earnings have grown by 23.1% over the past five years, exceeding the industry average growth of 15.6% [10] Technical Analysis - MKL shares are currently trading above both the 50-day and 200-day simple moving averages, indicating strong upward momentum [4] - As of July 10, 2025, the share price was $1,994.16, which is 3.3% lower than its 52-week high of $2,063.68 [4] Growth Projections - The Zacks Consensus Estimate for MKL's 2025 earnings per share indicates an 18.1% year-over-year increase, with revenues projected at $15.21 billion, reflecting a 2.6% improvement [9] - For 2026, earnings per share and revenues are expected to increase by 11.5% and 6.3%, respectively, compared to 2025 estimates [9] Analyst Sentiment - Recent analyst sentiment shows one of four analysts has raised estimates for 2025, while one of five has lowered estimates for 2026, resulting in a slight upward adjustment of 0.5% and 0.4% for the consensus estimates [11] Strategic Initiatives - MKL is focused on strategic acquisitions to enhance its insurance operations and grow revenues in Markel Ventures [7][16] - The company maintains a strong capital position with cash reserves of $4.2 billion, allowing for share buybacks and financial flexibility [18] Revenue Drivers - Increased demand and higher prices in construction services and transportation-related businesses are expected to boost operating revenues [17] - Improved premiums, strong retention levels, and an increasing rate environment are anticipated to support continued growth [15] Conclusion - Given the strong stock performance, solid retention levels, and favorable growth estimates, current shareholders may consider holding onto MKL shares [19]

Core Insights - Willis has launched 'Undercover', a $200 million insurance facility aimed at addressing geopolitical risks faced by cargo owners globally [1][2] - The product offers tailored coverage for various risks including war, terrorism, political violence, and confiscation, minimizing coverage gaps and claims disputes [2][3] - Undercover provides certainty of coverage during political instability and protects against fluctuating insurance costs due to changing country risk ratings [3][4] Company Overview - WTW, the parent company of Willis, operates in 140 countries, providing data-driven solutions in people, risk, and capital [5] - Willis has a long history in marine insurance, with over 650 specialists in marine risk and insurance, including more than 200 cargo insurance experts [6] - Markel, a partner in this initiative, is a leading global specialty insurer known for its people-first approach and expertise in complex specialty insurance needs [7]

Group 1: Zacks Premium Overview - Zacks Premium offers various tools to help investors become more confident and informed, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] - The service includes Zacks Style Scores, which are designed to assist investors in selecting stocks with the highest potential to outperform the market in the short term [2] Group 2: Zacks Style Scores - Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, where A indicates the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Cash Flow [3] - The Growth Score evaluates stocks based on projected earnings and sales growth, targeting companies with strong financial health [4] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks, utilizing recent price changes and earnings estimate revisions [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth potential, and positive momentum [6] Group 3: Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [10] Group 4: Company Spotlight - Markel Group - Markel Group, founded in 1930 and based in Glen Allen, VA, specializes in marketing and underwriting specialty insurance products across multiple regions [12] - The company operates through four reportable segments: Insurance, Reinsurance, Investing, and Markel Ventures [12] - Currently, Markel Group holds a Zacks Rank of 3 (Hold) with a VGM Score of A, and a Momentum Style Score of B, indicating potential for upward movement [13][14] - The Zacks Consensus Estimate for Markel Group's earnings has increased by $1.69 to $96.30 per share, with an average earnings surprise of 11.3% [13]

Core Viewpoint - Markel Insurance has appointed Joanna Quigan as Senior Underwriter for Professional and Financial Risks in Melbourne, aiming to enhance its Professional Indemnity business in Australia [1][2]. Company Overview - Markel Insurance operates as a leading global specialty insurer under Markel Group Inc. (NYSE: MKL), focusing on complex specialty insurance needs with a people-first approach [5]. Appointment Details - Joanna Quigan will develop and manage underwriting strategies for both renewing and new business, particularly in Professional Indemnity, and will report to Kym Beazleigh [2][4]. - Quigan has nearly 20 years of experience in liability insurance, previously serving as Cyber Product Lead at Delta Insurance Group New Zealand [3]. Strategic Impact - The appointment of Quigan is part of Markel's strategy to strengthen its talent pool across its Australian offices, enhancing the underwriting team in Victoria [4]. - Beazleigh expressed confidence in Quigan's ability to positively impact the market with her extensive product, management, and strategic experience [4].