Markel Group (MKL) investor relations material

Executive summary

• Q3 operating revenue rose 6% to $4.16B; adjusted operating income increased 14% to $707.4M, while net income fell to $259.3M from $751.3M.

• Insurance underwriting improved, and Industrial, Financial, and Consumer and Other reported higher Q3 adjusted operating income.

• Long-term strategy emphasizes disciplined underwriting, patient reinvestment, and capital deployment toward opportunities expected to create lasting value.

Financial highlights

• Q3 diluted EPS was $18.15 versus $59.25; nine-month diluted EPS was $91.90 versus $120.60.

• Q3 net investment losses were $280.9M versus $432.9M of gains a year earlier; operating income was $383M versus $1.01B.

• Nine-month revenue rose 2% to $11.73B; adjusted operating income was $1.64B versus $1.68B, and net income was $1.22B versus $1.50B.

• Net investment income increased 5% to $258.1M in Q3 and 8% to $770.1M for nine months.

• The equity portfolio was $13.1B at quarter-end, with $9B of cumulative pre-tax unrealized gains; higher rates drove a $416M after-tax Q3 OCI loss on bonds.

Outlook and guidance

• Insurance leadership expects to enter 2027 from a position of strength; Global Re's drag is expected to recede, with disciplined underwriting and portfolio diversification supporting consistency.

• Programs and Solutions results are expected to improve over 2027 after underwriting actions in two delegated programs, including personal umbrella.

• No 2027 EPS guidance was given; Q4 ADC risk premium and reserve-management margin release are expected to be relatively neutral.

• Enstar's adverse development cover is subject to approvals and customary conditions and was expected to close in Q4 2026; management expected an immaterial Q4 underwriting-results impact.