Markel Group (MKL) investor relations material

Executive summary

• Operating revenues rose 7% for the quarter and 4% year-to-date, reaching $11.5 billion for the nine months ended September 30, 2025, with all reportable segments contributing positively and supporting share repurchases and liquidity buildup.

• Adjusted operating income increased 24% for the quarter and 7% year-to-date, totaling $1.68 billion, while comprehensive income to shareholders exceeded $2 billion year-to-date.

• The company re-segmented its business into Markel Insurance, Industrial, Financial, and Consumer and Other, with enhanced financial disclosures and new KPIs for greater transparency.

• Decisive actions included exiting underperforming businesses, leadership changes, and organizational restructuring to improve accountability and profitability.

• Net income to common shareholders for the nine months was $1.50 billion, with diluted EPS of $120.60, down from $160.42 in the prior year period due to lower net investment gains.

Financial highlights

• Consolidated revenues rose 7% for the quarter and 4% year-to-date, with all segments up year-over-year.

• Adjusted operating income was $621 million for the quarter, up 24% year-over-year; Insurance contributed $153 million of the increase.

• Net investment income increased 5% year-over-year to $712.8 million, driven by higher yields and average holdings of fixed maturity securities.

• Net investment gains were $864 million for the period, down from $1.69 billion last year.

• Operating cash flows for the first nine months were $2.1 billion, supporting $344 million in share repurchases.

Outlook and guidance

• Management continues to target long-term compounding of shareholder capital, emphasizing disciplined underwriting, capital allocation, and investment in high-quality businesses.

• Continued focus on improving core insurance profitability and capital efficiency, with early evidence of success in underwriting and expense management.

• Strategic investments in technology and people are expected to drive future growth, especially in International and personal lines.

• Fronting and program businesses are expected to sustain growth into 2026, though subject to market-driven variability.

• The company expects continued premium growth in select lines with rate adequacy, while remaining cautious in areas with softening market conditions.