Markel Group (MKL) investor relations material

Executive summary

• Significant organizational changes included restructuring insurance operations, selling global reinsurance renewal rights, and focusing on core specialty markets to improve transparency and accountability.

• Operating income rose to $1.1B for Q2 2025 and $1.4B for H1 2025, driven by strong investment gains and Markel Ventures growth.

• Underperforming areas—CPI, risk managed D&O, and global reinsurance—were put into runoff, with strengthened reserves to address adverse development.

• Share repurchases continued, reducing fully diluted share count and compounding share price at a 16% annual rate over five years.

• Net income to common shareholders was $631M for Q2 2025, with EPS of $49.80 basic and $49.67 diluted.

Financial highlights

• Consolidated operating income for 2025 was $1.1B in Q2 and $1.4B for H1, up year-over-year, mainly due to unrealized equity gains.

• Total operating revenues for Q2 2025 were $4.60B, and $8.0B for H1 2025.

• Net investment income reached $230M in Q2 2025, up 6% for H1, with fixed income book yield at 3.5%.

• Markel Ventures revenues grew 7% to $1.55B and operating income rose 17% to $208M in Q2 2025.

• Net investment gains for H1 2025 were $431M, down from $1.8B prior year.

Outlook and guidance

• Underwriting actions and runoff of underperforming lines expected to improve combined ratio in H2 2025 and into 2026.

• Global Reinsurance run-off will impact premium earnings over the next 2–3 years, with reserves running off over several years.

• Management targets premium growth in lines with adequate rates and plans further improvements to external reporting.

• Emphasizes long-term performance measurement to mitigate short-term volatility from equity portfolio movements.