Markel Group (MKL) Q1 2022 earnings summary

Executive summary

• Earned premiums grew 17% YoY, and the combined ratio improved to 89% from 94%, reflecting lower catastrophe losses and a lower attritional loss ratio.

• Comprehensive loss to shareholders was $529,027 thousand, primarily reflecting unrealized losses on fixed maturity and equity portfolios.

Financial highlights

• Earned premiums were $1,759,770 thousand, up from $1,497,695 thousand in Q1 2021.

• Markel Ventures operating revenues were $950,392 thousand, up from $706,602 thousand; growth reflected 2021 acquisitions and expansion across businesses.

• Net investment losses were $358,399 thousand, versus gains of $526,871 thousand in Q1 2021; diluted net loss was $6.58 per share, versus income of $42.02.

• Comprehensive loss to shareholders was $529,027 thousand, versus income of $358,997 thousand in Q1 2021.

Outlook and guidance

• Management said it would pursue opportunities across businesses throughout 2022; no specific financial targets were stated.

• Five-year compound annual growth through March 31, 2022 was 10% for book value per common share and 9% for share price.