Markel Group (MKL) Q2 2022 earnings summary

Executive summary

• Earned premiums grew 17% in Q2 and H1; the H1 combined ratio was 90%, while investment-market declines drove comprehensive losses in both periods.

• Markel Ventures delivered a record-setting Q2 for revenue and EBITDA, supported by acquisitions, increased demand and higher prices.

Financial highlights

• Earned premiums were $1.833B in Q2 2022 vs. $1.568B in Q2 2021, and $3.593B in H1 2022 vs. $3.066B in H1 2021.

• Markel Ventures operating revenues were $1.361B in Q2 2022 vs. $1.076B in Q2 2021, and $2.312B in H1 2022 vs. $1.782B in H1 2021.

• Net investment losses were $1.555B in Q2 2022 and $1.913B in H1 2022, reflecting lower fair values in the equity portfolio.

• Comprehensive losses to shareholders in Q2 and H1 2022 reflected unrealized losses on fixed maturity and equity portfolios.

Outlook and guidance

• Well-positioned to execute business objectives for the remainder of 2022, with a focus on long-term shareholder value.

• Over the five years ended June 30, 2022, book value per share grew at a 7% CAGR and share price at a 6% CAGR.