Markel’s operating income rises to $1bn in Q2’25

Insurer Markel Group’s total operating income for the second quarter of 2025 grew to $1.1 billion from $409 million in Q2’24, largely driven by market value movements within its equity portfolio.

In the insurance segment in Q2’25, operating income declined to $128 million from $176 million in Q2’24.

The combined ratio for the group increased to 96.9% for Q2’25 from 93.8% in Q2’24, driven by adverse development in 2025 on its run-off risk-managed directors and officers product lines and on the Global Reinsurance division, which was announced as being placed into run-off.

The adverse development in Q2’25 resulted in less overall net favourable development on prior accident years’ loss reserves in this quarter when compared to Q2’24.

The underwriting results for the first half of 2025 included $60.9 million of net losses and loss adjustment expenses, or one-and-a-half points on the Markel Insurance combined ratio, driven by the January 2025 California Wildfires compared to no catastrophe losses in H1’24.

The firm’s operating income for H1’25 dipped to $1.4 billion compared to $3.7 billion in H1’24. Within this, the insurance segment income declined to $273 million compared to $601 million in H1’24.

Markel’s total operating revenue for the quarter increased to $4.6 billion compared to $3.7 billion in Q2’24. For H1’25, the revenue dipped slightly to $8 billion compared to $8.2 billion in H1’24. Again, these changes were largely driven by market value movements within its equity portfolio.

On the asset side, the net investment income increased 3% in the quarter to $228 million compared to $220 million in Q2’24. The same rose by 6% for H1’25 to $463 million compared to $437 million in H1’24. Both increases reflect higher yield and higher average holdings of fixed maturity securities in 2025.

Markel Ventures’ operating revenue grew to $1.54 billion for Q2’25 and $2.68 billion for H1’25. Operating income also grew to $207 million for Q2’25 and to $310 million for H1’25.

These increases reflect contributions from the acquisitions of Valor and EPI, and improved performance of Markel’s construction services businesses.

Tom Gayner, Chief Executive Officer of Markel Group, commented, “We’ve made meaningful changes across our business in recent years, all with the goal of consistently compounding your capital. Our results included $1.4 billion in operating income through the first half of the year.

“Also, this quarter, we took another step to simplify the structure of our insurance business by placing reinsurance into run-off. That decision enables the team to focus more clearly on the core underwriting activities where we have distinct strengths.”

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