Markel’s underwriting profit dips to $134.2m in Q2, CR sits at 93.5%

Global re/insurer Markel Group has posted an underwriting profit of $134.2 million for the second quarter of 2024, an 8% decrease from the $145.3 million figure the firm reported last year.

At the same time, the organisation’s total operating revenues for Q2 2024 sat at $3.7 billion, a decrease from the previous year’s $4.1 billion.

All in all, the group posted a combined ratio of 93.5% for Q2 2024, compared to last year’s 92.8%.

Taking a closer look at the company’s results by segment, the insurance division generated gross premium volume of $2.5 billion, an increase of 2% from last year, which Markel attributed towards new business growth and more favorable rates within its personal lines, programs, marine and energy and property product lines, partially offset by lower premium volume within select lines of their U.S. general liability product lines.

Markel’s insurance segment also generated a 92.7% combined ratio, compared to Q2 2023’s 92.4%.

The segment’s combined ratio for the quarter included $146.6 million of favorable development on prior accident years loss reserves compared to $61.6 million for the same period of 2023, Markel noted.

Moreover, the reinsurance segment generated gross premium volume of $420.6 million for Q2 2024,  a 50% increase from Q2 2023’s $281.1 million.

The reinsurance segment also posted a combined ratio of 99.5%, compared to last year’s 94.3%.

Meanwhile, the Markel Ventures business had a remarkable performance during the quarter, generating $1.4 billion in operating revenues and $177.4 million in operating income, respectively.

Taking a look at the company’s results for the first half of 2024, Markel Group generated an underwriting profit of $235.3 million, an 11% decrease from $264.3 million the prior year period.

However, Markel Group’s total operating revenues for H124 sat at $8.1 billion, a solid increase from H123’s $7.7 billion.

Markel Group also posted a combined ratio of 94.4% for the first half of 2024, compared to last year’s 93.4%.

The firm noted that both the higher combined ratios for the quarter and H124 were primarily attributable to higher attritional loss ratios within their U.S. professional liability and general liability product lines.

The Insurance segment generated $4.7 billion in gross premium volume in H124, representing an increase of 4%, while the reinsurance segment posted a 17% rise in gross premium volume, climbing to $973.9 million.

And lastly, Markel Ventures posted $2.5 billion in operating revenues for H124, as well as $281.4 million in operating income.

Tom Gayner, Chief Executive Officer, commented: “Our Insurance engine continued to make steady progress in the second quarter. Insurance results included notably strong performance in our international operations, and it is encouraging to see that the corrective actions we’ve taken since the end of last year, particularly within our professional and general liability insurance product lines, are beginning to bear fruit.

“Markel Ventures continues to impress, turning in strong growth in operating income despite softening market conditions, and our net investment income continues to grow. In late June, we welcomed Valor Environmental to our Markel Ventures family of companies, bringing the Ventures engine to twenty businesses that contribute to the financial and cultural strength of Markel Group. As we look to the future, we continue to see opportunities to help our shareholders, customers and associates win.”

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