Markel’s operating income hits $3.71bn in 2024 as CoR improves

Markel has reported an operating income of $3.71 billion for the full year 2024, alongside an improved combined ratio of 95.2%.

The firm’s insurance business contributed $601 million to the total 2024 operating income, marking a 73% increase from $348.1 million in 2023. Meanwhile, the investment business contributed $2.77 billion, and Markel Ventures added $520 million.

Breaking down the insurance business’ contribution, the insurance segment accounted for $421 million of the $601 million total.

However, the reinsurance segment reported an operating loss of $5.3 million, which was a significant improvement from the $19.2 million loss in 2023. The remaining $184.5 million came from other insurance operations.

Looking at Markel’s underwriting results, gross premium volume in 2024 stood at $10.5 billion, while underwriting profit surged to $402 million from $162 million in 2023.

The insurance segment recorded a 2% increase in gross premium volume, driven by new business growth and favourable rate improvements in personal lines, programs, marine and energy, and credit and surety product lines. However, this was partially offset by lower premium volume in select U.S. general liability and professional liability product lines.

Meanwhile, the reinsurance segment saw a 10% increase in gross premium volume, fueled by renewal increases and new business in marine and energy, along with new business growth and favourable timing differences in workers’ compensation.

It is worth noting that in 2024, underwriting results included $70.6 million of net losses and loss adjustment expenses attributed to Hurricane Helene and Hurricane Milton.

Elsewhere, Markel observed that its net investment income hit $920 million in 2024, up from $734 million in 2023.

This improvement was primarily driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities during 2024 compared to 2023, as well as higher yields on cash and short-term investments.

Tom Gayner, Chief Executive Officer of Markel Group, commented on the results, “In 2024, we exceeded our target with strong returns from our public equity portfolio, continued growth in Ventures, and notable performance in many areas of our insurance business, all while staying true to our values and striving for excellence.

“Over the past two years, Markel Group has made significant strides in improving accountability, capital allocation, and leadership. As we continue to build on this progress, we are committed to enhancing our insurance performance and driving profitable growth across our entire family of businesses.”

Shedding some light on the California wildfires, Markel added, “In January 2025, there was a series of wildfires in southern California. Based on the information currently available, we estimate our range of underwriting losses, including the impact of reinstatement premiums, from these events to be between $90 million and $130 million, before income taxes.

“This estimated range of losses was derived based on a high-level review of in-force contracts and an analysis of ceded reinsurance contracts, as well as preliminary industry loss estimates.

“Due to the inherent uncertainty associated with the nature of these wildfire events and limited claims activity, our underwriting loss estimates are subject to a wide range of variability. We will refine our estimate of net losses, which will be recorded in the first quarter of 2025, as more details about these events and actual level of claims emerge.”

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