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Markel Group Inc. MKL reported first-quarter 2025 net operating earnings per share of $25.72, which beat the Zacks Consensus Estimate by 36.1%. The bottom line increased 41.5% year over year.

Markel Group witnessed solid performance at the Reinsurance segment, improved net investment income and lower expenses, offset by decreased premiums. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Quarterly Operational Update of MKL

Total operating revenues of $3.5 billion matched the Zacks Consensus Estimate. The top line declined 0.4% year over year.
Earned premiums decreased 2% to $2.1 billion in the reported quarter. The modest decrease was due to lower earned premiums in the Insurance segment. The figure was higher than our estimate of $2 billion.

Net investment income increased 8.4% year over year to $235.6 million in the first quarter. The figure was lower than our estimate of $243.6 million and the Zacks Consensus Estimate of $242 million.

Markel Group Inc. Price, Consensus and EPS Surprise

Markel Group Inc. price-consensus-eps-surprise-chart | Markel Group Inc. Quote

Total operating expenses decreased 0.4% to $3.1 billion, owing to lower losses and loss adjustment expenses and product expenses. The figure matched our estimate.

MKL’s combined ratio deteriorated 60 basis points (bps) year over year to 95.8 in the reported quarter. The Zacks Consensus Estimate was pegged at 100.

Segment Update

Insurance: Gross premiums increased 3% year over year to $2.2 billion. The increase was driven by new business growth and more favorable rates within personal lines and programs product lines, as well as international professional liability and general liability product lines. It was partially offset by lower premium volume within select lines of U.S. professional liability product lines. The figure was lower than our estimate of $2.5 billion.

Underwriting profit came in at $53.2 million, down 50% year over year. The combined ratio deteriorated 280 bps year over year to 97.1.  

Reinsurance: Gross premiums rose 5% year over year at $581 million. The growth was driven by increases in renewals, new business and favorable timing differences within workers' compensation product lines, as well as new business within professional liability product lines, most notably within cyber liability. These increases were partially offset by unfavorable timing differences and decreases on renewals within marine and energy product lines and unfavorable timing differences within credit and surety product lines. The figure was higher than our estimate of $303.1 million.

Underwriting profit doubled year over year to $25 million. The combined ratio improved 450 bps year over year to 90.8 in the first quarter of 2025.

Markel Ventures: Operating revenues of $1.1 billion declined 1% year over year. Operating revenues decreased at transportation-related businesses and one of the consumer and building products businesses, primarily due to decreased demand. These decreases were largely offset by the contribution of revenues totaling $28.1 million, attributable to Valor and EPI, which were acquired in June 2024 and December 2024, respectively, and higher revenues at equipment manufacturing businesses driven by increased demand. 

Operating income of $102.5 million decreased 1% year over year. Operating income decreased at transportation-related businesses and one of the consumer and building products, primarily due to the impact of lower revenues. These decreases were offset by the impact of higher revenues and operating margins at one of the construction services businesses and contributions from Valor and EPI.