Markel Group reports 2024 third quarter and nine-months results
Markel Group (NYSE: MKL) reported its Q3 2024 financial results, showing strong performance across its three business engines. Operating revenue grew 37% in Q3 and 15% YTD, primarily driven by the Investments engine. The company achieved a combined ratio of 96.4% in Q3 2024, improving from 99.1% in Q3 2023. Net investment income increased 22% in Q3 and 29% YTD, benefiting from higher interest rates. Hurricane Helene impacted Q3 results with $62 million in losses. Markel Ventures showed revenue growth but experienced decreased operating margins. The company's stock price showed a 7% compound annual growth rate from December 2019 to September 2024.
Markel Group (NYSE: MKL) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando una forte performance nei suoi tre principali settori di attività. I ricavi operativi sono aumentati del 37% nel terzo trimestre e del 15% dall'inizio dell'anno, principalmente grazie al motore degli investimenti. L'azienda ha registrato un rapporto combinato del 96,4% nel terzo trimestre 2024, in miglioramento rispetto al 99,1% del terzo trimestre 2023. Il reddito da investimenti netti è aumentato del 22% nel terzo trimestre e del 29% dall'inizio dell'anno, beneficiando dei tassi di interesse più elevati. L'uragano Helene ha influito sui risultati del terzo trimestre con perdite per 62 milioni di dollari. Markel Ventures ha mostrato una crescita dei ricavi ma ha subito una diminuzione dei margini operativi. Il prezzo delle azioni dell'azienda ha registrato un tasso di crescita annuale composto del 7% dal dicembre 2019 al settembre 2024.
Markel Group (NYSE: MKL) informó sus resultados financieros del tercer trimestre de 2024, mostrando un fuerte rendimiento en sus tres motores de negocio. Los ingresos operativos crecieron un 37% en el tercer trimestre y un 15% en lo que va del año, impulsados principalmente por el motor de inversiones. La compañía alcanzó un ratio combinado del 96,4% en el tercer trimestre de 2024, mejorando desde el 99,1% en el tercer trimestre de 2023. Los ingresos netos por inversiones aumentaron un 22% en el tercer trimestre y un 29% en lo que va del año, beneficiándose de tasas de interés más altas. El huracán Helene impactó los resultados del tercer trimestre con pérdidas de 62 millones de dólares. Markel Ventures mostró un crecimiento en los ingresos, pero experimentó una disminución en los márgenes operativos. El precio de las acciones de la compañía mostró una tasa de crecimiento anual compuesta del 7% desde diciembre de 2019 hasta septiembre de 2024.
Markel Group (NYSE: MKL)는 2024년 3분기 재무 결과를 발표하며 세 가지 사업 부문에서 강력한 실적을 보여주었습니다. 운영 수익은 3분기 동안 37% 증가했으며, 연간으로는 15% 증가했습니다. 이는 주로 투자 부문 덕분입니다. 회사는 2024년 3분기 동안 96.4%의 결합 비율을 달성했으며, 이는 2023년 3분기의 99.1%에서 개선된 수치입니다. 순 투자 수익은 3분기 동안 22% 증가했으며, 연간으로는 29% 증가하여 높은 금리의 혜택을 누렸습니다. 허리케인 헬렌은 3분기 결과에 6200만 달러의 손실을 미쳤습니다. Markel Ventures는 매출 성장을 보였지만 운영 마진은 줄어들었습니다. 회사의 주가는 2019년 12월부터 2024년 9월까지 연평균 7% 성장률을 보였습니다.
Markel Group (NYSE: MKL) a publié ses résultats financiers du troisième trimestre 2024, montrant de solides performances dans ses trois moteurs d'activité. Le chiffre d'affaires opérationnel a augmenté de 37 % au troisième trimestre et de 15 % depuis le début de l'année, principalement grâce à l'activité d'investissements. L'entreprise a atteint un ratio combiné de 96,4 % au troisième trimestre 2024, améliorant son résultat par rapport à 99,1 % au troisième trimestre 2023. Les revenus nets d'investissement ont augmenté de 22 % au troisième trimestre et de 29 % depuis le début de l'année, bénéficiant de taux d'intérêt plus élevés. L'ouragan Helene a affecté les résultats du troisième trimestre avec des pertes de 62 millions de dollars. Markel Ventures a montré une croissance de son chiffre d'affaires mais a connu une diminution de ses marges opérationnelles. Le prix de l'action de l'entreprise a affiché un taux de croissance annuel composé de 7 % de décembre 2019 à septembre 2024.
Markel Group (NYSE: MKL) hat seine Finanzzahlen für das dritte Quartal 2024 veröffentlicht und eine starke Leistung in seinen drei Geschäftsbereichen gezeigt. Der Betriebsumsatz stieg im dritten Quartal um 37% und um 15% im bisherigen Jahresverlauf, hauptsächlich getrieben durch den Bereich Investitionen. Das Unternehmen erzielte im dritten Quartal 2024 einen kombinierten Satz von 96,4%, was eine Verbesserung gegenüber 99,1% im dritten Quartal 2023 darstellt. Der Nettoinvestitionsertrag stieg im dritten Quartal um 22% und um 29% im bisherigen Jahresverlauf, begünstigt durch höhere Zinssätze. Der Hurrikan Helene hatte negative Auswirkungen auf die Ergebnisse des dritten Quartals mit Verlusten von 62 Millionen Dollar. Markel Ventures zeigte Umsatzwachstum, erlebte jedoch einen Rückgang der operativen Margen. Der Aktienkurs des Unternehmens wies von Dezember 2019 bis September 2024 eine durchschnittliche jährliche Wachstumsrate von 7% auf.
- Operating revenue grew 37% in Q3 2024 compared to Q3 2023
- Net investment income increased 22% in Q3 and 29% YTD
- Combined ratio improved to 96.4% from 99.1% year-over-year
- Strong performance in international operations
- Continued growth in program services business
- Hurricane Helene caused $62 million in losses
- Reinsurance segment negatively impacted by elevated losses
- Markel Ventures experienced decreased operating margins
- Operating income decreased in Markel Ventures segment
Insights
Markel Group delivered strong Q3 2024 results with notable improvements across key metrics. Operating revenues surged 37% to
Particularly impressive was the investment performance, with net investment income up
The diversified business model continues to demonstrate resilience, with Markel Ventures contributing steady revenues despite some margin pressure. The
The insurance operations show encouraging trends with the combined ratio improving to
The ability to maintain a sub-100 combined ratio while absorbing
"We've consistently emphasized the value of our family of businesses that have found a home under the Markel Group umbrella. The results of 2024 so far underscore that benefit. Many of our businesses performed exceptionally, others made solid improvements where there was room for improvement, and a few faced slowdowns or challenges," said Tom Gayner, Chief Executive Officer. "Overall, we achieved strong results, and we're confident in our long-term ability for that to continue to be the case."
The following table presents summary financial data, by engine, for the quarters and nine months ended September 30, 2024 and 2023.
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(dollars in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||
Operating revenues: | |||||||
Insurance | $ 2,185,758 | $ 2,208,352 | $ 6,519,744 | $ 6,327,165 | |||
Investments: | |||||||
Net investment income | 233,384 | 191,015 | 671,042 | 518,536 | |||
Net investment gains (losses) | 917,530 | (265,917) | 1,689,794 | 591,173 | |||
Other | 14,971 | (5,033) | 45,174 | (13,791) | |||
Total Investments | 1,165,885 | (79,935) | 2,406,010 | 1,095,918 | |||
Markel Ventures | 1,259,621 | 1,246,769 | 3,854,008 | 3,738,028 | |||
Total operating revenues | $ 4,611,264 | $ 3,375,186 | $ 12,779,762 | $ 11,161,111 | |||
Operating income: | |||||||
Insurance (1) | $ 145,273 | $ 69,870 | $ 458,023 | $ 444,571 | |||
Investments: | |||||||
Net investment income | 233,384 | 191,015 | 671,042 | 518,536 | |||
Net investment gains (losses) | 917,530 | (265,917) | 1,689,794 | 591,173 | |||
Other | 14,971 | (5,033) | 45,174 | (13,791) | |||
Total Investments | 1,165,885 | (79,935) | 2,406,010 | 1,095,918 | |||
Markel Ventures | 106,627 | 130,420 | 388,040 | 392,648 | |||
Consolidated segment operating income (2) | 1,417,785 | 120,355 | 3,252,073 | 1,933,137 | |||
Amortization of acquired intangible assets | (46,459) | (47,545) | (134,981) | (136,367) | |||
Total operating income | $ 1,371,326 | $ 72,810 | $ 3,117,092 | $ 1,796,770 | |||
Comprehensive income (loss) to shareholders | $ 1,329,458 | $ (107,500) | $ 2,482,199 | $ 1,103,414 | |||
Diluted net income per common share | $ 66.25 | $ 3.14 | $ 160.42 | $ 90.69 | |||
Combined ratio | 96.4 % | 99.1 % | 95.1 % | 95.4 % | |||
(1) See "Supplemental Financial Information" for the components of our Insurance engine operating income. |
(2) See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. |
Highlights of results from the quarter and nine months:
- Operating revenue growth of
37% and15% for the quarter and nine months ended September 30, 2024, respectively, as well as significant growth in operating income, was driven by our Investments engine. - Our Investments engine benefited from more favorable market value movements within our equity portfolio in 2024 compared to 2023. Generally accepted accounting principles (GAAP) require that we include unrealized gains and losses on equity securities in net income. This may lead to short-term volatility in revenues and operating income that temporarily obscures our underlying operating performance.
- Net investment income within our Investments engine increased
22% and29% for the quarter and nine months ended September 30, 2024, respectively, reflecting higher interest rates and increased investment holdings in 2024 compared to 2023. - Our Insurance engine benefited from strong performance by our international operations, the favorable impact of underwriting actions by our
U.S. operations and continued growth in our program services business in 2024, while the performance of our Reinsurance segment was negatively impacted by elevated levels of losses on certain product lines. - Underwriting results for the quarter and nine months ended September 30, 2024 included
$62 million - Our Markel Ventures engine grew operating revenues in 2024 driven by our consumer and building products businesses, while operating income decreased due in part to lower operating margins at certain of our businesses.
We believe our financial performance is most meaningfully measured over longer periods of time, which tends to mitigate the effects of short-term volatility and also aligns with the long-term perspective we apply to operating our businesses and making investment decisions. The following table presents a long-term view of our performance.
Nine Months | Years Ended December 31, | ||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | ||||
Operating income (loss): | |||||||||
Insurance (1) | $ 458,023 | $ 348,145 | $ 928,709 | $ 718,800 | $ 136,985 | ||||
Investments (2) | 2,406,010 | 2,241,419 | (1,167,548) | 2,353,124 | 989,564 | ||||
Markel Ventures | 388,040 | 519,878 | 404,281 | 330,120 | 306,650 | ||||
Consolidated segment operating income (3) | 3,252,073 | 3,109,442 | 165,442 | 3,402,044 | 1,433,199 | ||||
Amortization and impairment | (134,981) | (180,614) | (258,778) | (160,539) | (159,315) | ||||
Total operating income (loss) | $ 3,117,092 | $ 2,928,828 | $ (93,336) | $ 3,241,505 | $ 1,273,884 | ||||
Net investment gains (losses) (2) | $ 1,689,794 | $ 1,524,054 | $ 1,978,534 | $ 617,979 | |||||
Compound annual growth rate in closing stock price | 7 % | ||||||||
(1) | See "Supplemental Financial Information" for the components of our Insurance engine operating income. |
(2) | Investments engine operating income includes net investment gains (losses), which are primarily comprised of unrealized gains and losses on equity securities. |
(3) | See "Non-GAAP Financial Measures" for additional information on this non-GAAP measure. |
* * * * * * * *
A copy of our Form 10-Q is available on our website at mklgroup.com, under Investor Relations-Financials, or on the SEC website at www.sec.gov. Readers are urged to review the Form 10-Q for a more complete discussion of our financial performance. Our quarterly conference call, which will involve discussion of our financial results and business developments and may include forward-looking information, will be held Thursday, October 31, 2024, beginning at 9:30 a.m. (Eastern Time). Investors, analysts and the general public may listen to the call via live webcast at ir.mklgroup.com. The call may be accessed telephonically by dialing (800) 715-9871 in the
Supplemental Financial Information
The following table presents the components of our Insurance engine operating income.
Quarter Ended September 30, | Nine Months Ended | Years Ended December 31, | |||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | 2023 | 2022 | 2021 | 2020 | |||||||
Insurance operating income (loss): | |||||||||||||||
Insurance segment | $ 109,584 | $ 25,092 | $ 350,073 | $ 256,247 | $ 162,176 | $ 549,871 | $ 696,413 | $ 169,001 | |||||||
Reinsurance segment | (33,531) | (5,812) | (20,200) | 33,606 | (19,265) | 83,859 | (55,129) | (75,470) | |||||||
Other insurance operations | 69,220 | 50,590 | 128,150 | 154,718 | 205,234 | 294,979 | 77,516 | 43,454 | |||||||
Insurance | $ 145,273 | $ 69,870 | $ 458,023 | $ 444,571 | $ 348,145 | $ 928,709 | $ 718,800 | $ 136,985 | |||||||
Non-GAAP Financial Measures
Consolidated segment operating income is a non-GAAP financial measure as it represents the total of the segment operating income from each of our operating segments and excludes items included in operating income. Consolidated segment operating income excludes amortization of acquired intangible assets and goodwill impairments arising from purchase accounting as they do not represent costs of operating the underlying businesses. The following table reconciles operating income to consolidated segment operating income.
Quarter Ended September 30, | Nine Months Ended | Years Ended December 31, | |||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | 2023 | 2022 | 2021 | 2020 | |||||||
Operating income (loss) | $ 1,371,326 | $ 72,810 | $ 3,117,092 | $ 1,796,770 | $ 2,928,828 | $ (93,336) | $ 3,241,505 | $ 1,273,884 | |||||||
Amortization of acquired | 46,459 | 47,545 | 134,981 | 136,367 | 180,614 | 178,778 | 160,539 | 159,315 | |||||||
Impairment of goodwill | — | — | — | — | — | 80,000 | — | — | |||||||
Consolidated segment | $ 1,417,785 | $ 120,355 | $ 3,252,073 | $ 1,933,137 | $ 3,109,442 | $ 165,442 | $ 3,402,044 | $ 1,433,199 | |||||||
About Markel Group
Markel Group Inc. is a diverse family of companies that includes everything from insurance to bakery equipment, building supplies, houseplants, and more. The leadership teams of these businesses operate with a high degree of independence, while at the same time living the values that we call the Markel Style. Our specialty insurance business sits at the core of our company. Through decades of sound underwriting, the insurance team has provided the capital base from which we built a system of businesses and investments that collectively increase Markel Group's durability and adaptability. It's a system that provides diverse income streams, access to a wide range of investment opportunities, and the ability to efficiently move capital to the best ideas across the company. Most importantly though, this system enables each of our businesses to advance our shared goal of helping our customers, associates, and shareholders win over the long term. Visit mklgroup.com to learn more.
Cautionary Statement
Certain of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Statements that are not historical facts, including statements about our beliefs, plans or expectations, are forward-looking statements. These statements are based on our current plans, estimates and expectations. There are risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by such statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additional factors that could cause actual results to differ from those predicted are set forth in our Annual Report on Form 10-K for the year ended December 31, 2023, including under "Business Overview," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," and "Quantitative and Qualitative Disclosures About Market Risk," and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, including under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Safe Harbor and Cautionary Statement," and "Quantitative and Qualitative Disclosures About Market Risk". We assume no obligation to update this release (including any forward-looking statements) as a result of new information, developments, or otherwise. This release speaks only as of the date issued.
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SOURCE Markel Group
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