Markel publishes its results for the second quarter and half of 2022

RICHMOND, Va., August 2, 2022 /CNW/ – Markel Corporation (NYSE: MKL) today announced its financial results for the second quarter of 2022. The company also announced today that it has filed its Form 10-Q for the quarter ended March 30 June 2022 with the Securities and Exchange Commission.

The following tables present summary financial data for the quarters and six months ended June 30, 2022 and 2021.

Quarter ended June 30

Semester ended June 30

(in thousands of dollars, except per share amounts)

2022

2021

2022

2021

Earned premiums

$1,833,104

$1,568,037

$3,592,874

$3,065,732

Markel Ventures Operating Revenues

$1,361,398

$1,075,506

$2,311,790

$1,782,108

Net investment gains (losses)

$(1,554,643)

$674,753

$(1,913,042)

$1,201,624

Comprehensive income (loss) to shareholders

($1,281,449)

$849,654

$(1,810,476)

$1,208,651

Diluted net earnings (loss) per common share

($69.19)

$57.02

$(75.68)

$99.03

Combined report

91%

87%

90%

90%

(in thousands, except per share amounts)

June 30, 2022

December 31, 2021

Book value per common share

$898.53

$1,036.20

Common shares outstanding

13,538

13,632

Highlights of the quarter and six-month results include:

  • Earned premiums increased by 17% for the quarter and six months ended June 30, 2022reflecting continued growth in gross premium volume from new business, better rates and expanded product offerings.

  • The highest combined ratio for the quarter ended June 30, 2022 compared to the same period of 2021 was driven by the impact of a less favorable development on prior accident year claims reserves.

  • The combined ratio for the six months ended June 30, 2022 included $35.0 millioni.e. one point, net losses and claims adjustment expenses, as well as $12.3 million additional reinsurance costs, charged to the RussiaUkraine conflict. The combined ratio for the six months ended June 30, 2021 included $67.9 millioni.e. two points, net losses and settlement costs Winter Storm Uri.

  • Net investment losses in 2022 reflected a substantial decline in the fair value of our equity portfolio resulting from significant stock market declines.

  • Operating revenue growth from our Markel Ventures businesses reflects contributions from our acquisitions in the second half of 2021 and the impact of increased demand and higher pricing across many of our businesses.

  • The overall loss to shareholders in 2022, both for the quarter and six months, was the result of unrealized losses on our fixed-term and equity portfolios.

“The results for the first half of 2022 reflect the benefits of our diversified tri-engine architecture of insurance, investments and Markel Ventures. Within our insurance engine, new business opportunities, an attractive pricing environment and a strong portfolio construction contributed to strong top line growth and, combined with continued expense management efforts, resulted in a combined ratio of 90% for the first six months of 2022,” said Thomas S. Gayner and Richard R. Whitt, joint managing directors. “Our Markel Ventures engine provided further momentum with another record quarter for revenue and EBITDA.”

“Within our investment engine, our results were impacted by the sharp decline in equity markets, as well as by the rise in interest rates in the bond market, during the first half of 2022. Given our focus long-term performance and investment discipline, we are confident in the sustainability of our portfolio and understand that periodic volatility is to be expected,” noted Gayner and Whitt. remainder of 2022, we are well positioned to achieve our business objectives and remain focused on creating long-term shareholder value.”

We believe that our financial performance is measured more meaningfully over longer periods of time, which tends to mitigate the effects of short-term volatility and also aligns with the longer-term perspective we apply to operating of our activities. We generally use five-year periods to measure our performance. Over the five-year period ended June 30, 2022, the compound annual growth in book value per common share was 7%. During the five-year period ended June 30, 2022, our share price increased at a compound annual rate of 6%.

A copy of our Form 10-Q is available on our website at www.markel.com or on the SEC website at www.sec.gov. Readers are invited to consult the Form 10-Q for a more complete analysis of our financial performance. Our quarterly conference call, which will involve a discussion of our financial results and changes in our business and may include forward-looking information, will take place Wednesday, August 3, 2022starting at 9:30 a.m. (Eastern Time). Investors, analysts and the general public can listen to the call for free on the Internet through our website at www.markel.com in the “For Investors” section. Anyone requiring additional information may contact Markel’s Investor Relations department at [email protected] A replay of the call will also be available on our website approximately one hour after the call ends until Monday, August 15, 2022.

About Markel Corporation
Markel Corporation is a diversified financial holding company serving a variety of niche markets. The principal activities of the Company market and underwrite specialized insurance products. In each of the Company’s activities, it seeks to provide quality products and excellent customer service in order to be a market leader. The Company’s financial objectives are to achieve consistent underwriting and operating profits and superior investment returns to create shareholder value. Visit Markel Corporation on the web at www.markel.com.

Markel Logo (PRNewsFoto/Markel Event Insurance) (PRNewsfoto/Markel Corporation)

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