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Markel (MKL) Earnings and Revenues Beat Estimates in Q4
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Markel Corp. (MKL - Free Report) reported fourth-quarter 2016 net income of $9.11 per share, which beat the Zacks Consensus Estimate of $4.92 by 85%. Earnings, however, declined 36% year over year.
The insurer benefited from strong performance across all segments. While underwriting results were strong, favorable movements in the equity markets drove better investment results.
Operational Update
Total operating revenue of $1.4 billion came in ahead of the Zacks Consensus Estimate of $1.1 billion. Moreover, the top line improved 0.6% year over year on higher premiums, investment income as well as other revenues.
Total operating expenses of Markel Corp. increased 9% year over year to $1.2 billion.
Markel Corp.’s combined ratio deteriorated 100 basis points (bps) year over year to 89% in the reported quarter.
Segment Update
U.S. Insurance – Net written premiums were up 4.4% year over year to $543 million in the reported quarter.
Operating income was $17 million, down 17% year over year.
Combined ratio deteriorated 100 bps year over year to 88% in the quarter.
International Insurance − Net written premiums declined 2% year over year to $184 million.
Operating income plunged 54% to $17 million in the quarter.
Combined ratio deteriorated 900 bps year over year to 92% in the quarter.
Reinsurance Segment – Net written premiums increased 27% year over year to $112 million.
Operating income of $26.7 million decreased 16% year over year.
Combined ratio deteriorated 400 bps year over year to 94% in the quarter.
Other Insurance (Discontinued Lines) Segment - Net written premiums of $0.08 million were lower than $0.7 million in the year-ago quarter.
Operating loss of $7.6 million was substantially narrower than the year-ago quarter loss of $35.3 million.
Financial Updates
Markel exited 2016 with total cash, cash equivalents and investments of $19.1 billion compared with $18.1 billion at year-end 2015.
Book value per share increased 8% from year-end 2015 to $ $606.30 as of Dec 31, 2016.
Net cash from operating activities inched up 0.2% year over year to $534.6 million in 2016.
Markel Corporation Price, Consensus and EPS Surprise
Among the other players from the same space that have reported their fourth-quarter earnings so far, the bottom line at The Progressive Corporation (PGR - Free Report) , The Travelers Companies Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat the Zacks Consensus Estimate.
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Markel (MKL) Earnings and Revenues Beat Estimates in Q4
Markel Corp. (MKL - Free Report) reported fourth-quarter 2016 net income of $9.11 per share, which beat the Zacks Consensus Estimate of $4.92 by 85%. Earnings, however, declined 36% year over year.
The insurer benefited from strong performance across all segments. While underwriting results were strong, favorable movements in the equity markets drove better investment results.
Operational Update
Total operating revenue of $1.4 billion came in ahead of the Zacks Consensus Estimate of $1.1 billion. Moreover, the top line improved 0.6% year over year on higher premiums, investment income as well as other revenues.
Total operating expenses of Markel Corp. increased 9% year over year to $1.2 billion.
Markel Corp.’s combined ratio deteriorated 100 basis points (bps) year over year to 89% in the reported quarter.
Segment Update
U.S. Insurance – Net written premiums were up 4.4% year over year to $543 million in the reported quarter.
Operating income was $17 million, down 17% year over year.
Combined ratio deteriorated 100 bps year over year to 88% in the quarter.
International Insurance − Net written premiums declined 2% year over year to $184 million.
Operating income plunged 54% to $17 million in the quarter.
Combined ratio deteriorated 900 bps year over year to 92% in the quarter.
Reinsurance Segment – Net written premiums increased 27% year over year to $112 million.
Operating income of $26.7 million decreased 16% year over year.
Combined ratio deteriorated 400 bps year over year to 94% in the quarter.
Other Insurance (Discontinued Lines) Segment - Net written premiums of $0.08 million were lower than $0.7 million in the year-ago quarter.
Operating loss of $7.6 million was substantially narrower than the year-ago quarter loss of $35.3 million.
Financial Updates
Markel exited 2016 with total cash, cash equivalents and investments of $19.1 billion compared with $18.1 billion at year-end 2015.
Book value per share increased 8% from year-end 2015 to $ $606.30 as of Dec 31, 2016.
Net cash from operating activities inched up 0.2% year over year to $534.6 million in 2016.
Markel Corporation Price, Consensus and EPS Surprise
Markel Corporation Price, Consensus and EPS Surprise | Markel Corporation Quote
Zacks Rank
Markel presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among the other players from the same space that have reported their fourth-quarter earnings so far, the bottom line at The Progressive Corporation (PGR - Free Report) , The Travelers Companies Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat the Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2017In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>