Markel Corporation (MKL - Free Report) reported second-quarter 2019 earnings of $11.84 per share, which beat the Zacks Consensus Estimate by 16.7%. The bottom line however declined 40.7% year over year.
The company’s investment portfolio delivered a solid performance. Operating results attributable to Markel Ventures operations improved substantially and reflected premium growth in underwriting operations.
Operational Update
Total operating revenues of $2 billion missed the Zacks Consensus Estimate by 1.7%. The top line however rose 6.9% year over year on higher premiums, investment income, product and services plus other revenues.
Total operating expenses of Markel increased 5.9% year over year to $1.8 billion.
Markel’s combined ratio deteriorated 300 basis points (bps) year over year to 95% in the reported quarter.
Markel Corporation Price, Consensus and EPS Surprise
Segment Update
Insurance: Net written premiums were up 12.5% year over year to $1.1 billion in the quarter under review.
Underwriting profit came in at $47.6 million, down 35.9% from the year-ago quarter.
Combined ratio deteriorated 300 bps year over year to 95% in the quarter under discussion.
Reinsurance: Net written premiums inched up 0.04% year over year to $178.7 million.
Underwriting profit plunged 62.6% year over year to $8.8 million.
Combined ratio deteriorated 600 bps year over year to 96% in the second quarter.
Markel Ventures: Total revenues were $617 million, up 6.6% year over year driven by higher revenues from products businesses, higher sales volumes from transportation-related businesses and growth in one of the consulting services businesses. Income of $81.7 million increased more than sixfold year over year.
Financial Update
Markel exited the second quarter with cash and cash equivalents of $2.6 billion, up 10.2% from the level at year-end 2018.
Debt balance increased 20.5% to $3.6 billion as of Mar 31, 2019 from 2018 end.
Book value per share increased 15% from year-end 2018 to $751.94 as of Jun 30, 2019.
Net cash from operating activities was $249.2 million in the first half of 2019, down 19% year over year.
Zacks Rank
Markel currently 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
Of the insurance industry players that have reported second-quarter results so far, The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings. However, The Travelers Companies, Inc. (TRV - Free Report) missed the same.
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Markel Corporation (MKL - Free Report) reported second-quarter 2019 earnings of $11.84 per share, which beat the Zacks Consensus Estimate by 16.7%. The bottom line however declined 40.7% year over year.
The company’s investment portfolio delivered a solid performance. Operating results attributable to Markel Ventures operations improved substantially and reflected premium growth in underwriting operations.
Operational Update
Total operating revenues of $2 billion missed the Zacks Consensus Estimate by 1.7%. The top line however rose 6.9% year over year on higher premiums, investment income, product and services plus other revenues.
Total operating expenses of Markel increased 5.9% year over year to $1.8 billion.
Markel’s combined ratio deteriorated 300 basis points (bps) year over year to 95% in the reported quarter.
Markel Corporation Price, Consensus and EPS Surprise
Segment Update
Insurance: Net written premiums were up 12.5% year over year to $1.1 billion in the quarter under review.
Underwriting profit came in at $47.6 million, down 35.9% from the year-ago quarter.
Combined ratio deteriorated 300 bps year over year to 95% in the quarter under discussion.
Reinsurance: Net written premiums inched up 0.04% year over year to $178.7 million.
Underwriting profit plunged 62.6% year over year to $8.8 million.
Combined ratio deteriorated 600 bps year over year to 96% in the second quarter.
Markel Ventures: Total revenues were $617 million, up 6.6% year over year driven by higher revenues from products businesses, higher sales volumes from transportation-related businesses and growth in one of the consulting services businesses. Income of $81.7 million increased more than sixfold year over year.
Financial Update
Markel exited the second quarter with cash and cash equivalents of $2.6 billion, up 10.2% from the level at year-end 2018.
Debt balance increased 20.5% to $3.6 billion as of Mar 31, 2019 from 2018 end.
Book value per share increased 15% from year-end 2018 to $751.94 as of Jun 30, 2019.
Net cash from operating activities was $249.2 million in the first half of 2019, down 19% year over year.
Zacks Rank
Markel currently 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
Of the insurance industry players that have reported second-quarter results so far, The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings. However, The Travelers Companies, Inc. (TRV - Free Report) missed the same.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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