Markel Corporation (MKL - Free Report) reported third-quarter 2019 earnings of $13.95 per share that declined 51% year over year.
The company witnessed top-line growth as well as excellent results from Markel Ventures.
Operational Update
Total operating revenues of $2 billion beat the Zacks Consensus Estimate by 0.3%. The top line rose 11.1% year over year on higher premiums, investment income, product and services plus other revenues.
Total operating expenses of Markel increased 5.4% year over year to $1.8 billion.
Markel’s combined ratio improved 500 basis points (bps) year over year to 94% in the reported quarter.
Markel Corporation Price, Consensus and EPS Surprise
Segment Update
Insurance: Net written premiums were up 15.7% year over year to $1.2 billion in the quarter under review.
Underwriting profit came in at $81.3 million, surging 91.5% from the year-ago quarter.
Combined ratio improved 400 bps year over year to 92% in the quarter under discussion.
Reinsurance: Net written premiums increased 4.2% year over year to $187.2 million.
Underwriting loss was $6.5 million, narrower than $33.7 million incurred in the year-ago quarter.
Combined ratio improved 1200 bps year over year to 103% in the third quarter.
Markel Ventures: Profit of $35.5 million increased 50% year over year.
Financial Update
Markel exited the third quarter with cash and cash equivalents of $2.7 billion, up 34.8% from the level at year-end 2018.
Debt balance increased 29.5% to $3.9 billion as of Mar 31, 2019 from 2018 end.
Book value per share increased 17.6% from year-end 2018 to $768.98 as of Jun 30, 2019.
Net cash from operating activities was $711.9 million in the first nine months of 2019, down 6.7% 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 third-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 third-quarter 2019 earnings of $13.95 per share that declined 51% year over year.
The company witnessed top-line growth as well as excellent results from Markel Ventures.
Operational Update
Total operating revenues of $2 billion beat the Zacks Consensus Estimate by 0.3%. The top line rose 11.1% year over year on higher premiums, investment income, product and services plus other revenues.
Total operating expenses of Markel increased 5.4% year over year to $1.8 billion.
Markel’s combined ratio improved 500 basis points (bps) year over year to 94% in the reported quarter.
Markel Corporation Price, Consensus and EPS Surprise
Segment Update
Insurance: Net written premiums were up 15.7% year over year to $1.2 billion in the quarter under review.
Underwriting profit came in at $81.3 million, surging 91.5% from the year-ago quarter.
Combined ratio improved 400 bps year over year to 92% in the quarter under discussion.
Reinsurance: Net written premiums increased 4.2% year over year to $187.2 million.
Underwriting loss was $6.5 million, narrower than $33.7 million incurred in the year-ago quarter.
Combined ratio improved 1200 bps year over year to 103% in the third quarter.
Markel Ventures: Profit of $35.5 million increased 50% year over year.
Financial Update
Markel exited the third quarter with cash and cash equivalents of $2.7 billion, up 34.8% from the level at year-end 2018.
Debt balance increased 29.5% to $3.9 billion as of Mar 31, 2019 from 2018 end.
Book value per share increased 17.6% from year-end 2018 to $768.98 as of Jun 30, 2019.
Net cash from operating activities was $711.9 million in the first nine months of 2019, down 6.7% 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 third-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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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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