Markel Corporation (MKL - Free Report) reported fourth-quarter 2019 earnings of $6.57 per share, which missed the Zacks Consensus Estimate by 7.1% but were up 189.4% year over year.
The company witnessed year-over-year growth owing to strong contribution from its insurance and Markel Ventures. The acquisition of VSC Fire & Security aided Markel Ventures results.
Operational Update
Total operating revenues of $2.05 billion missed the Zacks Consensus Estimate by 0.8%. The top line rose 8.9% year over year on higher premiums, product and services plus other revenues, partly offset by lower net investment income.
Total operating expenses of Markel declined 7.5% year over year to $1.83 billion.
Markel’s combined ratio improved 1500 basis points (bps) year over year to 93% in the reported quarter.
Markel Corporation Price, Consensus and EPS Surprise
Segment Update
Insurance: Net written premiums were up 17.5% year over year to $1.14 billion in the quarter under review.
Underwriting profit came in at $128.8 million, compared with $9.5 million in the year-ago quarter.
Combined ratio improved 100 bps year over year to 89% in the quarter under discussion.
Reinsurance: Net written premiums increased 37.8% year over year to $120 million.
Underwriting loss was $45.7 million, narrower than $115.3 million incurred in the year-ago quarter.
Combined ratio improved 3100 bps year over year to 120% in the fourth quarter.
Markel Ventures: Profit of $21.4 million increased 25.3% year over year.
Financial Update
Markel exited the fourth quarter with investments, cash and cash equivalents and restricted cash and cash equivalents (invested assets) of $22.3 billion at Dec 31, 2019, up 16.14% year over year.
Debt balance increased 17.4% year over year to $3.53 billion as of Dec 31, 2019.
Book value per share increased 22.7% from year-end 2018 to $802.59 as of Dec 31, 2019.
Net cash from operating activities was $1.3 billion in 2019, up 45.7% year over year.
Zacks Rank & Performance of Other Insurers
Markel currently carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other insurers that have reported earnings this season are Unum Group (UNM - Free Report) , The Progressive Corp. (PGR - Free Report) and Chubb Ltd. (CB - Free Report) , each beating their estimate by 2.17%, 58.8% and 8.6%, respectively.
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Markel Corporation (MKL - Free Report) reported fourth-quarter 2019 earnings of $6.57 per share, which missed the Zacks Consensus Estimate by 7.1% but were up 189.4% year over year.
The company witnessed year-over-year growth owing to strong contribution from its insurance and Markel Ventures. The acquisition of VSC Fire & Security aided Markel Ventures results.
Operational Update
Total operating revenues of $2.05 billion missed the Zacks Consensus Estimate by 0.8%. The top line rose 8.9% year over year on higher premiums, product and services plus other revenues, partly offset by lower net investment income.
Total operating expenses of Markel declined 7.5% year over year to $1.83 billion.
Markel’s combined ratio improved 1500 basis points (bps) year over year to 93% in the reported quarter.
Markel Corporation Price, Consensus and EPS Surprise
Segment Update
Insurance: Net written premiums were up 17.5% year over year to $1.14 billion in the quarter under review.
Underwriting profit came in at $128.8 million, compared with $9.5 million in the year-ago quarter.
Combined ratio improved 100 bps year over year to 89% in the quarter under discussion.
Reinsurance: Net written premiums increased 37.8% year over year to $120 million.
Underwriting loss was $45.7 million, narrower than $115.3 million incurred in the year-ago quarter.
Combined ratio improved 3100 bps year over year to 120% in the fourth quarter.
Markel Ventures: Profit of $21.4 million increased 25.3% year over year.
Financial Update
Markel exited the fourth quarter with investments, cash and cash equivalents and restricted cash and cash equivalents (invested assets) of $22.3 billion at Dec 31, 2019, up 16.14% year over year.
Debt balance increased 17.4% year over year to $3.53 billion as of Dec 31, 2019.
Book value per share increased 22.7% from year-end 2018 to $802.59 as of Dec 31, 2019.
Net cash from operating activities was $1.3 billion in 2019, up 45.7% year over year.
Zacks Rank & Performance of Other Insurers
Markel currently carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other insurers that have reported earnings this season are Unum Group (UNM - Free Report) , The Progressive Corp. (PGR - Free Report) and Chubb Ltd. (CB - Free Report) , each beating their estimate by 2.17%, 58.8% and 8.6%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
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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