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MKL Outperforms Industry in a Year: Time to Add It for Better Returns?
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Key Takeaways
MKL is generating improved premiums on stronger new business volume, solid retention and rate rises.
MKL began consolidating EPI after regulatory approval; EPI & Valor added $28M revenues in the latest quarter.
Markel benefits from higher investment income and backs growth with a $2B share repurchase program.
Markel Group Inc.’s (MKL - Free Report) shares have risen 4.3% in the past year against the industry’s decline of 8.3%.
The company has outperformed its peers, including Assurant, Inc. (AIZ - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and MetLife, Inc. (MET - Free Report) in the past year. Shares of AIZ have gained 1.8%, while those of CNO and MET have lost 3.7% and 17.3%, respectively, in the said time frame.
Image Source: Zacks Investment Research
With a market capitalization of $24.49 billion, the average volume of shares traded in the past three months was 0.04 million.
MKL’s Encouraging Growth Projections
The Zacks Consensus Estimate for Markel Group’s 2026 earnings per share indicates a year-over-year increase of 18.7%. The estimate for 2026 revenues is pegged at $16.88 billion, implying a year-over-year improvement of 10.3%.
The consensus estimate for 2027 earnings per share and revenues indicates an increase of 6.9% and 5.3%, respectively, from the corresponding 2026 estimates.
Earnings have grown 18.3% in the past five years, better than the industry average of 9.9%. Markel Group has an impressive Growth Score of A. This style score helps analyze the growth prospects of a company.
The Zacks Consensus Estimate for 2026 and 2027 earnings has moved up 2.9% and 3.6%, respectively, in the past 60 days.
What's Aiding MKL's Performance?
MKL has been generating improved premiums. An improvement in new business volume, strong retention levels, continued increases in rates and expanded product offerings should help the insurer retain the momentum.
Investment income should continue to benefit from an improving rate environment, higher interest income on cash equivalents, fixed maturity securities and short-term investments due to higher yields.
Markel Group considers strategic buyouts a prudent approach to ramp up its growth profile. Acquisitions have helped the company enhance its surety capabilities. In September 2024, it acquired a 68% ownership interest in Educational Partners International (“EPI”). Although MKL did not complete any new acquisitions during the first quarter of 2025, it began consolidating Educational Partners International this quarter upon attaining the required regulatory approval following the September 2024 investment in this business. The acquisitions of Valor and EPI contributed $28 million in revenues in the most recent quarter, with no contribution in the same quarter a year ago.
Higher revenues at construction services and transportation-related businesses due to a combination of increased demand, higher prices and growth, as well as a rise in production at one of the equipment manufacturing businesses, are expected to boost operating revenues. The increase also reflected a full-year contribution from Metromont.
MKL: Distribution of Wealth
Banking on a strong capital position, the company engages in share buybacks, a prudent way to distribute wealth to its shareholders. MKL has a share repurchase program, authorized by the board, that provides for the repurchase of up to $2 billion of shares. Share repurchases totaled $429.5 million for 2025, and MKL had 12.6 million shares outstanding at Dec. 31, 2025. Given its solid cash position, the company should not face any difficulty in meeting short-term obligations.
Conclusion
Markel Group's new business volume and prudent capital deployment present significant growth opportunities. Coupled with the impressive wealth distribution, solid growth projections and optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer.
MKL also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best opportunities in the value investing space. You can see the complete list of today’s Zacks #1 Rank stocks here.
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MKL Outperforms Industry in a Year: Time to Add It for Better Returns?
Key Takeaways
Markel Group Inc.’s (MKL - Free Report) shares have risen 4.3% in the past year against the industry’s decline of 8.3%.
The company has outperformed its peers, including Assurant, Inc. (AIZ - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and MetLife, Inc. (MET - Free Report) in the past year. Shares of AIZ have gained 1.8%, while those of CNO and MET have lost 3.7% and 17.3%, respectively, in the said time frame.
Image Source: Zacks Investment Research
With a market capitalization of $24.49 billion, the average volume of shares traded in the past three months was 0.04 million.
MKL’s Encouraging Growth Projections
The Zacks Consensus Estimate for Markel Group’s 2026 earnings per share indicates a year-over-year increase of 18.7%. The estimate for 2026 revenues is pegged at $16.88 billion, implying a year-over-year improvement of 10.3%.
The consensus estimate for 2027 earnings per share and revenues indicates an increase of 6.9% and 5.3%, respectively, from the corresponding 2026 estimates.
Earnings have grown 18.3% in the past five years, better than the industry average of 9.9%. Markel Group has an impressive Growth Score of A. This style score helps analyze the growth prospects of a company.
The Zacks Consensus Estimate for 2026 and 2027 earnings has moved up 2.9% and 3.6%, respectively, in the past 60 days.
What's Aiding MKL's Performance?
MKL has been generating improved premiums. An improvement in new business volume, strong retention levels, continued increases in rates and expanded product offerings should help the insurer retain the momentum.
Investment income should continue to benefit from an improving rate environment, higher interest income on cash equivalents, fixed maturity securities and short-term investments due to higher yields.
Markel Group considers strategic buyouts a prudent approach to ramp up its growth profile. Acquisitions have helped the company enhance its surety capabilities. In September 2024, it acquired a 68% ownership interest in Educational Partners International (“EPI”). Although MKL did not complete any new acquisitions during the first quarter of 2025, it began consolidating Educational Partners International this quarter upon attaining the required regulatory approval following the September 2024 investment in this business. The acquisitions of Valor and EPI contributed $28 million in revenues in the most recent quarter, with no contribution in the same quarter a year ago.
Higher revenues at construction services and transportation-related businesses due to a combination of increased demand, higher prices and growth, as well as a rise in production at one of the equipment manufacturing businesses, are expected to boost operating revenues. The increase also reflected a full-year contribution from Metromont.
MKL: Distribution of Wealth
Banking on a strong capital position, the company engages in share buybacks, a prudent way to distribute wealth to its shareholders. MKL has a share repurchase program, authorized by the board, that provides for the repurchase of up to $2 billion of shares. Share repurchases totaled $429.5 million for 2025, and MKL had 12.6 million shares outstanding at Dec. 31, 2025. Given its solid cash position, the company should not face any difficulty in meeting short-term obligations.
Conclusion
Markel Group's new business volume and prudent capital deployment present significant growth opportunities. Coupled with the impressive wealth distribution, solid growth projections and optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer.
MKL also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best opportunities in the value investing space. You can see the complete list of today’s Zacks #1 Rank stocks here.