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Markel Q1 Earnings & Revenues Miss Estimates, Premiums Down Y/Y
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Key Takeaways
MKL reported Q1 net operating EPS of $21.61, missing estimates and worsening 16% YoY
$728M net investment losses and a 2% drop in earned premiums weighed on results.
MKL improved its insurance combined ratio to 93 and cut expenses 0.6%, but operating cash plunged 95.8%
Markel Group Inc. (MKL - Free Report) reported first-quarter 2026 adjusted operating income of $21.61 per share, which missed the Zacks Consensus Estimate by 18.1%. The bottom line deteriorated 16% year over year.
Including one-time items, MKL reported a net loss of $18.90 per share in the first quarter of 2026.
Markel’s first-quarter results were primarily affected by significant net investment losses, and lower premium volumes drove overall operating loss, partially offset by stronger investment income and lower expenses.
Markel Group Inc. Price, Consensus and EPS Surprise
Total operating revenues of $3.5 billion, up 0.1% year over year, which missed the Zacks Consensus Estimate by 4%.
Earned premiums decreased 2% year over year to $2 billion in the quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion
Net investment income increased 8% year over year to $255.9 million in the first quarter, driven by higher interest income on fixed maturity securities and higher dividend income on equity securities. The figure was lower than the Zacks Consensus Estimate of $262 million. However, this was more than offset by substantial net investment losses of $728 million.
Total operating expenses of Markel Group decreased 0.6% year over year to $3.1 billion due to lower losses and loss adjustment expenses, underwriting, acquisition, insurance expenses and other expenses.
Q1 Segment Update
Markel Insurance: Operating revenues decreased 1% year over year to $2.4 billion. Adjusted operating income rose 31% year over year to $369.4 million. The combined ratio improved 300 bps year over year to 93.
Industrial: Operating revenues rose 6% year over year to $883 million. Adjusted operating income decreased 16% year over year to $49.2 million.
Financial: Operating revenues decreased 9% year over year to $161.5 million. Adjusted operating income declined 55% year over year to $36.2 million.
Consumer and Other: Operating revenues declined 3% year over year to $280 million. Adjusted operating income rose 23% year over year to $39.7 million.
Financial Update
Markel Group exited the first quarter with investments, cash, and cash equivalents and restricted cash and cash equivalents of $36.5 billion as of March 31, 2026, down 2.6% from the 2025-end level. The decrease in invested assets was primarily attributable to a decline in the fair value of equity securities and cash used to repurchase shares of common stock.
Senior long-term debt and other debt balance increased 1.8% to $4.3 billion, as of March 31, 2026, from the 2025-end level.
Shareholders' equity was $18.1 billion at the first quarter of 2026-end, down 2.5% from the 2025-end level.
Net cash provided by operating activities was $15.6 million, down 95.8% year over year.
During the first quarter of 2026, MKL repurchased common shares worth of $134 million.
Willis Towers Watson Public Limited Company (WTW - Free Report) delivered first-quarter 2026 adjusted earnings of $3.72 per share, which beat the Zacks Consensus Estimate by 3.6%. The bottom line grew 19% year over year.
Revenues increased 3% on an organic basis and 4% on a constant currency basis. The top line beat the Zacks Consensus Estimate by 1.1%. Adjusted operating income was $537 million, up 12% year over year. Adjusted operating margin expanded 70 basis points (bps) to 22.3%. Adjusted EBITDA was $589 million, up 11% year over year. Adjusted EBITDA margin was 23.9%, which expanded 50 bps.
Cincinnati Financial Corporation (CINF - Free Report) reported first-quarter 2026 operating income of $2.10 per share, which surpassed the Zacks Consensus Estimate by 8.8%. The bottom line improved significantly, from a loss of 24 cents to $2.10 per share year over year.
Total operating revenues for the quarter were $2.9 billion, reflecting a 12% year-over-year increase, though the figure missed the Zacks Consensus Estimate by 0.7%.
Selective Insurance Group, Inc. (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.
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Markel Q1 Earnings & Revenues Miss Estimates, Premiums Down Y/Y
Key Takeaways
Markel Group Inc. (MKL - Free Report) reported first-quarter 2026 adjusted operating income of $21.61 per share, which missed the Zacks Consensus Estimate by 18.1%. The bottom line deteriorated 16% year over year.
Including one-time items, MKL reported a net loss of $18.90 per share in the first quarter of 2026.
Markel’s first-quarter results were primarily affected by significant net investment losses, and lower premium volumes drove overall operating loss, partially offset by stronger investment income and lower expenses.
Markel Group Inc. Price, Consensus and EPS Surprise
Markel Group Inc. price-consensus-eps-surprise-chart | Markel Group Inc. Quote
Quarterly Operational Update of MKL
Total operating revenues of $3.5 billion, up 0.1% year over year, which missed the Zacks Consensus Estimate by 4%.
Earned premiums decreased 2% year over year to $2 billion in the quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion
Net investment income increased 8% year over year to $255.9 million in the first quarter, driven by higher interest income on fixed maturity securities and higher dividend income on equity securities. The figure was lower than the Zacks Consensus Estimate of $262 million. However, this was more than offset by substantial net investment losses of $728 million.
Total operating expenses of Markel Group decreased 0.6% year over year to $3.1 billion due to lower losses and loss adjustment expenses, underwriting, acquisition, insurance expenses and other expenses.
Q1 Segment Update
Markel Insurance: Operating revenues decreased 1% year over year to $2.4 billion. Adjusted operating income rose 31% year over year to $369.4 million. The combined ratio improved 300 bps year over year to 93.
Industrial: Operating revenues rose 6% year over year to $883 million. Adjusted operating income decreased 16% year over year to $49.2 million.
Financial: Operating revenues decreased 9% year over year to $161.5 million. Adjusted operating income declined 55% year over year to $36.2 million.
Consumer and Other: Operating revenues declined 3% year over year to $280 million. Adjusted operating income rose 23% year over year to $39.7 million.
Financial Update
Markel Group exited the first quarter with investments, cash, and cash equivalents and restricted cash and cash equivalents of $36.5 billion as of March 31, 2026, down 2.6% from the 2025-end level. The decrease in invested assets was primarily attributable to a decline in the fair value of equity securities and cash used to repurchase shares of common stock.
Senior long-term debt and other debt balance increased 1.8% to $4.3 billion, as of March 31, 2026, from the 2025-end level.
Shareholders' equity was $18.1 billion at the first quarter of 2026-end, down 2.5% from the 2025-end level.
Net cash provided by operating activities was $15.6 million, down 95.8% year over year.
During the first quarter of 2026, MKL repurchased common shares worth of $134 million.
Zacks Rank
Markel Group 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 Some Other Insurers
Willis Towers Watson Public Limited Company (WTW - Free Report) delivered first-quarter 2026 adjusted earnings of $3.72 per share, which beat the Zacks Consensus Estimate by 3.6%. The bottom line grew 19% year over year.
Revenues increased 3% on an organic basis and 4% on a constant currency basis. The top line beat the Zacks Consensus Estimate by 1.1%. Adjusted operating income was $537 million, up 12% year over year. Adjusted operating margin expanded 70 basis points (bps) to 22.3%. Adjusted EBITDA was $589 million, up 11% year over year. Adjusted EBITDA margin was 23.9%, which expanded 50 bps.
Cincinnati Financial Corporation (CINF - Free Report) reported first-quarter 2026 operating income of $2.10 per share, which surpassed the Zacks Consensus Estimate by 8.8%. The bottom line improved significantly, from a loss of 24 cents to $2.10 per share year over year.
Total operating revenues for the quarter were $2.9 billion, reflecting a 12% year-over-year increase, though the figure missed the Zacks Consensus Estimate by 0.7%.
Selective Insurance Group, Inc. (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.