Markel Group has reported that its insurance business, Markel Insurance, recorded an improved combined ratio of 93% for the first quarter of 2026, which includes two points of net losses attributed to the Middle East conflict, compared to 96% in Q1’25.
The insurer has reported a decrease of 21% in gross premium volume for Q1’26 to $2.2 billion from $2.8 billion a year earlier.
This decline was expected and was in relation to the impact of the sale of the renewal rights of the group’s Global Reinsurance division in 2025 and the transition of the Hagerty business to a fronting arrangement in 2026. Excluding these items, underwriting gross premium volume increased 10% for the quarter, explained Markel.
Markel Insurance recorded an underwriting profit increase of 77% to $142 million for the quarter, compared to $80 million in Q1’25. The segment’s net investment income rose 11% to $230 million.
As a result, adjusted operating income for Q1’26 hit $369 million, up 31% year-on-year, as each of the three ongoing underwriting divisions significantly contributed to the group’s overall profitability.
The insurer said, “Our global specialty product diversification was on full display. Although our Wholesale and Specialty E&S platform faced difficult market conditions, we had robust growth within our International operations, our Bermuda platform, and within our personal lines and programs business units.”
For the quarter, Markel Insurance’s earned premiums dipped by 2% to almost $2 billion, compared to $2.02 billion in the prior year quarter. Operating revenues for the quarter stayed more or less flat year on year at $2.2 billion.
Group-wide, Markel generated operating revenues of $3.6 billion, in line with the prior year, with an operating loss of $273 million, compared with a gain of $203 million in Q1’25. The company has reported a comprehensive loss to shareholders of $340 million for Q1’26 compared with income of $479 million a year earlier, primarily due to unrealized losses on its investment portfolio.
Tom Gayner, Chief Executive Officer, Markel Group, commented, “In the first quarter of 2026, we generated strong results across the company. We are pleased with the continued progress of our ongoing operations. We continue to do more of what’s working and less of what’s not, while focusing on balance sheet strength, disciplined capital allocation, and ongoing share repurchases.”
