Markel Group Inc. has reported a return to profit for the second quarter and half year periods of 2023, while its combined ratio of 93% for the quarter deteriorated somewhat from the 91% seen a year earlier, which the firm attributes to a higher attritional loss ratio.
Alongside the still solid combined ratio, the insurer saw growth in earned premiums of 11% for both the quarter to more than $2 billion, reflecting growth in gross premium volume from new business and more favorable rates.
At its Markel Ventures unit, operating income for the quarter increased 40% to $1.39 billion, which the carrier attributes to higher operating margins at its products businesses.
On the asset side of the balance sheet the performance improved significantly this year, with net investment income for Q2 2023 of $169.7 million, up 75% year-on-year as a result of higher interest rates.
All in all, Markel has reported income of more than $564 million for the second quarter of 2023, compared with a loss of more than $1.2 billion in Q2 2022, as the firm witnessed a solid contribution from all three of its operating engines.
The firm’s results also improved for H1 2023. Earned premiums rose from $3.6 billion to almost $4 billion this year.
Operating revenues at Markel Ventures increased from $2.3 billion to $2.5 billion.
As in the quarter, the investment result improved dramatically on the back of higher year-on-year interest rates, hitting $329 million compared with $189 million a year earlier.
Income for H1 2023 rose to $1.2 billion, compared with a loss of more than $1.7 billion in H1 2022.
The combined ratio ended the half-year period at 93% in 2023, which is a slight deterioration from the 90% seen a year earlier.
Tom Gayner, Chief Executive Officer, commented on the result: “Insurance, Investments, and Markel Ventures all contributed to solid operating results in the second quarter. Markel Ventures recorded strong margins and cash flows, our insurance business increased gross written premiums while maintaining our long-term discipline of profitable underwriting and conservative reserving, and investment income grew significantly amid higher interest rates.
“I am grateful to the more than 20,000 people in our family of companies who work every day to drive results like these as we continue our journey to build one of the world’s great companies.”
