Global re/insurer Markel Group Inc. has reported growth of 23% in operating revenue to $4.47 billion and operating income growth of 77% to $1.33 billion, primarily driven by its investment engine, for the first quarter of 2024.
The company has reported a higher combined ratio of 95.2% in Q1 2024 compared to 94% in Q1 2023, driven by a higher attritional loss ratio in the firm’s U.S. general liability and professional liability product lines.
The firm’s investment engine benefited from more favourable market value movements within its equity portfolio in 2024 and also reported a 37% increase in net investment income reflecting higher interest rates.
The Markel Ventures business grew its operating income by 13% resulting in revenue growth, therefore improving operating margins across several of the firm’s businesses.
Growth in Markel’s insurance segment revenue of 9% was primarily credited to an increase in earned premiums driven by new business growth and more favourable rates on certain lines of business.
The firm reported an insurance segment operating income of $1.07 billion, and the reinsurance segment reported an operating income of $12 million.
Tom Gayner, Chief Executive Officer, Markel Group, commented: “We are pleased with the overall performance of our businesses as we start the year. Our insurance team grew the top line year over year, and both operating income and the combined ratio improved significantly from the close of last year as we work towards our long-term profitability objectives.
“Net investment income increased amid higher interest rates, and our public investments were up meaningfully. Lastly, our Markel Ventures businesses had another terrific quarter, and we couldn’t be more pleased with the results of their efforts. Our promise to shareholders is to drive strong performance over the long-term, and with quarters like these, we continue to make progress towards that goal.”
