MKL

A month has gone by since the last earnings report for Markel Group (MKL). Shares have lost about 4.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Markel Group due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Markel Group Inc. before we dive into how investors and analysts have reacted as of late. MKL Q2 Earnings Miss Estimates on Weak Industrial, Financial UnitsMarkel Group Inc. reported second-quarter 2026 adjusted operating income of $19.5 per share, which missed the Zacks Consensus Estimate by 34.84%. The bottom line deteriorated 25% year over year. Markel’s second-quarter results reflected improved insurance underwriting performance and higher net investment income, which were offset by lower adjusted operating income in the Industrial and Financial segments. Total operating revenues were $4.01 billion in Q2 2026, a decline of about 0.1% year over year, surpassing the Zacks Consensus Estimate by 8.6%. Earned premiums decreased 3% year over year to $2 billion in the second quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 11.4% year over year to $256.1 million in the second quarter, driven by higher interest income from fixed maturity securities and higher dividend income from equity securities. The figure was lower than the Zacks Consensus Estimate of $262 million. Total operating expenses of Total operating expenses of Markel Group increased 3.7% year over year to $3.6 billion due to higher product expenses, services and other expenses. Markel Insurance: Operating revenues decreased 2% year over year to $2.2 billion. Adjusted operating income rose 40% year over year to $376.5 million. The combined ratio improved 400 bps year over year to 93%.Industrial: Operating revenues rose 2% year over year to $1 billion. Adjusted operating income decreased 27% year over year to $75.4 million.Financial: Operating revenues decreased 1% year over year to $171.3 million. The segment reported an adjusted operating loss of $148.9 million against the adjusted operating income of $78.4 million in the year-ago quarter.Consumer and Other: Operating revenues increased 4% year over year to $552 million. Adjusted operating income rose 20% year over year to $122.1 million. Markel Group exited the second quarter with investments, cash and cash equivalents and restricted cash and cash equivalents of $37.6 billion as of June 30, 2026, up 0.4% from the year-end 2025 level. The increase in invested assets was primarily driven by higher investment balances, partially offset by lower cash and cash equivalents. Senior long-term debt and other debt balance increased 1.5% to $4.4 billion as of June 30, 2026, from the year-end 2025 level. Shareholders' equity was $19 billion at the end of the second quarter of 2026, up 2.2% from the 2025-end level. During the first half of 2026, MKL repurchased common shares worth $370.7 million. It turns out, fresh estimates have trended downward during the past month. At this time, Markel Group has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has a score of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Markel Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Markel Group Inc. (MKL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Hagerty, Inc.? Here are five stocks we like better. Strong growth lifted Hagerty’s outlook: Written premium rose 19% in the second quarter and first half, while adjusted EBITDA increased 32% year over year to $75 million in Q2. The company raised 2026 guidance to 16%–17% written-premium growth, $18 million–$30 million in GAAP net income and $270 million–$280 million in adjusted EBITDA. Fronting arrangement affected reported results: Hagerty reassumed 100% of U.S. underwriting risk under its Markel arrangement, increasing its participation in underwriting profits but distorting GAAP revenue presentation. Management expects the accounting effects to largely normalize in 2027. Distribution and marketplace expansion continued: Hagerty surpassed 3 million insured vehicles, advanced State Farm policy conversions and acquired U.K. motorcycle insurer Bennetts for £34 million. Marketplace sales rose 17% to $65 million in the first half, led by a 74% increase in Broad Arrow auction sales. MarketBeat Week in Review – 12/4 - 12/8 Hagerty (NYSE:HGTY) reported second-quarter results marked by continued policy growth, higher written and earned premiums, and increased adjusted EBITDA, prompting the specialty insurer to raise its full-year outlook. Chief Executive Officer and Chairman McKeel Hagerty said the first half of 2026 was the company’s strongest on record based on growth in policies in force, written premium, earned premium and adjusted EBITDA. The company surpassed 3 million insured vehicles during the second quarter and added a record 279,000 new members in the first half, aided by State Farm policy conversions. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Suddenly markets are betting on Hagerty, AutoZone after UAW Written premium increased 19% in both the second quarter and first six months of 2026, accelerating from 14% growth a year earlier, according to Chief Financial Officer Patrick McClymont. Earned premium rose 42% to $252 million in the second quarter, reflecting policy growth and the company’s increased participation in underwriting economics under its new Markel fronting arrangement. Hagerty reassumed 100% of underwriting risk on its U.S. book beginning Jan. 1 under the Markel Fronting Arrangement. McClymont said the structure provides Hagerty with a 25% step-up in underwriting profits and investment income, but it also changes the presentation of its GAAP revenue and income statement. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High First-half reported GAAP revenue declined 6% to $667 million despite 19% written premium growth, as MGA commission revenue and related ceding commission expense are eliminated in consolidation. Hagerty reported GAAP net income of $8 million in the second quarter, while its first-half GAAP net loss was $5 million. Second-quarter net loss attributable to Class A common shareholders was $2 million, or $0.02 per share on both a GAAP and adjusted basis. The company’s second-quarter results included $64 million in amortization of deferred ceding commissions related to 2025 policies. → No Hangover: Revisiting Microsoft One Week After Earnings McClymont said Hagerty capitalized about $57 million in new acquisition expenses during the first half, with $16 million recognized through the income statement. That created a $41 million cumulative first-half benefit, including $20 million during the second quarter. The company expects that benefit to decline to $15 million in the second half and to be absent in the fourth quarter as policy acquisition expense amortization catches up with costs. Management expects the accounting effects of the fronting transition to be largely resolved in 2027, when revenue and earnings should present a more normalized view of operating performance. Hagerty Re reported a 90% combined ratio during the second quarter, following an 88% combined ratio for the first half. The first-half loss ratio was 41%. Management cited investments in underwriting and in-house claims capabilities as factors supporting member outcomes and lower loss costs. Adjusted EBITDA was $75 million in the second quarter and $160 million in the first half, up 32% year over year. Operating cash flow for the first six months totaled $186 million, nearly double the amount generated in the first half of 2025. As of June, Hagerty had $298 million of unrestricted cash and $216 million of total debt, including $88 million of back leverage associated with Broad Arrow’s portfolio of collector-car loans. Based on first-half performance and momentum entering the second half, the company raised its 2026 guidance. Hagerty now expects: Written premium growth of 16% to 17% for the full year. GAAP net income of $18 million to $30 million. Adjusted EBITDA of $270 million to $280 million. McClymont said stronger-than-expected cost efficiency and better Marketplace profitability were contributing to the increased EBITDA outlook. He also noted that Hagerty’s Marketplace business, which includes auctions and private sales, had performed better than expected and had major sales planned for the second half. Management said growth was broad-based across its distribution channels. The State Farm Classic+ program was active for new Hagerty policies in 37 states as of the end of the second quarter. Conversion of State Farm’s existing 525,000 collector-car policies was underway in 14 states, with Hagerty maintaining its target to complete the transition by 2028. The company said its independent agency channel includes 54,000 agents and remains a significant opportunity. Hagerty is investing in automated vehicle-identification tools, straight-through processing and agent education to identify enthusiast vehicles insured under standard daily-driver policies. Hagerty also cited expanding relationships with carriers including Progressive and Liberty Mutual. McClymont said the Progressive relationship has expanded beyond vehicles built before 1981 to include vehicles that are at least 25 years old, adding 17 years of potential vehicle cohorts on a rolling basis. Enthusiast+, Hagerty’s offering for more modern enthusiast vehicles, was performing in line with revised pricing assumptions in Colorado. The company expanded the program into three additional states in July. McKeel Hagerty said younger collectors were increasingly driving demand, with year-to-date quote volume from Gen X, millennial and Gen Z consumers exceeding 60% of total demand. After the quarter ended, Hagerty acquired Bennetts, the second-largest specialty motorcycle insurer in the United Kingdom, for £34 million. McClymont said the acquisition immediately triples Hagerty’s scale in the U.K. market. Management characterized acquisitions as likely to be modest and infrequent, with capital allocation remaining focused primarily on investments that grow policy count, improve unit economics and deepen the company’s member ecosystem. Hagerty Marketplace generated $65 million in first-half total sales, up 17%. Broad Arrow, the company’s high-end live auction business, recorded a 74% increase in first-half sales and a 91% sell-through rate. Private sales declined from the prior-year period, which had benefited from the sale of a large single-owner collection. McKeel Hagerty said the marketplace operation also serves as a customer-acquisition channel, as vehicles sold through auctions and private transactions may become Hagerty insurance policies. The company said it remains focused on reaching 3 million policies by 2030. Hagerty is a specialized automotive lifestyle and insurance company that caters primarily to collectible car enthusiasts. Its core business centers on offering classic vehicle insurance policies designed to protect antique, vintage and specialty automobiles, motorcycles and boats. These policies typically feature agreed-value coverage, flexible usage options and access to restoration services, aligning with the unique needs of collectors and hobbyists. Beyond insurance, Hagerty operates a comprehensive suite of community and content services under its automotive lifestyle brand. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hagerty Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Thursday, July 30, 2026 at 9:30 a.m. ET Chief Executive Officer - Thomas Gayner Operator: Good morning, and welcome to the Markel Group Second Quarter 2026 Conference Call. [Operator Instructions] During the call today, we may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They are based on current assumptions and opinions concerning a variety of known and unknown risks. Actual results may differ materially from those contained in or suggested by such forward-looking statements. Additional information about factors that could cause actual results to differ materially from those projected in the forward-looking statements is included in the press release for our first (sic) [ second ] quarter 2026 results as well as our most recent annual report on Form 10-K and quarterly report on Form 10-Q, including under the caption Safe Harbor and Cautionary Statements and Risk Factors. We may also discuss certain non-GAAP financial measures during the call today. You may find the most directly comparable GAAP measures and a reconciliation to GAAP for these measures in the press release for our first (sic) [ second ] quarter 2026 results or in our most recent Form 10-Q. The press release for our first (sic)[ second ] quarter 2026 results as well as our Form 10-K and Form 10-Q can be found on our website at www.mklgroup.com in the Investor Relations section. Please note, this event is being recorded. I would now like to turn the conference over to Tom Gayner, Chief Executive Officer. Please go ahead. Thomas Gayner: Thank you, Matt, and good morning, and welcome to our second quarter conference call. We welcome this opportunity to update you on our current and long-term performance and to answer your questions. As we've long stated, at Markel, we operate with the dual time horizon of forever and right now. I believe that the movie Field of Dreams got it right. The central premise of the film stated, if you build it, they will come. We think that is true, and we continue to work on building the system designed to relentlessly compound your capital. We are building the value of Markel and doing so in a way that rewards you, our shareholders, along with our customers and associates. That's the forever scorecard. The right now performance indicates how the journey continues to progress step by step. To gauge the right now, we look at adjusted operating income, which doesn't include many adjustments. It's simply GAAP operating income, excluding the short-term swings in public equity markets and amortization expenses. Equities often swing wildly quarter-to-quarter. Any short-term metric that includes those swings is noisy and doesn't do a very good job of describing our progress. Over 5-year periods, public equity volatility tends to normalize. So over this time frame, we focus on operating income, which includes our equity returns. The adjusted operating income of our business plus growth in our public equity portfolio drives intrinsic value. Over time, we believe our stock price should track that intrinsic value. But first, the right now. In the second quarter of this year, our reorganized and refocused insurance business continued to improve profitability, aided by strong underwriting and favorable reserve development. In our ongoing insurance business, excluding Global Re and Hagerty, grew the top line at 10% and posted a combined ratio in the low 90s. We are also seeing early signs of our expense discipline starting to show up in the numbers. Our consumer businesses also performed well. Our industrial businesses continue to be solidly profitable and cash generative despite the continued softer end market conditions they faced in the first half of 2026, and I'm encouraged that some tailwinds are beginning to emerge now. Finally, in our financial business, we acknowledged last quarter that within our State National business, we experienced a collateral shortfall relative to our total exposure to a particular capacity provider currently in bankruptcy. This quarter, after extensive actuarial work, including the engagement of an outside third party, we recognized a reserve of $205 million. I believe this event was driven more by a unique and unfortunate confluence of events, including the nature of the business written, the jurisdictions involved and the pace at which losses developed. This particular business involved began in 2012, and we ceased writing on these programs in 2021. This marks the first substantial credit loss in State National's over 40-year history. Per our practice, we've made what we believe is a conservative estimate of our ultimate liability, consistent with our overall reserving philosophy. As is always the case at Markel, we do our best to recognize and report bad news quickly and let good news develop over time. Today's action is in keeping with that philosophy. Turning to the forever. We focus on a 5-year time horizon to measure and compensate the senior management team. We think that 5-year time frame matches up with a meaningful measurement of economic progress better than quarterly or annual metrics. For the last 5 years ending in June 2026, average annual operating income was $2.5 billion compared to $1.2 billion in the previous 5-year period for a compound annual growth rate of 15%. We've been repurchasing our stock at an increasing rate and have reduced the total outstanding shares from $13.7 million to $12.4 million, a reduction of just under 10% over the last 5 years. On a per share basis, average operating income per share was $188.94 for the last 5 years ending in June 2026 compared to $88.99 for the previous 5-year period for a compound annual growth rate of 16%. The average shareholders' equity we used to produce these results grew by only 9% over the same period. That's significant earnings growth delivered in a capital-efficient way on fewer shares. Our diversification is an important feature and benefit of the Markel Group system, which provides resilience and durability to our earnings and returns. When things go bump in the night and they do, we can absorb it. When opportunities aligned with our values arise, we can pursue them. Our businesses continue to generate cash, which fuels the ongoing capital allocation activities. Over the last few years, the single largest use of capital has been the repurchasing of our own shares. During the second quarter, we repurchased $237 million of our shares or roughly 1% of all shares outstanding, up from $134 million in the first quarter. We have now repurchased more than $2 billion since the beginning of 2022. We continue to believe that at current prices and relative to the current set of alternatives, Markel shares represent the highest and best use of capital, and we're acting accordingly. I would also point out that we funded these repurchases through earnings. We are not leveraging up or borrowing money to repurchase shares. We continue to operate with a solid balance sheet, which positions us well to consider acquisition opportunities, make attractive investments and repurchase shares through thick and thin. As these repurchases continue to take place at a discount to our estimate of intrinsic value, that should continue to increase the value of each share of Markel. Brian will now share some financial highlights and details from the first half of 2026, and then Simon will provide an update about our insurance operations. We will then open the floor for any questions you may have. Andrew Crowley is also here to join us for that. Thank you again for your ongoing interest and support of Markel. Brian? Brian Costanzo: Thank you, Tom, and good morning, everyone. First, Markel Group's consolidated results for the second quarter of 2026. Operating revenues, which exclude net investment gains, were $4 billion for the quarter and $7.6 billion for the first 6 months. Both periods were flat to comparable periods a year ago. Operating income, which includes net investment gains, was $1.6 billion for the quarter versus $1.1 billion in the second quarter of 2025. For the first 6 months of 2026, operating income was $1.3 billion versus $1.4 billion a year ago. Adjusted operating income, which excludes net investment gains and amortization expenses, totaled $436 million for the quarter versus $578 million in the second quarter of 2025. For the first 6 months of 2026, adjusted operating income was $934 million versus $1.1 billion a year ago. The prior 2 quarters served as a good illustration of why we use longer-term views of operating income performance as net investment gains were $1.2 billion for the quarter, more than reversing the investment losses from the first quarter. For the first 6 months of 2026, net investment gains totaled $440 million versus $431 million a year ago. Net income to common shareholders was $1.2 billion or $93 per diluted share for the quarter versus $631 million or $50 per diluted share a year ago. For the first 6 months of 2026, net income to common shareholders was $957 million or $74 per diluted share versus $753 million or $62 per diluted share a year ago. Moving now to our Markel Insurance business. Underwriting gross written premiums were $2.4 billion for the quarter versus $2.8 billion in the second quarter of 2025. For the first 6 months of 2026, underwriting gross written premiums were $4.6 billion versus $5.6 billion a year ago. In both periods, growth was 10% when excluding the impact of exiting our global reinsurance division and the transition of our Hagerty program to a fronting model. Net earned premiums were down 3% for both the quarter and the first 6 months of this year. The combined ratio was 93% for the quarter compared to 97% in the second quarter of 2025. The improvement was driven by more favorable prior year reserve development and a slightly lower expense ratio, partially offset by $41 million or 2 points of current year catastrophe losses related to the Middle East conflict. For the first 6 months of 2026, the combined ratio was 93% versus 96% a year ago and included $76 million or 2 points of Middle East conflict losses, while the prior year period included $61 million or 1.5 points of losses from the California wildfires. Adjusted operating income was $376 million for the quarter versus $270 million in the second quarter of 2025. For the first 6 months of 2026, adjusted operating income was $746 million versus $552 million a year ago. In both periods, the increases were driven by improved underwriting profits and higher net investment income. Total operating income, which includes net investment gains within our insurance operations for the first half of this year was $1.2 billion, putting us on pace to achieve double-digit return on equity for the full year. Looking now at the ongoing divisions within our Insurance Operations. Within our International division, gross written premiums were $890 million, up 31% versus the second quarter of 2025, with growth across the division, led by marine and energy, general liability and professional liability lines. The combined ratio was 82% compared to 78% a year ago, with the current quarter including 6 points of losses from the Middle East conflict. For our U.S. Wholesale and Specialty division, gross written premiums were $799 million, down 4% versus the second quarter of 2025, driven by intentional contraction in binding contractors and casualty lines and a softening property rate environment, partially offset by growth in professional liability lines. The combined ratio improved to 97% from 102% a year ago, reflecting lower loss and expense ratios from our continued underwriting actions. Within our Programs and Solutions division, underwriting gross written premiums were $717 million, down 27% from the second quarter of 2025. This reduction was driven by the shift of our Hagerty program to a pure fronting model. Excluding that impact, gross written premiums grew by 6%, led by our delegated programs and personal lines businesses. The combined ratio was 94%, up from 91% a year ago, with the increase reflecting a higher current accident year loss ratio in our personal umbrella line and within certain delegated programs. Turning now to our consolidated investment portfolio. Net investment income totaled $256 million for the quarter, up 11% from the second quarter of 2025, reflecting a higher average book yield and an increase in the average balances within our fixed maturity portfolio. For the first 6 months of 2026, net investment income was $512 million, up 10% from a year ago. The fair value of our public equity holdings increased to $13.5 billion at quarter end, up from $12.3 billion at the end of the first quarter, which represents a 10% increase. For the first 6 months, the portfolio increased by 4%. Our cumulative pretax unrealized gain on our equity holdings at the end of the period was $9.3 billion. Moving now to our Industrial segment. Revenue was $1 billion for the quarter, a 2% increase versus the second quarter of 2025, driven by the contribution from a bolt-on acquisition in December of 2025. Organic revenue was flat as higher sales volume of our precast concrete products and fire safety services were offset by lower sales volume on our car hauling equipment due to a continued down cycle in demand for that industry. For the first 6 months of 2026, revenue was $1.9 billion, up 4% from a year ago, with organic revenue growth of 2%. Adjusted operating income was $75 million for the quarter versus $105 million in the second quarter of 2025, primarily reflecting tighter margins along with softer demand within our car hauling equipment business. For the first 6 months of 2026, adjusted operating income was $125 million versus $162 million in the prior year. Moving to our Financial segment. Revenue was $171 million for the quarter versus $173 million in the second quarter of 2025. For the first 6 months of 2026, revenue was $333 million versus $351 million a year ago, with the 6-month period last year, including nonrecurring gains of $41 million from our investment in Velocity and the sale of its MGA operations. The Financial segment recorded an adjusted operating loss of $149 million for the quarter versus income of $78 million a year ago. For the first 6 months of 2026, the segment recorded an adjusted operating loss of $113 million versus income of $158 million a year ago. Both periods were impacted by the $205 million bad debt charge within our State National Programs unit in the second quarter of this year. Moving now to the Consumer and Other segment. Revenue was $552 million for the quarter, a 4% increase versus the second quarter of 2025, relating to organic revenue growth in Ornamental plants during the seasonality strongest period of the year. For the first 6 months of 2026, revenue was $832 million, up 2% from a year ago, with organic revenue essentially flat. Adjusted operating income was $122 million versus $102 million in the second quarter of 2025, primarily attributed to the increased sales volume. For the first 6 months of 2026, adjusted operating income was $162 million versus $134 million a year ago. Finally, regarding capital allocation. As Tom has described many times before, we think about capital allocation as a 360-degree set of opportunities. The cash of our market-leading businesses generate -- the cash that our market-leading businesses generate can be reinvested in growth opportunities within our existing businesses, used to acquire new wholly owned businesses, invested in publicly traded equity securities or used to repurchase our own shares. We direct capital to wherever we see the best long-term return. Some notes from this quarter. Within public equities, net purchases were nominal, totaling $21 million. Acquisitions totaled $24 million of small downstream deals within our existing companies. We also paid $74 million to increase our ownership stake in our existing businesses. Regarding share repurchases, we repurchased $237 million in shares during the quarter and $371 million year-to-date, reducing our share count at the end of the second quarter to 12.4 million shares. With that, I will turn the call over to Simon. Simon Wilson: Thank you, Brian, and good morning, everyone. This time last year, I reported on a quarter where our combined ratio stood in the high 90s. Today, I'm pleased to report a 93% combined ratio for Markel Insurance for the fourth quarter in a row. Improving our performance and generating greater levels of consistency has been a central focus for the leadership team. The improvement has come on the back of some tough decisions where we've chosen the sanity of bottom line profit over the vanity of top line growth. Overall, our headline GWP is down for the quarter, but excluding the global re-exit and the transition of the Hagerty book to a service fee basis, we grew 10%. This growth is driven by the business units where we have seen the most success in recent years, especially from our International division. On the surface, reporting 4 quarters in a row of a low 90s combined ratio may appear a little boring. In that regard, long may boring continue. However, under the surface, the level of change that has been implemented to set Markel back on the path of being a leading specialty insurer has been significant. Two simple principles sit at the core of everything we have done. First, be obsessed with our customers, put our clients at the heart of all we do and make decisions as close to them as possible. Second, create a structure that allows our business leaders to think and act like owners. These 2 defining principles underpin every decision that has been made over the past 18 months. The outcome of the work done so far is as follows: Markel Insurance now consists of 3 divisions, below which 14 business units, each with a clearly identified leader. Each business unit leader has committed to delivering a financial plan for 2026 and a strategic plan over the next 5 years. The reporting lines of thousands of people, along with all our financial reporting and management information have been aligned to the new structure. Our results have improved and become more consistent, but even more importantly, our clients now describe our new setup as being simpler to access and quicker to make decisions. The leaders of our business units relish the challenge of building great businesses that will endure over the long term. These are critical foundations, but we are now focused on the next year of progress. At the heart of that focus lies the execution of our financial and strategic plans and the investments that we are making in our operations and technology. AI provides Markel Insurance with tools that allow us to reimagine how work gets done. We have asked all of our businesses how we can get better products in front of our customers much faster. This involves looking at every aspect of the business process end-to-end and having AI support and augment it. So far, we see the deployment of AI show up at 3 levels. First, building a new strategic business unit from scratch. Back in March of this year, we partnered with Bain & Co and kicked off a project to reimagine how to underwrite and service hard-to-place U.S. casualty risks with a new business model, where this model would be built with market-leading AI tools that designed and built by Markel and Bain experts. We're able to combine the team's underwriting knowledge gained over decades and the data we have amassed during that time. A new business unit named Cortex was launched within our Wholesale and Specialty division last week, just a few months after we started the process. We have moved quickly, learned a lot and believe that we have created something of genuine value in an area of the market where Markel has a right to win. Second, rewiring a class of business using Agentic AI. Over the past 12 months, we have comprehensively rewired 6 classes of business across both our U.S. and international operations, totaling over $500 million of existing GWP. We have partnered with Harvey AI to do this and the impact of applying Agentic AI to sophisticated specialty underwriting is significant. For example, the reduction in time to have an initial risk assessment in front of an underwriter has fallen by between 50% and 90%, depending on the line of business and accuracy levels are above 90% in all cases. This frees underwriters to focus on decision-making, negotiation and getting quotes out of the door. The result is higher levels of better quality business with the WI portfolio in London growing by 50% in the year since we deployed Harvey. Third, introducing AI agents at the business process level. Our AI accelerator fund was launched in February of this year with money made available to the best ideas stemming from the wider business. In total, we chose 9 ideas, all of which were developed and put into production during the single month of April. The ideas range from a new rating engine in our equine business that makes initial quotes available to our equine customers in seconds to an agent that vastly increases our ability to respond to the fast-moving marine war market to the WinSight tool, which analyzes the vast amount of data made available by our brokers on upcoming renewals and prioritizes the opportunities so that we can concentrate on those we are most likely to win. The accelerator fund promotes ground-up ideas in our decentralized model. We are increasingly confident in our deployment of AI and are committed to utilizing it to transform our business. However, AI is only beneficial if it improves our service to customers while generating returns on capital over time. So it is the business unit leaders who determine how best to deploy the technology. Leadership plays its part by consistently challenging these leaders to think differently and by sharing great ideas from other parts of Markel. Not all of our technology investment is being made in AI. There are some areas where building strong and durable core infrastructure is a critical step to ensuring we can make the most of AI further down the line. Examples of this work include deploying ClaimCenter across our U.S. operations earlier in 2026. The investment in PolicyCenter is our core system for the Personal lines business unit and the overhaul of our data environment in our international operations over the past 3 years. These investments in our core infrastructure provide the necessary foundation that enables future AI initiatives to enhance our overall offering and will ensure that we can scale Markel Insurance for years to come. Overall, our underwriting results have improved and become more consistent. We are growing where we have earned the right to win and managing the cycle where rates and terms do not support long-term profitability. I could dwell on market conditions and heightened global risk, but these factors are largely beyond our control. What remains within our control is how effectively we manage the insurance cycle and build an exceptional operation using powerful new tools that fundamentally improve the way we do business. Sadly, football may not be coming home this year, but maybe just maybe specialty insurance is. These are exciting times at Markel Insurance. And with that, I'll pass you back to Tom. Thomas Gayner: Thank you, Simon. Indeed, these are exciting times at Markel, and we look forward to answering your questions. Matt, if you'd be so kind to open the floor. Operator: Your first question comes from the line of Tracy Benguigui with Wolfe Research. Tracy Benguigui: When the third-party actuarial team that came in to assess the counterparty credit risk shortfall at the bankrupt reinsurer. It seems like that review was limited to just one counterparty at State National. Or did this third party also review the adequacy of collateral behind all of your unrated reinsurance partners or backing much larger liabilities? And if you could comment on the general health of your collateral backing reinsurance counterparties. Thomas Gayner: Thank you. I appreciate the question. That specific engagement was for the specific contract where we thought we had some issues, and we wanted to nail that down to the best of our ability. As you might imagine, we, as managers, doing our duty, are looking at everything at the same time, but the specific third party was engaged just for that topic. Tracy Benguigui: Right. So can you comment about your view of the general health of collateral backing all of your reinsurance counterparties, particularly those that are not rated? Thomas Gayner: Yes, happy to do so. That is the core business of State National for a long time. The charge that we put up is in keeping with our philosophy of having a number up there that is more likely to be redundant than deficient. That's the long-standing reserving philosophy, Markel, and this charge will reflect that. So that implies that we have looked at everything, and we're putting up our best estimate for what we think things are. This is the first loss of this nature in over 40 years of history that State National is operating in this business, and they have demonstrated the ability to handle those kinds of risks for multiple decades. We have every confidence that they are the best-in-class in doing so and continue to believe that's the case. Tracy Benguigui: Okay. Looking at your reserve development, what gave you comfort to release workers' comp reserves for recent accident years? And on the topic of reserves, as we sit here today halfway through the year, is the conclusion of your actual versus expected analysis support your guide of favorable development up to 5% or $800 million during 2026? Thomas Gayner: Yes. Let me ask Brian to comment on that. Brian Costanzo: Sure. Yes. Specifically on workers' comp, I mean, that has behaved very well, I think, across the industry in general, but for us, in particular, from an A versus E standpoint, we've been holding a fair amount of margin there for a while. We're starting to release some of that as the A versus E continues to come in and trend favorably. Kind of overall on the reserve side, what you're seeing us do is react to exactly those A versus E trends that we're seeing over multiple periods. And so our releases are concentrated in kind of first-party lines in the U.S., that would be our property, our inland marine and our personal lines E&S homeowners book, along with many lines in our international book that have performed very, very well and behaved very well from a reserving standpoint. On the casualty side, casualty and professional, that's more hold the line, very modest kind of adverse development. It's kind of been trending as we would have expected on the whole, and that's kind of how we've been reacting there. One other reminder on the casualty side, we do have a stop-loss reinsurance treaty in place for accident years 2019 and forward that impacts kind of our analysis when we set the reserving basis. Operator: Your next question comes from the line of Andrew Andersen with Jefferies. Andrew Andersen: Maybe back on the State National matter. I just want to make sure I kind of have the sequence of events correct. I think at year-end, this relationship was nearly fully collateralized. In 1Q, you did increase the loss ratio of this business a little bit. At the same time, you engaged a third-party firm who subsequently, I think, significantly increased this loss estimate, almost doubled it. So maybe what did the third-party actuarial firm discover that was beyond what you saw in the first quarter? And why not engage the firm to review reserve adequacy across the broader State National platform? Thomas Gayner: I'm going to ask Brian to respond to that. Brian Costanzo: Yes. Andrew, I think your fact pattern is generally correct. As we said at year-end, we had been increasing. We had adequate collateral. There was a small deficiency based on our actuarial view at the end of the first quarter. What we did was we went back and got more granular data on this program that we did not have available. We did our own ground-up actuarial review internally. We engaged the third party. And then we also looked at our kind of insurance book of primary casualty that we have written for a long time, have a lot of credible data there, use all of those data points to kind of analyze the claims trend on what we were seeing in that series of programs, 5 different programs that kind of passed through to this counterparty and then made a judgment based on our historical reserving philosophy to set a level that we believe is more likely redundant than deficient. Andrew Andersen: Okay. It just seems that this increase this quarter, it is a pretty large percentage of State National surplus, which is, of course, part of the broader Markel Group, which is very well capitalized. I'm just surprised to see such a big change after 1Q. Are you able to share what type of business this was related to or what type of lines? Brian Costanzo: Yes, it was mostly primary habitational casualty business across these programs. There was a little bit of excess casualty in there, but that was less than 10%, concentrated in a handful of states. Andrew Andersen: Okay. And maybe on the core book, if I look at total insurance ex-cat, ex PYD loss ratios, it was about 60% in the first quarter and then about 63.5% in the second quarter. Maybe you could help us think about the trajectory throughout the rest of the year and maybe what's the right run rate for the ex cat ex PYD loss ratio? Brian Costanzo: Yes. I would say where we booked in the second quarter is kind of where we feel things are. The main increase driver was we did increase our loss pick on our personal umbrella line here in the second quarter. When we do that, it applies to 2 quarters of premium. So it becomes a little bit of a larger increase in the quarter. We did that earlier when we started seeing some signs of A versus E that we may typically do later in the year. So try to get out in front of that as early as we were seeing some cracks there. Andrew Andersen: Okay. And last one. Within the Financial segment on the combined ratio, it does look like accident year losses were up year-over-year. Is that related to the loss pick adjustment that you had just mentioned or something else within the Financial segment accident year combined ratio? Brian Costanzo: No. The underwriting piece of the Financial segment is related to the collateral protection line that State National writes, so that's their other business. We have seen a little bit of heightened losses there, particularly in the first quarter. Second quarter was significantly better. That is a very, very short tail line. So we have real-time indicators. There's not a lot of IBNR that's held there. So it's really moving on kind of actual incurred losses that are coming through from the repossession of autos. Operator: Your next question comes from the line of Maxwell Fritscher with Truist. Maxwell Fritscher: I'm calling in for Mark Hughes. What are your observations around pricing in casualty lines? You mentioned last quarter, claims trending in the low double digits. Where would you say pricing is relative to that? And then have you seen any incremental competition in those lines since last quarter? Simon Wilson: I would -- thanks, Maxwell. This is Simon here. I would say in casualty, what we're seeing across the whole U.S. casualty on average is probably claims trending in the low double-digit kind of numbers, maybe 10%, 12%, something of that nature. Rates on average are probably slightly below that. So there's a divergence, I think, between where the average market is getting rate at maybe 9%, I'd say, and then that low double digit on the trend. So that's the average. What we've been doing is we've been really focused on that book of business in terms of managing the cycle because those average numbers over a period of time just don't work. I mean that's clear to us. So the key actions that we've been taking, and I've mentioned this a couple of times before, we've been reducing our line sizes across different risks where we're on. So what was typically a $10 million line would now be more like a $5 million line, for example. So that's action number one. The second really important action we've been taking is to reduce our exposure to construction casualty, which has caused a significant chunk of the losses out of average, I would say, in those numbers, and we continue to focus on the areas. The new business unit that I described earlier to focus on the hard-to-place U.S. casualty risk, we feel as though we can underwrite risk in a way that is better quality than the average market in that particular area, which is the reason that we've gone after it. So we've tried to focus our attention in areas where we believe that we can get rate, which is better than trend. We'll see how that plays out, but that's -- we are more in a defensive mode in that U.S. casualty market at the moment. And we are walking away from areas, which are really causing the majority of losses to our book. And we've probably accelerated that in the first half of this year. Maxwell Fritscher: Got it. That's helpful. And then I guess switching gears to property. How do you expect rates to trend in the back half of the year? Of course, it will depend on storm season. But as we stand here now, are you seeing carriers reach a floor and seeing rates stabilize? Or do you expect some incremental pressure there as well? Simon Wilson: Well, as you say, the first half of this year, it's been very aggressive with competition in that property segment. Given the results that have been announced thus far during the year, we can see people are making a lot of profit. Some of the reason for that is we haven't had the winds blow or the fires burn just yet. So there is still competition in that sector. I think some of the more disciplined carriers have started to react by walking away because technical rate probably is being reached where we're just not getting enough premium for the technical amount of risk that we're taking on. But generally, I think that the competition in the property market will continue on a downward kind of trajectory up and until we get some significant losses, which if you look at the history of the property market, they crop up every now and then. I think as a long-term player, our job is to make sure that we pick the right risk areas where we feel that we can add something and we can make money at the technical rate, walk away from those where it isn't there and be around that when the market does start to turn and the capital is valued again to the degree that it needs to be, we'll be there to answer the bell, I guess, at that point in time. So definitely a competitive environment for the second half, but we will see how that storm season goes, as you say. Thomas Gayner: And Maxwell, you didn't ask this particular question, but I'm going to add some color commentary. Obviously, we've been repurchasing our shares. We've noticed a lot of other companies starting to repurchase stock and return capital. And actually, that's a pretty good sign for the insurance industry at large and the degree of discipline that we're seeing across the board is encouraging to me that fundamentals of supply and demand would cause things to stay on the rails a little bit more than might have been the case in past insurance market cycles. This is a different set of behaviors we're observing this time around. It is for the better. Maxwell Fritscher: Understood. And then, Tom, last quarter, you had called out $700 million underwriting profit as a reasonable number. And then as we sit here today, is that still achievable in your view? Thomas Gayner: I think that it's probably a little lighter than that, but we're very encouraged by the progress so far, and I don't want to put a number on it. But more importantly, what I observed is with Simon's leadership with the people that I talk to, people are leaning in. We've got the Cortex business unit that we're -- is now out there and starting to write business. So again, we're a long-term company, and those kinds of numbers are definitely achievable and the organization is set on the right footing right now. Operator: Your next question comes from the line of Andrew Kligerman with TD Cowen. Andrew Kligerman: I was intrigued by Brian's commentary around the casualty reserve development. He said -- I think, Brian, you said modest adverse development in casualty. And then you mentioned the stop loss. Brian, could you give a little more clarity around the accident years and any numbers would be great. And then with regard to the stop loss, could you give us a little bit of the of the parameters around that? Brian Costanzo: Sure. Yes. So on the casualty side, continue to see, I would say, very modest adverse development. It's not concentrated in any year. It's kind of sprinkled across. A versus E has been pretty much on in some lines. It's been better in some classes and it's been a little worse than others. So you got to go down another level to kind of get into kind of what we're reacting to. But on the whole, it's been holding up to kind of what we put up a few years ago in the U.S. to strengthen kind of our net position. The stop-loss treaty, the way that works, there's a bunch of deductibles that apply to that. Ultimately, what happens is once we hit kind of an aggregate deductible and there's a per claim deductible, there's an amount that is now passed on to the reinsurers. That happens on a last in, first out basis. So as we sit here today, all of that amount that we're passing along is in IBNR, where the incurred losses that are happening in the early part of the tail, 100% belong to us. And so those are set based on expected loss ratios when we negotiate the treaty. And then obviously, we've seen kind of since those earlier years, '19, '20, '21 have behaved across the industry worse than I think everyone anticipated that stop-loss treaty has started to kick in and provide IBNR that we are ceding to the treaty. Andrew Kligerman: Got it. And then outside of insurance, I was very curious around both consumer and industrial. So maybe just starting with consumer, 20% adjusted operating income growth on top of 4% revenue. And I think I read in the Q about margin enhancement. Do you think that kind of earnings growth is sustainable for the foreseeable future? I mean, any color on what was going on there because it was an interesting dichotomy between the operating revenue and the adjusted operating income. Thomas Gayner: I'm going to invite my colleague, Andrew Crowley, to speak to that. Andrew Crowley: Andrew is here. It's Andrew Crowley. I'll start with the consumer question first. I think when you see 4% on a top line and 20% on a bottom line, it wouldn't be fair to extrapolate those trends into perpetuity. What has driven some of the bottom line is, frankly, the strength of execution of our leaders. As we've mentioned time and time again, we've got great leadership teams. They have an ability to focus on and drive operational efficiency within their markets during pretty good times, and some of them are operating in pretty good times. In addition, there's a variety of business within the segment, some of which have a higher margin profile versus others. We've seen some outsized growth in businesses with higher margins, which is resulting in that number you see. And lastly, as we alluded to, there are some impacts from full period results. EPI was not in the first quarter in its entirety last year. And in the current quarter, we have lift from a downstream acquisition in one of our other businesses. I'll just add one other point on consumer while we're on it. It's a good reminder, and we called it out in the Q that Q2 is particularly strong for consumer. And if you looked last year, you would see about 60% of our earnings came in that quarter alone and about 40% of the revenue. So just contextualizing this quarter versus what to expect in the coming quarters and compared to the first quarter. On the industrial side -- go ahead, sorry. Andrew Kligerman: No, that was very helpful. Yes, on the industrial side, and that's my last question. Yes, just kind of curious, it's sort of the opposite of consumer with a 27% decline in operating income versus a 2% gain in revenue. And I don't know, I'm wondering, is this the construction area? Is there a lot of pressure on margins? Just really curious there, Andrew, what's happening. Andrew Crowley: Yes. Thanks for that question. The good news is similar to the other point, up a bit on revenue and down a meaningful amount on profit is also a trend that we don't expect to continue. Just to highlight a couple of things within that, where we have called out markets that are in cyclical decline, specifically car hauling and industrial bakery equipment, you do lose a bit of operating leverage as you go down. The good news about those businesses, as Tom alluded to in his shareholder letter in 2024 and Brian in prior comments, over long periods of time, we've done well. Our competitive position remains strong, and those end markets are enduring and essential to the economy. So we feel really good about where we are. We're just working through a normal cycle. In addition, we have a couple of businesses making SG&A investments for the long term. whether it's a branch-based business, opening up a new branch that will generate revenue over time. We continue to want to support our leaders in making those types of long-term investments that will pay off. So we're carrying a little extra cost there as well. Operator: Your next question comes from the line of Drew Estes with Banyan Capital Management. Drew Estes: This is for Tom or Simon. And as you might imagine, this is with regard to State National. I have a few questions. As to the nature of the collateral shortfall, was it that the assets that were posted weren't actually there? Or were they bad assets? Or did losses develop such that the collateral required was just too little. If you could just provide some color on that, that would be great. Thomas Gayner: Absolutely. It's the latter. The collateral is fine, just that the losses and those are actual estimates of the losses have moved at such a rate that it got ahead of the collateral. Drew Estes: Okay. Next question is just aggregation risk in State National. It's -- I know a lot of these alternative capacity providers tend to play in the same sandboxes. So how does State National think about that and try to manage that risk for the book as a whole? Thomas Gayner: Yes. I mean that's the normal course of business, and that would be a vector and a thing that would be looked at and managed and thought about all the time. Oftentimes, State National is involved with very specific kinds of risk or very specific products. And I wouldn't say there are industry-wide aggregation events that are as relevant to some of the selections they would make that would be the case sort of for the industry as a whole. But they do have over 40-year history of managing those processes and that kind of risk quite well. State National has been a great investment for us, a great contributor. We paid roughly $900 million for that back in 2017, even including the events of this last quarter, earnings since that time cumulatively are over $1 billion. They are disciplined first-class operators in what they do and managing aggregates is just a daily business for their operations. Andrew might have one to add. Andrew Crowley: Drew, just adding one thing, it's Andrew Crowley. When we think about aggregation, I think you do want to look at it 2 ways, one of which is the programs that are originating, the other of which is the reinsurers. And I can confirm that we do look at both. And in fact, as a result of the work we've been doing, it will result in some collateral top-ups for similar lines of business with other reinsurers who are in financially healthy positions, but we will have collateral increases as a result. Drew Estes: Okay. That's good to hear. And just final question. Since a lot of these fronting insurers are pretty thinly capitalized because they cede the risk. I'm curious if this loss will impair State National's ability to do business? And if so, under what conditions would the parent provide support? Thomas Gayner: Yes. State National is part of the family, and it is well capitalized and continues to be so. We move capital around between different subsidiaries on a regular basis. That's normal course of business. So State National is in good shape and will continue to be so from a capital point of view. Operator: Your next question comes from the line of Mark Hughes with Truist. Mark Hughes: Just on State National, I'm just sort of curious what you see in terms of new business opportunities with State National and what it might say about just broader capacity flows within the P&C space? And then I think related to that ongoing discussion, what do you see in terms of, I guess, terms and conditions, capacity providers being eager for risk sharing, that sort of thing. Just how much demand? And then what are the -- what's the competitive environment and the ask on the part of potential partners? Thomas Gayner: Right. I can't really speak to what others are going to do and industry-wide comments. I can tell you that State National operations that has and will continue to operate with discipline and professionalism and doing their homework and making sure things are buttoned up. And as Simon alluded to earlier, I care about the bottom line more than the top line. They'll continue to operate with that focus as does the rest of Markel, but I can't really speak for the rest of the industry. Mark Hughes: Yes. I hear you. Definitely. How about the -- just the flow of business or opportunities? Any kind of reflections on capacity, looking at it through the State National lens? Thomas Gayner: Andrew has a thought? Andrew Crowley: Yes. I would put it in the camp of normal course ins and outs. So there are times where programs will naturally sunset and move on and there's times where new opportunities arise. I wouldn't put the trajectory as unusually up or down in that regard. And in fact, if you just go back over a 5-year time horizon, you would see modest growth at State National and some publications would point to industry growth well above that, which is a reflection of State National continuing to pick its spots where its terms and conditions can be met and letting go of spots where it's best suited for another party. Thomas Gayner: And I do want to pick up on that because I think that speaks to the beauty and the design of the Markel Group system writ large. Every single business that's part of this system is part of the Markel Group family operates with a good balance sheet and a long-term time horizon and the ability to make good long-term decisions and not be under unusual short-term quarterly pressure is really one of the keys and one of the factors that has allowed the double-digit compounding -- relentless compounding that's been going on around here for decades. So obviously, State National is front and center, and it's on everybody's mind right now. But this is the sort of thing that we can absorb, learn from, improve and the Markel Group system and all the individual operating businesses out there are not overreacting. They're making the good long-term decisions that has resulted in a pretty powerful math over a long period of time, and we fully expect that to continue. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tom Gayner for any closing remarks. Thomas Gayner: Thanks so much for joining us. I appreciate your interest and support, and we look forward to connecting with you again soon. Thank you. Operator: The conference call has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Markel Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Markel Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. 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Markel (MKL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Written Premium Growth: 19% in Q2 2026 and the first half of 2026, accelerating from 14% growth in the prior year. Earned Premium: $252 million in Q2 2026, up 42% year-over-year. Adjusted EBITDA: $75 million in Q2 2026; $160 million in the first half of 2026, up 32% year-over-year. GAAP Revenue: $667 million in the first half of 2026, down 6% year-over-year due to the Markel fronting arrangement accounting mechanics. GAAP Net Income (Loss): $8 million net income in Q2 2026; $5 million net loss in the first half of 2026. Marketplace Revenue: $40 million in Q2 2026, up 48% year-over-year. Membership and Other Revenue: $21 million in Q2 2026, reflecting 10% growth in paid memberships. Net Investment Income: $11 million in Q2 2026. Combined Ratio (Hagerty Re): 90% in Q2 2026; 88% in the first half of 2026. Loss Ratio (Hagerty Re): 41% in the first half of 2026. Operating Cash Flow: $186 million in the first six months of 2026, nearly double the prior year period. Cash and Debt: $298 million in unrestricted cash and $216 million in total debt as of June 2026. New Members: Record 279,000 new members added in the first half of 2026. Retention Rate: Industry-leading 88%. Marketplace Sales: Total sales grew 17% to $65 million in the first half of 2026. Broad Arrow Sales: Increased 74% in the first half of 2026 with a 91% sell-through rate. Full-Year 2026 Guidance: Written premium growth of 16% to 17%; GAAP net income of $18 million to $30 million; adjusted EBITDA of $270 million to $280 million. Warning! GuruFocus has detected 5 Warning Sign with HGTY. Is HGTY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hagerty Inc (NYSE:HGTY) delivered record first-half 2026 results, with written premium growth of 19%, driven by a record 279,000 new members added and surpassing the $3 million vehicle insured milestone. The company raised its full-year 2026 guidance, now expecting written premium growth of 16% to 17%, GAAP net income of $18 million to $30 million, and adjusted EBITDA of $270 million to $280 million. The State Farm partnership is accelerating, with agents selling new Hagerty policies in 37 states and conversions of existing policies progressing on pace to complete by 2028. Hagerty Re's combined ratio remained strong at 88% for the first half, demonstrating exceptional underwriting discipline and a loss ratio of 41%. The acquisition of Bennix, the second largest specialty motorcycle insurer in the UK, immediately triples Hagerty's scale in that market and is expected to be a strategic growth driver. The company's marketplace business, particularly Broad Arrow, saw sales increase 74% in the first half, with a 91% sell-through rate, reinforcing the customer acquisition flywheel. Operating cash flow nearly doubled to $186 million in the first half of 2026, reflecting the improved economics of the new Markel fronting arrangement. Reported GAAP revenue declined 6% in the first half of 2026, and the company posted a GAAP net loss of $5 million due to accounting mechanics from the new Markel fronting arrangement, which may confuse investors. The company's retention rate declined by 50 basis points year-over-year to 88%, with a slight downtrend in the core book, although management noted it is within historical range. The Enthusiast Plus program is still in its early stages, and while performing in line with revised pricing assumptions, it remains a startup mode with limited contribution to overall results. The company's GAAP presentation will continue to be impacted by the Markel fronting transition throughout 2026, with a $41 million cumulative benefit from capitalized acquisition expenses expected to diminish in the second half. Capital allocation priorities do not include returning capital to shareholders in the near term, as the company focuses on investing in growth and strategic acquisitions. The company faces inflationary pressures on loss costs, which were noted as a factor in the second quarter combined ratio of 90%. Private sales in the marketplace business were down against the prior year period, which had benefited from a large single-owner collection sale. Q: Can you expand on the progress made in securing larger cohorts of vehicles with Progressive and trial programs with other national carriers?A: McKeel Hagerty (CEO & Chairman) noted that Progressive is a long-standing partnership that has expanded significantly, with the relationship now covering vehicles 25 years old and older, adding 17 years of additional cohorts. Patrick McClymont (CFO) added that this evolution from pre-1981 cars to 25 years and older has opened up a much larger addressable market. The company is also piloting programs with Liberty Mutual and other national carriers, which are performing well and will contribute to future growth. Q: What drove the significant increase in new business count from $100,000 to $160,000 in the quarter?A: Patrick McClymont (CFO) explained that while the traditional business continues to grow at a strong rate, the big bump is from State Farm conversions. The company is now in the conversion phase in 15 states, transitioning State Farm's existing 525,000 collector car policies to the Hagerty platform. This conversion process will continue through the balance of 2026 and into 2027, with finalization expected by late 2027 or early 2028. Q: Can you provide color on the contribution between Enthusiast Plus, legacy Hagerty, and State Farm in the quarter, and is Enthusiast Plus driving the upside to guidance?A: McKeel Hagerty (CEO & Chairman) stated that the growth is across the board, with almost every channel firing on all cylinders. While Enthusiast Plus is a piece of it, it remains in startup mode, having expanded from Colorado to three additional states in July. The company is absorbing a massive amount of State Farm business, and the overall momentum from the back half of last year has carried through the first half of 2026, contributing to the raised guidance. Q: How should we think about the accounting noise from the Markel transition impacting 2027, and can adjusted EBITDA growth keep pace with written premium growth?A: Patrick McClymont (CFO) explained that the $199 million transition cost will be fully amortized by the end of 2026 and will not appear in 2027. The deferred acquisition cost dynamic will also normalize by year-end, with 2027 representing a steady-state P&L. While not providing formal 2027 guidance, he noted that the economics of the business are largely driven by insurance growing in the mid-teens, and consensus estimates are a reasonable starting point for modeling. Q: Retention declined 50 basis points year-over-year and 30 basis points sequentially. What trends are you seeing, and how much is from the State Farm book mix?A: Patrick McClymont (CFO) attributed the decline to a slight downtrend in the core book, but noted it remains within the historical range and gives no particular pause. The State Farm book is converting at a very high rate given its young age, and new business placed over the past year is retaining well. The mix shift from State Farm is not a concern. Q: What is driving the high incremental EBITDA margin implied by the increased guidance versus revenue?A: Patrick McClymont (CFO) cited three factors: overall performance year-to-date has been strong and ahead of internal expectations; cost efficiencies have put the company in a better spot relative to internal plans; and the marketplace business is contributing more profitability than expected, with strong auction and private sales and significant events upcoming in the second half. Q: Are there differences in premium per policy or loss experience for the modern enthusiast business versus the legacy older vehicle business?A: Patrick McClymont (CFO) explained that the traditional business is driven largely by agreed value and underwriting, with rates consistent regardless of vehicle age. For Enthusiast Plus, which covers vehicles used more frequently with different storage underwriting, premiums are higher. This program is still in early stages and will flow through the P&L over time. Q: Has the strategy around pitching to the 54,000 independent agents shifted, and how are you activating them?A: McKeel Hagerty (CEO & Chairman) stated that the independent agent channel is a key growth strategy. The company has built a dedicated team led by Adam to focus on the most productive agents, using data, communications, and education to shift the perspective that classic cars are just very old vehicles. The goal is to help agents identify enthusiast vehicles in their daily driver books and route them to Hagerty. Q: How should we think about the M&A pipeline and capital allocation following the Bennett's acquisition?A: McKeel Hagerty (CEO & Chairman) indicated that Bennett's was an opportunistic acquisition that triples the company's scale in the UK motorcycle market. The company is cautious about integration issues and does not actively scour for acquisitions, but will act when opportunities arise. Patrick McClymont (CFO) reiterated that capital allocation priorities are: investing in the business for high returns, evaluating modest strategic acquisitions, and returning capital to shareholders is not on the near-term agenda given the high returns available from organic investment. Q: Does the non-reversing tax difference from the seeding commission deduction carry into 2027?A: Patrick McClymont (CFO) explained that the dynamic will always exist due to consolidation accounting, but will be less impactful over time. As net income grows in 2027 with the removal of the $199 million transition cost, the impact will be less visible in the tax line, normalizing the effective tax rate. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Assurant, Inc. AIZ reported second-quarter 2026 adjusted earnings of $6.41 per share, which beat the Zacks Consensus Estimate of $5.16 by 24.2%. The bottom line increased 25.7% year over year.Revenues rose 9.4% to $3.46 billion and surpassed the consensus estimate of $3.40 billion by 1.8%. Results benefited from strong Global Lifestyle and Global Housing earnings, lower catastrophe losses and growth in segment net earned premiums, fees and other income. Assurant, Inc. price-consensus-eps-surprise-chart | Assurant, Inc. Quote Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million.Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments. Global Lifestyle revenues increased 9.5% year over year to $2.67 billion. The figure was higher than our estimate of $2.61 billion. Net earned premiums, fees and other income rose 9.4% year over year to $2.57 billion, primarily due to higher global supply-chain volumes, device protection programs, extended service contracts and financial services contributions. The figure was higher than our estimate of $2 billion.Adjusted EBITDA increased 21.4% year over year to $244.4 million. The figure was higher than our estimate of $196.2 million. Connected Living adjusted EBITDA surged 29.3% year over year to $170.4 million, including $10 million of favorable non-run-rate benefits. Excluding those benefits, earnings rose 22%, driven by global mobile growth and financial services.Global Automotive adjusted EBITDA increased 6.3% year over year to $74 million, aided by growth within global partnerships. The number of protected mobile devices rose 6.2% to 69 million, while serviced devices increased 32.1% to 7.4 million. Global Housing revenues increased 7% year over year to $783.4 million. The figure was higher than our estimate of $748.1 million. Net earned premiums, fees and other income advanced 7.2% year over year to $747.8 million, primarily reflecting Homeowners growth in specialty products and lender-placed insurance, along with lower catastrophe reinsurance costs. The figure was higher than our estimate of $709.3 million.Adjusted EBITDA rose 28.2% year over year to $274.8 million. The figure was higher than our estimate of $217.4 million. Excluding reportable catastrophes, adjusted EBITDA increased 17.5% to $287 million, mainly due to favorable non-catastrophe loss experience and lower-than-typical claims frequency.Reportable catastrophe losses declined to $12.2 million from $29.8 million. The Global Housing combined ratio improved 560 basis points year over year to 69.8%, while the loss ratio decreased 620 basis points year over year to 33.6%. Results were partly offset by $12 million of lower favorable prior-period reserve development. Total benefits, losses and expenses increased 7.2% year over year to $3.08 billion. The figure was higher than our estimate of $3 billion. Cost of sales jumped 30.8% to $302.6 million, while general expenses increased 10.2% to $668.8 million.Corporate and Other recorded an adjusted EBITDA loss of $40 million, wider than the year-ago loss of $29.8 million. The deterioration reflected higher employee-related expenses and organic investments supporting the Home Warranty business, partially offset by increased investment income from a larger asset base.Despite the expense increase, the pre-tax income margin expanded 180 basis points to 11.3%. The net income margin improved 130 basis points to 9%, supported by stronger operating earnings and lower catastrophe losses. Holding company liquidity totaled $911 million as of June 30, 2026, exceeding the company’s minimum target by $686 million. Operating segments paid $235 million in dividends to the holding company during the quarter.Assurant repurchased about 310,000 shares for $75 million and paid $48 million in common stock dividends. From July 1 through July 31, the company bought back an additional 108,000 shares for $30 million, leaving $544 million under its authorization.Total assets were $36.08 billion, while stockholders’ equity increased to $6.10 billion from $5.87 billion at the end of 2025. The debt-to-total-capital ratio improved 90 basis points year over year to 26.6%. Assurant now expects adjusted EBITDA, excluding reportable catastrophes, to increase by a mid-single-digit percentage in 2026. Excluding the impact of lower favorable prior-year reserve development, underlying growth is expected to approximate 10%.Global Lifestyle adjusted EBITDA is projected to rise by a low-double-digit percentage, supported by Connected Living and Global Automotive. Global Housing adjusted EBITDA, excluding catastrophes, is expected to grow modestly.Adjusted earnings per share, excluding reportable catastrophes, are also expected to increase by a mid-single-digit percentage. Corporate and Other’s adjusted EBITDA loss is now projected at about $145 million. Management expects share repurchases toward the upper end of its previously announced $300-$350 million range. Assurant currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Everest Group, Ltd. EG reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 2.9%. Gross written premiums declined 19.4% year over year to $3.77 billion. Our estimate was $3.8 billion. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion.Total claims and expenses fell 10.8% year over year to $3.28 billion. Our estimate was $3.4 billion. Incurred losses and loss-adjustment expenses declined 12.2%, while commission, brokerage, taxes and fees decreased 7.5%. Other underwriting expenses fell 11.4%.Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion.Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million. Net income attributable to PFG declined 1% to $403.4 million.Markel Group Inc. MKL reported second-quarter 2026 adjusted operating income of $19.5 per share, which missed the Zacks Consensus Estimate by 10.4%. The bottom line deteriorated 25% year over year. Total operating revenues were $4 billion, up 0.1% year over year, surpassing the Zacks Consensus Estimate by 8.6%.Earned premiums decreased 3% year over year to $2 billion in the second quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 11.4% year over year to $256.1 million in the second quarter. The figure was lower than the Zacks Consensus Estimate of $262 million. Total operating expenses of Markel Group increased 3.7% year over year to $3.6 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Assurant, Inc. (AIZ) : Free Stock Analysis Report Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report Markel Group Inc. (MKL) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Palomar Holdings, Inc. PLMR reported second-quarter 2026 operating income of $2.36 per share, which beat the Zacks Consensus Estimate by 11.3%. The bottom line increased 34.1% year over year. Total revenues improved 57.9% year over year to $308 million, mainly driven by higher net earned premiums and investment income. The top line beat the Zacks Consensus Estimate by 7.4%. Palomar delivered another quarter of strong premium and revenue growth, aided by robust net earned premiums and higher investment income. However, elevated losses and underwriting expenses weighed on underwriting margins, resulting in a higher combined ratio. Palomar Holdings, Inc. price-consensus-eps-surprise-chart | Palomar Holdings, Inc. Quote Gross written premiums increased 27% year over year to $630.5 million, supported by growth across Casualty, Crop and Surety & Credit lines. The figure missed our estimate of $688 million. Net earned premiums rose 59.5% year over year to $287 million, exceeding our estimate of $260 million and the Zacks Consensus Estimate of $266 million. Net investment income climbed 49.2% year over year to $20 million, driven by higher yields on invested assets and a larger average investment balance, supported by strong operating cash flow. The figure surpassed both the Zacks Consensus Estimate of $18.2 million and our estimate of $18.8 million. Palomar reported adjusted underwriting income of $67 million, marking a 38.4% increase from the prior-year level. Reported underwriting income grew 25.5% year over year to $48 million, surpassing our estimate of $17 million. Total expenses rose 70.5% year over year to $244.6 million due to higher losses and loss adjustment expenses, increased acquisition costs, elevated underwriting expenses and higher interest expense. The figure was lower than our estimate of $248.9 million. The loss ratio was 34.5%, deteriorating 880 basis points year over year. It was lower than our estimate of 37.8% and the Zacks Consensus Estimate of 35.5%. The adjusted combined ratio worsened 360 basis points year over year to 76.7%, but was better than the Zacks Consensus Estimate of 78.4%. Cash and cash equivalents declined 41.3% to $62.7 million from the 2025-end level. Shareholders’ equity increased 4.1% to $980.9 million from the 2025-end level. Annualized adjusted return on equity for the second quarter of 2026 was 26.3%, up 260 basis points year over year. During the second quarter, the company repurchased 0.37 million shares for $41 million. On July 30, 2026, Palomar's board declared its first quarterly cash dividend of 45 cents per share. The dividend is payable on Sept. 2, 2026, to shareholders of record as of Aug. 19, 2026. The company expects 2026 adjusted net income in the range of $270-$280 million, including estimated catastrophe losses of $8-$12 million. PLMR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Markel Group Inc. MKL reported second-quarter 2026 adjusted operating income of $19.5 per share, which missed the Zacks Consensus Estimate by 10.4%. The bottom line deteriorated 25% year over year. Total operating revenues were $4 billion, up 0.1% year over year, surpassing the Zacks Consensus Estimate by 8.6%. Earned premiums decreased 3% year over year to $2 billion in the second quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 11.4% year over year to $256.1 million in the second quarter, lower than the Zacks Consensus Estimate of $262 million. Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, up 6.8% year over year. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Earned premiums climbed 6.3% year over year to $2.6 billion. The figure marginally missed the Zacks Consensus Estimate by 1.5%. Net investment income, net of expenses, increased 12% year over year to $319 million. The figure marginally beat the Zacks Consensus Estimate by 1.8%. Everest Group, Ltd. EG reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 2.9%. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion. Net investment income declined 1.7% year over year to $523 million due to lower alternative investment returns. Our estimate was $561.5 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Markel Group Inc. (MKL) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Markel Group (MKL) stock is in focus after the company reported Q2 2026 results, with net income of about US$1.2b and basic earnings per share from continuing operations of US$93.08. See our latest analysis for Markel Group. The Q2 2026 earnings news for Markel Group comes after a period where short term momentum has softened, with the share price down 5.63% over the past week. However, the 5 year total shareholder return of 49.72% shows longer term holders have still seen meaningful gains. If this earnings move has you reassessing your portfolio, it can help to widen the search and review other companies through the Simply Wall St screener for 18 top founder-led companies Bulls point to Markel Group's strong net income and long term shareholder returns. Bears highlight the recent share price pullback and softer operating trends. Which side does the current valuation support next? Markel Group's most followed narrative puts fair value close to the current share price of $1,882.34, with a small gap that still points to some upside based on long term assumptions and capital allocation plans. Read the complete narrative. Want to know what sits behind that underwriting push and the fair value number attached to it? The narrative leans heavily on future margins, measured revenue growth and how much investors might pay for those earnings. Curious what has to go right for that picture to hold up? Result: Fair Value of $1,954.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Markel Group still faces meaningful risks, including legacy reserve issues and execution challenges around its restructuring and decentralization that could unsettle the current narrative. Find out about the key risks to this Markel Group narrative. The mix of optimism and concern around Markel Group is clear, and the best way to cut through that is to review the data yourself today. To see how the current upside and downside factors balance out in one place, start with the 3 key rewards and 1 important warning sign. If Markel Group has sharpened your focus, do not stop here. Use the Simply Wall St screener to uncover fresh opportunities that could better fit your goals. Target potential mispricings by reviewing companies that currently screen as 55 high quality undervalued stocks. Build a steadier income stream by checking out stocks flagged as 9 dividend fortresses. Prioritise resilience and capital protection by filtering for 81 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MKL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Markel Group Inc.? Here are five stocks we like better. Net income surged, but operating income declined: Markel’s Q2 net income rose to $1.2 billion, helped by $1.2 billion in net investment gains, while adjusted operating income fell to $436 million from $578 million year over year. Insurance underwriting strengthened: Markel Insurance posted a 93% combined ratio for the fourth straight quarter, despite $41 million in catastrophe losses. Adjusted operating income increased to $376 million, although reported gross written premiums declined due to portfolio exits and the Hagerty program transition. State National’s charge hurt the financial segment: A $205 million bad-debt charge tied to a bankrupt capacity provider drove the segment to a $149 million adjusted operating loss. Markel said it has conducted additional reviews and expects stronger collateral requirements for similar programs. Update! What Is Congress Trading So Far In 2025? Markel Group (NYSE:MKL) reported second-quarter adjusted operating income of $436 million, down from $578 million a year earlier, while net income to common shareholders rose to $1.2 billion, or $93 per diluted share, from $631 million, or $50 per diluted share. The company said quarterly net income was aided by $1.2 billion of net investment gains, which more than offset investment losses recorded in the first quarter. Operating revenue, excluding net investment gains, was flat at $4 billion in the quarter. For the first half of 2026, adjusted operating income totaled $934 million, compared with $1.1 billion in the prior-year period, while net income to common shareholders increased to $957 million from $753 million. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Buffett's latest portfolio additions, trims and cuts in Q3 Chief Executive Officer Tom Gayner said the company evaluates near-term progress using adjusted operating income, which excludes public-equity market swings and amortization expense, while using a longer time horizon to assess operating performance and capital allocation. For the five years ended June 2026, Gayner said average annual operating income was $2.5 billion, up from $1.2 billion in the prior five-year period, representing a 15% compound annual growth rate. Average operating income per share rose at a 16% compound annual rate to $188.94, while the company reduced its outstanding share count by just under 10% over the period. → Microsoft Just Flipped the AI Spending Narrative Overnight Don't Overlook Hidden Gem Kinsale As Rallies To New Highs Markel Insurance reported a 93% combined ratio for the fourth consecutive quarter, improving from 97% in the second quarter of 2025. The result reflected favorable prior-year reserve development and a slightly lower expense ratio, partly offset by $41 million, or 2 points on the combined ratio, of catastrophe losses tied to the Middle East conflict. Underwriting gross written premiums declined to $2.4 billion from $2.8 billion. However, premiums grew 10% excluding the company’s exit from Global Reinsurance and the transition of its Hagerty program to a fronting model. Adjusted operating income in the insurance operation rose to $376 million from $270 million, supported by improved underwriting profitability and higher net investment income. International gross written premiums rose 31% to $890 million, led by marine and energy, general liability, and professional liability. Its combined ratio was 82%, including 6 points of Middle East-related losses. U.S. wholesale and specialty premiums fell 4% to $799 million amid intentional reductions in binding contractors and casualty lines and softer property pricing. Its combined ratio improved to 97% from 102%. Programs and solutions premiums fell 27% to $717 million due primarily to the Hagerty shift. Excluding that effect, premiums grew 6%. The combined ratio increased to 94% from 91%, reflecting a higher accident-year loss ratio in personal umbrella and certain delegated programs. → Carrier Earnings Could Send the Stock to a New All-Time High Markel Insurance CEO Simon Wilson said the company has prioritized “the sanity of bottom-line profit over the vanity of top-line growth.” He said the insurer has reorganized into three divisions and 14 business units, each with assigned leadership and financial and strategic plans. Wilson also described a series of technology initiatives, including the launch of Cortex, a new business unit focused on hard-to-place U.S. casualty risks. Markel partnered with Bain & Co. on the initiative. The insurer also said it has applied agentic AI to six classes of business totaling more than $500 million of existing gross written premiums, with initial risk-assessment time declining by 50% to 90%, depending on the line of business. The financial segment recorded an adjusted operating loss of $149 million in the quarter, compared with adjusted operating income of $78 million a year earlier. The decline stemmed primarily from a $205 million bad-debt charge at State National, related to a collateral shortfall associated with a capacity provider in bankruptcy. Gayner said the affected business began in 2012 and Markel stopped writing on the programs in 2021. He described the event as State National’s first substantial credit loss in more than 40 years and said Markel’s reserve estimate was intended to be conservative. During the question-and-answer session, Chief Financial Officer Brian Costanzo said the company obtained more granular program data, completed an internal actuarial review and engaged an outside third party. The business was primarily primary habitational casualty, with a smaller excess-casualty component concentrated in a handful of states. Gayner said the collateral itself was sound, but loss estimates had developed faster than the collateral level. Executive Vice President Andrew Crowley added that the company’s review would result in collateral increases from other financially healthy reinsurers for similar lines of business. Net investment income increased 11% to $256 million, reflecting a higher average book yield and larger average fixed-maturity balances. The fair value of Markel’s public-equity portfolio rose to $13.5 billion at quarter-end from $12.3 billion at the end of the first quarter. The company reported cumulative pretax unrealized gains of $9.3 billion on its equity holdings. Industrial revenue increased 2% to $1 billion, supported by a December 2025 bolt-on acquisition, while adjusted operating income declined to $75 million from $105 million. Costanzo cited tighter margins and softer demand in the car-hauling equipment business. Crowley said the segment was also affected by cyclical declines in car hauling and industrial bakery equipment, as well as long-term selling, general and administrative investments at some businesses. Consumer and other segment revenue rose 4% to $552 million, driven by ornamental plants during its seasonally strongest period. Adjusted operating income increased to $122 million from $102 million, primarily due to higher sales volume. Markel repurchased $237 million of its shares during the quarter and $371 million year to date, reducing shares outstanding to 12.4 million. Gayner said the company has repurchased more than $2 billion of stock since the start of 2022 and funded the buybacks through earnings rather than borrowing. Markel Group (NYSE: MKL) is a diversified insurance holding company best known for underwriting specialty insurance products. Founded in 1930 and headquartered in Richmond, Virginia, the company provides a wide range of commercial property and casualty coverages tailored to niche and hard-to-place risks. Its underwriting operations focus on specialty lines across multiple industries, delivering customized policy structures, program administration, and claims management services for complex exposures. In addition to primary specialty insurance, Markel operates reinsurance and alternative risk-transfer activities and manages invested assets derived from underwriting float. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Markel Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Markel Group Inc. MKL reported second-quarter 2026 adjusted operating income of $19.5 per share, which missed the Zacks Consensus Estimate by 10.4%. The bottom line deteriorated 25% year over year. Markel’s second-quarter results reflected improved insurance underwriting performance and higher net investment income, which were offset by lower adjusted operating income in the Industrial and Financial segments. Markel Group Inc. price-consensus-eps-surprise-chart | Markel Group Inc. Quote Total operating revenues were $4 billion, up 0.1% year over year, surpassing the Zacks Consensus Estimate by 8.6%. Earned premiums decreased 3% year over year to $2 billion in the second quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 11.4% year over year to $256.1 million in the second quarter, driven by higher interest income from fixed maturity securities and higher dividend income from equity securities. The figure was lower than the Zacks Consensus Estimate of $262 million. Total operating expenses of Markel Group increased 3.7% year over year to $3.6 billion due to higher product expenses, services and other expenses. Markel Insurance: Operating revenues decreased 2% year over year to $2.2 billion. Adjusted operating income rose 40% year over year to $376.5 million. The combined ratio improved 400 bps year over year to 93. Industrial: Operating revenues rose 2% year over year to $1 billion. Adjusted operating income decreased 27% year over year to $75.4 million. Financial: Operating revenues decreased 1% year over year to $171.3 million. The segment reported an adjusted operating loss of $148.9 million against the adjusted operating income of $78.4 million in the year-ago quarter. Consumer and Other: Operating revenues increased 4% year over year to $552 million. Adjusted operating income rose 20% year over year to $122.1 million. Markel Group exited the second quarter with investments, cash and cash equivalents, and restricted cash and cash equivalents of $37.6 billion as of June 30, 2026, up 0.4% from the 2025-end level. The increase in invested assets was primarily driven by higher investment balances, partially offset by lower cash and cash equivalents. Senior long-term debt and other debt balance increased 1.5% to $4.4 billion as of June 30, 2026, from the 2025-end level. Shareholders' equity was $19 billion at the second quarter of 2026-end, up 2.2% from the 2025-end level. During the first half of 2026, MKL repurchased common shares worth $370.7 million. Markel Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business plunged to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter. Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion. Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Earned premiums climbed 6.3% year over year to $2.6 billion. The figure marginally missed the Zacks Consensus Estimate by 1.5%. Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Markel Group Inc. (MKL) : Free Stock Analysis Report Chubb Limited (CB) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Markel Group (MKL) came out with quarterly earnings of $19.51 per share, missing the Zacks Consensus Estimate of $29.94 per share. This compares to earnings of $25.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -34.84%. A quarter ago, it was expected that this insurer would post earnings of $26.38 per share when it actually produced earnings of $21.61, delivering a surprise of -18.08%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Markel Group, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $4.02 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.61%. This compares to year-ago revenues of $4.02 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Markel Group shares have lost about 5.1% since the beginning of the year versus the S&P 500's gain of 8.5%. While Markel Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Markel Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $28.60 on $4.3 billion in revenues for the coming quarter and $114.11 on $16.23 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Equitable Holdings, Inc. (EQH), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $1.66 per share in its upcoming report, which represents a year-over-year change of +50.9%. The consensus EPS estimate for the quarter has been revised 2.2% higher over the last 30 days to the current level. Equitable Holdings, Inc.'s revenues are expected to be $3.8 billion, down 0% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Markel Group Inc. (MKL) : Free Stock Analysis Report Equitable Holdings, Inc. (EQH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management emphasized a 'forever' scorecard focused on relentless capital compounding, utilizing a five-year measurement horizon to normalize short-term equity market volatility. The insurance segment achieved a 93% combined ratio for the fourth consecutive quarter, driven by a strategic pivot prioritizing bottom-line profitability over top-line volume. International insurance operations led growth with a 31% increase in gross written premiums, specifically within marine, energy, and professional liability lines. Industrial segment performance faced headwinds from a continued down cycle in car hauling equipment demand and softer end-market conditions in the first half of 2026. The company recognized a $205 million reserve charge within the State National business related to a collateral shortfall from a bankrupt capacity provider, described as a unique confluence of jurisdictional and loss-development factors. Capital allocation remained focused on share repurchases, with $237 million deployed in Q2, funded entirely through earnings rather than leverage. Operational restructuring has aligned thousands of employees into 14 distinct business units designed to empower leaders to think and act like owners. Management is aggressively deploying 'Agentic AI' to rewire underwriting processes, aiming to reduce risk assessment times by 50% to 90% across sophisticated specialty lines. The launch of 'Cortex,' a new AI-native business unit, is intended to capture hard-to-place U.S. casualty risks by leveraging decades of proprietary data with modern machine learning tools. Guidance for the insurance segment remains focused on maintaining low-90s combined ratios through disciplined cycle management and walking away from inadequately priced risks. Industrial segment outlook anticipates emerging tailwinds to offset recent cyclical declines in car hauling and industrial bakery equipment markets. The company expects to continue its aggressive share repurchase program as long as shares trade at a discount to management's estimate of intrinsic value. A $205 million bad debt charge was recorded in the State National Programs unit, marking the first substantial credit loss in the unit's 40-year history. Catastrophe losses related to the Middle East conflict impacted the consolidated combined ratio by 2 points ($41 million) during the second quarter. Management noted an intentional contraction in U.S. Wholesale binding contractors and casualty lines due to pricing trends falling slightly below double-digit loss cost inflation. The transition of the Hagerty program to a pure fronting model resulted in a 27% headline reduction in Programs and Solutions gross written premiums, though underlying growth remained positive. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the third-party review was limited to the specific bankrupt counterparty, but internal teams have reviewed the broader portfolio. The $205 million charge is intended to be a conservative estimate that is 'more likely to be redundant than deficient' based on historical reserving philosophy. Claims are trending in the low double digits (approximately 10-12%), while market rates are slightly lagging at roughly 9%. Markel is responding by reducing line sizes (e.g., from $10 million to $5 million) and exiting specific construction casualty risks to manage the cycle. The 20% growth in operating income was attributed to strong execution and a favorable mix of higher-margin business, but management cautioned against extrapolating these specific growth rates indefinitely. Q2 is seasonally the strongest period for the consumer segment, typically accounting for 60% of annual earnings. The treaty covers accident years 2019 and forward, operating on a last-in, first-out basis for IBNR once aggregate deductibles are met. Management confirmed the treaty is currently providing protection as those specific accident years have behaved worse than industry expectations.