- Markel Group Inc. reports Q1 2024 earnings per share of $18.17, missing the Zacks Consensus Estimate by 1.8%.
- The company’s net operating earnings increased by 4.7% year over year.
- Despite missing the estimate, Markel saw improved earned premiums and increased net investment income.
Markel Group Inc. reports Q1 2024 earnings, showing an increase in net operating earnings despite missing the Zacks Consensus Estimate.
Markel’s Q1 2024 Financial Performance
Markel Group Inc. reported first-quarter 2024 net operating earnings per share of $18.17, which missed the Zacks Consensus Estimate by 1.8%. However, the bottom line increased 4.7% year over year. The company witnessed improved earned premiums and increased net investment income.
Quarterly Operational Update
Total operating revenues of $3.6 billion missed the Zacks Consensus Estimate by 1.5%. The top line rose 9% year over year. Earned premiums increased 8.1% to $2.1 billion in the reported quarter. Net investment income increased 37% year over year to $218 million in the fourth quarter.
Segment Update
The Insurance segment saw gross premiums increase 5% year over year to $2.2 billion, driven by new business growth and more favorable rates within personal lines and program product lines. The Reinsurance segment saw gross premiums remain flat year over year at $553.3 billion. The Markel Ventures segment reported operating revenues of $1.1 billion, a 3% increase year over year.
Financial Update
Markel exited the first quarter of 2024 with cash and cash equivalents of $4.3 billion, down 1.3% from the 2023 end level. The debt balance increased 2% year over year to $3.9 billion as of Mar 31, 2024 from 2023 end level. Shareholders’ equity was $15.8 billion at first quarter 2024 end, a 5% increase from 2023 end.
Conclusion
Despite missing the Zacks Consensus Estimate, Markel Group Inc. reported an increase in net operating earnings for Q1 2024. The company also saw improved earned premiums and increased net investment income. However, the company’s cash and cash equivalents saw a slight decrease from the 2023 end level.
