Markel Q3 Adjusted Operating Income Jumps 14% to $707M as Underwriting Improves
MKL is trading near its 52-week low of $1,704.17 (8.2% above the low).
Summary
Adjusted operating income, which strips out equity portfolio swings, rose 14% to $707 million in Q3 from $621 million a year earlier, on revenue of $4.16 billion. The insurance unit's combined ratio improved to 92% from 93%, and adjusted underwriting gross premium volume grew 9% for the quarter and 10% year to date. Headline GAAP results look ugly by comparison: net income to common fell to $259.3 million from $751.3 million, dragged by $280.9 million of investment losses versus a large gain a year ago. The operating businesses are carrying the quarter — Industrial revenue grew 13% with 29% adjusted operating income growth, Financial adjusted operating income rose 30%, and Consumer and Other was up 80%. Markel also bought back $315 million of stock in the quarter and $685 million year to date, a meaningful pace against its roughly $23 billion market value. The Q3 10-Q filed minutes before this release carries the same numbers; the earnings call is Thursday, October 29 at 9:30 a.m. ET.
At the time of this announcement, MKL was trading at $1,844.76 on NYSE in the Finance sector, with a market capitalization of approximately $22.9B. The 52-week trading range was $1,704.17 to $2,207.59. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: PR Newswire.