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Investing.com -- Markel Group Inc. (NYSE:MKL) reported first-quarter 2025 results that fell short of analyst expectations, sending shares down 2.9% in after-hours trading.
The insurance and investment company posted adjusted earnings per share of $12.08, missing the consensus estimate of $17.40. Revenue came in at $3.4 billion, below analysts’ projections of $3.89 billion and down 23.9% YoY.
Markel’s insurance segment saw relatively flat revenue growth, increasing slightly to $2.19 billion from $2.19 billion in Q1 2024. The company’s combined ratio deteriorated marginally to 95.8% from 95.2% a year ago, impacted by $80.6 million in losses from January wildfires in Southern California.
Investment income rose 8% to $235.6 million, benefiting from higher yields and increased holdings of fixed maturity securities. However, the investments segment recorded a net loss of $149.1 million compared to a $902.3 million gain last year due to unfavorable equity market movements.
The Markel Ventures division, which houses the company’s non-insurance businesses, saw revenue decline 1% to $1.13 billion.
"The first quarter was a productive one at Markel Group," said CEO Tom Gayner. "Our cornerstone insurance business moved along its path to better. We experienced a lower than initially anticipated impact from the California wildfires."
Despite the earnings miss, Markel emphasized its long-term performance, noting a 15% compound annual growth rate in stock price from December 31, 2020 to March 31, 2025.
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