2023-04-26 17:27:11 ET
Markel ( NYSE: MKL ) posted on Wednesday Q1 earnings, swinging from a loss in the year-ago quarter, as the insurer posted net investment income improved and gross premium volume increased. The company saw net investment gains in the most recent quarter compared with a loss in the year-ago period.
Q1 EPS of $37.26, which may not compare with the $15.75 consensus, declined from $49.05 in the prior quarter and improved from -$6.50 in the year-ago period. Revenue of $3.64B, topping the $3.42B consensus, fell from $4.21B in Q4 2022 and increased from $2.61B in Q1 2022.
"The first quarter of 2023 saw all three engines – insurance, investments and Markel Ventures – meaningfully contribute to our strong operating results," said CEO Thomas S. Gaynor.
Earned premiums were $1.97B, down from $2.04B in the prior quarter and up from $1.76B in the year-ago quarter.
Gross premium volume of $3.44B climbed from $3.05B in Q4 2022 and from $3.40B in Q1 2022.
Net investment income of $159.3M increased from $145.1M in Q4 and from $92.3M in Q1 2022.
Net investment gains were $372.6M compared with $598.8M in the prior quarter and from -$358.4M in the year-ago period.
Operating expenses totaled $2.89B vs. $3.16B in Q4 and $2.65B in Q1 2022.
Combined ratio of 94.0% vs. 93.3% in the prior quarter and 88.8% in the year-ago quarter.
Book value of $984.33 per share at March 31, 2023 rose/fell from $929.27 at Dec. 31, 2022.
Conference call on April 27 at 9:30 AM ET.
Earlier, Markel ( MKL ) GAAP EPS of $37.26, revenue of $3.64B beats by $220M.
SA contributor MontrealValue digs into Markel's strategic approach to position it for long-term growth
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Markel Q1 results swing to profit, helped by net investment income, gains