Markel ( NYSE: MKL ) on Thursday posted Q4 earnings that slid from the year-ago quarter as the insurer endured a rise in expenses as well as a higher combined ratio. Also, its net investment gains fell as the fair value of its equity and bond portfolios waned given market volatility.
Q4 EPS of $49.05 , which may not be comparable to the $18.04 average analyst estimate, dipped from $62.44 a year earlier. Revenue of $4.21B, exceeding the consensus of $3.40B, accelerated from $3.76B in Q4 2021.
Earned premiums were $2.04B for the quarter ended Dec. 31, 2022, compared with $1.81B for the quarter ended Dec. 31, 2021.
Gross premium volume of $3.05B advanced from $2.78B in the same quarter a year ago.
Net investment income of $145.07M vs. $96.20M in Q4 2021. "Our investment income is starting to benefit from higher interest rates, which we expect to continue as we purchase higher yielding securities," said CEO Thomas S. Gayner.
Net investment gains slid to $598.79M from $802.74M in the year-ago period.
Operating expenses totaled $3.16B, up from $2.58B in Q4 2021.
Combined ratio came in at 93.3%, up from 87.8% a year earlier.
Book value of $929.27 per share as of Dec. 31, 2022, vs. $1,036.20 as of Dec. 31, 2021.
Earlier, Markel EPS of $49.05, revenue of $4.21B beats by $800M .
For further details see:
Markel Q4 earnings slide from prior year on higher expenses, combined ratio