Markel Group reported that its insurance business Markel Insurance’s combined ratio improved to 93% in the first quarter of 2026, including a two percentage point net loss due to conflict in the Middle East, compared with a combined ratio of 96% in the first quarter of 2025.
The insurer reported gross written premiums fell to $2.2 billion in the first quarter of 2026 from $2.8 billion a year earlier.
The decline was expected and relates to the impact of the sale of renewal rights in the group’s global reinsurance arm in 2025 and the transition of Hagerty’s business to forward arrangements in 2026. Markel explained that excluding these items, gross premium volume written during the quarter increased 10%.
Markel Insurance’s underwriting profit for the quarter rose 77% to $142 million, compared with $80 million in the first quarter of 2025. The segment’s net investment income increased 11% to $230 million.
As a result, adjusted operating income in 1Q26 reached $369 million, a year-over-year increase of 31%, with all three continuing underwriting segments making a significant contribution to the group’s overall profitability.
“Our global specialty product diversification was on full display. Despite difficult market conditions across our wholesale and specialty E&S platforms, our international business, Bermuda platform and personal lines and plans business units achieved strong growth,” the insurer said.
For the quarter, Markel Insurance’s premium income fell 2% to nearly $2 billion, compared with $2.02 billion in the same period last year. Operating income for the quarter was essentially flat at $2.2 billion compared with the same period last year.
Group-wide, Markel achieved operating income of $3.6 billion, the same as the previous year, and an operating loss of $273 million, compared with a profit of $203 million in the first quarter of 2025. The company reported a consolidated loss to shareholders of $340 million in the first quarter of 2026, compared with revenue of $479 million in the year-earlier period, primarily due to unrealized losses on its investment portfolio.
Markel Group CEO Tom Gayner commented: “We delivered strong results across the company in the first quarter of 2026. We are pleased with continued progress in ongoing operations. We continue to do more of what works and less of what doesn’t while focusing on balance sheet strength, disciplined capital allocation and continued share repurchases.”
