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Markel's (MKL) Q1 Earnings and Revenues Surpass Estimates
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Markel Corporation (MKL - Free Report) reported first-quarter 2018 income of $11.39 per share, beating the Zacks Consensus Estimate of $8.71 by 30.8%. The bottom line also skyrocketed 303.9% year over year.
Markel Corporation Price, Consensus and EPS Surprise
The company witnessed higher revenues and improved premiums at the Insurance segment. However, increase in expenses was a dampener.
Operational Update
Total operating revenues of $1.7 billion exceeded the Zacks Consensus Estimate by 5.6%. Also, the top line improved 22.1% year over year on higher premiums, investment income and other revenues.
Total operating expenses of Markel increased nearly 14.5% year over year to $1.5 billion.
Markel’s combined ratio improved 1000 basis points (bps) year over year to 90% in the reported quarter.
Segment Update
Starting from first-quarter 2018, Markel has revised its reportable segments keeping in mind its sustained growth and diversification. Effective Jan 1, 2018, Markel reported through two segments, namely Insurance and Reinsurance.
Insurance: Net written premiums were up 18.5% year over year to $912.9 million in the quarter under review.
Operating income was $102.5 million, up nearly 63% year over year.
Combined ratio improved 300 bps year over year to 89% in the quarter.
Reinsurance: Net written premiums decreased about 14% year over year to $421.1 million.
Operating income was $7.2 million against a loss of $70.6 million in the prior-year period.
Combined ratio improved 3400 bps year over year to 97% in the quarter.
Other: Net written premiums were 0.8 million, which skyrocketed 559.5% from the year-ago quarter.
Operating loss of $13.4 million was narrower than the year-ago loss of $14.9 million.
Financial Update
Markel exited the first quarter with investments, cash and cash equivalents plus restricted cash and cash equivalents of $20.3 billion, down 1.4% from year-end 2017.
Debt balance decreased 1.6% to $3 billion as of Mar 31, 2018 from $3.1 billion at 2017 end.
Book value per share declined 1.8% from year-end 2017 to $671.05 as of Mar 31, 2018.
Net cash from operating activities was $57.7 million as of Mar 31, 2018, skyrocketing 382.8% from the year-ago quarter.
Among other players from the insurance industry having already reported first-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) , MGIC Investment Corporation (MTG - Free Report) and RLI Corp. (RLI - Free Report) surpassed the respective Zacks Consensus Estimate.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
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Markel's (MKL) Q1 Earnings and Revenues Surpass Estimates
Markel Corporation (MKL - Free Report) reported first-quarter 2018 income of $11.39 per share, beating the Zacks Consensus Estimate of $8.71 by 30.8%. The bottom line also skyrocketed 303.9% year over year.
Markel Corporation Price, Consensus and EPS Surprise
Markel Corporation Price, Consensus and EPS Surprise | Markel Corporation Quote
The company witnessed higher revenues and improved premiums at the Insurance segment. However, increase in expenses was a dampener.
Operational Update
Total operating revenues of $1.7 billion exceeded the Zacks Consensus Estimate by 5.6%. Also, the top line improved 22.1% year over year on higher premiums, investment income and other revenues.
Total operating expenses of Markel increased nearly 14.5% year over year to $1.5 billion.
Markel’s combined ratio improved 1000 basis points (bps) year over year to 90% in the reported quarter.
Segment Update
Starting from first-quarter 2018, Markel has revised its reportable segments keeping in mind its sustained growth and diversification. Effective Jan 1, 2018, Markel reported through two segments, namely Insurance and Reinsurance.
Insurance: Net written premiums were up 18.5% year over year to $912.9 million in the quarter under review.
Operating income was $102.5 million, up nearly 63% year over year.
Combined ratio improved 300 bps year over year to 89% in the quarter.
Reinsurance: Net written premiums decreased about 14% year over year to $421.1 million.
Operating income was $7.2 million against a loss of $70.6 million in the prior-year period.
Combined ratio improved 3400 bps year over year to 97% in the quarter.
Other: Net written premiums were 0.8 million, which skyrocketed 559.5% from the year-ago quarter.
Operating loss of $13.4 million was narrower than the year-ago loss of $14.9 million.
Financial Update
Markel exited the first quarter with investments, cash and cash equivalents plus restricted cash and cash equivalents of $20.3 billion, down 1.4% from year-end 2017.
Debt balance decreased 1.6% to $3 billion as of Mar 31, 2018 from $3.1 billion at 2017 end.
Book value per share declined 1.8% from year-end 2017 to $671.05 as of Mar 31, 2018.
Net cash from operating activities was $57.7 million as of Mar 31, 2018, skyrocketing 382.8% from the year-ago quarter.
Zacks Rank
Markel carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry having already reported first-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) , MGIC Investment Corporation (MTG - Free Report) and RLI Corp. (RLI - Free Report) surpassed the respective Zacks Consensus Estimate.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>