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MKL Q4 Earnings Beat Estimates on Higher Net Investment Income
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Markel Group Inc. (MKL - Free Report) reported fourth-quarter 2024 net operating earnings per share of $20.51, which beat the Zacks Consensus Estimate by 5%. However, the bottom line decreased 63.6% year over year. MKL reported net income of $38.74 per share.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Markel’s fourth-quarter results reflected improved net investment income, reduced operating expenses, and more favorable development on the prior year’s loss reserves, offset by lower earned premiums.
Markel Group Inc. Price, Consensus and EPS Surprise
Total operating revenues of $3.7 billion missed the Zacks Consensus Estimate by 1%. The top line rose 0.3% year over year on higher net investment income and services and other revenues.
Earned premiums decreased 2.6% year over year to $2.1 billion in the quarter. The modest decrease was due to lower gross premium volume in the Insurance and Reinsurance segments. The figure was lower than our estimate of $2.2 billion.
Net investment income increased 14.2% year over year to $243.7 million in the fourth quarter. The figure was lower than our estimate of $245.2 million and matched the Zacks Consensus Estimate.
Total operating expenses of Markel decreased 7.5% year over year to $3.2 billion, primarily due to lower losses and loss adjustment expenses and products expenses. The figure matched our estimate.
MKL’s combined ratio improved 1,120 basis points (bps) year over year to 95.7 in the reported quarter. The decrease in the consolidated combined ratio was primarily attributable to more favorable development on the prior year’s loss reserves in 2024 compared with 2023. The figure matched the Zacks Consensus Estimate.
Segment Update
Insurance: Gross premiums decreased 1% year over year to $2.3 billion. The figure was lower than our estimate of $2.6 billion. The combined ratio improved 870 bps year over year to 96.1 in the reported quarter.
Reinsurance: Gross premiums dclined 36.2% year over year to $55.7 million. The figure was lower than our estimate of $418.4 million. The combined ratio improved 3,030 bps year over year to 94.3 in the reported quarter.
Markel Ventures: Total operating revenues of $1.27 billion improved 1.5% year over year. The increase in operating revenues was primarily driven by the consumer and building products businesses, as well as a partial-year contribution from Valor Environmental.
Operating income of $132 million increased 3.8% year over year. Markel Ventures segment EBITDA of $164.3 million increased 6.5% year over year.
Financial Update
Markel exited the fourth quarter with investments, cash and cash equivalents and restricted cash and cash equivalents of $34.2 billion as of Dec. 31, 2024, up 10.6% from 2023-end. The increase was primarily attributable to operating cash flows and an increase in the fair value of equity portfolio.
Senior long-term debt and other debt balance increased 14.5% year over year to $4.3 billion as of Dec. 31, 2024.
Shareholders' equity was $16.9 billion at fourth-quarter 2024-end, up 13% from 2023-end.
Net cash provided by operating activities was $2.6 billion in 2024, down 7.1% year over year. It reflected a decrease in operating cash flows from the insurance and Markel Ventures operations, partially offset by an increase in operating cash flows from investments.
Full-Year Highlights
Underwriting profit surged three-fold year over year to $402.3 million.
Net income per share of $199.32 rose 35.6% year over year.
Total operating revenues grew 5.2% year over year to $16.6 billion.
The combined ratio improved 320 bps year over year to 95.2.
Carlisle Companies Incorporated (CSL - Free Report) reported fourth-quarter 2024 adjusted earnings of $4.47 per share, which missed the Zacks Consensus Estimate of $4.48. However, the bottom line increased 7% year over year. Carlisle’s total revenues of $1.12 billion missed the consensus estimate of $1.15 billion. The top line decreased 0.4% year over year. For 2024, CSL reported net revenues of $5 billion, which increased 9.1% year over year.
Revenues from the Carlisle Construction Materials segment increased 2.2% year over year to $856.3 million. Our estimate for segmental revenues was $856.3 million. Revenues from the Carlisle Weatherproofing Technologies segment decreased 7% year over year to $289 million, due to soft residential end markets and lower pricing in select product categories. Our estimate for segmental revenues was $304.9 million.
3M Company (MMM - Free Report) reported fourth-quarter 2024 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate. The bottom line declined while the top line increased marginally on a year-over-year basis. 3M delivered adjusted earnings of $1.68 per share, which surpassed the Zacks Consensus Estimate of $1.66. The metric decreased from earnings of $1.70 per share reported in the year-ago quarter.
The company’s net revenues of $6 billion surpassed the consensus estimate of $5.8 billion. The metric increased 0.1% year over year. On an adjusted basis, revenues increased 2.2% year over year. Organic sales increased 2.1%. Foreign currency translation had a negative impact of 0.8% while acquisitions/divestitures boosted the top line by 0.9%. Region-wise, organic sales in the Americas inched up 1.2% year over year while Asia Pacific organic sales increased 0.8%. Organic sales from businesses in Europe, the Middle East and Africa decreased 4.9%.
Honeywell International Inc. (HON - Free Report) reported fourth-quarter 2024 adjusted earnings of $2.47 per share, which surpassed the Zacks Consensus Estimate of $2.31. The bottom line decreased 8% year over year on an adjusted basis. On a reported basis, the company’s earnings were $1.96 per share, up 3%.
Total revenues of $10.09 billion beat the consensus estimate of $9.86 billion. The top line increased 7% from the year-ago quarter, driven by strength in the Aerospace Technologies segment. Organic sales increased 2% year over year. For 2024, Honeywell reported revenues of $38.5 billion, reflecting an increase of 5% year over year. Organic sales increased 3%. The company’s adjusted earnings were $9.89 per share compared with $9.52 in 2023.
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MKL Q4 Earnings Beat Estimates on Higher Net Investment Income
Markel Group Inc. (MKL - Free Report) reported fourth-quarter 2024 net operating earnings per share of $20.51, which beat the Zacks Consensus Estimate by 5%. However, the bottom line decreased 63.6% year over year. MKL reported net income of $38.74 per share.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Markel’s fourth-quarter results reflected improved net investment income, reduced operating expenses, and more favorable development on the prior year’s loss reserves, offset by lower earned premiums.
Markel Group Inc. Price, Consensus and EPS Surprise
Markel Group Inc. price-consensus-eps-surprise-chart | Markel Group Inc. Quote
Quarterly Operational Update
Total operating revenues of $3.7 billion missed the Zacks Consensus Estimate by 1%. The top line rose 0.3% year over year on higher net investment income and services and other revenues.
Earned premiums decreased 2.6% year over year to $2.1 billion in the quarter. The modest decrease was due to lower gross premium volume in the Insurance and Reinsurance segments. The figure was lower than our estimate of $2.2 billion.
Net investment income increased 14.2% year over year to $243.7 million in the fourth quarter. The figure was lower than our estimate of $245.2 million and matched the Zacks Consensus Estimate.
Total operating expenses of Markel decreased 7.5% year over year to $3.2 billion, primarily due to lower losses and loss adjustment expenses and products expenses. The figure matched our estimate.
MKL’s combined ratio improved 1,120 basis points (bps) year over year to 95.7 in the reported quarter. The decrease in the consolidated combined ratio was primarily attributable to more favorable development on the prior year’s loss reserves in 2024 compared with 2023. The figure matched the Zacks Consensus Estimate.
Segment Update
Insurance: Gross premiums decreased 1% year over year to $2.3 billion. The figure was lower than our estimate of $2.6 billion. The combined ratio improved 870 bps year over year to 96.1 in the reported quarter.
Reinsurance: Gross premiums dclined 36.2% year over year to $55.7 million. The figure was lower than our estimate of $418.4 million. The combined ratio improved 3,030 bps year over year to 94.3 in the reported quarter.
Markel Ventures: Total operating revenues of $1.27 billion improved 1.5% year over year. The increase in operating revenues was primarily driven by the consumer and building products businesses, as well as a partial-year contribution from Valor Environmental.
Operating income of $132 million increased 3.8% year over year. Markel Ventures segment EBITDA of $164.3 million increased 6.5% year over year.
Financial Update
Markel exited the fourth quarter with investments, cash and cash equivalents and restricted cash and cash equivalents of $34.2 billion as of Dec. 31, 2024, up 10.6% from 2023-end. The increase was primarily attributable to operating cash flows and an increase in the fair value of equity portfolio.
Senior long-term debt and other debt balance increased 14.5% year over year to $4.3 billion as of Dec. 31, 2024.
Shareholders' equity was $16.9 billion at fourth-quarter 2024-end, up 13% from 2023-end.
Net cash provided by operating activities was $2.6 billion in 2024, down 7.1% year over year. It reflected a decrease in operating cash flows from the insurance and Markel Ventures operations, partially offset by an increase in operating cash flows from investments.
Full-Year Highlights
Underwriting profit surged three-fold year over year to $402.3 million.
Net income per share of $199.32 rose 35.6% year over year.
Total operating revenues grew 5.2% year over year to $16.6 billion.
The combined ratio improved 320 bps year over year to 95.2.
Zacks Rank
Markel currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Conglomerates
Carlisle Companies Incorporated (CSL - Free Report) reported fourth-quarter 2024 adjusted earnings of $4.47 per share, which missed the Zacks Consensus Estimate of $4.48. However, the bottom line increased 7% year over year. Carlisle’s total revenues of $1.12 billion missed the consensus estimate of $1.15 billion. The top line decreased 0.4% year over year. For 2024, CSL reported net revenues of $5 billion, which increased 9.1% year over year.
Revenues from the Carlisle Construction Materials segment increased 2.2% year over year to $856.3 million. Our estimate for segmental revenues was $856.3 million. Revenues from the Carlisle Weatherproofing Technologies segment decreased 7% year over year to $289 million, due to soft residential end markets and lower pricing in select product categories. Our estimate for segmental revenues was $304.9 million.
3M Company (MMM - Free Report) reported fourth-quarter 2024 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate. The bottom line declined while the top line increased marginally on a year-over-year basis. 3M delivered adjusted earnings of $1.68 per share, which surpassed the Zacks Consensus Estimate of $1.66. The metric decreased from earnings of $1.70 per share reported in the year-ago quarter.
The company’s net revenues of $6 billion surpassed the consensus estimate of $5.8 billion. The metric increased 0.1% year over year. On an adjusted basis, revenues increased 2.2% year over year. Organic sales increased 2.1%.
Foreign currency translation had a negative impact of 0.8% while acquisitions/divestitures boosted the top line by 0.9%. Region-wise, organic sales in the Americas inched up 1.2% year over year while Asia Pacific organic sales increased 0.8%. Organic sales from businesses in Europe, the Middle East and Africa decreased 4.9%.
Honeywell International Inc. (HON - Free Report) reported fourth-quarter 2024 adjusted earnings of $2.47 per share, which surpassed the Zacks Consensus Estimate of $2.31. The bottom line decreased 8% year over year on an adjusted basis. On a reported basis, the company’s earnings were $1.96 per share, up 3%.
Total revenues of $10.09 billion beat the consensus estimate of $9.86 billion.
The top line increased 7% from the year-ago quarter, driven by strength in the Aerospace Technologies segment. Organic sales increased 2% year over year. For 2024, Honeywell reported revenues of $38.5 billion, reflecting an increase of 5% year over year. Organic sales increased 3%. The company’s adjusted earnings were $9.89 per share compared with $9.52 in 2023.