We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Markel (MKL) Q3 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Markel Corporation (MKL - Free Report) delivered third-quarter 2018 income of $28.50 per share, surpassing the Zacks Consensus Estimate of $7.61. Moreover, the bottom line reversed the year-ago quarter’s loss of $18.82 per share.
Markel Corporation Price, Consensus and EPS Surprise
The company witnessed higher revenues as well as improved premiums at the Insurance and Reinsurance segments. However, an increase in expenses was a dampener.
Operational Update
Total operating revenues of $1.8 billion exceeded the Zacks Consensus Estimate by 2.4%. Also, the top line improved 17.1% year over year on higher premiums, investment income and other revenues.
Total operating expenses of Markel increased about 8.5% year over year to $1.7 billion.
Markel’s combined ratio improved 3500 basis points (bps) year over year to 99% in the reported quarter.
Segment Update
Insurance: Net written premiums were up 12.5% year over year to $1 billion in the quarter under review.
Underwriting profit came in at $42.5 million against the year-ago quarter’s loss of $159.5 million.
Combined ratio improved 2300 bps year over year to 96% in the quarter under discussion.
Reinsurance: Net written premiums rose 3% year over year to $195.3 million.
Underwriting loss of $33.7 million was significantly narrower than the year-ago quarter’s loss of $214.3 million.
Combined ratio improved 6800 bps year over year to 115% in the third quarter.
Financial Update
Markel exited the third quarter with investments, cash and cash equivalents plus restricted cash and cash equivalents of 21 billion, up 2.3% from the level at year-end 2017.
Debt balance decreased 3.4% to $2.9 billion as of Sep 30, 2018 from $3.1 billion at 2017 end.
Book value per share grew 3.1% from the tally at year-end 2017 to $704.70 as of Sep 30, 2018.
Net cash from operating activities for nine months ended Sep 30, 2018 was $307.5 million, up 27.5% from the same period in 2017.
Among other players from the insurance industry having reported third-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) and MGIC Investment Corporation (MTG - Free Report) outpaced the respective Zacks Consensus Estimate while the metric of RLI Corp. (RLI - Free Report) lagged the same.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Markel (MKL) Q3 Earnings and Revenues Surpass Estimates
Markel Corporation (MKL - Free Report) delivered third-quarter 2018 income of $28.50 per share, surpassing the Zacks Consensus Estimate of $7.61. Moreover, the bottom line reversed the year-ago quarter’s loss of $18.82 per share.
Markel Corporation Price, Consensus and EPS Surprise
Markel Corporation Price, Consensus and EPS Surprise | Markel Corporation Quote
The company witnessed higher revenues as well as improved premiums at the Insurance and Reinsurance segments. However, an increase in expenses was a dampener.
Operational Update
Total operating revenues of $1.8 billion exceeded the Zacks Consensus Estimate by 2.4%. Also, the top line improved 17.1% year over year on higher premiums, investment income and other revenues.
Total operating expenses of Markel increased about 8.5% year over year to $1.7 billion.
Markel’s combined ratio improved 3500 basis points (bps) year over year to 99% in the reported quarter.
Segment Update
Insurance: Net written premiums were up 12.5% year over year to $1 billion in the quarter under review.
Underwriting profit came in at $42.5 million against the year-ago quarter’s loss of $159.5 million.
Combined ratio improved 2300 bps year over year to 96% in the quarter under discussion.
Reinsurance: Net written premiums rose 3% year over year to $195.3 million.
Underwriting loss of $33.7 million was significantly narrower than the year-ago quarter’s loss of $214.3 million.
Combined ratio improved 6800 bps year over year to 115% in the third quarter.
Financial Update
Markel exited the third quarter with investments, cash and cash equivalents plus restricted cash and cash equivalents of 21 billion, up 2.3% from the level at year-end 2017.
Debt balance decreased 3.4% to $2.9 billion as of Sep 30, 2018 from $3.1 billion at 2017 end.
Book value per share grew 3.1% from the tally at year-end 2017 to $704.70 as of Sep 30, 2018.
Net cash from operating activities for nine months ended Sep 30, 2018 was $307.5 million, up 27.5% from the same period in 2017.
Zacks Rank
Markel has a Zacks Rank #2 (Buy). 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 reported third-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) and MGIC Investment Corporation (MTG - Free Report) outpaced the respective Zacks Consensus Estimate while the metric of RLI Corp. (RLI - Free Report) lagged the same.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>