Markets
TRV

Markel (MKL) Earnings and Revenues Beat Estimates in Q4

Highs and Lows Stock Data

Markel Corp.MKL reported fourth-quarter 2016 net income of $9.11 per share, which beat the Zacks Consensus Estimate of $4.92 by 85%. Earnings, however, declined 36% year over year.

The insurer benefited from strong performance across all segments. While underwriting results were strong, favorable movements in the equity markets drove better investment results.

Operational Update

Total operating revenue of $1.4 billion came in ahead of the Zacks Consensus Estimate of $1.1 billion. Moreover, the top line improved 0.6% year over year on higher premiums, investment income as well as other revenues.

Total operating expenses of Markel Corp. increased 9% year over year to $1.2 billion.

Markel Corp.'s combined ratio deteriorated 100 basis points (bps) year over year to 89% in the reported quarter.

Segment Update

U.S. Insurance - Net written premiums were up 4.4% year over year to $543 million in the reported quarter.

Operating income was $17 million, down 17% year over year.

Combined ratio deteriorated 100 bps year over year to 88% in the quarter.

International Insurance − Net written premiums declined 2% year over year to $184 million.

Operating income plunged 54% to $17 million in the quarter.

Combined ratio deteriorated 900 bps year over year to 92% in the quarter.

Reinsurance Segment - Net written premiums increased 27% year over year to $112 million.

Operating income of $26.7 million decreased 16% year over year.

Combined ratio deteriorated 400 bps year over year to 94% in the quarter.

Other Insurance (Discontinued Lines) Segment - Net written premiums of $0.08 million were lower than $0.7 million in the year-ago quarter.

Operating loss of $7.6 million was substantially narrower than the year-ago quarter loss of $35.3 million.

Financial Updates

Markel exited 2016 with total cash, cash equivalents and investments of $19.1 billion compared with $18.1 billion at year-end 2015.

Book value per share increased 8% from year-end 2015 to $ $606.30 as of Dec 31, 2016.

Net cash from operating activities inched up 0.2% year over year to $534.6 million in 2016.

Markel Corporation Price, Consensus and EPS Surprise

Markel Corporation Price, Consensus and EPS Surprise | Markel Corporation Quote

Zacks Rank

Markel presently 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 the other players from the same space that have reported their fourth-quarter earnings so far, the bottom line at The Progressive Corporation PGR , The Travelers Companies Inc. TRV and RLI Corp. RLI beat the Zacks Consensus Estimate.

Zacks' Top 10 Stocks for 2017 In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RLI Corp. (RLI): Free Stock Analysis Report

The Travelers Companies, Inc. (TRV): Free Stock Analysis Report

Progressive Corporation (The) (PGR): Free Stock Analysis Report

Markel Corporation (MKL): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TRV RLI PGR MKL

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More