MARKEL GROUP INC. (MKL)

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included under Item 1 Financial Statements and our 2025 Annual Report on Form 10-K. The accompanying consolidated financial statements and related notes have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) and include the accounts of our holding company, Markel Group Inc. (Markel Group), and its consolidated subsidiaries, as well as any variable interest entities that meet the requirements for consolidation (the Company). This section is divided into the following sections:

•Business Overview

•Results of Operations

•Financial Condition

•Non-GAAP Financial Measures

•Critical Accounting Estimates

•Safe Harbor and Cautionary Statement

Business Overview

Markel Group is a holding company that owns independently operated businesses across a range of industries. The cornerstone business, Markel Insurance, provides specialized insurance products that are not typically available through the standard insurance market. This insurance business sits at the center of the Company's strategy. It generates and holds capital used to support growth and investment across Markel Group. The other majority-owned businesses operate in diverse end markets, from industrial bakery equipment to ornamental plants to precast concrete. Markel Group also owns shares in publicly traded companies, which are primarily held within its insurance operations.

Markel Group supports each business by empowering leaders to make the best long-term decisions for their businesses. Customers, associates, and shareholders each benefit from this approach, given how it allows businesses to pursue opportunities that require time, stability, and trust. We believe this approach is difficult to replicate and makes Markel Group a distinctive home for businesses. The Company's long-term orientation and decision-making is rooted in the Company's culture, known as The Markel Style, which serves as a shared set of values that foster excellence and consistency across independent businesses, all while allowing each business to retain its entrepreneurial spirit.

A key principle of The Markel Style is building the value of the Company for shareholders. The design of Markel Group supports this goal by owning businesses that generate positive cash flows and redeploying those cash flows for additional growth. Markel Group has developed the skill and capability to redeploy capital efficiently, with low friction, across a large and diverse opportunity set, which includes reinvesting in existing businesses, acquiring majority-owned businesses, investing in publicly traded companies, and repurchasing Markel Group shares. Markel Group's unique company design and set of shared values have enabled it to compound shareholder capital at attractive rates over many decades.

Markel Group reports its business operations in four segments: Markel Insurance, Industrial, Financial, and Consumer and Other. See note 2 of the notes to consolidated financial statements for details regarding our reportable segments.

Results of Operations

The following table presents operating revenues by segment.

27

Table of Contents

The following table presents consolidated operating income and a reconciliation to consolidated adjusted operating income, as well as adjusted operating income by segment. Consolidated adjusted operating income is a non-GAAP measure. See "Non-GAAP Financial Measures" for additional details.

Net investment gains and losses have caused, and are expected to continue to cause, significant volatility in our periodic operating income, net income, and comprehensive income. Net investment gains and losses are predominantly derived from our investments in publicly traded equity securities and typically include significant unrealized gains and losses from market value movements. We believe that net investment gains and losses, whether realized from sales or unrealized from market value movements, are distortive in understanding the short-term operating performance of our businesses. As such, we exclude net investment gains and losses from adjusted operating income. We believe adjusted operating income, both consolidated and by segment, is generally an accurate representation of the operating performance of our businesses in our periodic results.

The following table presents the components of comprehensive income to shareholders.

Markel Insurance

Markel Insurance is our core specialty insurance business comprised of empowered local leaders underwriting hard-to-place risks across the globe in service of their customers' needs. Markel Insurance generates income primarily through its core underwriting activities and by investing the capital held by its underwriting subsidiaries, as well as through other insurance-related activities, which includes fronting and strategic minority investments. Markel Insurance is primarily comprised of its U.S. Wholesale and Specialty, Program and Solutions, International, and Global Reinsurance divisions. Markel Insurance also includes the run-off of the discontinued intellectual property collateral protection insurance (IP CPI) product line, life and annuity reinsurance business, and certain asbestos and environmental exposures, none of which is managed through its divisions.

28

Table of Contents

We measure the operating performance of our Markel Insurance segment by its operating revenues and adjusted operating income, which represents operating income before net investment gains and amortization of acquired intangible assets. The following table summarizes the results of operations for our Markel Insurance segment.

The 40% and 35% increase in adjusted operating income for the quarter and six months ended June 30, 2026, respectively, was driven by higher underwriting profits and net investment income. For further details of Markel Insurance's investment performance, see "Consolidated Investment Results."

Recent Developments

Middle East Conflict

In February 2026, a regional military conflict emerged in the Middle East following U.S. and Israeli airstrikes on Iran. For the quarter and six months ended June 30, 2026, net losses and loss adjustment expenses related to the Middle East conflict were $41.0 million and $76.0 million, respectively, or two points on both the quarter-to-date and year-to-date combined ratios. Our losses and loss adjustment expenses from the Middle East conflict were primarily attributed to terrorism, energy, and marine war coverages written by the International division.

Loss estimates related to the Middle East conflict represent our best estimate as of June 30, 2026 based upon information currently available. Our estimates for these losses are based on known losses and reported claims, as well as an analysis of our ceded reinsurance contracts. Due to the inherent uncertainty associated with the assumptions surrounding the Middle East conflict, these estimates are subject to a wide range of variability. While we believe our reserves for losses and loss adjustment expenses related to the Middle East conflict as of June 30, 2026 are adequate based on information currently available, we continue to closely monitor reported claims, ceded reinsurance contract attachment, government actions, and areas impacted by the conflict and may adjust our loss estimates as new information becomes available.

Additionally, as the Middle East conflict is ongoing, additional losses may be incurred in subsequent periods, and such losses may be material to our results of operations, financial condition, and cash flows. Covering these types of risks is core to our expertise as a global specialty insurer, and we continue to underwrite risks in this region on a case by case basi

[Excerpt truncated for page length; source filing is linked above.]

Item 7. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis includes discussion of changes in our results of operations and financial condition from 2024 to 2025 and from 2023 to 2024 and should be read in conjunction with the consolidated financial statements and related notes included under Item 8, Item 1 Business, Item 1A Risk Factors, and "Safe Harbor and Cautionary Statement". The accompanying consolidated financial statements and related notes have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) and include the accounts of our holding company, Markel Group Inc. (Markel Group), and its consolidated subsidiaries, as well as any variable interest entities that meet the requirements for consolidation (the Company). For a discussion of our significant accounting policies, see note 1 of the notes to consolidated financial statements included under Item 8. Item 7 is divided into the following sections:

•Capital Performance

•Results of Operations

•Liquidity and Capital Resources

•Non-GAAP Financial Measures

•Critical Accounting Estimates

•Safe Harbor and Cautionary Statement

In 2025, we made notable changes to our financial reporting, including the re-segmentation of our businesses, the expansion of both consolidated and segment financial metrics, and the addition of detail regarding our business strategy, among others. See note 2 of the notes to consolidated financial statements for additional details on the changes to our reportable segments.

Capital Performance

Markel Group is a dynamic system that strives to relentlessly compound shareholder capital at attractive rates across decades. We are responsible for capital allocation across our businesses and use a variety of metrics for each part of the Markel Group system, among other factors, to help inform these activities. Our capital allocation decisions are made with a long-term perspective that considers an array of qualitative and quantitative factors in the context of our capital allocation framework. See Item 1 Business "Relentlessly Compounding Shareholder Capital" for details of our capital allocation options and investment principles.

We believe that our capital performance metrics are best viewed over longer periods of time. To better align with this long-term perspective, we use five-year time periods to assess capital performance.

The five-year compound annual growth rate (CAGR) of intrinsic value per share is one of the ways by which we monitor the success of our capital allocation decisions and overall returns from the consolidated Markel Group system.

For our Markel Insurance business, we measure capital efficiency using return on equity, with a focus on the five-year average annual return on equity.

For our Industrial, Financial, and Consumer and Other segments, we look at a variety of capital efficiency metrics given the diverse businesses within these segments.

Intrinsic Value Per Share Growth

As a diverse holding company, we use growth in intrinsic value per share as a measure to help us evaluate the value created by our businesses over five-year periods of time. While intrinsic value does not represent a precise valuation of our business, we believe growth in intrinsic value per share, considered among an array of other qualitative and quantitative factors, offers a useful tool to investors and management in understanding long-term value creation trends. A straightforward methodology can be used to measure intrinsic value per share growth using data from our financial statements.

10K - 35

First, we take an adjusted earnings metric and apply a consistent multiple to arrive at an earnings valuation. We exclude certain non-cash items from our adjusted earnings metric, such as amortization, as well as income attributed to our public equity portfolio and income from our cash and short-term investments, which are valued separately in our calculation. Using a three-year average of earnings in our calculation helps mitigate the impact of cyclicality and non-recurring items in the earnings valuation.

We consider a range of multiples in our earnings valuation calculation that reflects the diversity of our sources of cash flows, with 12x as the midpoint. Regardless of the multiple used, we believe using a consistent multiple for each year in the calculation is important when assessing the five-year compound annual growth rate in intrinsic value per share.

Second, we add certain items from our balance sheet that are not included in the earnings valuation. The balance sheet component of the valuation consists of adding cash, short-term investments, and equity securities, then subtracting debt, preferred stock, and noncontrolling interests.

The sum of the earnings and balance sheet valuations divided by the number of shares outstanding represents our estimate of intrinsic value per share from which to calculate growth.

Our simplified intrinsic value per share growth calculation may differ from calculations that others may perform, and our stock price growth may vary significantly from our intrinsic value growth calculation. We believe that the key with any calculation is applying a consistent methodology to measure the compound annual growth in intrinsic value per share over five-year periods, which is aligned with our long-term aim of relentlessly compounding shareholder capital.

The following table shows the calculation of adjusted earnings used for our earnings valuation.

The following table shows the components of our balance sheet valuation and common shares outstanding.

10K - 36

Markel Insurance Return on Equity

We believe return on equity is an important metric to evaluate the overall performance of Markel Insurance. This metric is representative of the total return generated by the business on the capital that it holds and provides a metric by which to evaluate Markel Insurance's capital efficiency.

Although we do not consider net investment gains and losses when assessing the periodic performance of our Markel Insurance segment, we believe it is important to consider the full contribution of the publicly traded equity securities held by Markel Insurance subsidiaries when evaluating the capital efficiency of the business.

Over the five-year period ended December 31, 2025, the average return on equity from Markel Insurance was 13%. The following table summarizes the calculation of return on equity for Markel Insurance.

(1)    Interest expense on our senior notes is attributed to the return on Markel Insurance.

(2)    Income tax expense is based on a 22% tax rate, which is representative of our typical effective rate, however, it does not represent actual income tax expense at Markel Insurance. Income taxes are managed on a consolidated basis across the Markel Group and are only attributed to the Markel Insurance segment when assessing its return on equity.

Capital Reconciliation

The following table summarizes the capital held by each of our segments, as well as a reconciliation to consolidated capital of Markel Group. Total capital is comprised of total equity, redeemable noncontrolling interests, total debt, and obligations for finance leases. Eliminations relate to intercompany loans to and from a corporate subsidiary, which are eliminated in consolidation.

10K - 37

Results of Operations

The following table presents operating revenues by segment.

In 2025, we updated the presentation of operating revenues to no longer include net investment gains and losses, and prior periods have been recast to conform to the updated presentation. Net investment gains and losses are predominantly derived from our investments in publicly traded equity securities and typically include significant unrealized gains and losses from market value movements.

We believe that net investment gains and losses, whether realized from sales or unrealized from market value movements, are distortive in understanding the short-term operating performance of our businesses. As such, we exclude net investment gains and losses from adjusted operating income. We believe adjusted operating income, both consolidated and by segment, is generally an accurate representation of the operating performance of our businesses in our periodic results.

The following table presents consolidated operating income and a reconciliation to consolidated adjusted operating income, as well as adjusted operating income by segment. Consolidated adjusted operating income is a non-GAAP measure. See "Non-GAAP Financial Measures" for additional details.

10K - 38

The following table presents the components of comprehensive income to shareholders. Net investment gains and losses have caused, and are expected to continue to cause, significant volatility in our periodic operating income, net income, and comprehensive income.

Markel Insurance

The following table summarizes the results of operations for our Markel Insurance segment. We measure the operating performance of our Markel Insurance segment by its operating revenues and adjusted operating income, which are comprised of results attributed to its insurance activities and earnings on the investments held in support of its insurance activities.

Adjusted operating income increased by 16% in 2025 and 59% in 2024, driven by higher underwriting profits and net investment income. For further details of Markel Insurance's investment performance, see "Consolidated Investment Results."

10K - 39

The following table summarizes the results of Markel Insurance's underwriting and other insurance-related activities, which primarily consist of our fronting programs with Nephila.

(1)    Amounts may not reconcile due to rounding.

(2)    The point impact of catastrophes is calculated as the associated net losses and loss adjustment expenses divided by total earned premiums.

(3)    This metric is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional details.

Global Reinsurance

In August 2025, Markel Insurance sold the renewal rights for business written in its Global Reinsurance division, and the division entered into run-off. Gross premium volume in 2025 attributed to the Global Reinsurance division was $1.0 billion. Underwriting results attributable to the Global Reinsurance division had a two point unfavorable impact on the Markel Insurance segment combined ratio in 2025 and a one point unfavorable impact in 2024 and 2023.

Premiums

2025 compared to 2024

The increase in underwriting gross premium volume in our Markel Insurance segment in 2025 was driven by significant growth within our personal lines and international professional liability product lines, as well as growth within our programs, marine and energy, and general liability product lines. These increases were partially offset by the impact of lower premium volume in our U.S. professional liability product lines, as a result of exiting our risk-managed directors and officers product line from our U.S. and Europe-based platforms. We concluded that the rates on the business written from these platforms were inadequate to meet our profitability targets, therefore, we stopped writing this product from our European platform in late 2024 and our U.S. platform in early 2025. We continue to write select risk-managed directors and officers accounts from our Bermuda-based platform.

10K - 40

The increase in fronting gross premium volume in 2025 was driven by growth of our property catastrophe programs with Nephila.

Net retention of underwriting gross premium volume was 79% in 2025 compared to 78% in 2024. Within our underwriting operations, we purchase reinsurance to manage our net retention on individual risks and overall exposure to losses and to enable us to write policies with sufficient limits to meet policyholder needs.

The increase in earned premiums in 2025 was primarily due to the impact of the changes in underwriting gross premium volume in recent periods.

2024 compared to 2023

The increase in underwriting gross premium volume in our Markel Insurance segment in 2024 was driven by new business growth and more favorable rates within our personal lines, marine and energy, programs, and credit and surety product lines, partially offset by lower premium volume within select lines of our U.S. general liability and professional liability product lines. Gross premium volume within our U.S. general liability and professional liability product lines decreased $276.6 million in 2024 compared to 2023, which reflects decreased writings within our brokerage contractors, brokerage excess and umbrella, and risk-managed excess casualty general liability products and our risk-managed professional liability products as part of targeted underwriting actions aimed at achieving greater profitability within these product lines.

The increase in fronting gross premium volume in 2024 was driven by growth of our property catastrophe and specialty programs with Nephila.

Net retention of underwriting gross premium volume was 78% in 2024 compared to 81% in 2023. The decrease was driven by higher cession rates on our professional liability product lines in 2024 compared to 2023, as well as changes in mix of business as we decreased writings on select lines of our U.S. general liability product lines, which have lower cession rates than most other products within the segment.

The increase in earned premiums in 2024 was primarily due to the impact of the changes in underwriting gross premium volume in recent periods.

Rate Discussion

In 2025, we achieved modest rate increases overall across our diversified product portfolio. We examine each of our product classes regularly by evaluating pricing and exposure, underwriting terms and conditions, deal structure, including limits and attachment points, and our expectations around loss cost trends, among other things. We target premium growth in product lines where we are confident in the levels of rate adequacy.

Product lines achieving the most notable rate increases include our U.S. general liability product lines, as well as certain personal lines and programs product lines. Despite multiple years of rate increases, we continue to be cautious in selecting which risks to pursue and how much limit to deploy within certain subclasses of our U.S. general liability portfolio as we rebalance our portfolio. However, the rate increases for these product lines have generally been in line with, or better than, our assumptions for loss cost trends. As a result of the rate increases and overall profitability being achieved in our personal lines and programs product lines, we are increasing our premium writings in these lines.

Product lines with notable rate decreases include our U.S. workers' compensation product line, international energy and professional liability product lines, and our global cyber portfolios. More recently, rates for our U.S. property product lines also have decreased as market conditions have softened due to a lower level of natural catastrophe events in 2025.

Services and Other Income

The increase in services and other income in 2025 was primarily due to higher fronting fees driven by growth of our property catastrophe programs with Nephila, as previously discussed. Services and other income in 2024 was consistent with 2023.

10K - 41

Combined Ratio

Natural Catastrophes

The following table summarizes the impact of losses attributed to natural catastrophes on the Markel Insurance segment combined ratio. Losses from natural catastrophes in 2025 were attributed to the series of wildfires that occurred in southern California in January 2025. Losses from natural catastrophes in 2024 were attributed to Hurricane Helene and Hurricane Milton. Losses from natural catastrophes in 2023 were attributed to the Hawaiian wildfires and Hurricane Idalia.

Intellectual Property Collateral Protection Insurance

The following table summarizes the impact of intellectual property collateral protection insurance (IP CPI) losses on the Markel Insurance segment combined ratio.

In 2023, we began to observe higher than expected levels of defaults on loans collateralized by intellectual property, for which we provided coverage to lenders through our IP CPI product line. We discontinued writing this product at the beginning of 2024. However, we continued to recognize losses in 2024 and 2025 as additional claim events occurred, which result from both a default on the loan and impairment of the underlying intellectual property. We believe any losses on our discontinued IP CPI product line in 2026 will not be material to the Markel Insurance segment.

2025 compared to 2024

Excluding losses attributed to natural catastrophes, the decrease in the Markel Insurance segment combined ratio in 2025 compared to 2024 was primarily attributable to a lower attritional loss ratio, which was driven by lower losses on our discontinued IP CPI product line. Additionally, the attritional loss ratio in 2025 was unfavorably impacted by large losses within our credit and surety product line and higher attritional loss ratios on our personal umbrella product line. These unfavorable impacts on our attritional loss ratio were largely offset by a favorable impact from changes in mix of business, as our growing lines of business generally have lower attritional loss ratios than the lines of business for which we have reduced our premium writings.

The 2025 combined ratio included $484.0 million of favorable development on prior accident years loss reserves compared to $454.9 million in 2024. The increase in favorable development was primarily attributable to more favorable development on our marine and energy product lines in 2025 compared to 2024, partially offset by less favorable development on our professional liability and general liability product lines in 2025 compared to 2024.

In 2025, favorable development was most significant within our marine and energy, general liability, workers' compensation, property, programs, and credit and surety insurance product lines. Favorable development in 2025 was net of $128.8 million, or two points, of adverse development on our run-off risk-managed directors and officers product lines.

In 2024, favorable development was most significant within our international professional liability product lines, as well as our property, general liability, marine and energy, programs, and credit and surety insurance product lines. Favorable development in 2024 was net of $176.9 million, or two points, of adverse development on our risk-managed directors and officers product lines that are now in run-off.

10K - 42

See note 11 of the notes to consolidated financial statements included under Item 8 for more information on the Markel Insurance segment's prior year loss reserve development.

The increase in the expense ratio in 2025 compared to 2024 was primarily attributable to higher personnel costs, including increased severance costs related to recent organizational changes, higher professional fees, and changes in mix of business. Many of the product lines and markets in which we are growing within our International division carry higher expense ratios and lower loss ratios than the rest of the segment. The expense ratio also reflects costs associated with our growth and expansion efforts in these targeted markets.

2024 compared to 2023

Excluding losses attributed to natural catastrophes, the decrease in the Markel Insurance segment combined ratio in 2024 compared to 2023 was primarily attributable to more favorable development on prior accident years loss reserves, partially offset by a higher expense ratio.

Excluding losses attributed to natural catastrophes, the modest increase in the current accident year loss ratio in 2024 compared to 2023 was primarily attributable higher attritional loss ratios across our U.S. product lines, driven largely by our professional liability and general liability product lines, largely offset by lower attritional loss ratios within our international product lines. In 2024, we increased our attritional loss ratios on certain product classes within our U.S. professional liability and general liability product lines in response to unfavorable loss development trends in recent years and to include an increase in the level of caution on our U.S. professional liability and general liability product lines.

The 2024 combined ratio included $454.9 million of favorable development on prior accident years loss reserves compared to $36.7 million in 2023. The increase in favorable development was primarily attributable to favorable development on our general liability product lines in 2024 compared to significant adverse development in 2023.

In 2024, favorable development was most significant within our international professional liability product lines, as well as our property, general liability, marine and energy, programs, and credit and surety insurance product lines. Favorable development in 2024 was net of $176.9 million, or two points, of adverse development on our risk-managed directors and officers product lines that are now in run-off.

In 2023, favorable development was most significant on our international professional liability product lines, as well as our property, marine and energy, personal lines, and workers' compensation insurance product lines. Favorable development in 2023 was net of $326.8 million, or four points, of adverse development across our U.S. general liability and professional liability insurance product lines, as well as notable adverse development on our general liability and public entity reinsurance product lines.

See note 11 of the notes to consolidated financial statements included under Item 8 for more information on the Markel Insurance segment's prior year loss reserve development.

The increase in the expense ratio in 2024 compared to 2023 was primarily attributable to higher personnel costs, including profit sharing expenses and investments in underwriting talent within our international operations, as well as other general and administrative expenses, including investments in technology across our global operations to drive future growth and operational efficiencies. The increase was also partially attributable to general cost inflation trends outpacing premium growth, as a result of the underwriting actions taken on our U.S. general liability and professional liability product lines, as previously discussed.

10K - 43

Markel Insurance - Divisional Results

The following tables present the divisional results of the Markel Insurance segment's underwriting and other insurance-related activities.

10K - 44

U.S. Wholesale and Specialty

In 2025, the 4% decrease in gross premium volume and 6% decrease in earned premiums within the U.S. Wholesale and Specialty division were primarily due to the impact of exiting our risk-managed directors and officers product line in this division, partially offset by the impact of new business and more favorable rates within our general liability product lines. The U.S. Wholesale and Specialty division's combined ratio in 2025 decreased seven points, primarily due to favorable development on prior accident year loss reserves in 2025. Favorable development in 2025 was net of $108.3 million, or four points on the U.S. Wholesale and Specialty combined ratio, of adverse development on our run-off risk-managed directors and officers product line. In 2024, we experienced $139.6 million, or five points on the U.S. Wholesale and Specialty combined ratio, of adverse development on our risk-managed directors and officers product line that is now in run-off.

In 2024, the 6% decreases in gross premium volume and earned premiums within the U.S. Wholesale and Specialty division were primarily due to targeted underwriting actions, resulting in decreased writings within our brokerage contractors, brokerage excess and umbrella, and risk-managed excess casualty general liability products. The U.S. Wholesale and Specialty division's combined ratio in 2024 decreased four points, primarily due to minimal development on prior accident year loss reserves in 2024 compared to adverse development in 2023, partially offset by a higher current accident year loss ratio. Adverse development in 2023 was driven by $331.9 million, or 11 points on the U.S. Wholesale and Specialty combined ratio, of adverse development across the division's general liability and professional liability product lines.

10K - 45

Programs and Solutions

In 2025, the 8% increases in underwriting gross premium volume and earned premiums within the Programs and Solutions division were driven by more favorable rates and new business within our personal lines and programs product lines, partially offset by the impact of exiting our European risk-managed directors and officers product line. The significant growth in fronting gross premium volume was driven by expansion of our property catastrophe programs with Nephila. The Programs and Solutions division's combined ratio in 2025 increased four points due to the impact of a higher attritional loss ratio and higher expense ratio. The attritional loss ratio in 2025 was impacted by large losses within our credit and surety product line and increased attritional loss ratios on our personal umbrella product line.

In 2024, the 13% increase in gross premium volume and 5% increase in earned premiums within the Programs and Solutions division were primarily due to new business growth and more favorable rates within our personal lines and programs product lines. The significant growth in fronting gross premium volume was driven by expansion of our property catastrophe and specialty programs with Nephila.

International

In 2025, the 14% increase in gross premium volume and 12% increase in earned premiums within the International division were driven by increases on our professional liability and general liability product lines. The International division's combined ratio in 2025 increased six points primarily due to less favorable development on prior accident years loss reserves.

In 2024, the 6% increase in gross premium volume and 9% increase in earned premiums within the International division were primarily due to growth within our marine and energy and general liability product lines. The International division's combined ratio in 2024 decreased nine points due to a lower current accident year loss ratio and more favorable development on prior accident years loss reserves.

Global Reinsurance

In 2025, the 10% decrease in gross premium volume within the Global Reinsurance division was primarily due to non-renewals on exited lines and renewal decreases within our professional liability and general liability product lines. The Global Reinsurance division's combined ratio in 2025 increased three points due to a higher loss ratio. Adverse development in 2025 was driven by increases in prior accident years loss reserves within our general liability product lines, due to greater severity than originally expected across older accident years and increases to more recent accident years to incorporate our loss experience on the older accident years. We also increased the level of caution in our current accident year loss ratios on these general liability product lines based on the loss experience on these older accident years.

In 2024, the 8% increase in gross premium volume and 2% increase in earned premiums within the Global Reinsurance division were primarily due increases on renewals and new business within our professional liability and marine and energy product lines. The Global Reinsurance division's combined ratio in 2024 decreased one point due to less adverse development on prior accident years loss reserves, largely offset by a higher current accident year loss ratio.

10K - 46

Balance Sheet

The following table presents the financial position of Markel Insurance.

Industrial

We measure the operating performance of our Industrial segment by its operating revenues and adjusted operating income. Adjusted operating income represents operating income before amortization of acquired intangible assets. We consolidate the results of the businesses in the Industrial segment on a one-month lag, with the exception of significant transactions or events that occur during the intervening period. The following table summarizes the operating performance of our Industrial segment.

10K - 47

2025 compared to 2024

The increase in operating revenues in 2025 reflected organic growth and a full-year contribution from our June 2024 Valor Environmental (Valor) acquisition. The Industrial segment results in 2024 included five months of results from Valor.

Organic revenue growth of our Industrial segment was 2% in 2025. Organic revenue growth is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional details.

Organic revenue growth was primarily attributable to increased demand for our equipment leasing services within the wind energy market, as well as a combination of higher prices and sales volume for our services and products in the commercial and residential construction markets. These increases were partially offset by lower sales volume of our products within the transportation industry due to a down cycle in demand for the industry.

The decrease in adjusted operating income in 2025 was primarily attributable to lower margins, due to higher materials and labor costs, and lower revenues within our industrial products businesses, partially offset by the impact of higher revenues within our industrial services businesses.

2024 compared to 2023

The increase in operating revenues in 2024 reflected the contribution of our June 2024 Valor acquisition. Organic revenue growth of our Industrial segment was flat in 2024. Higher sales volume at many of our businesses in 2024 was offset by lower sales volume of our products within the transportation industry due to the start of a down cycle in demand for the industry. The decrease in adjusted operating income in 2024 was primarily attributable to lower margins, due to higher materials and labor costs.

Financial

We measure the operating performance of our Financial segment by its operating revenues and adjusted operating income. Adjusted operating income represents operating income before amortization of acquired intangible assets. The following table summarizes the operating performance of our Financial segment.

(1)    Adjusted operating income for the years ended December 31, 2025, 2024, and 2023 included $2.9 million, $58.1 million, and $71.5 million, respectively, from Markel CATCo Re Ltd. (MCRe), all of which was attributable to noncontrolling interests.

2025 compared to 2024

The increase in operating revenues in 2025 reflected strong organic growth, as well as the impact of $41.4 million of income related to our minority investment in Velocity Holdco LLC (Velocity) resulting from the sales of its managing general agent operations and insurance carrier in 2025.

Organic revenue growth of our Financial segment was 17% in 2025. Organic revenue growth was primarily attributable to the impact of performance fees earned in 2025 and a higher effective management fee rate for our insurance-linked securities investment management services, as well as higher premium volume within our program services and lender services offerings.

The increase in adjusted operating income in 2025 was driven by the impact of higher revenues, including the income related to our minority investment in Velocity, as previously discussed. These increases were partially offset by the impact in 2024 of $58.1 million of favorable loss development on the run-off of reinsurance contracts written by MCRe, all of which was attributable to noncontrolling interests.

10K - 48

2024 compared to 2023

The increase in operating revenues in 2024 reflected 8% organic growth. Revenue growth and organic revenue growth in 2024 were primarily attributable to the impact of higher premium volume within our program services and lender services offerings, as well as increased net investment income driven by a higher yield and higher average holdings of short-term investments.

Consumer and Other

We measure the operating performance of our Consumer and Other segment by its operating revenues and adjusted operating income. Adjusted operating income represents operating income before amortization of acquired intangible assets. We consolidate the results of the businesses in the Consumer and Other segment on a one-month lag, with the exception of significant transactions or events that occur during the intervening period. The following table summarizes the operating performance of our Consumer and Other segment.

2025 compared to 2024

The increase in operating revenues in 2025 reflected the contribution from our acquisition of Education Partners International (EPI). Organic revenue growth of our Consumer and Other segment was 1% in 2025, primarily attributable to increased sales of ornamental plants driven by higher demand and prices. The increase in adjusted operating income was driven by the contribution from EPI.

2024 compared to 2023

The increase in operating revenues in 2024 reflected the contribution from an acquisition made by one of our businesses in the first quarter of 2024. Organic revenue growth of our Consumer and Other segment was 2% in 2024. Organic revenue growth was primarily attributable to higher home sales volume, partially offset by a modest decrease in demand for certain of our consumer products and our consulting services. The increase in adjusted operating income in 2024 was driven by the impact of higher revenues, as well as higher margins on sales of ornamental plants.

Corporate

The following table summarizes the results of our corporate operations, as well as a reconciliation to total corporate and eliminations as presented in the summary table of our consolidated results of operations. Our corporate operations include activities at our holding company, Markel Group Inc., and investments and loans to and from our operating businesses, which are held by other corporate subsidiaries. For further details of investment performance at our corporate operations, see "Consolidated Investment Results."

(1)    Prior to the third quarter of 2025, corporate expenses were fully allocated to our segments.

10K - 49

Consolidated Investment Results

We measure our investment performance by analyzing net investment income, which reflects the recurring interest and dividend earnings on our investment portfolio. See note 4(d) of the notes to consolidated financial statements included under Item 8 for details regarding the components of net investment income.

We also analyze net investment gains, which are primarily comprised of unrealized gains and losses on our equity portfolio. Net investment gains or losses in any given period are typically attributable to changes in the fair value of our equity portfolio due to market value movements. Based on the potential for volatility in the financial markets, we understand that the level of gains or losses may vary from one period to the next, and therefore believe that our investment performance is best analyzed over longer periods of time. As of December 31, 2025, the fair value of our equity portfolio included cumulative unrealized gains of $8.9 billion.

The following table summarizes our consolidated investment performance. Investing results are attributed to our businesses based on the subsidiary that holds the investments.

(1)    Yield reflects the applicable interest income as a percentage of the applicable monthly average invested assets at amortized cost.

(2)    Return on equity securities is calculated by dividing dividends and the change in fair value of equity securities by the monthly average equity securities at fair value and considers the timing of net purchases and sales.

2025 compared to 2024

The 5% increase in net investment income in 2025 was primarily driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings. These increases were partially offset by lower interest income on our short-term investments due to lower average short-term investment holdings and lower short-term interest rates. Proceeds from our May 2024 senior debt offering, which had been held in short-term investments, were used to redeem our preferred shares in the second quarter of 2025 resulting in lower average holdings.

2024 compared to 2023

The 25% increase in net investment income in 2024 was primarily driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings, as well as higher yields on cash and short-term investments.

The following tables summarize the composition of our invested assets by segment. We hold investments across our operating businesses and at our holding company, with the majority of our investments held at our Markel Insurance business in support of its underwriting activities. Invested assets and the associated net investment income at our other reportable segments are primarily attributable to our Financial segment. Markel Insurance has also provided loans to a corporate subsidiary to fund certain non-insurance acquisitions. We evaluate these loan receivables similarly to invested assets held by Markel Insurance.

10K - 50

Additionally, one of our corporate subsidiaries may, from time to time, provide loans to our operating businesses to fund strategic growth investments and projects. These intercompany loans are presented in the tables below but are eliminated in consolidation.

The following tables summarize our investing results by segment. Intercompany interest relates to interest on intercompany loans.

10K - 51

Consolidated Underwriting Reconciliation

The following tables reconcile our Markel Insurance segment underwriting results to our consolidated underwriting results. State National's underwriting results are included in our Financial segment.

10K - 52

Other

The following table presents the components of consolidated net income that are not allocated to our operating segments.