NYSE$MKL

Markel Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Markel reported strong Q4 results with an 89% combined ratio and solid investment returns, despite pandemic and catastrophe-related losses.

Markel Corporation reported its financial results for the year ended December 31, 2020. For the fourth quarter, the company reported an 89% combined ratio, which included four points of pandemic and catastrophe-related losses. Markel Ventures also saw strong top and bottom line performance amid challenging economic conditions and the company achieved solid investment returns despite volatile market conditions and historically low interest rates.

  • Insurance operations delivered an underwriting profit for 2020 despite significant pandemic and catastrophe losses.
  • Reported an 89% combined ratio for Q4, including 4 points from pandemic and catastrophes.
  • Markel Ventures showed strong top and bottom-line performance despite economic challenges.
  • Achieved solid investment returns despite market volatility and low interest rates.

Headline financials

Total Revenue

$3.36B

Previous: $2.58B+30.0%
EPS (adj)

$59.33

Previous: $36.26+63.6%
Combined Ratio

89.0%

Previous: 94.0%-5.3%
Capital Expenditures

$28.5M

Previous: $27.9M+2.2%
Free Cash Flow

$447M

Previous: $534M-16.2%
Net Income

$847M

Previous: $1.79B-52.7%
Operating Income

$1.14B

Previous: $2.48B-53.8%
Gross Profit

$9.48B

Previous: $9.37B+1.2%
Cash & Equivalents

$24.9B

Previous: $3.07B+711.2%
Total Assets

$41.7B

Previous: $37.5B+11.3%

Revenue & EPS history

Markel · Revenue · Quarterly

$3.36B

Q4 2020+30%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Markel enters 2021 well positioned to continue the momentum of our excellent fourth quarter. We will help our customers navigate continued near-term economic uncertainties and cautiously look forward to greater opportunities as economies around the world recover.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.3%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.3%

Avg return

30 days after

51%

35 / 69 earnings

Positive

+10.7%

Q4 2024

Best reaction

-11.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+0.3%+3.2%
Q4 2025+2.0%+2.4%-3.5%
Q3 2025+6.4%+8.5%+13.9%
Q1 2025+0.3%+3.1%+6.8%
Q4 2024+10.7%+4.6%+1.8%
Q3 2024-1.4%-0.9%+14.0%
Q2 2024-4.8%-8.1%-2.7%
Q1 2024+8.1%+9.2%+12.6%
Q4 2023-7.0%-5.5%-0.5%
Q3 2023-11.5%-9.2%-3.1%
Q2 2023+2.8%+4.4%+3.8%
Q1 2023+0.4%+4.3%+0.8%
Q4 2022-7.5%-3.9%-4.6%
Q3 2022+0.1%+0.4%+11.5%
Q2 2022-4.9%-8.5%-6.2%
Q1 2022-3.5%-6.8%-5.1%
Q4 2021-0.2%+0.0%-0.3%
Q3 2021-0.4%-0.3%-7.1%
Q2 2021+0.3%+4.2%+4.9%
Q1 2021-1.2%+0.2%+3.1%
Q4 2020+5.9%+11.1%+11.1%
Q3 2020-6.0%-6.3%+1.1%
Q2 2020-0.3%+2.9%+9.5%
Q1 2020+1.1%-7.4%+3.3%
Q4 2019+6.9%+10.7%+4.3%
Q3 2019+4.7%+4.6%+1.5%
Q2 2019-0.1%+0.4%+2.4%
Q1 2019+0.4%+0.4%-0.2%
Q4 2018-4.5%-4.5%-9.9%
Q3 2018+7.2%+5.9%+9.4%
Q2 2018+4.6%+2.4%+4.1%
Q1 2018-2.4%-1.6%-2.0%
Q4 2017+1.5%-0.2%+4.5%
Q3 2017+2.5%+3.1%+1.2%
Q2 2017+0.6%+4.3%+2.7%
Q1 2017+0.4%-0.6%-1.3%
Q4 2016+2.3%+3.0%+5.8%
Q3 2016-3.6%-2.7%+1.4%
Q2 2016-3.1%-2.1%-2.3%
Q1 2016+2.2%
Q4 2015-1.8%
Q3 2015+0.7%
Q2 2015-1.0%
Q1 2015+4.1%
Q4 2014+3.7%
Q3 2014+1.3%
Q2 2014+0.5%
Q1 2014-0.1%
Q4 2013+2.3%
Q3 2013-0.1%
Q2 2013-0.2%
Q1 2013+4.0%
Q4 2012-0.5%
Q3 2012+2.4%
Q2 2012+1.4%
Q1 2012+0.1%
Q1 2009-0.5%
Q4 2010-0.5%
Q4 2011-0.5%
Q3 2011+1.3%
Q2 2011-1.5%
Q1 2010-1.2%
Q1 2011+1.6%
Q4 2008-1.1%
Q3 2010-2.2%
Q3 2009-2.2%
Q4 2009-0.2%
Q2 2010-0.2%
Q2 2009-0.2%

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