Markel Group has swung to a quarterly loss after a sharp slide in its equity portfolio wiped out gains from its core insurance business, even as the US specialty insurer's underwriting results strengthened.

The insurance group reported an operating loss of US$273 million for the three months to March 31, reversing course despite steady revenues of US$3.55 billion. Stripping out market movements, adjusted operating income climbed 4% to US$498 million.

Behind the headline loss sat a US$727.6 million net investment loss, driven by a 5.2% drop in equity securities – nearly five times the US$149.1 million loss booked a year earlier.

The bottom line turned to a US$212.3 million net loss, from a US$121.7 million profit a year earlier, and earnings per share of US$21.61 missed Wall Street's US$26.60 consensus by US$4.99.

Chief executive Tom Gayner (pictured above) brushed past the market noise, telling shareholders the group had delivered "strong results across the company" and would keep doing "more of what's working and less of what's not." The firm bought back US$134 million of its own stock during the quarter.

The print lands months after a February management shake-up that elevated Markel Insurance chief Simon Wilson and Markel Ventures president Andrew Crowley to executive vice-president, promoted Amy McCann to chief administrative officer, and saw chief operating officer Mike Heaton exit.

Insurance arm shines through

The insurance unit, which Markel calls its cornerstone, delivered the quarter's brightest numbers. Its combined ratio improved three points to 93%, even after swallowing two points of losses from the Middle East conflict.

The war added US$35 million to the quarter's claims bill, though that was more than offset by US$106.9 million in favourable prior-year reserve releases. S&P Global Ratings has warned that the conflict is hitting specialty lines hardest, including war risk, aviation, energy and political violence cover.

Adjusted operating income for the unit jumped 31% to US$369 million, while underwriting profit surged 77% to US$142 million.

Gross written premiums fell 21% to US$2.22 billion — but the slide is the visible footprint of two strategic exits already in motion.

Markel agreed in August 2025 to sell the renewal rights of its US$1.2 billion global reinsurance book to Nationwide, putting the division into runoff. From January this year, classic-car specialist Hagerty also shifted to a fronting arrangement under which Hagerty Re takes 100% of the underwriting and investment economics, paying Markel a 2% fronting fee, the firms said when the deal was unveiled.

Strip out both moves and underlying gross premiums grew 10%, with fronting volumes up 55% to US$587 million.

Markel's non-insurance arms told a patchier story. Industrial revenues rose 6% to US$883 million, though adjusted operating income slid 16% to US$49 million. The financial segment saw revenues fall 9% to US$162 million and adjusted operating income tumble 55% to US$36 million.

The consumer and other segment posted a 3% revenue dip to US$280 million but a 23% lift in adjusted operating income to US$40 million.