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Markel Group Inc. MKL reported first-quarter 2025 net operating earnings per share of $25.72, which beat the Zacks Consensus Estimate by 36.1%. The bottom line increased 41.5% year over year.
Markel Group witnessed solid performance at the Reinsurance segment, improved net investment income and lower expenses, offset by decreased premiums. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total operating revenues of $3.5 billion matched the Zacks Consensus Estimate. The top line declined 0.4% year over year.
Earned premiums decreased 2% to $2.1 billion in the reported quarter. The modest decrease was due to lower earned premiums in the Insurance segment. The figure was higher than our estimate of $2 billion.
Net investment income increased 8.4% year over year to $235.6 million in the first quarter. The figure was lower than our estimate of $243.6 million and the Zacks Consensus Estimate of $242 million.
Markel Group Inc. price-consensus-eps-surprise-chart | Markel Group Inc. Quote
Total operating expenses decreased 0.4% to $3.1 billion, owing to lower losses and loss adjustment expenses and product expenses. The figure matched our estimate.
MKL’s combined ratio deteriorated 60 basis points (bps) year over year to 95.8 in the reported quarter. The Zacks Consensus Estimate was pegged at 100.
Insurance: Gross premiums increased 3% year over year to $2.2 billion. The increase was driven by new business growth and more favorable rates within personal lines and programs product lines, as well as international professional liability and general liability product lines. It was partially offset by lower premium volume within select lines of U.S. professional liability product lines. The figure was lower than our estimate of $2.5 billion.
Underwriting profit came in at $53.2 million, down 50% year over year. The combined ratio deteriorated 280 bps year over year to 97.1.
Reinsurance: Gross premiums rose 5% year over year at $581 million. The growth was driven by increases in renewals, new business and favorable timing differences within workers' compensation product lines, as well as new business within professional liability product lines, most notably within cyber liability. These increases were partially offset by unfavorable timing differences and decreases on renewals within marine and energy product lines and unfavorable timing differences within credit and surety product lines. The figure was higher than our estimate of $303.1 million.
Underwriting profit doubled year over year to $25 million. The combined ratio improved 450 bps year over year to 90.8 in the first quarter of 2025.
Markel Ventures: Operating revenues of $1.1 billion declined 1% year over year. Operating revenues decreased at transportation-related businesses and one of the consumer and building products businesses, primarily due to decreased demand. These decreases were largely offset by the contribution of revenues totaling $28.1 million, attributable to Valor and EPI, which were acquired in June 2024 and December 2024, respectively, and higher revenues at equipment manufacturing businesses driven by increased demand.
Operating income of $102.5 million decreased 1% year over year. Operating income decreased at transportation-related businesses and one of the consumer and building products, primarily due to the impact of lower revenues. These decreases were offset by the impact of higher revenues and operating margins at one of the construction services businesses and contributions from Valor and EPI.
Markel Group exited the first quarter of 2025 with cash and cash equivalents of $4.2 billion, up 13.5% from the 2024 end level.
The debt balance increased 1.3% year over year to $4.4 billion as of March 31, 2025, from the 2024 end level.
Shareholders' equity was $17.1 billion at the end of the first quarter of 2025, which increased 1.3% from 2024 end.
Net cash provided by operating activities was $376.2 million in the first quarter, down 40.3% year over year. The decrease was due to lower net premium collections and higher gross claims payments in insurance operations.
Markel Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carlisle Companies Incorporated CSL reported first-quarter 2025 adjusted earnings of $3.61 per share, which surpassed the Zacks Consensus Estimate of $3.53. However, the bottom line decreased 3% year over year. Carlisle’s total revenues of $1,096 million narrowly missed the consensus estimate of $1,101 million. The top line inched down 0.1% year over year.
Revenues from the Carlisle Construction Materials segment increased 2% year over year to $799 million. Our estimate for segmental revenues was $791.4 million. Organic revenues decreased 1%. Revenues from the Carlisle Weatherproofing Technologies segment decreased 5% year over year to $297 million, due to lower construction activities, partially offset by the buyouts of Plasti-Fab and ThermaFoam. Our estimate for segmental revenues was $324.9 million. Organic revenues slipped 12%.
3M Company MMM reported first-quarter 2025 results, wherein revenues missed and earnings surpassed the Zacks Consensus Estimate. 3M delivered adjusted earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate of $1.77. The company reported earnings of $1.71 per share in the year-ago quarter. The company reported net revenues of $5.95 billion in the quarter. The metric decreased 1% year over year. Organic sales decreased 0.3%.
MMM’s adjusted revenues of $5.78 billion missed the consensus estimate of $5.79 billion. On an adjusted basis, revenues increased 0.8% year over year. Region-wise, organic sales in the Americas inched up 1.7% year over year while Asia Pacific organic sales decreased 0.7%. Organic sales from businesses in Europe, the Middle East and Africa decreased 5.1%.
Honeywell International Inc. HON reported first-quarter 2025 adjusted earnings of $2.51 per share, which surpassed the Zacks Consensus Estimate of $2.21. The bottom line increased 7% year over year on an adjusted basis. On a reported basis, the company’s earnings were $2.22 per share, flat year over year. Total revenues of $9.82 billion beat the consensus estimate of $9.57 billion. The top line increased 8% from the year-ago quarter, driven by strength in the Aerospace Technologies segment. Organic sales increased 4% year over year.
Aerospace Technologies’ quarterly revenues were $4.17 billion, up 14% year over year. Organic sales increased 9% year over year. Our estimate for the segment’s revenues was $4.03 billion. Industrial Automation revenues declined 4% year over year to $2.38 billion. Organic sales fell 2% year over year. Our estimate for segmental revenues was pegged at $2.46 billion. Building Automation revenues totaled $1.69 billion, up 19% year over year. Organic sales increased 8% year over year. Our estimate for the segment’s revenues was $1.52 billion.
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This article originally published on Zacks Investment Research (zacks.com).
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