MARKEL GROUP INC

Previous wording

We allocate resources to and assesses the performance of these various businesses in the aggregate as the Markel Ventures segment. The following types of businesses are included in this segment: construction services, consumer and building products, transportation-related products, equipment manufacturing products and consulting services. These businesses offer various types of products and services to businesses and consumers across many markets. All of our businesses in this segment are headquartered in the U.S., with subsidiaries of certain businesses located outside of the U.S.

Current wording

We allocate resources to and assess the performance of these various businesses in the aggregate as the Markel Ventures segment. The following types of businesses are included in this segment: construction services, consumer and building products, transportation-related products, equipment manufacturing products and consulting services. These businesses offer various types of products and services to businesses and consumers across many markets. All of our businesses in this segment are headquartered in the U.S., with subsidiaries of certain businesses located outside of the U.S.

Previous wording

The increase in operating income and comprehensive income to shareholders for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to pre-tax net investment gains on our equity securities of $906.8 million in 2024 compared to $375.8 million in 2023.

Current wording

The decrease in operating income and comprehensive income to shareholders for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023 was primarily due to pre-tax net investment losses of $116.0 million on our equity securities during the quarter compared to pre-tax net investment gains of $483.4 million in the same period of 2023.

Previous wording

Our Insurance engine includes our underwriting, program services and other fronting and insurance-linked securities (ILS) operations. Our underwriting operations, which are primarily comprised of our Insurance and Reinsurance segments, produce revenues primarily by underwriting insurance contracts and earning premiums in the specialty insurance market. Our program services and other fronting and ILS operations, which are the primary components of our other insurance operations, produce revenues primarily through fees earned for fronting services and investment management services, respectively. Our other insurance operations also include the underwriting results of run-off lines of business that were discontinued prior to, or in conjunction with, insurance acquisitions, and the results of our run-off life and annuity reinsurance business. The following table presents the components of our Insurance engine gross premium volume, operating revenues and operating income.

Current wording

Our Insurance engine includes our underwriting, program services and other fronting and insurance-linked securities operations. Our underwriting operations, which are primarily comprised of our Insurance and Reinsurance segments, produce revenues primarily by underwriting insurance contracts and earning premiums in the specialty insurance market. Our program services and other fronting and ILS operations, which are the primary components of our other insurance operations, produce revenues primarily through fees earned for fronting services and investment management services, respectively. Our other insurance operations also include the underwriting results of run-off lines of business that were discontinued prior to, or in conjunction with, insurance acquisitions, and the results of our run-off life and annuity reinsurance business. The following table presents the components of our Insurance engine gross premium volume, operating revenues and operating income.

Previous wording

(1) Substantially all gross premiums from our program services and other fronting operations were ceded to third parties for the three months ended March 31, 2024 and 2023.

Current wording

(1) Substantially all gross premiums from our program services and other fronting operations were ceded to third parties for the quarter and six months ended June 30, 2024 and 2023.

Previous wording

In addition to the U.S. GAAP combined ratio, loss ratio and expense ratio, we also evaluate our underwriting performance using measures that exclude the impacts of certain items, such as catastrophes and other significant, infrequent loss events, on these ratios. During the three months ended March 31, 2024 and 2023, our results were not materially impacted by any such events. When analyzing our loss ratio, we evaluate losses and loss adjustment expenses attributable to the current accident year separate from losses and loss adjustment expenses attributable to prior accident years. Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in our estimates of losses and loss adjustment expenses related to loss events that occurred in prior years. We believe a discussion of current accident year loss ratios, which exclude prior accident year reserve development, is helpful since it provides more insight into estimates of current underwriting performance and excludes changes in estimates related to prior year loss reserves.

Current wording

In addition to the U.S. GAAP combined ratio, loss ratio and expense ratio, we also evaluate our underwriting performance using measures that exclude the impacts of certain items, such as catastrophes and other significant, infrequent loss events, on these ratios. During the six months ended June 30, 2024 and 2023, our results were not materially impacted by any such events. When analyzing our loss ratio, we evaluate losses and loss adjustment expenses attributable to the current accident year separate from losses and loss adjustment expenses attributable to prior accident years. Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in our estimates of losses and loss adjustment expenses related to loss events that occurred in prior years. We believe a discussion of current accident year loss ratios, which exclude prior accident year reserve development, is helpful since it provides more insight into estimates of current underwriting performance and excludes changes in estimates related to prior year loss reserves.

Previous wording

The increase in gross premium volume in our underwriting operations for the three months ended March 31, 2024 was driven by targeted growth within our Insurance segment. Net retention of gross premium volume in our underwriting operations was 80% for the three months ended March 31, 2024 compared to 83% for the same period of 2023. The decrease in net retention for the three months ended March 31, 2024 was driven by lower retention across both of our underwriting segments. Within our underwriting operations, we purchase reinsurance and retrocessional 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 our underwriting operations for the three months ended March 31, 2024 was primarily attributable to higher gross premium volume within our Insurance segment in recent periods.

Current wording

The increase in gross premium volume in our underwriting operations for the quarter and six months ended June 30, 2024 was driven by growth within both of our underwriting segments. Net retention of gross premium volume in our underwriting operations was 78% for the quarter ended June 30, 2024 compared to 81% for the same period of 2023. The decrease in net retention for the quarter ended June 30, 2024 was driven by lower retention within our Insurance segment. Net retention of gross premium volume in our underwriting operations was 79% for the six months ended June 30, 2024 compared to 82% for the same period of 2023. The decrease in net retention for the six months ended June 30, 2024 was driven by lower retention across both of our underwriting segments. Within our underwriting operations, we purchase reinsurance and retrocessional 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 our underwriting operations for the quarter and six months ended June 30, 2024 was primarily attributable to higher gross premium volume within our Insurance segment in recent periods.

Previous wording

In the first quarter of 2024, we continued to achieve modest rate increases across our diversified product portfolio. Similar to 2023, the primary exceptions where we are seeing modest rate decreases are within our workers' compensation, public directors and officers and cyber portfolios, which is consistent with the broader market trends in these product classes. 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 only in product lines where we are confident in the levels of rate adequacy.

Current wording

In the first half of 2024, we continued to achieve modest rate increases across our diversified product portfolio. Similar to 2023, the primary exceptions where we are seeing modest rate decreases are within our workers' compensation, public directors and officers and cyber portfolios, which is consistent with the broader market trends in these product classes. 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 only in product lines where we are confident in the levels of rate adequacy.

Previous wording

We continued to achieve significant, but moderating, levels of rate increases within our personal lines, property and select marine and energy product lines, and they continue to produce profitable underwriting results. As a result, we are increasing our premium writings in these lines. Additionally, we achieved notable rate increases within many of our general liability product lines, and these rate increases are generally in line with, or better than, our assumptions on loss cost trends. We are being cautious in selecting which risks to pursue and are being intentional around pricing requirements, as well as rate adequacy and portfolio management considerations, as we rebalance our general liability portfolio and focus on growth in areas of the portfolio that we project will meet our profitability requirements.

Current wording

We continued to achieve rate increases within our personal lines, property and select marine and energy product lines, with property rate increases softening in the second quarter. Each of these product lines continues to be priced at a level that we believe will earn appropriate returns on capital, and, as a result, we are continuing to increase our premium writings in these lines. Additionally, we achieved notable rate increases within many of our general liability product lines with U.S. exposures, and these rate increases are generally in line with, or better than, our assumptions on loss cost trends. We are being cautious in selecting which risks to pursue and how much limit to deploy within certain subclasses of our general liability portfolio as we rebalance our general liability portfolio and focus on growth in areas of the portfolio that we project will meet our profitability requirements.

Previous wording

Within our insurance and reinsurance professional liability product lines, overall, we saw modest rate decreases driven by the continued rate decreases within our public directors and officers product line. Within this product line, we are contracting our new premium writings when we believe rates are inadequate and are also allowing business to lapse. In other professional liability product lines, particularly within our international portfolio and our U.S. commercial book, we are generally seeing downward pressure on rates persist in 2024; however, these pockets of the portfolio have performed well overall, and we are continuing to pursue growth opportunities where we find the business to be adequately priced. During the first quarter of 2024, we discontinued writing our risk-managed architects and engineers and intellectual property collateral protection product lines within our professional liability portfolio due to these products being unable to meet our profitability targets.

Current wording

Within our global insurance and reinsurance professional liability product lines, overall, we saw modest rate decreases driven by the continued rate decreases within our public directors and officers product line. Within this product line, we are contracting our new premium writings when we believe rates are inadequate and are also allowing business to lapse. In other professional liability product lines, particularly within our international portfolio and our U.S. commercial book, we are generally seeing small rate decreases; however, these pockets of the portfolio have performed well overall, and we are continuing to pursue growth opportunities where we find the business to be adequately priced.

Previous wording

For the three months ended March 31, 2024, the increase in our consolidated combined ratio compared to the same period of 2023 was primarily attributable to a higher attritional loss ratio within our Insurance segment.

Current wording

For the quarter and six months ended June 30, 2024, the increase in our consolidated combined ratio compared to the same period of 2023 was primarily attributable to higher attritional loss ratios on our U.S. professional liability and general liability product lines, including significant losses on our intellectual property collateral protection insurance (IP CPI) product in our Insurance segment, partially offset by the impact of more favorable development on prior years loss reserves in 2024 compared to 2023.

Previous wording

The increase in gross premium volume in our Insurance segment for the three months ended March 31, 2024 was driven by new business growth and more favorable rates within our personal lines and programs product lines, as well as increases on most classes of our international portfolio, partially offset by lower premium volume within select lines of our U.S. professional liability and general liability product lines. We have decreased writings within our risk-managed directors and officers professional liability product and our brokerage contractors, brokerage excess and umbrella and risk-managed excess casualty general liability products in response to underwriting actions aimed at achieving greater profitability within these product lines.

Current wording

The increase in gross premium volume in our Insurance segment for the quarter and six months ended June 30, 2024 was driven by new business growth and more favorable rates within our personal lines, programs, marine and energy and property product lines, partially offset by lower premium volume within select lines of our U.S. general liability product lines. For the six months ended June 30, 2024, the increase in gross premium volume was also partially offset by lower premium volume within select lines of our U.S. professional liability product lines. We have decreased writings within our risk-managed directors and officers professional liability product and our brokerage contractors, brokerage excess and umbrella and risk-managed excess casualty general liability products in response to underwriting actions aimed at achieving greater profitability within these product lines.

Previous wording

Net retention of gross premium volume was 79% for the three months ended March 31, 2024 compared to 81% for the same period of 2023. The decrease in net retention for the three months ended March 31, 2024 was driven by higher cessions on our professional liability product lines in 2024 compared to 2023.

Current wording

Net retention of gross premium volume was 75% for the quarter ended June 30, 2024 compared to 79% for the same period of 2023. Net retention of gross premium volume was 77% for the six months ended June 30, 2024 compared to 80% for the same period of 2023. The decrease in net retention for the quarter and six months ended June 30, 2024 was driven by higher cessions on our professional liability product lines in 2024 compared to 2023, as well as changes in mix of business as we grow our personal lines product lines, which have a higher cession rate than most of the segment.

Previous wording

The increase in earned premiums for the three months ended March 31, 2024 was primarily due to higher gross premium volume across most product lines in recent periods.

Current wording

The increase in earned premiums for the quarter and six months ended June 30, 2024 was primarily due to higher gross premium volume across most product lines in recent periods.

Previous wording

The increase in the Insurance segment's current accident year loss ratio for the three months ended March 31, 2024 compared to the same period of 2023 was primarily attributable to higher attritional loss ratios within our U.S. general liability and professional liability product lines. We have increased our attritional loss ratios on certain product classes within our general liability and professional liability product lines in response to unfavorable loss development trends in recent periods on these long-tail lines of business and uncertainty around future loss cost trends.

Current wording

The increase in the Insurance segment's current accident year loss ratio for the quarter ended June 30, 2024 compared to the same period of 2023 was primarily attributable to higher attritional loss ratios within our U.S. professional liability product lines, including a three point impact of losses from our IP CPI product line, and our U.S. general liability product lines. We have increased our attritional loss ratios on certain product classes within our general liability and professional liability product lines in response to unfavorable loss development trends in recent periods.

Previous wording

The Insurance segment's combined ratio for the three months ended March 31, 2024 included $97.2 million of favorable development on prior accident years loss reserves compared to $62.6 million for the same period of 2023. The increase in favorable development was primarily attributable to favorable development on our general liability and professional liability product lines in 2024 compared to minimal development on these lines in 2023. For the three months ended March 31, 2024, favorable development was most significant on more recent accident years within our international professional liability and marine and energy product lines, as well as on our general liability product lines. Despite net favorable development on these long-tail lines, we continue to approach reductions of prior year loss reserves on our longer tail U.S. professional liability and general liability product lines with caution given recent claims trend. The favorable development on prior years loss reserves in 2023 was most significant on our marine and energy, property, workers' compensation and programs product lines.

Current wording

The Insurance segment's combined ratio for the quarter ended June 30, 2024 included $146.6 million of favorable development on prior accident years loss reserves compared to $61.6 million for the same period of 2023. The increase in favorable development was primarily due to net favorable development on our general liability product lines in the second quarter of 2024, driven by our international business, compared to net adverse development on our general liability product lines in the same period of 2023, driven by our U.S. business. Additionally, we had more favorable development on our credit and surety product line in the second quarter of 2024 compared to the same period of 2023. We continue to approach reductions of prior year loss reserves on our long-tail U.S. professional liability and general liability product lines with caution given recent claims trends.

Previous wording

The modest increase in the Insurance segment's expense ratio for the three months ended March 31, 2024 compared to the same period of 2023 was primarily attributable to higher personnel costs, professional fees and other general and administrative expenses, which were largely offset by a lower policy acquisition cost ratio and the favorable impact of higher earned premiums.

Current wording

The modest increase in the Insurance segment's expense ratio for the six months ended June 30, 2024 compared to the same period of 2023 was primarily attributable to higher personnel costs and other general and administrative expenses, which were largely offset by a lower policy acquisition cost ratio and the favorable impact of higher earned premiums.

Previous wording

For the three months ended March 31, 2024 and 2023, gross premium volume in the Reinsurance segment was consistent. Higher gross premiums within our marine and energy, general liability and credit and surety product lines were offset by a significant decline in gross premiums within our professional liability product lines. Higher gross premiums within our marine and energy and general liability product lines were primarily due to increases on renewals, due to increased participation and exposures, as well as new business. Higher gross premiums within our credit and surety product lines were primarily driven by favorable timing differences on multi-year contracts. Lower gross premiums within our professional liability product lines were primarily due to the non-renewal of certain significant contracts and unfavorable timing differences. The non-renewals within our professional liability product lines were the result of our continued focus on rate adequacy and only writing business that meets our underwriting profit targets. The unfavorable timing differences within our professional liability product lines were the result of two large contracts written in the first quarter of 2023 that we expect to renew in the second quarter of 2024. Significant variability in gross premium volume can be expected in our Reinsurance segment due to individually significant contracts and multi-year contracts.

Current wording

The increase in gross premium volume in our Reinsurance segment for the quarter ended June 30, 2024 was driven by the impact of favorable timing differences and increases on renewals, due to increased participation, within our professional liability product lines. The favorable timing differences within our professional liability product lines were the result of two large contracts written in the first quarter of 2023 that were renewed in the second quarter of 2024. For the six months ended June 30, 2024, the increase in gross premium volume was driven by higher gross premium volume within our marine and energy and general liability product lines, primarily attributable to new business and increases on renewals, as well as the impact of favorable timing differences and new business within our workers' compensation product line. For the six months ended June 30, 2024, these increases were partially offset by the impact of non-renewals of certain significant contracts within our professional liability product lines as a result of our continued focus on rate adequacy and only writing business that meets our underwriting profit targets. Significant variability in gross premium volume can be expected in our Reinsurance segment due to individually significant contracts and multi-year contracts.

Previous wording

Net retention of gross premium volume for the three months ended March 31, 2024 was 86% compared to 93% for the same period of 2023. The decrease in net retention for the three months ended March 31, 2024 was driven by changes in mix of gross premium volume, as our professional liability business is fully retained and our marine and energy business carries a higher cession rate than the rest of the segment.

Current wording

Net retention of gross premium volume for the quarter ended June 30, 2024 was 95% compared to 93% for the same period of 2023. The increase of net retention for the quarter ended June 30, 2024 was driven by changes in mix of business, as our professional liability business is fully retained. Net retention of gross premium volume for the six months ended June 30, 2024 was 90% compared to 93% for the same period of 2023. The decrease in net retention for the six months ended June 30, 2024 was driven by the increased premium volume in our marine and energy business, which carries a higher cession rate than the segment.

Previous wording

The decrease in earned premiums for the three months ended March 31, 2024 was primarily due to lower gross premium volume within our professional liability product lines, partially offset by higher gross premium volume within our general liability product lines in recent periods.

Current wording

The modest decrease in earned premiums for the quarter and six months ended June 30, 2024 was primarily due to lower gross premium volume within our professional liability product lines in recent periods, largely offset by higher gross premium volume within many of our other product lines in recent periods.

Previous wording

The Reinsurance segment's combined ratio for the three months ended March 31, 2024 included a $3.4 million increase in prior accident years loss reserves, which was primarily attributable to additional exposures recognized on prior accident years related to net favorable premium adjustments on our general liability and professional liability product lines. For the three months ended March 31, 2023, the combined ratio included $8.7 million of favorable development on prior accident years loss reserves, which was primarily attributable to modest favorable development on our professional liability and property product lines across several accident years. This favorable development in the first quarter of 2023 was partially offset by additional exposures recognized on prior accident years related to net favorable premium adjustments on our general liability product lines.

Current wording

The Reinsurance segment's combined ratio for the six months ended June 30, 2024 included a $5.8 million increase in prior accident years loss reserves, which was primarily attributable to additional exposures recognized on prior accident years related to net favorable premium adjustments on our general liability product lines. For the six months ended June 30, 2023, the combined ratio included $16.7 million of favorable development on prior accident years loss reserves, which was primarily attributable to favorable development on our professional liability and property product lines across several accident years. This favorable development in 2023 was partially offset by adverse development and additional exposures recognized on prior accident years related to net favorable premium adjustments on our general liability product lines.

Previous wording

(2) Results attributable to Markel CATCo Re for both periods were entirely attributable to noncontrolling interest holders in Markel CATCo Re. See note 10.

Current wording

(2) Results attributable to Markel CATCo Re for all periods were entirely attributable to noncontrolling interest holders in Markel CATCo Re. See note 12.

Previous wording

The increase in operating revenues and operating income within our program services and other fronting operations for the three months ended March 31, 2024 was due to higher gross premium volume in 2024 compared to the same period of 2023. The following table summarizes gross premium volume in our program services and other fronting operations.

Current wording

The increase in operating revenues and operating income within our program services and other fronting operations for the quarter and six months ended June 30, 2024 was due to higher gross premium volume in 2024 compared to the same period of 2023. The following table summarizes gross premium volume in our program services and other fronting operations.

Previous wording

The increase in gross premium volume within our program services operations for the three months ended March 31, 2024 was primarily attributable to expansion of existing programs and growth from new programs. The increase in gross premium volume in our other fronting operations for the three months ended March 31, 2024 was driven by growth of our property catastrophe and specialty programs with the Nephila Reinsurers.

Current wording

The increase in gross premium volume within our program services operations for the quarter and six months ended June 30, 2024 was primarily attributable to expansion of existing programs. For the quarter and six months ended June 30, 2024, the increase in gross premium volume in our other fronting operations, which represents business written on behalf of our Nephila ILS operations, was driven by favorable timing differences, as well as increases on renewals. For the six months ended June 30, 2024, the increase in gross premium volume was also driven by growth of our property catastrophe and specialty programs with the Nephila Reinsurers.

Previous wording

The increase in operating revenues in our Nephila insurance-linked securities operations for the three months ended March 31, 2024 was primarily due to changes in the mix of investment products within the funds. Nephila's net assets under management were $6.8 billion as of March 31, 2024.

Current wording

The increase in operating revenues in our Nephila insurance-linked securities operations for the quarter and six months ended June 30, 2024 was primarily due to changes in the mix of investment products within the funds. Nephila's net assets under management were $6.6 billion as of June 30, 2024.

Previous wording

For the three months ended March 31, 2024, the underwriting operating loss in our other insurance operations was primarily attributable to loss adjustment expenses related to asbestos and environmental exposures. Development on asbestos and environmental loss reserves is monitored separately from our ongoing underwriting operations and is not included in the Insurance or Reinsurance segments.

Current wording

For the six months ended June 30, 2024, the underwriting operating loss in our other insurance operations was primarily attributable to loss adjustment expenses related to asbestos and environmental exposures. Development on asbestos and environmental loss reserves is monitored separately from our ongoing underwriting operations and is not included in the Insurance or Reinsurance segments.

Previous wording

We measure our investment performance by analyzing net investment income, which reflects the recurring interest and dividend earnings on our investment portfolio. We also analyze net investment gains, which include unrealized gains and losses on our equity portfolio. 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 March 31, 2024, the fair value of our equity portfolio included cumulative unrealized gains of $7.0 billion.

Current wording

We measure our investment performance by analyzing net investment income, which reflects the recurring interest and dividend earnings on our investment portfolio. We also analyze net investment gains, which include unrealized gains and losses on our equity portfolio. 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 June 30, 2024, the fair value of our equity portfolio included cumulative unrealized gains of $6.9 billion.

Previous wording

For the three months ended March 31, 2024, net investment income increased 37%, primarily driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities in 2024 compared to 2023. During 2024, we have continued to allocate cash and short-term investments to fixed maturity securities to take advantage of high interest rates and to support our growing underwriting business. Additionally, interest income on our cash equivalents and short-term investments increased due to higher short-term interest rates and a higher portion of our cash being invested in money market funds during the three months ended March 31, 2024 compared to the same period of 2023. See note 3(d) of the notes to consolidated financial statements for details regarding the components of net investment income.

Current wording

For the quarter and six months ended June 30, 2024, net investment income increased 31% and 34%, respectively, primarily driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities in 2024 compared to 2023. During 2024, we have continued to allocate cash and short-term investments to fixed maturity securities to take advantage of high interest rates and to support our growing underwriting business. The book yield on our fixed maturity portfolio at June 30, 2024 was 3.4%. Additionally, interest income on our cash equivalents and short-term investments increased due to higher short-term interest rates and a higher portion of our cash being invested in money market funds during the quarter and six months ended June 30, 2024 compared to the same periods of 2023. See note 4(d) of the notes to consolidated financial statements for details regarding the components of net investment income.

Previous wording

The increase in operating revenues for the three months ended March 31, 2024 compared to the same period of 2023 was driven by moderately higher revenues at our consumer and building products businesses, construction services businesses and transportation-related businesses, due to a combination of increased demand and higher prices. These increases in operating revenues were partially offset by the impact of delayed shipments at one of our equipment manufacturing businesses and decreased demand at one of our construction services businesses.

Current wording

The increases in operating revenues for the quarter and six months ended June 30, 2024 compared to the same periods of 2023 were driven by higher revenues across many of our products businesses, due in part to increased demand. Additionally, higher revenues reflect the impact of an acquisition made by one of our consumer and building products businesses in the first quarter of 2024. For the six months ended June 30, 2024, the increase in operating revenues also reflects the impact of increased demand at one of our construction services businesses. For both the quarter and six months ended June 30, 2024, the increases in operating revenues were partially offset by the impact of decreased demand and lower prices at one of our transportation-related businesses.

Previous wording

The increases in segment operating income and EBITDA for the three months ended March 31, 2024 compared to the same period of 2023 were driven by the impact of higher operating margins at our consumer and building products businesses as a result of declines in the cost of materials, freight and labor, as well as higher revenues. These increases were partially offset by the impact of lower revenues and operating margins at one of our construction services businesses due to decreased demand.

Current wording

The increases in segment operating income and EBITDA for the quarter and six months ended June 30, 2024 compared to the same periods of 2023 were driven by our consumer and building products businesses, due to higher revenues and higher operating margins as a result of declines in the cost of materials, freight and labor. The increases in segment operating income and EBITDA for the quarter and six months ended June 30, 2024 were partially offset by the impact of lower operating margins at our construction services businesses and lower revenues and operating margins at one of our transportation-related businesses.

Previous wording

The decrease in interest expense for the three months ended March 31, 2024 was attributable to the impact of the retirement of our 3.625% unsecured senior notes in March 2023 and lower debt held by our Markel Ventures subsidiaries.

Current wording

The increase in interest expense for the quarter and six months ended June 30, 2024 was attributable to the impact of the issuance of 6.0% unsecured senior notes in May 2024. For the six months ended June 30, 2024, the increase in interest expense was partially offset by the impact of the retirement of our 3.625% unsecured senior notes in March 2023 and lower debt held by our Markel Ventures subsidiaries.

Previous wording

Net foreign exchange gains (losses) are primarily due to the remeasurement of our foreign currency denominated insurance loss reserves to the U.S. Dollar. The predominant foreign currencies within our insurance operations are the British Pound and the Euro. The U.S. Dollar strengthened against the Euro and British Pound during the first quarter of 2024, while it weakened against the British Pound and Euro during the first quarter of 2023. Pre-tax net foreign exchange gains and losses attributed to changes in exchange rates on available-for-sale securities supporting our insurance reserves, which are included in the changes in net unrealized losses on available-for-sale investments in other comprehensive income (loss), were losses of $42.4 million and gains of $33.9 million for the three months ended March 31, 2024 and 2023, respectively.

Current wording

Net foreign exchange gains (losses) are primarily due to the remeasurement of our foreign currency denominated insurance loss reserves to the U.S. Dollar. The predominant foreign currencies within our insurance operations are the British Pound and the Euro. The U.S. Dollar strengthened against the Euro and British Pound during the first half of 2024, while it weakened against the British Pound and Euro during the first half of 2023. Pre-tax net foreign exchange gains and losses attributed to changes in exchange rates on available-for-sale securities supporting our insurance reserves, which are included in the changes in net unrealized losses on available-for-sale investments in other comprehensive income (loss), were losses of $3.1 million and $45.5 million for the quarter and six months ended June 30, 2024, respectively, compared to gains of $1.2 million and $35.2 million for the same periods of 2023.

Previous wording

The increase in the effective tax rate for the three months ended March 31, 2024 compared to the same period of 2023 was due to higher state taxes and a decrease in Markel CATCo Re income not subject to tax in 2024 compared to 2023.

Current wording

The increase in the effective tax rate for the six months ended June 30, 2024 compared to the same period of 2023 was due to higher state taxes and a decrease in Markel CATCo Re income not subject to tax in 2024 compared to 2023.

Previous wording

We seek to maintain prudent levels of liquidity and financial leverage for the benefit and protection of our policyholders, creditors and shareholders. Our consolidated debt to capital ratio was 20% at March 31, 2024 and December 31, 2023, which is within the range of our target capital structure.

Current wording

We seek to maintain prudent levels of liquidity and financial leverage for the benefit and protection of our policyholders, creditors and shareholders. Our consolidated debt to capital ratio was 22% at June 30, 2024 and 20% at December 31, 2023, both of which are within the range of our target capital structure. The increase reflects the impact of an increase in senior long-term debt and other debt, primarily attributable to senior notes issued in May 2024.

Previous wording

Investments, cash and cash equivalents and restricted cash and cash equivalents (invested assets) were $32.0 billion and $30.9 billion at March 31, 2024 and December 31, 2023, respectively. The following table presents the composition of our invested assets.

Current wording

Investments, cash and cash equivalents and restricted cash and cash equivalents (invested assets) were $32.6 billion and $30.9 billion at June 30, 2024 and December 31, 2023, respectively. The following table presents the composition of our invested assets.

Previous wording

Our holding company had $3.6 billion and $3.5 billion of invested assets at March 31, 2024 and December 31, 2023, respectively. The increase was primarily due to an increase in the fair value of equity securities held by our holding company, largely offset by cash used to repurchase shares of our common stock. The following table presents the composition of our holding company's invested assets.

Current wording

Our holding company had $4.0 billion and $3.5 billion of invested assets at June 30, 2024 and December 31, 2023, respectively. The increase was primarily due to net proceeds from our May 2024 debt offering, as well as an increase in the fair value of equity securities held by our holding company, partially offset by cash used to repurchase shares of our common stock. The following table presents the composition of our holding company's invested assets.

Previous wording

We have a share repurchase program, authorized by our Board of Directors, that provides for the repurchase of up to $750 million of common stock. As of March 31, 2024, $553.5 million remained available for repurchases under the program. This share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.

Current wording

We have a share repurchase program, authorized by our Board of Directors, that provides for the repurchase of up to $750 million of common stock. As of June 30, 2024, $456.2 million remained available for repurchases under the program. This share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.

Previous wording

Net cash provided by operating activities was $630.7 million for the three months ended March 31, 2024 compared to $284.2 million for the same period of 2023. The increase in net cash flows from operating activities for the three months ended March 31, 2024 compared to the same period in 2023 was due in part to higher net premium collections. Additionally, during the three months ended March 31, 2023, a payment of $125.1 million was made to complete a retroactive reinsurance transaction to cede our portfolio of policies comprised of liabilities related to our run-off book of U.K. motor casualty business.

Current wording

Net cash provided by operating activities was $1.2 billion for the six months ended June 30, 2024 compared to $1.0 billion for the same period of 2023. The increase in net cash flows from operating activities for the six months ended June 30, 2024 compared to the same period in 2023 was primarily due to higher net premium collections. Additionally, during the six months ended June 30, 2023, a payment of $125.1 million was made to complete a retroactive reinsurance transaction to cede our portfolio of policies comprised of liabilities related to our run-off book of U.K. motor casualty business.

Previous wording

Net cash used by investing activities was $564.2 million for the three months ended March 31, 2024 compared to $108.5 million for the same period of 2023. During the three months ended March 31, 2024, net cash used by investing activities included net purchases of fixed maturity securities, equity securities and short-term investments of $333.2 million, $86.2 million and $21.4 million, respectively. During the three months ended March 31, 2023, net cash used by investing activities included net purchases of fixed maturity securities and equity securities of $214.7 million and $65.1 million, respectively, and net sales of short-term investments of $210.2 million. Cash flows from investing activities is affected by various factors such as anticipated payment of claims, financing activity, acquisition opportunities and individual buy and sell decisions made in the normal course of our investment portfolio management.

Current wording

Net cash used by investing activities was $1.6 billion for the six months ended June 30, 2024 compared to $373.6 million for the same period of 2023. During the six months ended June 30, 2024, net cash used by investing activities included net purchases of fixed maturity securities, equity securities and short-term investments of $785.1 million, $223.3 million and $161.3 million, respectively. Net cash used by investing activities in 2024 also included $154.4 million of net cash used for the acquisition of Valor. During the six months ended June 30, 2023, net cash used by investing activities included net purchases of fixed maturity securities and equity securities of $778.2 million and $154.6 million, respectively, and net sales of short-term investments of $675.3 million. Cash flows from investing activities is affected by various factors such as anticipated payment of claims, financing activity, acquisition opportunities and individual buy and sell decisions made in the normal course of our investment portfolio management.

Previous wording

Net cash used by financing activities was $102.7 million for the three months ended March 31, 2024 compared to $412.2 million for the same period of 2023. Cash of $160.9 million and $82.0 million was used to repurchase shares of our common stock during the first three months of 2024 and 2023, respectively. During the three months ended March 31, 2023, net cash used by financing activities included $250.0 million to retire our 3.625% unsecured senior notes due March 30, 2023. Additionally, financing activities during the three months ended March 31, 2024 and 2023 reflected borrowings and repayments of debt at certain our Markel Ventures businesses, primarily on revolving lines of credit.

Current wording

Net cash provided by financing activities was $255.2 million for the six months ended June 30, 2024, which included net proceeds of $592.6 million from our May 2024 debt offering, as previously discussed. Net cash used by financing activities was $629.9 million for the six months ended June 30, 2023, which included a payment of $250 million to retire our 3.625% unsecured senior notes due March 30, 2023. Additionally, financing activities during the six months ended June 30, 2024 and 2023 reflected borrowings and repayments of debt at certain our Markel Ventures businesses, primarily on revolving lines of credit. Cash of $260.2 million and $187.2 million was used to repurchase shares of our common stock during the first six months of 2024 and 2023, respectively.

Previous wording

•the effect of cyclical trends or changes in market conditions on our Insurance, Investments and Markel Ventures operations, including demand and pricing in the insurance, reinsurance and other markets in which we operate;

Current wording

•the effect of cyclical trends or changes in market conditions on our Insurance, Investments and Markel Ventures operations, including demand and pricing in the markets in which we operate;