MARKEL GROUP INC.
For the period ended Sep 30, 2025. Filed Oct 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 29, 2025
MKL$1,939.04-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0001096343-25-000123
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0001096343-25-000153
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 212 previous paragraphs and 328 current paragraphs.
91 unchanged; 58 reworded; 173 added; 62 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 18 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (173)
Current report
•Capital Performance
Current report
•Non-GAAP Financial Measures
Current report
In the third quarter of 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. As a result of these changes, we include five years of annual key financial metrics under "Business Overview" and "Capital Performance". See note 2 of the notes to consolidated financial statements for additional details on the changes to our reportable segments.
Current report
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, primarily within its insurance operations.
Current report
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.
Current report
An example of Markel Group’s long-term mindset is the approach to reserving within the insurance operations. Customers rely on Markel Insurance to honor promises that may extend many years into the future. Through its long-standing practice of establishing reserves that are more likely to be redundant than deficient and investing the capital held to pay those reserves in high-quality investments, Markel Insurance ensures it can fulfill its commitments and uphold the trust placed in it by policyholders.
Current report
The Company’s architecture is intentionally designed to promote long-term decision making. For example, diverse cash flows across Markel Group provide financial strength. If one business faces headwinds, others can continue generating cash flow, enabling the Company to continuously pursue attractive investments. Conservative levels of debt reduce outside pressures that could otherwise force short-term actions. Decentralized leadership allows each business to adapt quickly to best serve its customers.
Current report
This long-term orientation is rooted in, and guided by, the Company’s culture, known as The Markel Style. The Markel Style is built on simple ideas: treat people fairly, act with integrity, and commit to winning over the long term. These principles guide decisions across the Company, serving as a shared set of values that foster excellence and consistency across independent businesses, all while allowing each business to retain its entrepreneurial spirit.
Current report
Relentlessly Compounding Shareholder Capital
Current report
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 (i) owning businesses that generate diverse cash flows and (ii) redeploying those cash flows for additional growth.
Current report
Achieving this goal requires the ability to redeploy capital efficiently and with low friction at attractive rates across a large and diverse opportunity set. Markel Group has developed the skill and capability to do so in multiple ways:
Current report
•Reinvesting in existing businesses
Current report
•Acquiring majority-owned businesses
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•Investing in publicly traded companies
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•Repurchasing Markel Group shares when pricing is attractive
Current report
In making new investments, Markel Group applies the same four-part test that has guided it for decades, regardless of where capital is deployed. The Company looks for businesses with:
Current report
•Good returns on capital while using modest amounts of debt
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•Management teams with equal parts talent and integrity
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•Meaningful opportunities for reinvestment and/or disciplined capital management
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•A fair price
Current report
This unique company design and set of shared values have enabled the Company to compound shareholder capital at attractive rates over many decades.
Current report
Key Financial Metrics
Current report
We believe our system is uniquely equipped to relentlessly compound shareholder capital at attractive rates across decades. To better align with this long-term perspective, we use five-year time periods to measure our performance.
Current report
The following table presents a summary of key financial metrics over the last five years and through the first nine months of 2025. Metrics that are only calculated for annual periods have been omitted for the nine months ended September 30, 2025.
Current report
(1) Consolidated adjusted operating income and adjusted operating income per share are non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information.
Current report
(3) Insurance float, or net policyholder funds, is a subset of our invested assets and is comprised of unpaid losses and loss adjustment expenses, unearned premiums, payables to insurance and reinsurance companies, and life and annuity benefits, net of premium receivables, reinsurance recoverables, prepaid reinsurance premiums, and deferred policy acquisition costs.
Current report
(4) See "Capital Performance" for additional information on intrinsic value per share and how it is calculated.
Current report
Markel Group reports its business operations in four segments: Markel Insurance, Industrial, Financial, and Consumer and Other. The following table presents a summary of annual financial data for our segments over the last five years and through the first nine months of 2025. Metrics that are only calculated for annual periods have been omitted for the nine months ended September 30, 2025.
Current report
(1) Adjusted operating income represents the segment profitability metric for each of our reportable segments. This metric excludes net investment gains and losses, amortization of acquired intangible assets, and impairment of goodwill and intangible assets, which are not considered when evaluating segment profitability. See note 2 of the notes to consolidated financial statements for additional information.
Current report
(2) Markel Insurance return on equity includes segment adjusted operating income and net investment gains and losses attributed to investments held by Markel Insurance, which are not included in segment profit. See "Capital Performance" for additional information on this metric and how it is calculated.
Current report
(3) Markel Insurance's 5-year average annual return on equity is only presented for 2024 due to the impracticality of calculating return on equity for the newly defined Markel Insurance business prior to 2020.
Current report
(4) Markel Insurance total investment return reflects net investment income and net investment gains and losses on investments held by Markel Insurance as a percentage of monthly average invested assets.
Current report
(5) Organic revenue growth is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional information on this metric.
Current report
(6) Total capital is comprised of total equity, debt, and obligations for finance leases. Tangible capital represents total capital less goodwill and intangible assets, net of deferred taxes.
Current report
Markel Insurance, headquartered in Richmond, Virginia, is a 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 investment earnings on the capital held by its underwriting subsidiaries. Markel Insurance's operations also include other insurance-related activities, including fronting and strategic minority investments.
Current report
In evaluating the overall returns of our Markel Insurance business, we consider all returns generated by the business, which are driven by underwriting profits and investment earnings. We seek to earn an underwriting profit every year, which we believe demonstrates the value customers place on our knowledge and expertise, our commitment to superior customer service, and our ability to manage insurance risk.
Current report
Within the investment operations of Markel Insurance, we seek to both protect policyholder funds with investments in high-quality fixed maturity securities and to compound shareholder capital through long-term equity investments. Our investment strategy, which is led by the Markel Group Chief Executive Officer (CEO), prioritizes long-term value creation by allocating a substantial portion of the Markel Insurance investment portfolio to equity securities. While this strategy is designed to generate long-term returns in excess of those typically available from fixed maturity securities, volatility in mark-to-market gains and losses on equity securities can distort Markel Insurance's short-term results. As a result, we exclude these gains and losses when assessing Markel Insurance's periodic segment profit and only include them when assessing the overall capital efficiency and long-term returns of the business.
Current report
Underwriting and Other Insurance-Related Activities
Current report
Markel Insurance is comprised of the following divisions:
Current report
•U.S. Wholesale and Specialty: Offers U.S. specialty insurance written through wholesale and retail channels on both an excess and surplus (E&S) and admitted basis, as well as on a small account binding authority basis through providing limited delegated underwriting authority.
Showing the first 40 of 173 passages. Open the source sections for the rest.
Removed paragraphs (62)
Previous report
Markel Group is a holding company comprised of a diverse family of businesses and investments. The leadership teams of our businesses operate with a high degree of independence, while at the same time living the values that we call the Markel Style. Our specialty insurance business, Markel Insurance, sits at the core of our company. Through decades of sound underwriting, Markel Insurance has provided the capital base from which we built a system of businesses and investments that collectively increase Markel Group's durability and adaptability. We aspire to build one of the world's great companies by creating win-win-win outcomes for our customers, associates and shareholders. We deploy three financial engines in pursuit of this goal.
Previous report
Insurance - markets and underwrites specialty insurance products
Previous report
Investments - invests capital held within our insurance operations, as well as capital allocated by Markel Group, in fixed maturity and equity securities
Previous report
Markel Ventures - owns controlling interests in a diverse portfolio of businesses that operate in a variety of industries
Previous report
Our businesses provide a diverse set of income streams, access to a wide range of investment opportunities and the ability to efficiently move capital to the best ideas across our family of businesses. We allocate capital using a process that we have consistently followed for years. We first look to invest in our existing businesses for organic growth opportunities. After funding internal growth opportunities, we look to acquire controlling interests in businesses, build our portfolio of equity securities or repurchase shares of our common stock. We believe our system is uniquely equipped for long-term growth.
Previous report
To mitigate the effects of short-term volatility and align with the long-term perspective that we apply to operating our businesses and making investments, we generally use five-year time periods to measure our performance. We measure financial success using both operating income and total shareholder return. Operating income provides a reasonable proxy for the performance of each engine in support of our overall financial goal of growing intrinsic value.
Previous report
Insurance
Previous report
Our insurance operations are comprised of the following businesses:
Previous report
•Markel Insurance - global specialty insurer
Previous report
•State National - automobile collateral protection coverage and fronting services provider
Previous report
We hold significant capital within our insurance operations to support the capital requirements of our underwriting subsidiaries, which is available for investment and generates both recurring streams of net investment income and investment returns. The invested assets held by our insurance subsidiaries are managed by, and reported through, our Investments engine, separate from our insurance operations.
Previous report
Within our insurance operations, we have a suite of capabilities through which we can access capital to support our customers' risks, which includes our own capital, as well as third-party capital through our State National and Nephila businesses. We seek to differentiate ourselves from competitors by our specialized product expertise, exceptional customer service, continuity and other value-based considerations, including the multiple platforms through which we can manage risk and deploy capital. For example, we leverage the capabilities of our highly rated underwriting subsidiaries to front reinsurance contracts in support of Nephila's business plans. Additionally, in 2024, State National partnered with Markel Insurance's International division to expand State National's fronting services internationally.
Previous report
The U.S. Wholesale and Specialty division is Markel Insurance's core U.S. specialty insurance business, which includes business written through both wholesale and retail channels on both an excess and surplus and admitted basis. Principal lines of business include general liability, professional liability and property, all of which we also offer on a binding authority basis.
Previous report
The International division offers specialty insurance products outside of the U.S. and Bermuda, operating in 15 countries across the globe. Principal lines of business include marine and energy, professional liability, general liability, credit and surety, property and other coverages tailored for unique exposures.
Previous report
The Global Reinsurance division includes casualty and specialty reinsurance products offered to other insurance and reinsurance companies. Principal lines of business include general liability, professional liability, marine and energy, workers' compensation and credit and surety.
Previous report
State National
Previous report
Our State National business consists of program services and lender services operations. The program services operations generate fee revenues in the form of ceding fees in exchange for fronting insurance and reinsurance business for other insurance carriers. The lender services operations write collateral protection insurance on a risk-bearing basis for automobile and other vehicle loans in the U.S. The results of our State National business are reported within our other insurance operations and are not included in a reportable segment.
Previous report
Although we reinsure substantially all of the risks inherent in our program services operations, we have certain programs that contain limits on our reinsurers' obligations to us that expose us to underwriting risk, including loss ratio caps, aggregate reinsurance limits or exclusion of the credit risk of producers. Under certain programs, we also bear underwriting risk for annual aggregate agreement year losses in excess of a limit that we believe is unlikely to be exceeded.
Previous report
Nephila
Previous report
See note 9 of the notes to consolidated financial statements for further details regarding transactions with entities managed through our Nephila operations, which include several Bermuda-based private funds (the Nephila Funds) and Bermuda-licensed reinsurers and Lloyd's syndicates (collectively, the Nephila Reinsurers).
Previous report
Our investment operations manage the capital held within our insurance operations, as well as capital held by the Markel Group holding company. Invested assets managed through our investment operations include our portfolio of publicly traded fixed maturity and equity securities, as well as cash and short-term investments. Substantially all of our investment portfolio is managed by company employees, which helps minimize costs in our investment operations.
Previous report
Capital held by our insurance subsidiaries beyond that which we anticipate will be needed to cover claims payments and operating expenses, as well as capital allocated for investment purposes by Markel Group, is available to be invested in equity securities. When purchasing equity securities, we seek to invest in profitable companies with high returns on capital and low debt, with honest and talented management and significant reinvestment opportunities and capital discipline, all while paying reasonable prices for those securities. We intend to hold these equity investments over the long term. Over the long run, equity securities have produced higher returns relative to fixed maturity securities and short-term investments. Our investments in equity securities are predominantly held within our regulated insurance subsidiaries to support capital requirements. We allocate a higher percentage of capital within our regulated insurance subsidiaries to equity securities than most other insurance companies.
Previous report
Markel Ventures
Previous report
Through our wholly owned subsidiary Markel Ventures, Inc. (Markel Ventures), we own controlling interests in high-quality, specialized businesses that operate in a variety of different industries with shared values and the goal of positively contributing to the long-term financial performance of Markel Group. Management teams for each business operate autonomously and are responsible for developing strategic initiatives, managing day-to-day operations and making investment and capital allocation decisions for their respective companies. Our Markel Group management team is responsible for decisions regarding allocation of capital for acquisitions and new investments. Our strategy in making these acquisitions is similar to our strategy for purchasing equity securities. We seek to invest in profitable companies, with honest and talented management, that exhibit reinvestment opportunities and capital discipline, at reasonable prices. We intend to own the businesses acquired for a long period of time.
Previous report
Our chief operating decision maker allocates 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.
Previous report
In June 2024, we acquired a majority interest in Valor Environmental (Valor), an environmental services company providing erosion control and related services to commercial development sites and homebuilders throughout the U.S. In September 2024, we acquired a majority ownership interest in Educational Partners International (EPI), a company that sponsors international teachers for placements in schools in the U.S. Through January 15, 2025, our investment in EPI was accounted for under the equity method, as we did not have control over the business due to regulatory approval that was still pending. On January 16, 2025, we received regulatory approval, which resulted in control and consolidation of EPI. See note 3 of the notes to consolidated financial statements for additional details related to these acquisitions.
Previous report
The change in operating income and comprehensive income to shareholders for the quarter and six month periods was driven by the differences in unrealized gains and losses on our equity securities across the periods. Additionally, the change in comprehensive income to shareholders was driven by the difference in unrealized gains and losses on our fixed maturity securities across the periods.
Previous report
The components of comprehensive income to shareholders are discussed in further detail under "Insurance Results," "Investing Results," "Markel Ventures Results," "Other" and "Other Comprehensive Income (Loss) to Shareholders."
Previous report
Insurance Results
Previous report
Our insurance operations include our Markel Insurance business, as well as our other insurance operations, which are primarily comprised of our State National and Nephila businesses.
Previous report
For both the quarter and six months ended June 30, 2025, the increase in fronting gross premium volume was driven by growth of our property catastrophe programs with the Nephila Reinsurers.
Previous report
For the quarter and six months ended June 30, 2025, the increase in earned premiums was primarily due to higher premium volume within our personal lines and programs product lines in recent periods.
Previous report
Combined Ratio
Previous report
The Markel Insurance segment's combined ratio for the quarter and six months ended June 30, 2025 was unfavorably impacted by losses attributable to certain lines of business that we have exited.
Previous report
In the second quarter of 2025, adverse development on prior accident years loss reserves for the run-off U.S. and Europe-based risk-managed directors and officers product lines totaled $127.0 million, or six points and three points, on the quarter-to-date and year-to-date Markel Insurance segment combined ratios, respectively.
Previous report
In the quarter and six months ended June 30, 2025, adverse development on prior accident years loss reserves attributable to the Global Reinsurance division, which is entering run-off, was $49.5 million and $31.9 million, respectively, which added two points and one point to the quarter-to-date and year-to-date Markel Insurance segment combined ratios, respectively. In the second quarter of 2025, we engaged a third party to perform a review of reserves on the Global Reinsurance division's general liability product lines, which resulted in increases to prior accident years loss reserves, as well as current accident year loss ratios, in order to increase the level of caution in the loss reserves.
Previous report
Additionally, losses on our discontinued IP CPI product line added one point to both the Markel Insurance 2025 quarter-to-date and year-to-date combined ratios.
Previous report
The increase in the Markel Insurance segment's combined ratio for the quarter ended June 30, 2025 compared to the same period of 2024 was primarily attributable to less favorable development on prior accident years loss reserves.
Previous report
The decrease in the Markel Insurance segment's current accident year loss ratio for the quarter ended June 30, 2025 was primarily attributable to lower losses on our discontinued IP CPI product line and 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.
Previous report
The Markel Insurance segment's combined ratio for the quarter ended June 30, 2025 included $78.9 million of favorable development on prior accident years loss reserves compared to $145.1 million for the same period of 2024. The decrease in favorable development was primarily attributable to adverse development on our general liability and professional liability product lines in the second quarter of 2025 compared to favorable development in the same period of 2024. Adverse development on our general liability product lines in 2025 was driven by the increases in prior accident years loss reserves within our Global Reinsurance division, as previously discussed. Adverse development on our professional liability product lines in the second quarter of 2025 was driven by our run-off risk-managed directors and officers product lines, as previously discussed, and was most significant on the 2019 to 2023 accident years. These decreases were partially offset by more favorable development on several product lines, most notably our property and marine and energy product lines, in the second quarter of 2025 compared to the same period of 2024.
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Reworded paragraphs (58)
Previous wording
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 2024 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. This section is divided into the following sections:
Current wording
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 2024 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:
Previous wording
Investments, cash and cash equivalents and restricted cash and cash equivalents (invested assets) were $35.3 billion and $34.2 billion at June 30, 2025 and December 31, 2024, respectively. The following table presents the composition of our invested assets.
Current wording
(2) Invested assets include total investments, cash and cash equivalents, and restricted cash and cash equivalents.
Previous wording
The Programs and Solutions division offers a portfolio of highly specialized insurance products in the U.S., including personal lines, programs and partnerships, credit and surety coverages, workers' compensation and small commercial lines, as well as specialty lines written from its Bermuda platform. The Programs and Solutions division also provides fronting services for Nephila in support of their insurance-linked securities fund management operations and the portfolio of risks assumed by their investors.
Current wording
•Program and Solutions: Offers a portfolio of highly specialized insurance products in the U.S. written on both an admitted and E&S basis, as well as specialty lines written from its Bermuda platform.
Previous wording
On July 30, 2025, Markel Insurance announced an agreement to sell the renewal rights for its Global Reinsurance business. In conjunction with the transaction, which is expected to close in August 2025, the Global Reinsurance division will enter into run-off. The transaction is subject to customary closing conditions. The Global Reinsurance division's gross premium volume in 2024 was $1.2 billion. As many of the contracts written within this division are multi-year agreements, we expect premiums to continue earning over the next two to three years and loss reserves are expected to take several additional years to run off.
Current wording
•Global Reinsurance: Previously offered casualty and specialty reinsurance products. In August 2025, Markel Insurance sold the renewal rights for contracts written through this division, and the division entered into run-off. The Global Reinsurance division's gross premium volume in 2024 was $1.2 billion. As many of the contracts previously written within this division were multi-year agreements, we expect premiums to continue earning over the next two to three years and loss reserves to take several additional years to run off.
Previous wording
Markel Insurance is a specialty insurance business comprised of a network of subsidiaries that underwrite hard-to-place risks across the globe. Markel Insurance's business is organized into four divisions: U.S. Wholesale and Specialty, Programs and Solutions, International and Global Reinsurance. These divisions underwrite a variety of specialty insurance products and also include certain other insurance-related operations and strategic investments that complement and support the underwriting activities. Markel Insurance also includes the run-off of certain business previously written on its underwriting subsidiaries that are not managed through these divisions. These include the discontinued intellectual property collateral protection insurance (IP CPI) product line, life and annuity reinsurance business and certain asbestos and environmental exposures. In evaluating the overall returns of our Markel Insurance business, we consider the operating income from underwriting activities included in our Markel Insurance segment, as well as the investment earnings on the capital held by its underwriting subsidiaries, which are included in our Investing segment.
Current wording
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.
Previous wording
Our insurance operations provide our investment operations with steady inflows of premiums. These funds are invested predominantly in high-quality government and municipal bonds and mortgage-backed securities that generally match the duration and currency of our loss reserves. We typically hold these investments until maturity. As a result, unrealized holding gains and losses on these securities are generally expected to reverse as the securities mature. Premiums collected through our insurance operations may also be held as short-term investments or cash and cash equivalents to provide short-term liquidity for projected claims payments, reinsurance costs and operating expenses.
Current wording
Policyholder capital is invested predominantly in high-quality government and municipal bonds and mortgage-backed securities that generally match the duration and currency of our loss reserves with the goal of protecting principal to ensure we are able to pay claims. We typically hold these investments until maturity. As a result, unrealized holding gains and losses on these securities attributable to changes in interest rates are generally expected to reverse as the securities mature. Policyholder capital is also held in short-term investments and cash and cash equivalents to provide short-term liquidity for projected claims payments, reinsurance costs, and operating expenses.
Previous wording
Nephila Holdings Ltd. (together with its subsidiaries, Nephila) provides insurance-linked securities investment and insurance management services to investors through which it offers alternative capital to the insurance and reinsurance markets while providing the investors with investment strategies that typically are uncorrelated with traditional asset classes. Nephila generates fee revenues in the form of management fees for investment management services. The results of Nephila are reported within our other insurance operations and are not included in a reportable segment.
Current wording
Nephila Holdings Ltd. (together with its subsidiaries, Nephila) provides insurance-linked securities (ILS) investment and insurance management services to investors while offering alternative capital to the insurance and reinsurance markets. Nephila provides its investors with investment strategies that typically are uncorrelated with traditional asset classes. Nephila generates fee revenues in the form of management fees for insurance and investment management services based on either the net asset value of the accounts managed or gross premium volume for the underlying risks to which the investors subscribed.
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The following table presents the components of operating revenues.
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Beginning in the third quarter of 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.
Previous wording
The following table presents the components of operating income and comprehensive income to shareholders.
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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.
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The modest decrease in underwriting gross premium volume in our Markel Insurance segment for the quarter ended June 30, 2025 was driven by unfavorable timing differences on two large reinsurance contract renewals, as well as the impact 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 are inadequate to meet our profitability targets, therefore, we stopped writing this product from these platforms. We continue to write select risk-managed directors and officers accounts from our Bermuda-based platform. These premium decreases were partially offset by the favorable impact of rate increases and new business on our personal lines and general liability product lines.
Current wording
The increase in underwriting gross premium volume in our Markel Insurance segment for the quarter ended September 30, 2025 was driven by rate increases and new business within our personal lines and general liability product lines, as well as higher premiums within our professional liability product lines. Higher premiums within our professional liability product lines were driven by growth within our international business and favorable timing differences on the renewal of two large reinsurance contracts, partially offset by the impact 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 are inadequate to meet our profitability targets, therefore, we stopped writing this product from these platforms. We continue to write select risk-managed directors and officers accounts from our Bermuda-based platform.
Previous wording
The modest increase in underwriting gross premium volume in our Markel Insurance segment for the six months ended June 30, 2025 was driven by significant growth within our personal lines product lines, as well as rate increases and new business within our general liability and programs product lines. These increases were largely offset by the impact of unfavorable timing differences on reinsurance contract renewals and lower premium volume in our professional liability product lines, as a result of exiting certain product lines that did not meet our profitability targets, as previously discussed.
Current wording
The increase in underwriting gross premium volume for the nine months ended September 30, 2025 was driven by significant growth within our personal lines product lines, as well as rate increases and new business within our general liability product lines. These increases were offset by the impact of lower premium volume in our professional liability product lines, as a result of exiting certain product lines, as previously discussed.
Previous wording
Net retention of underwriting gross premium volume for both the quarters ended June 30, 2025 and 2024 was 77%. Net retention of underwriting gross premium volume was 79% for both the six months ended June 30, 2025 and 2024. 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.
Current wording
Net retention of underwriting gross premium volume was 79% for the quarter and nine months ended September 30, 2025 compared to 78% for the same periods of 2024. 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.
Previous wording
In the first half of 2025, we achieved modest rate increases 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 only in product lines where we are confident in the levels of rate adequacy.
Current wording
Through the first three quarters of 2025, we achieved modest rate increases 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 only in product lines where we are confident in the levels of rate adequacy.
Previous wording
Product lines with notable rate decreases include our workers' compensation, energy and cyber portfolios and, more recently, our U.S. property product lines as market conditions have softened.
Current wording
Product lines with notable rate decreases include our workers' compensation, energy, professional liability, and cyber portfolios and, more recently, our U.S. property product lines as market conditions have softened due to a lower level of natural catastrophe events in 2025 thus far.
Previous wording
Within our professional liability product lines, we are seeing moderate rate decreases on many of our subclasses. In our international professional liability portfolio, we believe the business is adequately priced overall, and we are opportunistically growing premiums within those subclasses where we believe the current rates are sufficient to meet our profitability targets.
Current wording
Within our professional liability product lines, we are seeing moderate rate decreases on many of our subclasses. In our international professional liability portfolio rate decreases are more pronounced, however, we believe the business is adequately priced overall, and we are opportunistically growing premiums within those subclasses where we believe the current rates are sufficient to meet our profitability targets.
Previous wording
Underwriting results for the six months ended June 30, 2025 included $60.9 million of net losses and loss adjustment expenses attributed to the series of wildfires that occurred in southern California in January 2025 (California Wildfires). In the second quarter of 2025, we reduced our initial estimate of losses attributable to the California Wildfires by $5.2 million as more information became available. While we believe our net reserves for the California Wildfires as of June 30, 2025 are adequate, we continue to closely monitor reported claims and may further adjust our estimate of ultimate net losses as new information becomes available.
Current wording
Underwriting results for the nine months ended September 30, 2025 included $56.6 million, or one point, of net losses and loss adjustment expenses attributed to the series of wildfires that occurred in southern California in January 2025 (California Wildfires). These net losses reflect a reduction of $9.5 million from our initial estimate of ultimate net losses, including $4.3 million in the third quarter of 2025, as more information has become available. While we believe our net reserves for the California Wildfires as of September 30, 2025 are adequate, we continue to closely monitor reported claims and may further adjust our estimate of ultimate net losses as new information becomes available.
Previous wording
We have continued to recognize losses on our discontinued IP CPI product line in 2025, in amounts consistent with our expectations. For the quarter and six months ended June 30, 2025, net losses and loss adjustment expenses on our IP CPI product line totaled $26.4 million and $42.6 million, respectively, or one point on both the quarter-to-date and year-to-date Markel Insurance segment combined ratios. Net losses and loss adjustment expenses on our IP CPI product line for the quarter and six months ended June 30, 2024 were $56.4 million and $96.8 million, respectively, or three and two points, on the quarter-to-date and year-to-date Markel Insurance segment combined ratios, respectively. We believe the amount of losses on this product line in 2025 will be less than what we recognized in 2024.
Current wording
We have continued to recognize losses on our discontinued IP CPI product line in 2025, in amounts consistent with our expectations. For the quarter and nine months ended September 30, 2025, net losses and loss adjustment expenses on our IP CPI product line totaled $10.2 million and $52.8 million, respectively, or half of a point and one point on the quarter-to-date and year-to-date Markel Insurance segment combined ratios, respectively. Net losses and loss adjustment expenses on our IP CPI product line for the quarter and nine months ended September 30, 2024 were $41.9 million and $138.7 million, respectively, or two points on both the quarter-to-date and year-to-date Markel Insurance segment combined ratios. We believe the amount of losses on this product line in 2026 will be less than what we recognized in 2025.
Previous wording
For the quarter ended June 30, 2025, favorable development was most significant on the more recent accident years within our property and marine and energy product lines. The favorable development on prior years loss reserves in the second quarter of 2024 was most significant on our international professional liability product lines.
Current wording
The combined ratio for the quarter ended September 30, 2025 included $129.1 million of favorable development on prior accident years loss reserves compared to $119.4 million for the same period of 2024. For the quarter ended September 30, 2025, favorable development was most significant within our general liability, marine and energy, and programs product lines. Favorable development on our general liability product lines was primarily driven by the impact of an increase in our estimate of ceded losses on a large ceded reinsurance contract. Favorable development for the quarter ended September 30, 2025 was net of adverse development on our international professional liability product lines. The favorable development on prior years loss reserves in the third quarter of 2024 was most significant on our general liability and international professional liability product lines.
Previous wording
Excluding losses attributed to natural catastrophes, the decrease in the Markel Insurance segment's current accident year loss ratio for the six months ended June 30, 2025 was due to the same factors as discussed on a quarter-to-date basis.
Current wording
Excluding losses attributed to natural catastrophes, the decrease in the current accident year loss ratio for the nine months ended September 30, 2025 was primarily attributable to lower losses on our discontinued IP CPI product line.
Previous wording
The Markel Insurance segment's combined ratio for the six months ended June 30, 2025 included $227.8 million of favorable development on prior accident years loss reserves compared to $224.1 million for the same period of 2024. For the six months ended June 30, 2025, favorable development was most significant on the more recent accident years within our marine and energy, property, professional liability and workers' compensation product lines. Favorable development on our professional liability product lines in the first half of 2025 was net of adverse development on our run-off risk-managed directors and officers product lines, as previously discussed. Favorable development on prior years loss reserves in the first half of 2024 was most significant on our international professional liability and marine and energy product lines, as well as our property product lines.
Current wording
The combined ratio for the nine months ended September 30, 2025 included $356.9 million of favorable development on prior accident years loss reserves compared to $343.5 million for the same period of 2024. For the nine months ended September 30, 2025, favorable development was most significant on more recent accident years within our marine and energy, property, programs, general liability, and workers' compensation product lines. Favorable development for the nine months ended September 30, 2025 was net of $142.3 million, or two points, of adverse development on our run-off risk-managed directors and officers product lines, substantially all of which was recognized in the second quarter of 2025. For the nine months ended September 30, 2024, favorable development on prior years loss reserves was most significant on our international professional liability product lines, as well as our general liability, property, and credit and surety product lines.
Previous wording
The increase in the Markel Insurance segment's expense ratio for the quarter ended June 30, 2025 compared to the same period of 2024 was primarily attributable to higher personnel costs, including increased severance costs related to recent organizational changes, and professional fees, including costs incurred in connection with activist shareholder activities and the Board-led review.
Current wording
The increase in the expense ratio for the nine months ended September 30, 2025 compared to the same period of 2024 was primarily attributable to higher personnel costs, including increased severance costs related to recent organizational changes, and professional fees.
Previous wording
The following tables present the divisional results of the Markel Insurance segment.
Current wording
The following tables present the divisional results of the Markel Insurance segment's underwriting and other insurance-related activities.
Previous wording
The 3% decrease in gross premium volume and 8% decrease in earned premiums within the U.S. Wholesale and Specialty division for the six months ended June 30, 2025 was primarily due to the impact of exiting our U.S. risk-managed directors and officers product line from this platform. The U.S. Wholesale and Specialty division combined ratio for the six months ended June 30, 2025 increased two points primarily due to losses attributed to the California Wildfires in 2025. Favorable development in the first half of 2025 was net of $90.3 million, or 7 points on the U.S. Wholesale and Specialty combined ratio, of adverse development on our run-off U.S. risk-managed directors and officers product line.
Current wording
The 6% decrease in gross premium volume and 4% decrease in earned premiums within the U.S. Wholesale and Specialty division for the quarter ended September 30, 2025 were primarily due to the impact of exiting our U.S. risk-managed directors and officers product line from this platform, as well as decreases within our property product line, 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 for the quarter ended September 30, 2025 decreased 11 points due to more favorable development on prior accident year loss reserves and a lower current accident year loss ratio.
Previous wording
The 9% increase in gross premium volume and 6% increase in earned premiums within the Programs and Solutions division for the six months ended June 30, 2025 was 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 the Nephila Reinsurers.
Current wording
The 12% increase in underwriting gross premium volume and 10% increase in earned premiums within the Programs and Solutions division for the quarter ended September 30, 2025 were driven by more favorable rates and new business within our personal lines 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 within our property catastrophe programs with the Nephila Reinsurers. The modest increase in the Programs and Solutions division's combined ratio for the quarter ended September 30, 2025 was primarily due to a higher attritional loss ratio, partially offset by the impact of higher catastrophe losses in the third quarter of 2024.
Previous wording
The 5% increase in gross premium volume within the International division for the quarter ended June 30, 2025 was driven by modest increases on our general liability, professional liability and equine product lines. The 11% increase in earned premiums was driven by higher premium volume in recent periods across the portfolio. The International division's combined ratio for the quarter ended June 30, 2025 increased three points primarily due to less favorable development on prior accident years loss reserves, partially offset by a lower current accident year loss ratio.
Current wording
The 25% increase in gross premium volume and 13% increase in earned premiums within the International division for the quarter ended September 30, 2025 were driven by increases from new business and higher renewals in our professional liability, general liability, marine and energy, and property product lines. The International division's combined ratio for the quarter ended September 30, 2025 increased four points primarily due to less favorable development on prior accident years loss reserves, partially offset by a lower current accident year loss ratio.
Previous wording
The 5% decrease in gross premium volume and 6% decrease in earned premiums within the U.S. Wholesale and Specialty division for the quarter ended June 30, 2025 was primarily due to the impact of exiting our U.S. risk-managed directors and officers product line from this platform. The U.S. Wholesale and Specialty division's combined ratio for the quarter ended June 30, 2025 increased two points primarily due to less favorable development on prior accident years loss reserves. In the second quarter of 2025, adverse development on our run-off U.S. risk-managed directors and officers product line was $89.8 million, or 14 points on the U.S. Wholesale and Specialty combined ratio.
Current wording
The 4% decrease in gross premium volume and 7% decrease in earned premiums within the U.S. Wholesale and Specialty division for the nine months ended September 30, 2025 were primarily due to the impact of exiting our U.S. risk-managed directors and officers product line from this platform, 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 for the nine months ended September 30, 2025 decreased two points primarily due to more favorable development on prior accident year loss reserves. Favorable development in 2025 was net of $105.6 million, or five points on the U.S. Wholesale and Specialty combined ratio, of adverse development on our run-off U.S. risk-managed directors and officers product line.
Previous wording
The 8% increase in underwriting gross premium volume and 7% increase in earned premiums within the Programs and Solutions division for the quarter ended June 30, 2025 was driven by more favorable rates and new business within our personal lines 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 the Nephila Reinsurers.
Current wording
The 10% increase in gross premium volume and 7% increase in earned premiums within the Programs and Solutions division for the nine months ended September 30, 2025 were driven by more favorable rates and new business within our personal lines 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 within our property catastrophe programs with the Nephila Reinsurers.
Previous wording
The Programs and Solutions division's combined ratio for the quarter ended June 30, 2025 was consistent with the second quarter of 2024 at 91% as the impact of more favorable development on prior accident years loss reserves was offset by a higher expense ratio. Favorable development in the second quarter of 2025 was net of $37.2 million, or six points on the Programs and Solutions combined ratio, of adverse development on our run-off European risk-managed directors and officers product line.
Current wording
The Programs and Solutions division's combined ratio for the nine months ended September 30, 2025 was consistent with the nine months ended September 30, 2024 at 94% as the impact of a higher attritional loss ratio and higher expense ratio was offset by the impact of more favorable development on prior accident years loss reserves. Favorable development in 2025 was net of $36.7 million, or two points on the Programs and Solutions combined ratio, of adverse development on our run-off European risk-managed directors and officers product line.
Previous wording
The 4% increase in gross premium volume within the International division for the six months ended June 30, 2025 was driven by modest increases on our general liability, professional liability and equine product lines. The 6% increase in earned premiums was driven by higher premium volume in recent periods across the portfolio. The International division's combined ratio for the six months ended June 30, 2025 increased seven points primarily due to less favorable development on prior accident years loss reserves and losses attributed to the California Wildfires in 2025, partially offset by a lower current accident year attritional loss ratio.
Current wording
The 11% increase in gross premium volume and 9% increase in earned premiums within the International division for the nine months ended September 30, 2025 were driven by increases on our professional liability and general liability product lines. The International division's combined ratio for the nine months ended September 30, 2025 increased six points primarily due to less favorable development on prior accident years loss reserves, partially offset by a lower attritional loss ratio.
Previous wording
The Global Reinsurance division's combined ratio for the quarter ended June 30, 2025 increased 26 points primarily due to significant adverse development in the second quarter of 2025 and a higher current accident year attritional loss ratio. Adverse development was driven by $74.6 million of 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 our current accident year loss ratios on these general liability product lines based on the loss experience on these older accident years. The increases in losses on our general liability product lines were due in part to the previously discussed reserve study conducted in the second quarter of 2025. The increases to prior accident years loss reserves within the general liability product lines were partially offset by favorable development within certain sub-classes of our professional liability product lines.
Current wording
Gross premium volume within the Global Reinsurance division for the nine months ended September 30, 2025 decreased by 6% 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 for the nine months ended September 30, 2025 increased six points due to more adverse development on prior accident years loss reserves and a higher attritional loss ratio. Adverse development was driven by increases in prior accident years loss reserves within our general liability product lines, substantially all of which was recognized in the second quarter of 2025, 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 our current accident year loss ratios on these general liability product lines based on the loss experience on these older accident years.
Previous wording
We measure the operating performance of our Markel Ventures segment by its operating income, as well as earnings before interest, income taxes, depreciation and amortization (EBITDA). We consolidate the results of our Markel Ventures subsidiaries on a one-month lag, with the exception of significant transactions or events that occur during the intervening period. The following table summarizes the results from our Markel Ventures segment.
Current wording
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.
Previous wording
The increase in operating revenues and operating income from our Nephila fund management operations for the quarter and six months ended June 30, 2025 was primarily attributable to the impact of a higher effective management fee rate.
Current wording
For the quarter ended September 30, 2025, the increase in revenues was primarily attributable to higher premium volumes for our program services and lender services offerings, as well as the impact of a higher effective management fee rate for our ILS investment management services.
Previous wording
Operating revenues and operating income for the quarter and six months ended June 30, 2025 were primarily attributable to income related to our minority investment in Velocity, following the sale of its managing general agent operations in February 2025 and of its insurance carrier in May 2025.
Current wording
For the nine months ended September 30, 2025, the increase in revenues was primarily attributable to income related to our minority investment in Velocity in 2025, following the sale of its managing general agent operations in February 2025 and of its insurance carrier in May 2025.
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 June 30, 2025, the fair value of our equity portfolio included cumulative unrealized gains of $8.3 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 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 September 30, 2025, the fair value of our equity portfolio included cumulative unrealized gains of $8.8 billion.
Previous wording
(1) Yields reflect the applicable annualized interest income as a percentage of the applicable monthly average invested assets at amortized cost.
Current wording
(1) Yield reflects the applicable annualized interest income as a percentage of the applicable monthly average invested assets at amortized cost.
Previous wording
The increase in net investment income for the quarter and six months ended June 30, 2025 was driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities in 2025 compared to 2024. These increases were partially offset by lower interest income on our short-term investments and cash equivalents due in part to lower short-term interest rates, as well as lower average short-term investment holdings as we used proceeds from our May 2024 senior debt offering, which had been held in short-term investments, to redeem our preferred shares in the second quarter of 2025. We continue to allocate cash to money market funds and fixed maturity securities to take advantage of high interest rates. See note 4(d) of the notes to consolidated financial statements for details regarding the components of net investment income.
Current wording
The increase in net investment income for the quarter and nine months ended September 30, 2025 was driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities in 2025 compared to 2024. 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 in 2025 compared to 2024. 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 in 2025 compared to 2024. See note 4(d) of the notes to consolidated financial statements for details regarding the components of net investment income.
Previous wording
The following tables reconcile our Markel Insurance segment underwriting results to our consolidated underwriting operations.
Current wording
The following tables reconcile our Markel Insurance segment underwriting results to our consolidated underwriting operations. State National's underwriting results are included in our Financial segment.
Previous wording
The increase in interest expense for the quarter and six months ended June 30, 2025 compared to the same period of 2024 was primarily attributable to the issuance of our $600 million 6.0% unsecured senior notes in May 2024.
Current wording
The decrease in interest expense for the quarter ended September 30, 2025 compared to the same period of 2024 was driven by a decrease in interest on revolving lines of credit at certain of our operating businesses. The increase in interest expense for the nine months ended September 30, 2025 compared to the same period of 2024 was primarily attributable to the issuance of our $600 million 6.0% unsecured senior notes in May 2024. This was offset by a decrease in interest expense on revolving lines of credit at certain of our operating businesses.
Previous wording
Net foreign exchange gains and 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 Euro and the British Pound. The U.S. Dollar weakened against the Euro and the British Pound during the first half of 2025, while it strengthened against these currencies during the first half of 2024. Our exposure to foreign currency exchange rates is largely hedged through our available-for-sale investment portfolio, where we hold securities that generally match the currencies of our loss reserves. We also purchase foreign currency forward contracts to further manage unmatched foreign currency exposures. 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 gains of $158.4 million and $222.7 million for the quarter and six months ended June 30, 2025, respectively, compared to losses of $3.1 million and $45.5 million for the same periods of 2024.
Current wording
Net foreign exchange gains and 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 Euro and the British Pound. The U.S. Dollar strengthened against the British Pound and remained relatively stable against the Euro during the quarter ended September 30, 2025. The U.S. Dollar weakened against the Euro and the British Pound during the nine months ended September 30, 2025, most notably during the second quarter of 2025. The U.S. dollar also weakened against the British Pound and Euro during 2024, most notably during the third quarter of 2024.
Previous wording
On July 4, 2025, the U.S. enacted legislation known as the One Big Beautiful Bill Act of 2025 (the 2025 Act) which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. In addition, the 2025 Act makes changes to certain U.S. corporate tax provisions, most of which are not effective until 2026. We do not expect the Act to have a material impact on our results of operations, financial condition or cash flows, however, we will continue to evaluate the impact of the 2025 Act.
Current wording
On July 4, 2025, the U.S. enacted legislation known as the One Big Beautiful Bill Act of 2025 (the OBBB Act) which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. In addition, the OBBB Act makes changes to certain U.S. corporate tax provisions, most of which are not effective until 2026. The OBBB Act did not have a material impact on our results of operations, financial condition, or cash flows upon enactment in the third quarter of 2025, and we do not expect it to have a material impact in the future; however, we will continue to evaluate the impact of the OBBB Act.
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Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
Our exposure to foreign currency exchange rates is largely hedged through our available-for-sale investment portfolio, where we hold securities that generally match the currencies of our loss reserves. We also purchase foreign currency forward contracts to further manage unmatched foreign currency exposures.
Current report — wording carried from elsewhere
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, were losses of $25.0 million and gains of $197.7 million for the quarter and nine months ended September 30, 2025, respectively, compared to gains of $98.8 million and $53.2 million for the same respective periods of 2024.
Current report — wording carried from elsewhere
As of September 30, 2025, 96% of our fixed maturity portfolio was rated "AA" or better.
Current report — wording carried from elsewhere
the underlying trends and variability in our underwriting results that may be obscured by these items.
Current report — wording carried from elsewhere
Quantitative and Qualitative Disclosures About Market Risk in our 2024 Annual Report on Form 10-K or under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk," and "Risk Factors" in this report, or are included in the items listed below:
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Previous report — wording carried elsewhere
•Nephila - insurance-linked securities (ILS) investment manager