MARKEL GROUP INC.

Previous wording

The following table presents the components of comprehensive income (loss) to shareholders.

Current wording

The following table presents the components of comprehensive income to shareholders.

Previous wording

We measure the operating performance of our Markel Insurance segment by its operating revenues and adjusted operating income, which represents operating income before net investment losses and amortization of acquired intangible assets. The following table summarizes the results of operations for our Markel Insurance segment.

Current wording

We measure the operating performance of our Markel Insurance segment by its operating revenues and adjusted operating income, which represents operating income before net investment gains and amortization of acquired intangible assets. The following table summarizes the results of operations for our Markel Insurance segment.

Previous wording

The 31% increase in adjusted operating income for the three months ended March 31, 2026 was driven by higher underwriting profits and net investment income. For further details of Markel Insurance's investment performance, see "Consolidated Investment Results."

Current wording

The 40% and 35% increase in adjusted operating income for the quarter and six months ended June 30, 2026, respectively, was driven by higher underwriting profits and net investment income. For further details of Markel Insurance's investment performance, see "Consolidated Investment Results."

Previous wording

A regional military conflict emerged in the Middle East following U.S. and Israeli airstrikes on Iran on February 28, 2026. Underwriting results for the three months ended March 31, 2026 included $35.0 million, or two points on the combined ratio, of net losses and loss adjustment expenses attributed to the Middle East conflict. Our losses and loss adjustment expenses from the Middle East conflict were attributed to terrorism and marine war coverages written by the International division.

Current wording

In February 2026, a regional military conflict emerged in the Middle East following U.S. and Israeli airstrikes on Iran. For the quarter and six months ended June 30, 2026, net losses and loss adjustment expenses related to the Middle East conflict were $41.0 million and $76.0 million, respectively, or two points on both the quarter-to-date and year-to-date combined ratios. Our losses and loss adjustment expenses from the Middle East conflict were primarily attributed to terrorism, energy, and marine war coverages written by the International division.

Previous wording

Loss estimates for incurred losses attributed to the Middle East conflict represent our best estimate as of March 31, 2026 based upon information currently available. Our estimates for these losses are based on known losses and reported claims, as well as an analysis of our ceded reinsurance contracts. Due to the inherent uncertainty associated with the assumptions surrounding the Middle East conflict, these estimates are subject to a wide range of variability. While we believe our reserves for losses and loss adjustment expenses for the Middle East conflict as of March 31, 2026 are adequate based on information currently available, we continue to closely monitor reported claims, ceded reinsurance contract attachment, government actions, and areas impacted by the conflict and may adjust our loss estimates as new information becomes available.

Current wording

Loss estimates related to the Middle East conflict represent our best estimate as of June 30, 2026 based upon information currently available. Our estimates for these losses are based on known losses and reported claims, as well as an analysis of our ceded reinsurance contracts. Due to the inherent uncertainty associated with the assumptions surrounding the Middle East conflict, these estimates are subject to a wide range of variability. While we believe our reserves for losses and loss adjustment expenses related to the Middle East conflict as of June 30, 2026 are adequate based on information currently available, we continue to closely monitor reported claims, ceded reinsurance contract attachment, government actions, and areas impacted by the conflict and may adjust our loss estimates as new information becomes available.

Previous wording

Additionally, as the Middle East conflict is ongoing, additional losses may be incurred in subsequent periods, and such losses may be material to our results of operations, financial condition, and cash flows. Covering these risk is core to our expertise as a global specialty insurer and we continue to underwrite risks in this region on a case by case basis. Furthermore, our marine war coverages allow for the re-rating of in-force premium on contracts at risk during the escalated risk environment. See Item 1A. Risk Factors for additional information on the risks and uncertainties associated with this event.

Current wording

Additionally, as the Middle East conflict is ongoing, additional losses may be incurred in subsequent periods, and such losses may be material to our results of operations, financial condition, and cash flows. Covering these types of risks is core to our expertise as a global specialty insurer, and we continue to underwrite risks in this region on a case by case basis. Furthermore, our marine war coverages allow for the re-rating of in-force premium on contracts at risk during the escalated risk environment. In the second quarter of 2026, we recognized $34.5 million in additional gross written premiums for these coverages. See "Risk Factors" in this report for additional information on the risks and uncertainties associated with this event.

Previous wording

In August 2025, Markel Insurance sold the renewal rights for business written in its Global Reinsurance division, and the division entered into run-off. Gross premium volume in 2025 attributed to the Global Reinsurance division was $1.0 billion, including $576.9 million for the three months ended March 31, 2025. As many of the contracts previously written within this division were multi-year agreements, we expect premiums to continue earning over the next two years and loss reserves to take several additional years to run off. Effective January 1, 2026, we reinsured the international marine and energy reinsurance business that was still on-risk, comprising $54.8 million of unearned premiums as of December 31, 2025.

Current wording

In August 2025, Markel Insurance sold the renewal rights for business written in its Global Reinsurance division, and the division entered into run-off. Gross premium volume in 2025 attributed to the Global Reinsurance division was $1.0 billion, including $321.7 million and $898.6 million for the quarter and six months ended June 30, 2025, respectively. As many of the contracts previously written within this division were multi-year agreements, we expect premiums to continue earning over the next two years and loss reserves to take several additional years to run off. Effective January 1, 2026, we reinsured the international marine and energy reinsurance business that was still on-risk, comprising $54.8 million of unearned premiums as of December 31, 2025.

Previous wording

Gross premium volume in 2026 includes premiums attributed to contracts signed prior to the division being placed into run-off and changes in our estimate of ultimate premium volumes from in-force contracts. Additionally, gross premium volume in 2026 includes premiums on certain international reinsurance deals that are being fronted as part of the transition of the renewal rights. For the three months ended March 31, 2026, underwriting gross premium volume attributed to the Global Reinsurance division was $22.6 million and fronting gross premium volume was $77.0 million. The Global Reinsurance division combined ratio was 114% for the three months ended March 31, 2026, which had a two point unfavorable impact on the Markel Insurance segment combined ratio.

Current wording

Gross premium volume in 2026 includes premiums attributed to contracts signed prior to the division being placed into run-off and changes in our estimate of ultimate premium volumes from in-force contracts. Additionally, gross premium volume in 2026 includes premiums on certain international reinsurance deals that are being fronted as part of the transition of the renewal rights. The Global Reinsurance division combined ratio was 124% and 118% for the quarter and six months ended June 30, 2026, respectively, which had a two point unfavorable impact on both the quarter-to-date and year-to-date Markel Insurance segment combined ratios.

Previous wording

For the three months ended March 31, 2026, fronting gross premium volume attributed to Hagerty was $253.3 million, all of which was ceded. For the three months ended March 31, 2025, underwriting gross premium volume attributed to Hagerty was $219.9 million, of which $169.7 million were ceded to Hagerty Re. In connection with the transition, we also entered into agreements with Hagerty Re to reinsure our retained exposures on business written on behalf of Hagerty prior to January 1, 2026. Net losses and loss adjustment expenses and unearned premiums on these ceded policies totaled $62.2 million and $92.5 million, respectively, as of December 31, 2025.

Current wording

Effective January 1, 2026, Markel Insurance's business with Hagerty, Inc. (Hagerty) transitioned to a fronting arrangement, whereby Markel Insurance receives a fronting fee for writing business on behalf of Hagerty and ceding it to Hagerty Reinsurance Limited (Hagerty Re). Prior to transitioning to a fronting arrangement, the majority of our business with Hagerty was ceded to Hagerty Re. For the quarter and six months ended June 30, 2026, fronting gross premium volume attributed to Hagerty was $344.8 million and $598.1 million, respectively, all of which was ceded. For the quarter and six months ended June 30, 2025, underwriting gross premium volume attributed to Hagerty was $304.1 million and $524.0 million, respectively, of which $234.5 million and $404.1 million, respectively, was ceded to Hagerty Re. In connection with the transition, we also entered into agreements with Hagerty Re to reinsure our retained exposures on business written on behalf of Hagerty prior to January 1, 2026. Net losses and loss adjustment expenses and unearned premiums on these ceded policies totaled $62.2 million and $92.5 million, respectively, as of December 31, 2025.

Previous wording

(4) The point impact of catastrophes is calculated as the associated net losses and loss adjustment expenses divided by total earned premiums. For the three months ended March 31, 2026, catastrophe current accident year losses and loss adjustment expenses were attributable to the Middle East conflict.

Current wording

(4) The point impact of catastrophes is calculated as the associated net losses and loss adjustment expenses divided by total earned premiums. For the quarter and six months ended June 30, 2026, current accident year losses and loss adjustment expenses attributed to catastrophes were related to the Middle East conflict.

Previous wording

The decrease in underwriting gross premium volume in our Markel Insurance segment for the three months ended March 31, 2026 was driven by the changes to our Global Reinsurance division and Hagerty relationship, as previously discussed. Adjusted underwriting gross premium volume, which excludes premiums attributed to the Global Reinsurance division and Hagerty in both periods, increased 10% driven by growth within our international professional liability and marine and energy product lines, as well as our personal lines and programs product lines, partially offset by lower premiums on our U.S. general liability and property product lines. Adjusted underwriting gross premium volume growth is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional details.

Current wording

The decrease in underwriting gross premium volume in our Markel Insurance segment for the quarter and six months ended June 30, 2026 was driven by the changes to our Global Reinsurance division and Hagerty relationship, as previously discussed. For both the quarter and six months ended June 30, 2026, adjusted underwriting gross premium volume, which excludes premiums attributed to the Global Reinsurance division and Hagerty in both periods, increased 10%. The increases in both periods were driven by growth within our international marine and energy, professional liability, and general liability product lines, as well as our U.S. programs and personal lines product lines, partially offset by lower premiums on our U.S. property and general liability product lines. Adjusted underwriting gross premium volume growth is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional details.

Previous wording

Rates in the aggregate across our diversified product portfolio remained relatively flat in the first quarter of 2026 with various offsetting rate increases and decreases across different product lines. Product lines achieving the most notable rate increases include our U.S. personal lines and general liability product lines. Product lines with notable rate decreases include our U.S. property product lines and our international cyber and energy product lines, while we saw more moderate rate decreases on our U.S. workers' compensation product line. 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

Rates in the aggregate across our diversified global product portfolio remained relatively flat in the first half of 2026 with various offsetting rate increases and decreases across different product lines. Product lines achieving the most notable rate increases include our U.S. personal lines, commercial package, and general liability product lines. Product lines with notable rate decreases include our U.S. property product lines and our international cyber, professional liability, and energy product lines. While we are seeing rate decreases across several lines within our international portfolio due to the high level of recent profitability, we still believe that we are getting adequate rates for these product lines. Within our U.S. property product lines, we continue to see a softening market with overall rate decreases, particularly on large account risks, where we are seeing more pronounced rate softening and heightened competition.

Previous wording

Net retention of underwriting gross premium volume for both the three months ended March 31, 2026 and 2025 was 80%. Net retention decreased due to the impact of the ceded written premiums within our Global Reinsurance division and with our Hagerty business related to previously written business that was reinsured during the first quarter, as previously discussed, as well as changes in mix of business due to the run off of the Global Reinsurance division, which had a higher retention ratio than the rest of the segment. These decreases were offset by the impact of our Hagerty business transitioning to a fronting arrangement in 2026, which we ceded at approximately 80% in 2025, as well as lower cessions on our professional liability and personal lines reinsurance contracts. 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

The increase in net retention for both the quarter and six months ended June 30, 2026 was primarily driven by the impact of our Hagerty business transitioning to a fronting arrangement in 2026, which we ceded at approximately 80% in 2025. For the six months ended June 30, 2026, the increase in net retention was partially offset by the impact of the ceded written premiums within our Global Reinsurance division and with our Hagerty business related to previously written business that was reinsured during the first quarter of 2026, as previously discussed. 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

The decrease in earned premiums for the three months ended March 31, 2026 was primarily due to the impact of the changes in gross premium volume and net retention in recent periods, as previously discussed.

Current wording

The decrease in earned premiums for both the quarter and six months ended June 30, 2026 was primarily due to the impact of the changes in gross premium volume and net retention in recent periods, as previously discussed.

Previous wording

Underwriting results for the three months ended March 31, 2026 included $35.0 million, or two points on the combined ratio, of net losses and loss adjustment expenses attributed to the Middle East conflict. Underwriting results for the three months ended March 31, 2025 included $66.1 million, or three points, of net losses and loss adjustment expenses attributed to the series of wildfires that occurred in southern California in January 2025. Excluding losses attributed to catastrophes, the decrease in the Markel Insurance segment combined ratio for the three months ended March 31, 2026 was primarily attributable to a lower attritional loss ratio, partially offset by less favorable development on prior accident years loss reserves.

Current wording

Underwriting results for the quarter ended June 30, 2026 included $41.0 million, or two points on the combined ratio, of net of losses and loss adjustment expenses related to the Middle East conflict. Underwriting results for the quarter ended June 30, 2025 included a $5.2 million reduction of our estimate of losses attributable to the series of wildfires that occurred in southern California in January 2025 (California Wildfires). Excluding losses attributed to catastrophes, the decrease in the Markel Insurance segment combined ratio for the quarter ended June 30, 2026 was primarily attributable to more favorable development on prior accident years loss reserves and a lower attritional loss ratio.

Previous wording

The decrease in the attritional loss ratio for the three months ended March 31, 2026 was primarily attributable to lower attritional loss ratios across our international insurance products lines and our U.S. professional liability product lines, due in part to the benefit of exiting our risk-managed directors and officers product lines in 2025. Additionally, we recognized current accident year losses of $20.0 million on our discontinued IP CPI product line in the first quarter of 2025 compared to no such losses in the first quarter of 2026.

Current wording

The decrease in the attritional loss ratio for the quarter ended June 30, 2026 was primarily attributable to lower attritional loss ratios across our general liability and professional liability product lines due to the impact of recent underwriting actions and the change 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. Additionally, we recognized current accident year losses on our discontinued IP CPI product line in the second quarter of 2025 compared to no such losses in the second quarter of 2026.

Previous wording

The combined ratio for the three months ended March 31, 2026 included $106.9 million of favorable development on prior accident years loss reserves compared to $148.8 million for the same period of 2025. The decrease in favorable development was primarily attributable to less favorable development on our professional liability and general liability insurance product lines. For the three months ended March 31, 2026, favorable development was most significant within our professional liability, credit and surety, and workers' compensation insurance product lines. Favorable development in the first quarter of 2025 was most significant on our professional liability, general liability, marine and energy, and workers' compensation insurance product lines.

Current wording

The combined ratio for the six months ended June 30, 2026 included $273.5 million of favorable development on prior accident years loss reserves compared to $227.8 million for the same period of 2025. The increase in favorable development was primarily attributable to more favorable development on our property insurance product lines and less adverse development on our U.S. and Bermuda professional liability product lines, partially offset by less favorable development on our general liability insurance product line. For the six months ended June 30, 2026, favorable development was most significant on the more recent accident years within our property, marine and energy, workers' compensation, and credit and surety insurance product lines. For the six months ended June 30, 2025, favorable development was most significant within our marine and energy, property, general liability, and workers' compensation insurance product lines. Favorable development in the first half of 2025 was net of adverse development on our run-off risk-managed directors and officers product lines and adverse development on our general liability product lines within our Global Reinsurance division.

Previous wording

The 9% decrease in gross premium volume and 5% decrease in earned premiums within the U.S. Wholesale and Specialty division for the three months ended March 31, 2026 were primarily due to certain underwriting actions taken within our general liability product lines aimed at improving overall profitability and rebalancing our product mix, as well as lower rates within our property product lines. The U.S. Wholesale and Specialty division's combined ratio for the three months ended March 31, 2026 decreased seven points primarily due to a lower current accident year loss ratio.

Current wording

The 6% decrease in gross premium volume and earned premiums within the U.S. Wholesale and Specialty division for the six months ended June 30, 2026 was primarily due to certain underwriting actions taken within our general liability product lines aimed at improving overall profitability and rebalancing our product mix, as well as lower rates within our property product lines. The U.S. Wholesale and Specialty division's combined ratio for the six months ended June 30, 2026 decreased six points primarily due to a lower current accident year loss ratio.

Previous wording

The 19% decrease in underwriting gross premium volume within the Programs and Solutions division for the three months ended March 31, 2026 was primarily attributable to the transition of the Hagerty business to a fronting arrangement, partially offset by growth within our personal lines and programs product lines, as well as specialty lines written from our Bermuda platform. The 35% increase in fronting gross premium volume was driven by the transition of the Hagerty business to a fronting arrangement, partially offset by lower premiums on our property catastrophe programs with Nephila driven by rate decreases. The Programs and Solutions division's combined ratio for the three months ended March 31, 2026 decreased seven points primarily due to the impact of catastrophes losses in the first quarter of 2025 from the California wildfires and more favorable development on prior accident years loss reserves.

Current wording

The 23% decrease in underwriting gross premium volume within the Programs and Solutions division for the six months ended June 30, 2026 was primarily attributable to the transition of the Hagerty business to a fronting arrangement, partially offset by growth within our personal lines and programs product lines, as well as specialty lines written from our Bermuda platform. The 2% decrease in fronting gross premium volume was driven by lower premiums on our property catastrophe programs with Nephila driven by rate decreases, partially offset by the transition of the Hagerty business to a fronting arrangement. The Programs and Solutions division's combined ratio for the six months ended June 30, 2026 decreased two points primarily due to more favorable development on prior accident years loss reserves.

Previous wording

The 28% increase in gross premium volume and 20% increase in earned premiums within the International division for the three months ended March 31, 2026 were driven by increases on our professional liability and marine and energy product lines within the London market, as well as notable growth in Europe and Asia Pacific. The International division combined ratio was 90% in the first quarter of 2026, which included six points of net losses on the combined ratio attributed to the Middle East conflict.

Current wording

The 30% increase in gross premium volume and 22% increase in earned premiums within the International division for the six months ended June 30, 2026 were driven by increases on our marine and energy, professional liability, and general liability product lines. The International division combined ratio was 86% in the second quarter of 2026, which included six points of net losses on the combined ratio related to the Middle East conflict.

Previous wording

The increase in operating revenues for the three months ended March 31, 2026 reflected organic growth and the contribution from an acquisition made by one of our businesses in December 2025. Organic revenue growth for our Industrial segment was 4% for the three months ended March 31, 2026. Organic revenue growth is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional details.

Current wording

For the quarter ended June 30, 2026, the increase in operating revenues reflected the contribution from an acquisition made by one of our businesses in December 2025. Organic revenue growth for our Industrial segment was flat for the quarter ended June 30, 2026. Organic revenue growth is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional details.

Previous wording

The decrease in adjusted operating income for the three months ended March 31, 2026 was primarily attributable to a lower operating margin for the segment, due to changes in the mix of business, as previously discussed.

Current wording

For the quarter ended June 30, 2026, the decrease in adjusted operating income was primarily attributable to a lower operating margin for the segment, due to changes in the mix of business and higher operating expenses at certain businesses.

Previous wording

Organic revenue growth was primarily attributable to increased demand for our precast concrete products, resulting in higher prices and sales volume, as well as higher sales volume of our fire safety and equipment leasing services in the commercial construction industry. These increases were partially offset by lower sales volume of our car-hauling equipment due to a down cycle in demand for the industry.

Current wording

Organic revenue growth was primarily attributable to increased demand for our precast concrete products and higher sales volume of our fire safety and other services in the construction industry, partially offset by lower sales volume of our car-hauling equipment and industrial bakery equipment, as previously discussed.

Previous wording

The decrease in operating revenues for the three months ended March 31, 2026 was primarily attributable to the impact of $31.3 million of income related to our minority investment in Velocity Holdco, LLC (Velocity) in the first quarter of 2025 following the sale of its managing general agent operations, partially offset by 10% organic revenue growth.

Current wording

For the six months ended June 30, 2026, the decrease in operating revenues was primarily attributable to the impact of $41.4 million of income related to our minority investment in Velocity in 2025 following the sale of its managing general agent operations and insurance carrier, partially offset by 6% organic revenue growth.

Previous wording

Organic revenue growth was primarily attributable to higher management fees for our insurance-linked securities investment management services and higher premium volumes in recent periods for our program services and lender services offerings, partially offset by the impact of a $14.4 million impairment of an equity method investment in an asset management firm in the first quarter of 2026.

Current wording

Organic revenue growth was primarily attributable to higher management fees for our insurance-linked securities investment management services and higher earned premiums from our lender services offerings, partially offset by the impact of a $14.4 million impairment of an equity method investment in an asset management firm in the first quarter of 2026.

Previous wording

The decrease in adjusted operating income for the three months ended March 31, 2026 was primarily attributable to the impact of the income related to our minority investment in Velocity in 2025 and an impairment of an equity method investment in 2026, as previously discussed.

Current wording

For the six months ended June 30, 2026, the decrease in adjusted operating income was primarily attributable to the impact of a $205.3 million charge within our State National program services operations, as previously discussed. Additionally, the decrease in adjusted operating income was due in part to the impact of the income related to our minority investment in Velocity in 2025 and an impairment of an equity method investment in 2026, as previously discussed.

Previous wording

The Consumer and Other segment is comprised of businesses that operate in the consumer sector, as well as a variety of other sectors, including information technology, real estate, and healthcare. We measure the operating performance of our Consumer and Other segment by its operating revenues and adjusted operating income, which 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. The following table summarizes the operating performance of our Consumer and Other segment.

Current wording

The Consumer and Other segment is comprised of businesses that operate in the consumer sector, as well as a variety of other sectors, including information technology, real estate, and healthcare. We measure the operating performance of our Consumer and Other segment by its operating revenues and adjusted operating income, which 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.

Previous wording

The decrease in operating revenues for the three months ended March 31, 2026 was driven by lower home sales volume, partially offset by the impact of a full quarter contribution from Educational Partners International (EPI), which we began consolidating in the first quarter of 2025. Organic revenues for our Consumer and Other segment declined by 6% for the three months ended March 31, 2026. The increase in adjusted operating income was driven by the increased contribution from EPI.

Current wording

For the six months ended June 30, 2026, the increase in operating revenues reflected the impact of a full six-month contribution from Educational Partners International (EPI), which we began consolidating in the first quarter of 2025. Organic revenue growth for our Consumer and Other segment was flat for the six months ended June 30, 2026. The impact of increased sales of ornamental plants in the first half of 2026 was largely offset by the impact of lower home sales volume in the first half of 2026. For the six months ended June 30, 2026, the increase in adjusted operating income was due to the same factors as discussed on a quarter-to-date basis, as well as an increased contribution from EPI.

Previous wording

We measure our investment performance by analyzing net investment income, which reflects the recurring interest and dividend earnings on our investment portfolio. See note 3(d) of the notes to consolidated financial statements included under Item 1 for details regarding the components of net investment income.

Current wording

We measure our investment performance by analyzing net investment income, which reflects the recurring interest and dividend earnings on our investment portfolio. See note 3(d) of the notes to consolidated financial statements for details regarding the components of net investment income.

Previous wording

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 March 31, 2026, the fair value of our equity portfolio included cumulative unrealized gains of $8.2 billion.

Current wording

We also analyze net investment gains and losses, 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 June 30, 2026, the fair value of our equity portfolio included cumulative unrealized gains of $9.3 billion.

Previous wording

The 8% increase in net investment income for the three months ended March 31, 2026 was driven by higher interest income on fixed maturity securities and higher dividend income on equity securities due to higher yields and higher average holdings in 2026 compared to 2025. These increases were partially offset by lower interest income on cash and cash equivalents due to lower average cash and cash equivalents holdings and lower short-term interest rates in 2026 compared to 2025.

Current wording

The increase in net investment income for the quarter and six months ended June 30, 2026 was driven by higher interest income on fixed maturity securities due to higher yields and higher average holdings in 2026 compared to 2025, as well as higher dividend income on equity securities. These increases were partially offset by lower interest income on cash and cash equivalents due to lower short-term interest rates in 2026 compared to 2025.

Previous wording

The following tables summarize the composition of our invested assets by segment. We hold investments across our operating businesses and at our holding company, with the majority of our investments held at our Markel Insurance business in support of its underwriting activities. Invested assets and the associated net investment income at our other reportable segments are primarily attributable to our Financial segment. Markel Insurance has also provided loans to a corporate subsidiary to fund certain non-insurance acquisitions. We evaluate these loan receivables similarly to invested assets held by Markel Insurance. Additionally, one of our corporate subsidiaries may, from time to time, provide loans to our operating businesses to fund strategic growth investments and projects. These intercompany loans are presented in the tables below but are eliminated in consolidation.

Current wording

The following tables summarize the composition of our invested assets by segment. We hold investments across our operating businesses and at our holding company, with the majority of our investments held at our Markel Insurance business in support of its underwriting activities. Invested assets and the associated net investment income at our other reportable segments are primarily attributable to our Financial segment. Markel Insurance has also provided loans to a corporate subsidiary to fund certain non-insurance acquisitions. We evaluate these loans receivable similarly to invested assets held by Markel Insurance. Additionally, one of our corporate subsidiaries may, from time to time, provide loans to our operating businesses to fund strategic growth investments and projects. These intercompany loans are presented in the tables below but are eliminated in consolidation.

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 strengthened against the Euro and the British Pound during the three months ended March 31, 2026, while it weakened against these currencies during the same period of 2025.

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 Euro and the British Pound during the six months ended June 30, 2026, while it weakened against these currencies during the same period of 2025.

Previous wording

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 $51.8 million for the three months ended March 31, 2026 compared to gains of $64.4 million for the same period of 2025.

Current wording

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 $2.7 million and $54.5 million for the quarter and six months ended June 30, 2026 compared to gains of $158.4 million and $222.7 million for the same periods of 2025.

Previous wording

Investments, cash and cash equivalents, and restricted cash and cash equivalents (invested assets) were $36.5 billion and $37.4 billion at March 31, 2026 and December 31, 2025, respectively. The decrease in invested assets was primarily attributable to a decrease in the fair value of our equity securities. Our holding company had $4.0 billion and $4.4 billion of invested assets at March 31, 2026 and December 31, 2025, respectively. The decrease in invested assets at our holding company was primarily attributable to a decrease in the fair value of equity securities held by our holding company and cash used to repurchase shares of our common stock. For further details on the composition of our invested assets, see "Consolidated Investment Results."

Current wording

Investments, cash and cash equivalents, and restricted cash and cash equivalents (invested assets) were $37.6 billion and $37.4 billion at June 30, 2026 and December 31, 2025, respectively. Our holding company had $4.0 billion and $4.4 billion of invested assets at June 30, 2026 and December 31, 2025, respectively. The decrease in invested assets at our holding company was primarily attributable to cash used to repurchase shares of our common stock. For further details on the composition of our invested assets, see "Consolidated Investment Results."

Previous wording

We have a share repurchase program, authorized by our Board of Directors, that provides for the repurchase of up to $2 billion of common stock. As of March 31, 2026, $1.4 billion remained available for repurchase 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 $2 billion of common stock. As of June 30, 2026, $1.1 billion remained available for repurchase 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 $15.9 million for the three months ended March 31, 2026 compared to $376.2 million for the same period of 2025. The decrease was primarily attributable to higher net claims payments and lower net premiums collected within our Markel Insurance Segment, due in part to net payments made in the first quarter of 2026 totaling $107.7 million to reinsure our exposures on our Hagerty business following the transition of that business to a fronting arrangement in 2026. Lower premium collections in 2026 also reflect the impact of lower premium volume due to the run off of our Global Reinsurance division. The decrease in operating cash flows was also attributable to lower cash flows from our Financial and Industrial segments and higher net tax payments in the first quarter of 2026.

Current wording

Net cash provided by operating activities was $444.8 million for the six months ended June 30, 2026 compared to $880.6 million for the same period of 2025. Operating cash flows in the first half of 2026 reflected net payments totaling $107.7 million to reinsure our exposures on our Hagerty business following its transition to a fronting arrangement and a $104.2 million decline in premium collections within our run-off Global Reinsurance division. Additionally, lower operating cash flows for Markel Insurance in 2026 reflected higher net claims payments, partially offset by higher net premium collections from our ongoing divisions and higher cash flows from investments. The decrease in operating cash flows was also due in part to lower operating cash flows from our Financial and Industrial segments and higher net tax payments in the first half of 2026.

Previous wording

Net cash used by investing activities was $348.2 million for the three months ended March 31, 2026 compared to net cash provided by investing activities of $192.8 million for the same period of 2025. During the three months ended March 31, 2026, net cash used by investing activities included net purchases of fixed maturity securities and equity securities of $271.6 million and $28.0 million, respectively. During the three months ended March 31, 2025, net cash provided by investing activities included net sales of short-term investments of $447.4 million and net purchases of fixed maturity securities and equity securities of $242.2 million and $56.7 million, respectively. Cash flows from investing activities are 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 $545.5 million for the six months ended June 30, 2026 compared to net cash provided by investing activities of $83.4 million for the same period of 2025. During the six months ended June 30, 2026, net cash used by investing activities included net purchases of short-term investments, fixed maturity securities, and equity securities of $274.2 million, $123.2 million, and $21.3 million, respectively. During the six months ended June 30, 2025, net cash provided by investing activities included net sales of short-term investments of $729.0 million and net purchases of fixed maturity securities and equity securities of $485.6 million and $96.5 million, respectively. Cash flows from investing activities are 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 $79.5 million for the three months ended March 31, 2026 compared to $105.8 million for the same period of 2025. Cash of $133.9 million and $170.3 million was used to repurchase shares of our common stock during the first three months of 2026 and 2025, respectively. Additionally, financing activities during the three months ended March 31, 2026 and 2025 reflected borrowings and repayments of debt at certain of our operating businesses, primarily on revolving lines of credit.

Current wording

Net cash used by financing activities was $421.5 million for the six months ended June 30, 2026 compared to $927.7 million for the same period of 2025. Cash of $370.7 million and $269.6 million was used to repurchase shares of our common stock during the first half of 2026 and 2025, respectively. Additionally, financing activities during the six months ended June 30, 2026 and 2025 reflected borrowings and repayments of debt at certain of our operating businesses, primarily on revolving lines of credit. Net cash used by financing activities in the first half of 2025 also included $600.0 million of cash used to redeem our preferred stock.

Previous wording

Consolidated adjusted operating income, which excludes net investment gains and losses, amortization of acquired intangible assets, and impairment of goodwill, is a non-GAAP financial measure. We believe adjusted operating income is generally an accurate representation of the operating performance of our businesses in our periodic results. Net investment gains and losses are predominantly derived from our investments in publicly traded equity securities and include significant unrealized gains and losses from market value movements. We believe that net investment gains and losses, whether realized from sales or unrealized from market value movements, are distortive in understanding the short-term operating performance of our businesses. We do not view amortization of intangible assets and impairment of goodwill, which arise from purchase accounting for acquisitions, as ongoing costs of operating our businesses, and therefore exclude those amounts from our adjusted operating income metric.

Current wording

Consolidated adjusted operating income, which excludes net investment gains and losses, amortization of acquired intangible assets, and impairment of goodwill, is a non-GAAP financial measure. We believe adjusted operating income is generally an accurate representation of the operating performance of our businesses in our periodic results. 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. We believe that net investment gains and losses, whether realized from sales or unrealized from market value movements, are distortive in understanding the short-term operating performance of our businesses. We do not view amortization of intangible assets and impairment of goodwill, which arise from purchase accounting for acquisitions, as ongoing costs of operating our businesses, and therefore exclude those amounts from our adjusted operating income metric.