MARKEL GROUP INC.

Previous wording

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

Current wording

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

Previous wording

Markel Insurance is our core 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 by investing the capital held by its underwriting subsidiaries, as well as through other insurance-related activities, which includes fronting and strategic minority investments. Markel Insurance is primarily comprised of its U.S. Wholesale and Specialty, Program and Solutions, International, and Global Reinsurance divisions. 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.

Current wording

Markel Insurance is our core 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 by investing the capital held by its underwriting subsidiaries, as well as through other insurance-related activities, which includes fronting and strategic minority investments. Markel Insurance is primarily comprised of its U.S. Wholesale and Specialty, Programs and Solutions, International, and Global Reinsurance divisions. Markel Insurance also includes the run-off of the discontinued intellectual property collateral protection insurance product line, life and annuity reinsurance business, and certain asbestos and environmental exposures, none of which is managed through its divisions.

Previous 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."

Current wording

The 19% increase in adjusted operating income for the nine months ended September 30, 2026 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

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.

Current wording

In February 2026, a regional military conflict emerged in the Middle East following U.S. and Israeli airstrikes on Iran. The following table summarizes the impact of losses attributed to the Middle East conflict on the Markel Insurance segment combined ratio. Our losses and loss adjustment expenses from the Middle East conflict were primarily attributed to marine war, terrorism, and energy coverages written by the International division.

Previous 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.

Current wording

Both the gross and net loss estimates related to the Middle East conflict represent our best estimate as of September 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. These estimates include various assumptions about the nature and extent of such losses, which, in many instances, have been difficult to verify, as well as assumptions about event definitions, attachment points, and reinsurance coverage. Due to the inherent uncertainty associated with the assumptions surrounding the Middle East conflict, these estimates are subject to a wide range of variability.

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 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.

Current wording

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. We have recognized significant additional gross written premiums for these coverages, commonly referred to as breach premiums, as a result of the Middle East conflict. See "Premiums" for additional details.

Previous 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.

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 nine months ended September 30, 2026, fronting gross premium volume attributed to Hagerty was $320.0 million and $918.1 million, respectively, all of which was ceded. For the quarter and nine months ended September 30, 2025, underwriting gross premium volume attributed to Hagerty was $284.6 million and $808.7 million, respectively, of which $219.3 million and $623.5 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

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.

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 attributed to the Global Reinsurance division for the quarter and nine months ended September 30, 2025 was $166.8 million and $1.1 billion, 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. 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.

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 underwriting losses were $54.3 million and $106.5 million for the quarter and nine months ended September 30, 2026, respectively, which had a three point and two point unfavorable impact on the quarter-to-date and year-to-date Markel Insurance segment combined ratios, respectively. The Global Reinsurance division underwriting losses in 2026 were driven by adverse development on our professional liability product lines.

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 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.

Current wording

(3) 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 nine months ended September 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 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.

Current wording

The decrease in underwriting gross premium volume in our Markel Insurance segment for the quarter and nine months ended September 30, 2026 was driven by the changes to our Global Reinsurance division and Hagerty relationship, as previously discussed. For the quarter and nine months ended September 30, 2026, adjusted underwriting gross premium volume, which excludes premiums attributed to the Global Reinsurance division and Hagerty in both periods, increased 9% and 10%, respectively. The increases in both periods were driven by significant increases on our international marine and energy product lines, as well as growth within our international professional liability 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.

Previous wording

The change in fronting gross premium volume for the quarter and six months ended June 30, 2026 was attributable to the change in our Hagerty relationship to a fronting arrangement and the fronted premiums within our Global Reinsurance division, as previously discussed, and lower premiums on our property catastrophe programs with Nephila period-over-period. For the quarter ended June 30, 2026, fronting gross premium volume consisted of $783.1 million, $344.8 million, and $154.1 million attributable to Nephila, Hagerty, and Global Reinsurance, respectively. For the six months ended June 30, 2026, fronting gross premium volume consisted of $1.0 billion, $598.1 million, and $231.1 million attributable to Nephila, Hagerty, and Global Reinsurance, respectively. For the quarter and six months ended June 30, 2025, fronting gross premium volume was fully attributable to Nephila.

Current wording

The increase in fronting gross premium volume for the quarter and nine months ended September 30, 2026 was attributable to the change in our Hagerty relationship to a fronting arrangement and the fronted premiums within our Global Reinsurance division, as previously discussed, partially offset by lower premiums on our property catastrophe programs with Nephila period-over-period. For the quarter ended September 30, 2026, fronting gross premium volume consisted of $77.6 million, $320.0 million, and $21.5 million attributable to Nephila, Hagerty, and Global Reinsurance, respectively. For the nine months ended September 30, 2026, fronting gross premium volume consisted of $1.1 billion, $918.1 million, and $252.6 million attributable to Nephila, Hagerty, and Global Reinsurance, respectively. For the quarter and nine months ended September 30, 2025, fronting gross premium volume was fully attributable to Nephila.

Previous 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.

Current wording

Rates in the aggregate across our diversified global product portfolio remained relatively flat through the first nine months 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. excess casualty and umbrella, primary casualty, management liability, and personal lines 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 continue to achieve adequate rates for these product lines. Within our U.S. property product lines, we continue to see a softening market with overall rate decreases due to the low level of natural catastrophe losses in recent years.

Previous wording

Net retention of underwriting gross premium volume for the quarters ended June 30, 2026 and 2025 was 86% and 77%, respectively. Net retention of underwriting gross premium volume for the six months ended June 30, 2026 and 2025 was 83% and 79%, respectively.

Current wording

Net retention of underwriting gross premium volume for the quarters ended September 30, 2026 and 2025 was 87% and 79%, respectively. Net retention of underwriting gross premium volume for the nine months ended September 30, 2026 and 2025 was 84% and 79%, respectively.

Previous 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.

Current wording

The increase in net retention for both the quarter and nine months ended September 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 nine months ended September 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.

Previous 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.

Current wording

For the quarter ended September 30, 2026, the increase in earned premiums was primarily due to breach premiums related to the Middle East conflict, which cover shorter policy terms than typical policies, partially offset by the impact of the changes in gross premium volume in recent periods, as previously discussed. For the nine months ended September 30, 2026, the decrease in earned premiums was primarily due to the impact of the changes in gross premium volume in recent periods, as previously discussed.

Previous 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.

Current wording

Underwriting results for the quarter ended September 30, 2026 included $74.6 million, or three points on the combined ratio, of net losses and loss adjustment expenses related to the Middle East conflict. Underwriting results for the quarter ended September 30, 2025 included a $4.3 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 September 30, 2026 was primarily attributable to a lower attritional loss ratio. The decrease in the attritional loss ratio was primarily attributable to our international marine and energy product lines, reflecting a favorable impact from breach premiums and additional growth, as our marine and energy product lines have a lower attritional loss ratio than the rest of the segment.

Previous wording

The combined ratio for the quarter ended June 30, 2026 included $166.6 million of favorable development on prior accident years loss reserves compared to $78.9 million for the same period of 2025. The increase in favorable development was primarily driven by more favorable development on our property insurance product lines and less adverse development on our U.S. and Bermuda professional liability product lines. For the quarter ended June 30, 2026, favorable development was most significant on the more recent accident years within our property, marine and energy, and workers' compensation insurance product lines. For the quarter ended June 30, 2025, favorable development was most significant within our property and marine and energy insurance product lines. Favorable development in the second quarter of 2025 was net of $127.0 million 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.

Current wording

The combined ratio for the quarter ended September 30, 2026 included $113.6 million of favorable development on prior accident years loss reserves compared to $129.1 million for the same period of 2025. The decrease in favorable development was primarily attributable to less favorable development on our international marine and energy product lines and U.S. general liability insurance product lines, as well as more adverse development on our professional liability product lines within our Global Reinsurance division. The decrease in favorable development was net of more favorable development on our property and workers' compensation insurance product lines and favorable development on our international professional liability insurance product lines for 2026 compared to adverse development in 2025.

Previous wording

Underwriting results for the six months ended June 30, 2026 included $76.0 million, or two points on the combined ratio, of net losses and loss adjustment expenses related to the Middle East conflict. Underwriting results for the six months ended June 30, 2025 included $60.9 million, or one and a half points on the combined ratio, of net losses and loss adjustment expenses attributed to the California Wildfires. Excluding losses attributed to catastrophes, the decrease in the Markel Insurance segment combined ratio for the six months ended June 30, 2026 was primarily attributable to a lower attritional loss ratio and more favorable development on prior accident years loss reserves. The decrease in the attritional loss ratio for the six months ended June 30, 2026 was due to the same factors as discussed on a quarter-to-date basis.

Current wording

Underwriting results for the nine months ended September 30, 2026 included $150.6 million, or two points on the combined ratio, of net losses and loss adjustment expenses related to the Middle East conflict. Underwriting results for the nine months ended September 30, 2025 included $56.6 million, or one point on the combined ratio, of net losses and loss adjustment expenses attributed to the California Wildfires. Excluding losses attributed to catastrophes, the decrease in the Markel Insurance segment combined ratio for the nine months ended September 30, 2026 was primarily attributable to a lower attritional loss ratio. The decrease in the attritional loss ratio for the nine months ended September 30, 2026 was due to the same factors as discussed on a quarter-to-date basis.

Previous 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.

Current wording

For the nine months ended September 30, 2026, favorable development was most significant within our property, workers' compensation, marine and energy, professional liability, credit and surety, and general liability insurance product lines. Favorable development for the nine months ended September 30, 2026 was net of adverse development on our professional liability and general liability product lines within our Global Reinsurance division. For the nine months ended September 30, 2025, favorable development was most significant within our marine and energy, general liability, property, programs, and workers' compensation insurance product lines. Favorable development for the nine months ended September 30, 2025 was net of $142.3 million 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 4% 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, 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 quarter ended June 30, 2026 decreased five points primarily due to improved performance within our property product lines and our binding business.

Current wording

The 3% decreases in gross premium volume and earned premiums within the U.S. Wholesale and Specialty division for the quarter ended September 30, 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 quarter ended September 30, 2026 was consistent with the third quarter of 2025 at 89% as the impact of a lower attritional loss ratio and expense ratio was offset by the impact of less favorable development on prior accident years loss reserves within our general liability product lines.

Previous wording

The 27% decrease in underwriting gross premium volume within the Programs and Solutions division for the quarter ended June 30, 2026 was primarily attributable to the transition of the Hagerty business to a fronting arrangement, partially offset by growth within our programs product lines, as well as specialty lines written from our Bermuda platform. The 13% decrease in fronting gross premium volume was driven by lower premiums on our property catastrophe programs with Nephila driven by rate decreases. The Programs and Solutions division's combined ratio for the quarter ended June 30, 2026 increased three points primarily due to a higher attritional loss ratio, partially offset by more favorable development on prior accident years loss reserves.

Current wording

The 37% decrease in underwriting gross premium volume within the Programs and Solutions division for the quarter ended September 30, 2026 was primarily attributable to the transition of the Hagerty business to a fronting arrangement and declines within our programs product lines. The 138% increase in fronting gross premium volume was primarily attributable to 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 quarter ended September 30, 2026 decreased seven points due to the impact of more favorable development on prior accident years loss reserves within our workers' compensation and property product lines, as well as a lower attritional loss ratio.

Previous 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.

Current wording

The 5% decreases in gross premium volume and earned premiums within the U.S. Wholesale and Specialty division for the nine months ended September 30, 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 nine months ended September 30, 2026 decreased four points primarily due to a lower current accident year loss ratio and expense ratio, partially offset by the impact of less favorable development on prior accident years loss reserves, driven by our general liability product lines.

Previous 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.

Current wording

The 28% decrease in underwriting gross premium volume within the Programs and Solutions division for the nine months ended September 30, 2026 was primarily attributable to the transition of the Hagerty business to a fronting arrangement. The 11% increase in fronting gross premium volume was primarily attributable to 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 nine months ended September 30, 2026 decreased four points primarily due to more favorable development on prior accident years loss reserves within our property and workers' compensation product lines.

Previous 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.

Current wording

For the quarter ended September 30, 2026, the increase in operating revenues 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 10% for the quarter ended September 30, 2026. Organic revenue growth is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional details.

Previous 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.

Current wording

For the quarter ended September 30, 2026, organic revenue growth was primarily attributable to increased demand for our precast concrete products, as well as higher sales volumes of our fire safety solutions, building products distribution services, and equipment leasing services, partially offset by lower sales volume of our car-hauling equipment, driven by a down cycle in demand for the industry.

Previous wording

For the six months ended June 30, 2026, the increase in operating revenues 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 2% for the six months ended June 30, 2026.

Current wording

For the nine months ended September 30, 2026, the increase in operating revenues 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 5% for the nine months ended September 30, 2026. For the nine months ended September 30, 2026, organic revenue growth was due to the same factors as discussed on a quarter-to-date basis.

Previous 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.

Current wording

For the nine months ended September 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

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.

Current wording

For the nine months ended September 30, 2026, operating revenues were consistent with the same period of 2025, as organic revenue growth of 9% was largely offset by the impact of $41.4 million of income related to our minority investment in Velocity Holdco, LLC (Velocity) in 2025 following the sale of its managing general agent operations and insurance carrier.

Previous 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.

Current wording

For the nine months ended September 30, 2026, the decrease in adjusted operating income was primarily attributable to the impact of a $205.3 million provision for expected credit losses within our State National program services operations. 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 provision for expected credit losses within our State National program services operations relates to reinsurance recoverables due from a capacity provider that is currently in bankruptcy. In the second quarter of 2026, we completed an actuarial reserve assessment on the programs in which this capacity provider participated, which included a third-party actuarial reserve study, and increased our gross and ceded losses related to these programs. We do not expect to be able to obtain additional collateral from the capacity provider to secure the related increase in reinsurance recoverables and, therefore, recognized a $205.3 million provision for expected credit losses. We continue to pursue additional collateral and other contractual means of recovery for these reinsurance recoverables. See note 7 of the notes to consolidated financial statements for additional details.

Current wording

The provision for expected credit losses within our State National program services operations relates to reinsurance recoverables due from a capacity provider that is currently in bankruptcy. In the second quarter of 2026, we completed an actuarial reserve assessment on the programs in which this capacity provider participated, which included a third-party actuarial reserve study, and increased our gross and ceded losses related to these programs. We do not expect to be able to obtain additional collateral from the capacity provider to secure the related increase in reinsurance recoverables and, therefore, recognized a $205.3 million provision for expected credit losses. See note 7 of the notes to consolidated financial statements for additional details.

Previous wording

For the quarter ended June 30, 2026, the increase in operating revenues was primarily attributable to increased sales of ornamental plants and higher prices on home sales. Revenue growth and organic revenue growth for our Consumer and Other segment were consistent at 4% for the quarter ended June 30, 2026. For the quarter ended June 30, 2026, the increase in adjusted operating income was primarily attributable to higher margins on increased sales of ornamental plants, as well as improved performance at several other businesses.

Current wording

For the quarter ended September 30, 2026, the increase in operating revenues was primarily attributable to increased sales of ornamental plants and modest increases across our service offerings, partially offset by the impact of lower home sales volume. Revenue growth and organic revenue growth for our Consumer and Other segment were consistent at 2% for the quarter ended September 30, 2026. For the quarter ended September 30, 2026, the increase in adjusted operating income was attributable to modest increases across each of our businesses.

Previous 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.

Current wording

For the nine months ended September 30, 2026, the increase in operating revenues reflected the impact of a full nine-month contribution from Educational Partners International (EPI), which we began consolidating in the first quarter of 2025, and from an acquisition made by one of our businesses in April 2025. Organic revenue growth for our Consumer and Other segment was flat for the nine months ended September 30, 2026 as the impact of increased sales of ornamental plants was largely offset by the impact of lower home sales volume. For the nine months ended September 30, 2026, the increase in adjusted operating income was driven by higher margins on increased sales of ornamental plants and an increased contribution from EPI.

Previous 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.

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 September 30, 2026, the fair value of our equity portfolio included cumulative pre-tax unrealized gains of $9.0 billion.

Previous 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.

Current wording

The increase in net investment income for the quarter and nine months ended September 30, 2026 was driven by higher interest income on fixed maturity securities due to higher average holdings and higher yields in 2026 compared to 2025. For the nine months ended September 30, 2026, the increase was also driven by higher dividend income on equity securities. These increases were partially offset by lower interest income on cash and cash equivalents due to lower average yields and lower average holdings 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 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.

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 receivable 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 six months ended June 30, 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 quarter and nine months ended September 30, 2026. 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.

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 (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.

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 $8.6 million and $63.1 million for the quarter and nine months ended September 30, 2026 compared to losses of $25.0 million and gains of $197.7 million for the same periods of 2025.

Previous 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."

Current wording

Investments, cash and cash equivalents, and restricted cash and cash equivalents (invested assets) were $37.4 billion at both September 30, 2026 and December 31, 2025. Our holding company had $3.6 billion and $4.4 billion of invested assets at September 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 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.

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 September 30, 2026, $832.6 million 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.