Markel hit by tough financial markets

Hit by last year's slump in financial markets, Richmond-based specialty insurance giant Markel reported investment losses, even as its core insurance operations saw gains in their business.

The company reported operating revenue fell 9% for the year, to $11.68 billion, as it saw a more than $3.5 billion swing from 2021's $1.98 billion in gains on its investment holdings to last year's nearly $1.6 billion loss.

A more than $900 million increase in payments for claims, to $4.44 billion also pressured results, leaving Markel with a net loss to common stockholders of $250 million compared to 2021's income of $2.39 billion.

Its insurance and reinsurance businesses' operating revenue rose 18% to $8.09 billion while its profit from these business was essentially flat, at $627 million. Strong results from its reinsurance business offset a drop in underwriting profit from its insurance segment.

The company's Markel Ventures unit – its holdings in companies ranging from a luxury handbag firm to a heavy lift crane company to the Richmond homebuilder Eagle – saw a 31% rise in revenue, to $4.76 billion and 10% increase in net income, to $192 million.

Markel noted that accounting rules for unrealized gains or losses on its investments may tend to hide its operating performance, because of the size of its more than $27 billion of investments.