Markel swings back into black Glen Allen-based Markel swings back into the black as markets improve

A rallying Wall Street and higher interest rates helped Glen Allen-based <a href="https://fortune.com/ranking/fortune500/" target="_blank">Fortune 500</a> financial giant <a href="https://www.markel.com/" target="_blank">Markel Group</a> swing back into the black last year, despite a tough year for its insurance businesses.

Hit by some $40 million in claims from the <a href="https://www.hawaiiwildfire.org/home" target="_blank">Hawaiian wildfires</a> and Hurricane Idalia, the category 4 storm that walloped north Florida in August, Markel's insurance operations' underwriting loss fell 71% to $162.2 million despite a 7% increase in premium revenue to $9.22 billion.

Its reinsurance business - basically insuring insurers against the biggest losses - saw its premium revenue fall 15% to $1.05 billion, with the result that this part of Markel's business suffered a $19.2 million underwriting loss.

But when it came time for Markel to cash in some of its investments in stocks, the company realized a $1.52 billion gain, a big change from the losses of $1.59 billion it swallowed in 2022.

Its income from investments, mainly bonds and other fixed-income securities, rose 64% to $734.5 million.

Its Markel Ventures segment, which includes companies that make precast concrete components for buildings and heavy duty cranes, saw its operating income rise 35% to $437.5 million as revenue rose 5% to $4.99 billion.

Whiles its Ventures segment was hurt in 2022 by increased materials, freight and labor costs, there was less pressure on profit margins from material and freight costs last year, the company said.

In all, Market saw 2023 net income of $1.96 billion compared with a loss of $252.3 million in 2022.

"We enjoyed excellent returns in 2023 from Markel Ventures, our investment operations, and many portions of our insurance business," said Thomas S. Gayner, chief executive officer.

<strong>Dave Ress</strong> (804) 649-6948dress@timesdispatch.com