Markel (NYSE: MKL) on Thursday reported fourth-quarter earnings that fell from the year-ago quarter as the insurer suffered a rise in costs as well as a higher combined ratio. Also, his net investment income fell as the fair value of its equity and bond portfolios declined due to market volatility.
Fourth-quarter earnings per share of $49.05, which may have missed analysts’ average estimate of $18.04, were down from $62.44 a year earlier. Revenue of $4.21 billion, beating the consensus estimate of $3.40 billion, was accelerated from $3.76 billion in 2021Q4.
Earned premiums were $2.04 billion for the quarter ended December 31, 2022, compared to $1.81 billion for the quarter ended December 31, 2021.
Gross premium of $3.05 billion was up from $2.78 billion in the same quarter last year.
Net Investment Income of $145.07M vs. $96.20M in Q4 2021 “Our investment income is beginning to benefit from higher interest rates, which we expect to continue as we purchase higher yielding securities” , said CEO Thomas S. Gayner.
Net investment income fell to $598.79 million from $802.74 million in the same period last year.
Operating expenses totaled $3.16 billion, compared to $2.58 billion in the fourth quarter of 2021.
The combined ratio was 93.3%, compared to 87.8% a year earlier.
Book value of $929.27 per share as of December 31, 2022, compared to $1,036.20 as of December 31, 2021.
Previously, Markel EPS of $49.05, revenue of $4.21 billion is better than $800 million.