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Segment Reporting Disclosures | 9 Months Ended
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Sep. 30, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] |
Segment Reporting Disclosures | Segment Reporting Disclosures The chief operating decision maker reviews the Company's ongoing underwriting operations on a global basis in the following two segments: Insurance and Reinsurance. In determining how to allocate resources and assess the performance of the Company's underwriting results, management considers many factors, including the nature of the insurance product sold, the type of account written and the type of customer served. The Insurance segment includes all direct business and facultative placements written on a risk-bearing basis within the Company's underwriting operations. The Reinsurance segment includes all treaty reinsurance written on a risk-bearing basis within the Company's underwriting operations. All investing activities related to the Company's insurance operations are included in the Investing segment. The Company's other insurance operations primarily consist of the results of the Company's insurance-linked securities operations and program services business. Other insurance operations also include results for lines of business discontinued prior to, or in conjunction with, acquisitions, including development on asbestos and environmental loss reserves and results attributable to the run-off of life and annuity reinsurance business, which are monitored separately from the Company's ongoing underwriting operations. For purposes of segment reporting, none of these other insurance operations are considered to be reportable segments. The Company's chief operating decision maker reviews and assesses Markel Ventures' performance in the aggregate, as a single operating segment. The Markel Ventures segment primarily consists of controlling interests in a diverse portfolio of businesses that operate in various industries. Segment profit for each of the Company's underwriting segments is measured by underwriting profit. The property and casualty insurance industry commonly defines underwriting profit as earned premiums net of losses and loss adjustment expenses and underwriting, acquisition and insurance expenses. Underwriting profit does not replace operating income or net income computed in accordance with U.S. GAAP as a measure of profitability. Underwriting profit or loss provides a basis for management to evaluate the Company's underwriting performance. Segment profit for the Company's underwriting segments may also include other revenues and expenses that are attributable to the Company's underwriting operations that are not captured in underwriting profit. Segment profit for the Investing segment is measured by income from the Company's investment portfolio, which is comprised of net investment income and net investment gains. Segment profit for the Investing segment also includes income from equity method investments, which is included within services and other revenues. Segment profit for the Markel Ventures segment is measured by operating income. For management reporting purposes, the Company allocates assets to its underwriting operations and to its Investing and Markel Ventures segments and certain of its other operations, including its insurance-linked securities and program services operations. Underwriting assets include assets attributed to the Company's Insurance and Reinsurance segments, discontinued underwriting lines of business, as well as assets that are not specifically allocated to the Company's other operations. Generally, the Company manages its underwriting assets in the aggregate and therefore does not allocate assets to individual underwriting segments. a) The following tables summarize the Company's segment disclosures.
| Quarter Ended September 30, 2023
(dollars in thousands) | Insurance |  | Reinsurance |  | Investing |  | Markel Ventures |  | Other (1) |  | Consolidated
Earned premiums | $ | 1,848,267 |  |  | $ | 274,161 |  |  | $ | — |  |  | $ | — |  |  | $ | (683) |  |  | $ | 2,121,745 |
Net investment income | — |  |  | — |  |  | 191,015 |  |  | 1,192 |  |  | — |  |  | 192,207 |
Net investment losses | — |  |  | — |  |  | (265,917) |  |  | — |  |  | — |  |  | (265,917) |
Products revenues | — |  |  | — |  |  | — |  |  | 601,524 |  |  | — |  |  | 601,524 |
Services and other revenues | — |  |  | — |  |  | (5,033) |  |  | 644,053 |  |  | 86,607 |  |  | 725,627 |
Total operating revenues | 1,848,267 |  |  | 274,161 |  |  | (79,935) |  |  | 1,246,769 |  |  | 85,924 |  |  | 3,375,186 |
Losses and loss adjustment expenses: |  |  |  |  |  |  |  |  |  |  |
Current accident year | (1,258,864) |  |  | (176,007) |  |  | — |  |  | — |  |  | — |  |  | (1,434,871) |
Prior accident years | 55,374 |  |  | (23,262) |  |  | — |  |  | — |  |  | (1,566) |  |  | 30,546 |
Underwriting, acquisition and insurance expenses: |  |  |  |  |  |  |  |  |  |  |
Amortization of policy acquisition costs | (369,001) |  |  | (68,919) |  |  | — |  |  | — |  |  | — |  |  | (437,920) |
Other underwriting expenses | (250,684) |  |  | (11,785) |  |  | — |  |  | — |  |  | 2,260 |  |  | (260,209) |
Products expenses | — |  |  | — |  |  | — |  |  | (545,567) |  |  | — |  |  | (545,567) |
Services and other expenses | — |  |  | — |  |  | — |  |  | (570,782) |  |  | (36,028) |  |  | (606,810) |
Amortization of intangible assets (2) | — |  |  | — |  |  | — |  |  | (23,118) |  |  | (24,427) |  |  | (47,545) |
Segment profit (loss) | $ | 25,092 |  |  | $ | (5,812) |  |  | $ | (79,935) |  |  | $ | 107,302 |  |  | $ | 26,163 |  |  | $ | 72,810 |
Interest expense |  |  |  |  |  |  |  |  |  |  | (44,553) |
Net foreign exchange gains |  |  |  |  |  |  |  |  |  |  | 39,246 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  | $ | 67,503 |
(1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment, as well as amortization of intangible assets attributable to underwriting segments, which is not allocated between the Insurance and Reinsurance segments. (2) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets attributable to the Company's underwriting segments, included in Other, was $9.1 million for the quarter ended September 30, 2023.
| Quarter Ended September 30, 2022
(dollars in thousands) | Insurance |  | Reinsurance |  | Investing |  | Markel Ventures |  | Other (1) |  | Consolidated
Earned premiums | $ | 1,695,029 |  |  | $ | 260,535 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,266 |  |  | $ | 1,956,830 |
Net investment income | — |  |  | — |  |  | 112,297 |  |  | 317 |  |  | — |  |  | 112,614 |
Net investment losses | — |  |  | — |  |  | (281,483) |  |  | — |  |  | — |  |  | (281,483) |
Products revenues | — |  |  | — |  |  | — |  |  | 586,531 |  |  | — |  |  | 586,531 |
Services and other revenues | — |  |  | — |  |  | (4,883) |  |  | 629,215 |  |  | 67,321 |  |  | 691,653 |
Total operating revenues | 1,695,029 |  |  | 260,535 |  |  | (174,069) |  |  | 1,216,063 |  |  | 68,587 |  |  | 3,066,145 |
Losses and loss adjustment expenses: |  |  |  |  |  |  |  |  |  |  |
Current accident year | (1,100,511) |  |  | (166,485) |  |  | — |  |  | — |  |  | — |  |  | (1,266,996) |
Prior accident years | 53,760 |  |  | 29,505 |  |  | — |  |  | — |  |  | (1,582) |  |  | 81,683 |
Underwriting, acquisition and insurance expenses: |  |  |  |  |  |  |  |  |  |  |
Amortization of policy acquisition costs | (362,137) |  |  | (68,662) |  |  | — |  |  | — |  |  | (383) |  |  | (431,182) |
Other underwriting expenses | (200,604) |  |  | (11,638) |  |  | — |  |  | — |  |  | 152 |  |  | (212,090) |
Products expenses | — |  |  | — |  |  | — |  |  | (580,830) |  |  | — |  |  | (580,830) |
Services and other expenses | — |  |  | — |  |  | — |  |  | (556,207) |  |  | 9,823 |  |  | (546,384) |
Amortization of intangible assets (2) | — |  |  | — |  |  | — |  |  | (18,567) |  |  | (24,851) |  |  | (43,418) |
Segment profit (loss) | $ | 85,537 |  |  | $ | 43,255 |  |  | $ | (174,069) |  |  | $ | 60,459 |  |  | $ | 51,746 |  |  | $ | 66,928 |
Interest expense |  |  |  |  |  |  |  |  |  |  | (47,348) |
Net foreign exchange gains |  |  |  |  |  |  |  |  |  |  | 113,635 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  | $ | 133,215 |
(1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment, as well as amortization of intangible assets attributable to underwriting segments, which is not allocated between the Insurance and Reinsurance segments. (2) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets attributable to the Company's underwriting segments, included in Other, was $9.6 million for the quarter ended September 30, 2022.
| Nine Months Ended September 30, 2023
(dollars in thousands) | Insurance |  | Reinsurance |  | Investing |  | Markel Ventures |  | Other (1) |  | Consolidated
Earned premiums | $ | 5,322,377 |  |  | $ | 799,683 |  |  | $ | — |  |  | $ | — |  |  | $ | (1,468) |  |  | $ | 6,120,592 |
Net investment income | — |  |  | — |  |  | 518,536 |  |  | 2,699 |  |  | — |  |  | 521,235 |
Net investment gains | — |  |  | — |  |  | 591,173 |  |  | — |  |  | — |  |  | 591,173 |
Products revenues | — |  |  | — |  |  | — |  |  | 1,964,332 |  |  | — |  |  | 1,964,332 |
Services and other revenues | — |  |  | — |  |  | (13,791) |  |  | 1,770,997 |  |  | 206,573 |  |  | 1,963,779 |
Total operating revenues | 5,322,377 |  |  | 799,683 |  |  | 1,095,918 |  |  | 3,738,028 |  |  | 205,105 |  |  | 11,161,111 |
Losses and loss adjustment expenses: |  |  |  |  |  |  |  |  |  |  |
Current accident year | (3,415,860) |  |  | (519,109) |  |  | — |  |  | — |  |  | — |  |  | (3,934,969) |
Prior accident years | 179,564 |  |  | (6,584) |  |  | — |  |  | — |  |  | (3,226) |  |  | 169,754 |
Underwriting, acquisition and insurance expenses: |  |  |  |  |  |  |  |  |  |  |
Amortization of policy acquisition costs | (1,096,500) |  |  | (202,271) |  |  | — |  |  | — |  |  | — |  |  | (1,298,771) |
Other underwriting expenses | (733,334) |  |  | (38,113) |  |  | — |  |  | — |  |  | (1,503) |  |  | (772,950) |
Products expenses | — |  |  | — |  |  | — |  |  | (1,712,792) |  |  | — |  |  | (1,712,792) |
Services and other expenses | — |  |  | — |  |  | — |  |  | (1,632,588) |  |  | (45,658) |  |  | (1,678,246) |
Amortization of intangible assets (2) | — |  |  | — |  |  | — |  |  | (62,528) |  |  | (73,839) |  |  | (136,367) |
Segment profit | $ | 256,247 |  |  | $ | 33,606 |  |  | $ | 1,095,918 |  |  | $ | 330,120 |  |  | $ | 80,879 |  |  | $ | 1,796,770 |
Interest expense |  |  |  |  |  |  |  |  |  |  | (141,212) |
Net foreign exchange losses |  |  |  |  |  |  |  |  |  |  | (8,658) |
Income before income taxes |  |  |  |  |  |  |  |  |  |  | $ | 1,646,900 |
(1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment, as well as amortization of intangible assets attributable to underwriting segments, which is not allocated between the Insurance and Reinsurance segments. (2) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets attributable to the Company's underwriting segments, included in Other, was $28.0 million for the nine months ended September 30, 2023.
| Nine Months Ended September 30, 2022
(dollars in thousands) | Insurance |  | Reinsurance |  | Investing |  | Markel Ventures |  | Other (1) |  | Consolidated
Earned premiums | $ | 4,742,178 |  |  | $ | 808,656 |  |  | $ | — |  |  | $ | — |  |  | $ | (1,130) |  |  | $ | 5,549,704 |
Net investment income | — |  |  | — |  |  | 301,289 |  |  | 424 |  |  | — |  |  | 301,713 |
Net investment losses | — |  |  | — |  |  | (2,194,525) |  |  | — |  |  | — |  |  | (2,194,525) |
Products revenues | — |  |  | — |  |  | — |  |  | 1,845,111 |  |  | — |  |  | 1,845,111 |
Services and other revenues | — |  |  | — |  |  | (27,590) |  |  | 1,682,318 |  |  | 307,857 |  |  | 1,962,585 |
Total operating revenues | 4,742,178 |  |  | 808,656 |  |  | (1,920,826) |  |  | 3,527,853 |  |  | 306,727 |  |  | 7,464,588 |
Losses and loss adjustment expenses: |  |  |  |  |  |  |  |  |  |  |
Current accident year | (2,906,031) |  |  | (514,875) |  |  | — |  |  | — |  |  | — |  |  | (3,420,906) |
Prior accident years | 196,093 |  |  | 13,845 |  |  | — |  |  | — |  |  | (5,527) |  |  | 204,411 |
Underwriting, acquisition and insurance expenses: |  |  |  |  |  |  |  |  |  |  |
Amortization of policy acquisition costs | (996,369) |  |  | (209,541) |  |  | — |  |  | — |  |  | (415) |  |  | (1,206,325) |
Other underwriting expenses | (596,426) |  |  | (37,708) |  |  | — |  |  | — |  |  | (2,647) |  |  | (636,781) |
Products expenses | — |  |  | — |  |  | — |  |  | (1,726,367) |  |  | — |  |  | (1,726,367) |
Services and other expenses | — |  |  | — |  |  | — |  |  | (1,524,167) |  |  | (169,589) |  |  | (1,693,756) |
Amortization of intangible assets (2) | — |  |  | — |  |  | — |  |  | (60,077) |  |  | (74,913) |  |  | (134,990) |
Segment profit (loss) | $ | 439,445 |  |  | $ | 60,377 |  |  | $ | (1,920,826) |  |  | $ | 217,242 |  |  | $ | 53,636 |  |  | $ | (1,150,126) |
Interest expense |  |  |  |  |  |  |  |  |  |  | (147,090) |
Net foreign exchange gains |  |  |  |  |  |  |  |  |  |  | 241,706 |
Loss before income taxes |  |  |  |  |  |  |  |  |  |  | $ | (1,055,510) |
(1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment, as well as amortization of intangible assets attributable to underwriting segments, which is not allocated between the Insurance and Reinsurance segments. (2) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets attributable to the Company's underwriting segments, included in Other, was $29.0 million for the nine months ended September 30, 2022. b) The following amounts attributable to the Markel Ventures segment are also reviewed, or included in measures reviewed, by the Company's chief operating decision maker.
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(dollars in thousands) | 2023 |  | 2022 |  | 2023 |  | 2022
Depreciation expense | $ | 26,857 |  |  | $ | 23,738 |  |  | $ | 81,639 |  |  | $ | 75,304 |
Interest expense (1) | $ | 10,663 |  |  | $ | 11,921 |  |  | $ | 36,485 |  |  | $ | 34,124 |
Income tax expense | $ | 22,253 |  |  | $ | 12,603 |  |  | $ | 66,022 |  |  | $ | 43,682 |
Capital expenditures | $ | 65,616 |  |  | $ | 48,294 |  |  | $ | 135,159 |  |  | $ | 144,974 |
(1) Interest expense for the quarter and nine months ended September 30, 2023 included intercompany interest expense of $6.6 million and $19.9 million, respectively. Interest expense for the quarter and nine months ended September 30, 2022 included intercompany interest expense of $6.6 million and $20.7 million, respectively. Intercompany interest expense was eliminated in consolidation. c) The following table reconciles segment assets to the Company's consolidated balance sheets.
(dollars in thousands) | September 30, 2023 |  | December 31, 2022
Segment assets: |  |  |
Investing | $ | 28,522,052 |  |  | $ | 26,982,280 |
Underwriting | 9,884,553 |  |  | 8,853,559 |
Markel Ventures | 5,444,105 |  |  | 5,315,677 |
Total segment assets | 43,850,710 |  |  | 41,151,516 |
Other operations | 8,898,006 |  |  | 8,639,743 |
Total assets | $ | 52,748,716 |  |  | $ | 49,791,259 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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