XML 17 R8.htm IDEA: XBRL DOCUMENT v3.23.3
Segment Reporting Disclosures
 9 Months Ended
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)InsuranceReinsuranceInvestingMarkel 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 years55,374 (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 gains39,246 
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)InsuranceReinsuranceInvestingMarkel 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 years53,760 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 gains113,635 
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)InsuranceReinsuranceInvestingMarkel 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 years179,564 (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)InsuranceReinsuranceInvestingMarkel 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 years196,093 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 $(1,150,126)
Interest expense(147,090)
Net foreign exchange gains241,706 
Loss before income taxes$(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)2023202220232022
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, 2023December 31, 2022
Segment assets:
Investing$28,522,052 $26,982,280 
Underwriting9,884,553 8,853,559 
Markel Ventures5,444,105 5,315,677 
Total segment assets43,850,710 41,151,516 
Other operations8,898,006 8,639,743 
Total assets$52,748,716 $49,791,259