Markel Group (Parent Company Only) Financial Information

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Markel Group (Parent Company Only) Financial Information

23. Markel Group Inc. (Parent Company Only) Financial Information

The following parent company only condensed financial information reflects the financial position, results of operations and cash flows of Markel Group Inc.

CONDENSED BALANCE SHEETS


	December 31,
	2024		2023
	(dollars in thousands)
ASSETS
Investments, at estimated fair value:
Fixed maturity securities, available-for-sale (amortized cost of $130,983 in 2024 and $139,766 in 2023)	$	123,053	$	131,544
Equity securities (cost of $1,084,814 in 2024 and $1,089,332 in 2023)	2,071,110		1,731,839
Short-term investments, available-for-sale (estimated fair value approximates cost)	1,410,830		1,032,118
Total Investments	3,604,993		2,895,501
Cash and cash equivalents	701,289		635,047
Restricted cash and cash equivalents	20,013		15,908
Investments in consolidated subsidiaries	16,699,125		14,928,756
Other assets	450,327		441,977
Total Assets	$	21,475,747	$	18,917,189
LIABILITIES AND SHAREHOLDERS' EQUITY
Senior long-term debt	$	4,032,960	$	3,439,197
Income taxes payable	179,381		213,770
Net deferred tax liability	274,661		201,140
Other liabilities	72,847		79,154
Total Liabilities	4,559,849		3,933,261
Shareholders' equity:
Preferred stock	591,891		591,891
Common stock	3,560,633		3,517,146
Retained earnings	13,380,456		11,353,101
Accumulated other comprehensive loss	(617,082)		(478,210)
Total Shareholders' Equity	16,915,898		14,983,928
Total Liabilities and Shareholders' Equity	$	21,475,747	$	18,917,189

CONDENSED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)


	Years Ended December 31,
	2024		2023		2022
	(dollars in thousands)
REVENUES
Net investment income	$	86,583	$	92,080	$	34,781
Dividends on common stock of consolidated subsidiaries	575,008		310,000		278,557
Net investment gains (losses):
Net realized investment gains (losses)	16,718		(515)		7,620
Change in fair value of equity securities	342,623		275,048		(397,906)
Net investment gains (losses)	359,341		274,533		(390,286)
Gain on sale of subsidiary	—		—		107,293
Other revenues (losses)	31,132		(28,718)		(29,487)
Total Revenues	1,052,064		647,895		858
EXPENSES
Interest expense	179,626		156,953		172,125
Other expenses	12,061		19,716		111,848
Net foreign exchange losses (gains)	(36,907)		9,038		(13,143)
Total Expenses	154,780		185,707		270,830
Income (Loss) Before Equity in Undistributed Earnings (Losses) of Consolidated Subsidiaries and Income Taxes	897,284		462,188		(269,972)
Equity in undistributed earnings (losses) of consolidated subsidiaries	1,941,339		1,580,347		(72,125)
Income tax (expense) benefit	(91,601)		(46,475)		125,820
Net Income (Loss) to Shareholders	2,747,022		1,996,060		(216,277)
Preferred stock dividends	(36,000)		(36,000)		(36,000)
Net Income (Loss) to Common Shareholders	$	2,711,022	$	1,960,060	$	(252,277)
OTHER COMPREHENSIVE INCOME (LOSS) TO SHAREHOLDERS
Change in net unrealized gains (losses) on available-for-sale investments, net of taxes:
Net holding gains (losses) arising during the period	$	109	$	1,453	$	(24,465)
Consolidated subsidiaries' net holding gains (losses) arising during the period	(148,411)		276,910		(1,175,271)
Reclassification adjustments for net gains (losses) included in net income (loss) to shareholders	365		(92)		1,965
Consolidated subsidiaries' reclassification adjustments for net losses included in net income (loss) to shareholders	17,642		28,632		42,941
Change in net unrealized gains (losses) on available-for-sale investments, net of taxes	(130,295)		306,903		(1,154,830)
Consolidated subsidiaries' change in discount rate for life and annuity benefits, net of taxes	252		(22,343)		149,874
Consolidated subsidiaries' change in foreign currency translation adjustments, net of taxes	(3,883)		4,650		(9,276)
Consolidated subsidiaries' change in net actuarial pension loss, net of taxes	(4,946)		74		24,730
Total Other Comprehensive Income (Loss) to Shareholders	(138,872)		289,284		(989,502)
Comprehensive Income (Loss) to Shareholders	$	2,608,150	$	2,285,344	$	(1,205,779)

CONDENSED STATEMENTS OF CASH FLOWS


	Years Ended December 31,
	2024		2023		2022
	(dollars in thousands)
OPERATING ACTIVITIES
Net income (loss) to shareholders	$	2,747,022	$	1,996,060	$	(216,277)
Adjustments to reconcile net income (loss) to shareholders to net cash provided by operating activities	(2,183,635)		(1,664,382)		489,413
Net Cash Provided By Operating Activities	563,387		331,678		273,136
INVESTING ACTIVITIES
Proceeds from sales, maturities, calls and prepayments of fixed maturity securities	14,459		72,834		13,047
Cost of fixed maturity securities purchased	(6,516)		(48,501)		—
Proceeds from sales of equity securities	3,662		24,237		65,379
Cost of equity securities purchased	(310)		(7,731)		(16,660)
Net change in short-term investments	(315,622)		451,846		58,970
Decrease (increase) in notes receivable due from subsidiaries	—		—		75,645
Capital contributions to subsidiaries	(174,002)		(55,575)		(94,585)
Proceeds from sale of subsidiary	—		16,090		165,615
Cost of equity method investments	—		(5,000)		—
Other	2,694		(12,691)		4,779
Net Cash Provided (Used) By Investing Activities	(475,635)		435,509		272,190
FINANCING ACTIVITIES
Repayment of senior long-term debt	—		(250,000)		(350,000)
Additions to senior long-term debt	592,596		—		—
Decrease in notes payable to subsidiaries	—		—		(32,753)
Repurchases of common stock	(572,728)		(445,479)		(290,796)
Dividends paid on preferred stock	(36,000)		(36,000)		(36,000)
Other	(1,273)		—		—
Net Cash Used By Financing Activities	(17,405)		(731,479)		(709,549)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	70,347		35,708		(164,223)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	650,955		615,247		779,470
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR	$	721,302	$	650,955	$	615,247

SUPPLEMENTAL CASH FLOW INFORMATION
Cash dividends received from subsidiaries	$	575,000	$	310,000	$	245,102
Non-cash capital contributions to subsidiaries	$	—	$	43,111	$	923,980

Note to Condensed Financial Information of Markel Group Inc. (Parent Company Only)

Basis of Presentation. The parent company financial information note should be read in conjunction with the consolidated financial statements and other notes included herein. For purposes of this condensed financial information, the Company's wholly owned and majority owned subsidiaries are recorded based upon its proportionate share of the subsidiaries' net assets.

Debt. All of the Company's senior long-term debt was issued and is held by Markel Group. Markel Group also is party to a revolving credit facility. There were no borrowings outstanding under this revolving credit facility at December 31, 2024 and 2023. See note 14 for further details about Markel Group's revolving credit facility and senior long-term debt, including a five-year schedule of debt maturities.

Guarantees. Markel Group has guaranteed intercompany loans to Markel Ventures, Inc. from certain insurance subsidiaries of Markel Group. The outstanding loan balances totaled $788.0 million and $738.0 million as of December 31, 2024 and 2023, respectively, all of which was eliminated in consolidation. Additionally, Markel Group guarantees any obligations under the revolving credit facility of its insurance subsidiaries that are parties to the related credit agreement, however, there were no borrowings outstanding at December 31, 2024 and 2023. Markel Group has also made certain guarantees on other financial obligations, including leases, for other subsidiaries, which, individually and in the aggregate, were not material to Markel Group.