Markel Group Inc. · NYSE:MKL
Markel — Investor Presentation (May 2025)
48 slides from Markel's investor presentation, May 4, 2025
Slide 1: Welcome to the 2025 Omaha Brunch
Welcome to the 2025 Omaha Brunch A tradition since 1991 MARKEL GROUP
Slide 2: MARKEL
MARKEL GROUP
Slide 3: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures This recording may include forward-looking statements. Additional information about factors that could cause actual results to differ materially from these projected in such forward-looking statements is included in Markel Group’s most recen
Slide 4: MARKEL
MARKEL GROUP
Slide 5: Simple can be harder than complex
Simple can be harder than complex. You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains. Steve Jobs MARKEL GROUP
Slide 6: Reshaped, reestablished, realigned
1 2 3 Reshaped Reestablished full Realigned around leadership accountability clear strategy MARKEL GROUP
Slide 7: Markel Group: Culture, Capital, Leaders, Essentials
MARKEL GROUP CULTURE CAPITAL LEADERS ESSENTIALS MARKEL GROUP
Slide 8: Slide 8
Slide 9: MARKEL
MARKEL GROUP
Slide 10: Markel Group
GROUP = iW < & < = MARKEL GROUP
Slide 11: i
i MARKEL GROUP
Slide 12: Markel Group is a home for businesses
Markel Group is a home for businesses designed to relentlessly compound your capital over decades. MARKEL GROUP
Slide 13: MARKEL
MARKEL GROUP
Slide 14: What gets in the way of a business being a compounder?
What gets in the way of a business being a compounder? It lacks quality It lacks diversity It lacks financial strength It has friction It has no place to reinvest
Slide 15: Quality: We seek to be a market leader in each of our pursuits
Quality: We seek to be a market leader in each of our pursuits LANSING CS Other market leading Global leading Publicly traded businesses insurance businesses businesses MARKEL GROUP
Slide 16: Diversity: With earnings coming from a broad array of sources
Diversity: With earnings coming from a broad array of sources >$7 billion in adj. operating income over last 5 years Markel 21 i Ventures “ee ~$2.1 billion ~$0.6 bition Fixed US Treasuries Income Municipal ~$1.8 billion bonds afl ~$1.9 bitlion MARKEL MARKEL GROUP Other ways we increase earnings per
Slide 17: Note: As of March 31, 2025. Note: As of March 31, 2025. Note: 2005
Note: As of March 31, 2025. Note: As of March 31, 2025. Note: 2005 through 2024.
Slide 18: Financial strength: And an efficient model for generating returns
Financial strength: And an efficient model for generating returns + o Increased Insurance total Diversified income returns cash flow Public Lower equity capital returns required Total returns Capital required MARKEL GROUP
Slide 19: Note: Markel Ventures average expenses (2022-2024). Note: Assumes 10% annual return. Note: As of
Note: Markel Ventures average expenses (2022-2024). Note: Assumes 10% annual return. Note: As of March 31, 2025.
Slide 20: Reinvestment: We have runway to continue compounding
Reinvestment: We have runway to continue compounding $92 billion \ #4 \ ranking \ _— US E&S mkt Insurance ~3% 2% share of share of US E&S London market market MARKEL GROUP ~$125 trillion ay ~$12 ‘ billion \ _ Global stock mkt Public equities ~$23 billion \; a US fire protection Markel Ventures 21 bu
Slide 21: Reinvestment: We make long-term investments
Reinvestment: We make long-term investments 46 We believe this investment will solidify Cottrell's position as the leader in our industry, enabling us to meet increasing customer demand while maintaining our high standards of quality. 33 MARKEL GROUP
Slide 22: Reinvestment: And are uniquely positioned to capitalize on opportunities
Reinvestment: And are uniquely positioned to capitalize on opportunities ( > QS Front row seat to information Not reliant on capital markets Ability to pivot People want to do business with us MARKEL GROUP
Slide 23: Consistently generate earnings, productively redeploy earnings, keep going
Consistently generate earnings Productively redeploy earnings Keep going Markel Group is a home for businesses designed to relentlessly compound shareholder capital over decades. MARKEL GROUP
Slide 24: MARKEL
MARKEL GROUP
Slide 25: Stock price
Stock price | > 1 5 CAGR ae % 1986 CAGR in | | 8 . 6.. last five years MARKEL GROUP
Slide 26: Intrinsic value per share
Intrinsic value per share CAGR in 1 8., last five years 2019 2024 MARKEL GROUP
Slide 27: Adjusted operating income
Adjusted operating income $1,689 $1,483 $1,235 $992 $784 2019 2020 2021 2022 2023 2024 Three-year average ($M) MARKEL GROUP Note: see Appendix B for reconciliation
Slide 28: Operating income, intrinsic value, shareholder returns
Operating ) Intrinsic ) Shareholder income value returns MARKEL GROUP
Slide 29: MARKEL GROUP
MARKEL GROUP
Slide 30: Our core insurance business hasn't reached its potential
Our core insurance business hasn't reached its potential. To deliver on our promise to you, it must. MARKEL GROUP
Slide 31: MARKEL
MARKEL GROUP
Slide 32: MARKEL GROUP
MARKEL GROUP
Slide 33: Markel Insurance: Why we exist and how we win
Markel Insurance: Why we exist and how we win Why we exist How we win MARKEL GROUP We provide specialty insurance products that are not commonly available in mainstream commercial insurance + We build teams of experts to focus on customers in specific areas of the specialty insurance market + We tru
Slide 34: What our shareholders are saying
What our shareholders are saying “MKL was considered best in class. But its underwriting performance and recent deals appear to have removed the shine.” Analyst “Frustrating to see Markel not keep up.” Investor MARKEL GROUP “Investment required across talent and technology to keep pace with growing
Slide 35: Note: Arch excludes Mortgage segment Source: Public financial statements
Note: Arch excludes Mortgage segment Source: Public financial statements
Slide 36: Steps we are taking to improve performance
Steps we are taking to improve performance © fe) doa Absolute clarity on strategy Simplify structure MARKEL GROUP
Slide 37: The new structure of Markel Insurance
The new structure of Markel Insurance MARKEL GROUP Simon Wilson CEO Insurance Wendy Houser ~$2.9B US Wholesale and Specialty : Core E&S specialty insurance in the US Alex Martin Programs and Solutions Portfolio of specialty businesses Andrew McMellin ~$2.5B | International ' EA International special
Slide 38: Tailwinds to support continued growth in US
Tailwinds to support continued growth in US Wendy Houser E&S market US Wholesale and Specialty $92 $86 $75 $62 $47 7 2019 2020 2021 2022 2023 2024 US E&S insurance direct written premiums ($B) Note: DWP for Admitted and E&S include policy underwritten under A&H line by P&C insurers MARKEL GROUP Sour
Slide 39: Programs and Solutions is a portfolio of businesses
Programs and Solutions is a portfolio of me . : ong : ex Martin businesses with strong positions today BE Proarams and Solutions oe eS 2 (2 Fa Perconallines Programs & Bermuda Worker's Comp & Partnerships Specialty Lines Small Commercial ~$1,490M ~$860M ~$190M ~$690M ~$480M GwP GwP GwP GwP GwP MARKE
Slide 40: Markel International
Markel International Andrew McMellin International "4 We built a profitable $2.5 billion franchise... International GWP ($B) 7 +15% -— $2.1 with 25 offices and over 1,500 employees 2019 2020 2021 2022 2023 2024 UW profit (in$Ms) 16 -219 174 98 254 468 COR: 99% 118% 88% 94% 87% 77% 4 : . MARKEL GROUP
Slide 41: 2006 - 2008 Average 2022 - 2024 Average
50% 46% 40% 30% 20% 17% 10% 0% 2006 - 2008 Average 2022 - 2024 Average
Slide 42: Conclusion | The road ahead
Conclusion | The road ahead MARKEL GROUP We remain a great business positioned to win The market is moving towards us We are simplifying our trading structure to align with customers Our shared service model will be federated
Slide 43: When we empower our leaders, we win
When we empower our leaders, we win. MARKEL GROUP
Slide 44: MARKEL
MARKEL GROUP
Slide 45: Markel Corporation history
MARKEL GROUP MARKEL CORPORATION arkel Service, Inc. was organized in 1930, and over the years established an outstand- jing reputation internationally in the truck, excess/surplus and special risk insurance fields. As a result, its younger and smaller subsidiaries have sometimes operated in the shad
Slide 46: MARKEL
MARKEL GROUP
Slide 47: Appendix A: Intrinsic value per share calculation
Appendix A Intrinsic value per share calculation (in thousands, except per share amounts and earnings multiple) Adjusted operating income - 3-year average Earnings multiple Earnings valuation Equity securities Short-term investments and cash and cash equivalents Senior long-term debt and other debt
Slide 48: Appendix B: Adjusted operating income reconciliation
Appendix B Adjusted operating income 3-year average reconciliation Years Ended December 31, (dollars in thousands) 2024 2023 2022 2021 2020 2019 2018 2017 Operating income (loss) $3,712,562 $ 2,928,828 $ (93,336) $ 3,241,505 $ 1,273,884 $ 2,477,346 $ 39,759 $ 216,606 Add: Amortization and impairment