Markel Corporation

Hagerty increased its full-year 2026 outlook, citing record first-half growth in members, written premium, and earned premium. First-half written premium rose 19% year-over-year to $713 million, while earned premium jumped 42% to $492 million, driven by the January 1 transition to a 100% quota share arrangement with Markel that gives Hagerty full control of the economics on its U.S. book. The company added a record 279,000 new members in the first half, pushing total policies in force up 19% to 1.9 million. Despite a reported net loss of $5 million that included $153 million in pre-tax transitional costs tied to the Markel fronting arrangement, adjusted EBITDA climbed 32% to $160 million, and cash flow from operating activities surged 91% to $186 million. Hagerty now expects full-year written premium growth of 16% to 17%, net income of $18 million to $30 million, and adjusted EBITDA of $270 million to $280 million.

A bullish thesis on Markel Group Inc. highlights the insurer and investment holding company as a long-term compounder with disciplined underwriting and capital allocation. The combined ratio improved to 92.8% from 96.0%, driving higher operating profit, while international insurance grew and U.S. specialty lines reduced lower-quality risks. Markel Ventures showed mixed but resilient performance, and investment income remains a stable recurring engine at roughly $1 billion annually. Management is prioritizing share repurchases, and intrinsic value is estimated around $2,600 per share, suggesting the stock is meaningfully undervalued.

AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of "a+" (Excellent) to Capstone Specialty Insurance Company, with a stable outlook. The ratings reflect Capstone's inclusion in the existing pooling agreement of State National Group, a unit of Markel Group Inc., effective January 1, 2026. Capstone will provide property/casualty coverages on an excess and surplus lines basis in support of State National's agents. As a result of the pooling agreement, Capstone's operating performance and financial strength reflect that of the pool as a whole. The ratings also consider State National's balance sheet strength, which AM Best assesses as strongest, along with its strong operating performance, neutral business profile, and appropriate enterprise risk management.

Markel International has appointed Bhavik Desai as Managing Director of PFR & Cyber within its London Market business. Desai will lead underwriting strategy, portfolio performance, and broker and client engagement across professional, financial, and cyber-related risks. He succeeds David Sawyer, who will remain with the business until his planned retirement at the end of 2026. Desai joined Markel in 2013 and has held senior underwriting roles including Head of Professional Indemnity and Director of Professional Indemnity, Media & Entertainment. Before Markel, he held underwriting leadership roles at AIG.

Markel Group has appointed Alisha Everett as assistant vice president and Nicholas Doy as manager of its Canadian Contractors, Trades and Construction Services unit, aiming to strengthen underwriting and accelerate profitable growth. The company also named Danny O'Donoghue to head its fine art unit in London, citing rising asset values and high-profile thefts as new risks for galleries, private collectors, and jewelers. These moves come as Markel seeks to improve its core insurance business while repurchasing 10% of its shares in under five years.

Markel Group completed its acquisition of London-based specialist marine managing general agent The MECO Group in June 2025, expanding its marine insurance footprint and strengthening its presence in Asia-Pacific and European markets. The deal is part of Markel's broader acquisition strategy, which also included taking a majority interest in Valor Environmental in 2024 to grow its industrial and infrastructure operations. The company funds acquisitions through insurance underwriting profits, internally generated capital, and occasional debt issuance. Markel's approach differs from peers by targeting a diversified collection of high-quality businesses that can compound intrinsic value over decades, rather than focusing solely on growing insurance premiums.