RICHMOND, Va., Feb. 5,
2025 /PRNewswire/ -- Markel Group Inc.'s (NYSE: MKL)
focus on a zealous pursuit of excellence has been a key
to its success. As a result of that focus, the
Company has delivered total shareholder returns of over 20,000%
since our initial public offering in 1986, reflecting
a compound annual growth rate of 15% and a performance in
the very top tier of public companies over that time period.
A few years ago, we entered a pivotal period of transition that
would shape the future of our company. While we made progress
during that time, we also faced our share of challenges. Our
financial performance and stock price growth didn't fully reflect
our potential or long-term trends. In 2023, we took meaningful
steps to move beyond this transitional phase and set the stage for
the next chapter of our success.
Those efforts have shown positive results. Today we
announced operating earnings in excess of $3.7 billion for 2024, and our stock price has
increased over 30% since the beginning of 2023. Nonetheless,
we believe the value and potential of our combined group of
businesses is not fully reflected in our current stock price.
We still have work to do, and if we continue to make progress
there is substantial upside at Markel Group.
In December 2024, JANA Partners
publicly shared their perspectives on Markel Group and offered
suggestions we might consider. We took this as an opportunity for
broader self-reflection, in line with our commitment to the
"zealous pursuit of excellence."
We asked shareholders, including JANA, for feedback on what
we're doing well and where we can improve. We value the thoughtful
input of our shareholders—it's a big part of what makes Markel
Group special.
While opinions varied, we're committed to listening, learning,
and considering all perspectives at both the board and company
levels. This process strengthens us for the benefit of our
customers, shareholders, and team members.
To that end, we have decided to conduct a review of our
business. It will be an opportunity to reflect on the
changes over the past two years and ensure our goals and direction
align with our shareholders' priorities.
The board will lead this review, assisted by external
consultants and advisors. Our foremost focus will be the
performance of our market-leading specialty insurance business.
Insurance is at the heart of what we do, and we're fully committed
to supporting areas within insurance that are excelling while also
addressing underperformance.
Additionally, as part of the review we will consider ways to
simplify our structure, optimize our approach to capital
allocation, and enhance our disclosures. During this period,
we expect to focus capital deployment on repurchasing shares under
the recently announced $2 billion
stock buyback program.
"Markel Group's strong foundation has created lasting value for
our shareholders, and increasing shareholder value has been central
to the Markel Style since it was written in 1986," said
Steve Markel, Chairman of the
Board. Tom Gayner, CEO added,
"We're focused on improving and building on our strengths to keep
growing for the long term. Thank you for your trust and
input. We will keep you updated as we move ahead."
About Markel Group
Markel Group Inc. (NYSE: MKL) is a
diverse family of companies that includes everything from insurance
to bakery equipment, building supplies, houseplants, and more. The
leadership teams of these businesses operate with a high degree of
independence, while at the same time living the values that we call
the Markel Style. Our specialty insurance business sits at the core
of our company. Through decades of sound underwriting, the
insurance team has provided the capital base from which we built a
system of businesses and investments that collectively increase
Markel Group's durability and adaptability. It's a system that
provides diverse income streams, access to a wide range of
investment opportunities, and the ability to efficiently move
capital to the best ideas across the company. Most importantly
though, this system enables each of our businesses to advance our
shared goal of helping our customers, associates, and shareholders
win over the long term. Visit mklgroup.com to learn more.
Forward Looking Statements
Certain of the statements
in this press release, and any related oral statements, may be
considered forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995, as amended. Statements
that are not historical facts, including statements about our
beliefs, plans or expectations with respect to the board led
review, are forward-looking statements. These statements are based
on our current plans, estimates and expectations with respect
to the board led review. There are risks and uncertainties that
could cause actual results to differ materially from those
expressed in or suggested by such statements. Factors that may
cause actual results to differ are often presented with the
forward-looking statements themselves. Additional factors that
could cause actual results to differ from those predicted are set
forth in the press release for our 2024 results, as well as in our
Annual Report on Form 10-K for the year ended December 31, 2023, including under "Business
Overview," "Risk Factors," "Management's Discussion and Analysis of
Financial Condition and Results of Operations," "Safe Harbor and
Cautionary Statement," and "Quantitative and Qualitative
Disclosures About Market Risk," and in our Quarterly Report on Form
10-Q for the quarter ended September 30,
2024, including under "Management's Discussion and Analysis
of Financial Condition and Results of Operations," "Safe Harbor and
Cautionary Statement," and "Quantitative and Qualitative
Disclosures About Market Risk". We assume no obligation to update
this press release (including any forward-looking statements) as a
result of new information, developments, or otherwise. This release
speaks only as of the date issued.
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