|
Virginia
|
001-15811
|
54-1959284
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
|
|
|
4521 Highwoods Parkway
Glen Allen, Virginia
|
|
23060-6148
|
(Address of principal executive offices)
|
|
(Zip Code)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Exhibit No.
|
Description
|
|
MARKEL CORPORATION
|
||
|
|
|
|
February 6, 2018
|
By:
|
|
/s/ Anne G. Waleski
|
|
Name:
|
|
Anne G. Waleski
|
|
Title:
|
|
Executive Vice President and Chief Financial Officer
|
|
|
For more information contact:
Bruce Kay
Markel Corporation 804-747-0136 bkay@markelcorp.com |
|
Years Ended December 31,
|
||||||
(in thousands, except per share amounts)
|
2017
|
|
2016
|
||||
Income before income taxes
|
$
|
87,295
|
|
|
$
|
629,920
|
|
Net income to shareholders
|
$
|
395,269
|
|
|
$
|
455,689
|
|
Comprehensive income to shareholders
|
$
|
1,174,974
|
|
|
$
|
667,047
|
|
Weighted average diluted shares
|
14,006
|
|
|
14,078
|
|
||
Diluted net income per share
|
$
|
25.81
|
|
|
$
|
31.27
|
|
|
|
|
|
||||
|
|
|
|
||||
(in thousands, except per share amounts)
|
December 31, 2017
|
|
December 31, 2016
|
||||
Book value per common share outstanding
|
$
|
683.55
|
|
|
$
|
606.30
|
|
Common shares outstanding
|
13,904
|
|
|
13,955
|
|
|
Combined Ratio Analysis
|
||
|
Years Ended December 31,
|
||
|
2017
|
|
2016
|
U.S. Insurance
|
95%
|
|
93%
|
International Insurance
|
104%
|
|
94%
|
Reinsurance
|
132%
|
|
87%
|
Consolidated
|
105%
|
|
92%
|
|
Year Ended December 31, 2017
|
||||||||||||||
(dollars in thousands)
|
U.S.
Insurance |
|
International
Insurance |
|
Reinsurance
|
|
Consolidated
|
||||||||
Losses and loss adjustment expenses
|
$
|
132,159
|
|
|
$
|
122,817
|
|
|
$
|
330,384
|
|
|
$
|
585,360
|
|
Ceded (assumed) reinstatement premiums
|
9,001
|
|
|
3,390
|
|
|
(32,465
|
)
|
|
(20,074
|
)
|
||||
Underwriting loss
|
$
|
141,160
|
|
|
$
|
126,207
|
|
|
$
|
297,919
|
|
|
$
|
565,286
|
|
Impact on combined ratio
|
6
|
%
|
|
13
|
%
|
|
32
|
%
|
|
13
|
%
|
|
Premium Analysis
|
||||||||||||||
|
Years Ended December 31,
|
||||||||||||||
|
Gross Written Premiums
|
|
Earned Premiums
|
||||||||||||
(dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
U.S. Insurance
|
$
|
2,885,279
|
|
|
$
|
2,635,266
|
|
|
$
|
2,364,121
|
|
|
$
|
2,175,332
|
|
International Insurance
|
1,255,922
|
|
|
1,119,815
|
|
|
949,912
|
|
|
853,512
|
|
||||
Reinsurance
|
1,112,101
|
|
|
1,041,055
|
|
|
934,114
|
|
|
836,264
|
|
||||
Other Insurance (Discontinued Lines)
|
(195
|
)
|
|
509
|
|
|
(169
|
)
|
|
762
|
|
||||
Total Underwriting
|
5,253,107
|
|
|
4,796,645
|
|
|
4,247,978
|
|
|
3,865,870
|
|
||||
Program Services
|
253,853
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
5,506,960
|
|
|
$
|
4,796,645
|
|
|
$
|
4,247,978
|
|
|
$
|
3,865,870
|
|
|
Years Ended December 31,
|
||||
|
2017
|
|
2016
|
||
Effective tax rate
|
(359
|
)%
|
|
27
|
%
|
Impact of TCJA on effective tax rate
|
(389
|
)
|
|
—
|
|
Adjusted effective tax rate
|
30
|
%
|
|
27
|
%
|
•
|
our expectations about future results of our underwriting, investing and other operations are based on current knowledge and assume no significant man-made or natural catastrophes, no significant changes in products or personnel and no adverse changes in market conditions;
|
•
|
the effect of cyclical trends on our underwriting, investing and other operations, including demand and pricing in the insurance, reinsurance and other markets in which we operate;
|
•
|
actions by competitors, including the application of new or "disruptive" technologies or business models and consolidation, and the effect of competition on market trends and pricing;
|
•
|
we offer insurance and reinsurance coverage against terrorist acts in connection with some of our programs, and in other instances we are legally required to offer terrorism insurance; in both circumstances, we actively manage our exposure, but if there is a covered terrorist attack, we could sustain material losses;
|
•
|
the frequency and severity of man-made and natural catastrophes (including earthquakes, fires and weather-related catastrophes) may exceed expectations, are unpredictable and, in the case of fires and weather-related catastrophes, may be exacerbated if, as many forecast, conditions in the oceans and atmosphere result in increased hurricane, flood, drought or other adverse weather-related activity;
|
•
|
emerging claim and coverage issues, changing legal and social trends, and inherent uncertainties in the loss estimation process can adversely impact the adequacy of our loss reserves and our allowance for reinsurance recoverables;
|
•
|
reinsurance reserves are subject to greater uncertainty than insurance reserves, primarily because of reliance upon the original underwriting decisions made by ceding companies and the longer lapse of time from the occurrence of loss events to their reporting to the reinsurer for ultimate resolution;
|
•
|
changes in the assumptions and estimates used in establishing reserves for our life and annuity reinsurance book (which is in runoff), for example, changes in assumptions and estimates of mortality, longevity, morbidity and interest rates, could result in material increases in our estimated loss reserves for such business;
|
•
|
adverse developments in insurance coverage litigation or other legal or administrative proceedings could result in material increases in our estimates of loss reserves;
|
•
|
the failure or inadequacy of any loss limitation methods we employ;
|
•
|
changes in the availability, costs and quality of reinsurance coverage, which may impact our ability to write or continue to write certain lines of business;
|
•
|
the ability or willingness of reinsurers or capacity providers to pay balances due may be adversely affected by industry and economic conditions, deterioration in reinsurer or capacity provider credit quality and coverage disputes;
|
•
|
after the commutation of ceded reinsurance contracts, any subsequent adverse development in the re-assumed loss reserves will result in a charge to earnings;
|
•
|
regulatory actions can impede our ability to charge adequate rates and efficiently allocate capital;
|
•
|
general economic and market conditions and industry specific conditions, including extended economic recessions or expansions; prolonged periods of slow economic growth; inflation or deflation; fluctuations in foreign currency exchange rates, commodity and energy prices and interest rates; volatility in the credit and capital markets; and other factors;
|
•
|
economic conditions, actual or potential defaults in municipal bonds or sovereign debt obligations, volatility in interest and foreign currency exchange rates and changes in market value of concentrated investments can have a significant impact on the fair value of our fixed maturity and equity securities, as well as the carrying value of our other assets and liabilities, and this impact may be heightened by market volatility;
|
•
|
economic conditions may adversely affect our access to capital and credit markets;
|
•
|
the effects of government intervention, including material changes in the monetary policies of central banks, to address financial downturns and economic and currency concerns;
|
•
|
the impacts that political and civil unrest and regional conflicts may have on our businesses and the markets they serve or that any disruptions in regional or worldwide economic conditions generally arising from these situations may have on our businesses, industries or investments;
|
•
|
the impacts that health epidemics and pandemics may have on our business operations and claims activity;
|
•
|
the impact on our businesses of the repeal, in part or in whole, or modification of U.S. health care reform legislation and regulations;
|
•
|
changes in U.S. tax laws or in the tax laws of other jurisdictions in which we operate;
|
•
|
we are dependent upon operational effectiveness and security of our enterprise information technology systems and those maintained by third parties; if one or more of those systems fail or suffer a security breach, our businesses or reputation could be adversely impacted;
|
•
|
our acquisitions may increase our operational and control risks for a period of time;
|
•
|
we may not realize the contemplated benefits, including cost savings and synergies, of our acquisitions;
|
•
|
any determination requiring the write-off of a significant portion of our goodwill and intangible assets;
|
•
|
the loss of services of any executive officer or other key personnel could adversely impact one or more of our operations;
|
•
|
our substantial international operations and investments expose us to increased political, operational and economic risks, including foreign currency exchange rate and credit risk;
|
•
|
the vote by the United Kingdom to leave the European Union, which could have adverse consequences for our businesses, particularly our London-based international insurance operations;
|
•
|
our ability to raise third party capital for existing or new investment vehicles and risks related to our management of third party capital;
|
•
|
the effectiveness of our procedures for compliance with existing and ever increasing guidelines, policies and legal and regulatory standards, rules, laws and regulations;
|
•
|
the impact of economic and trade sanctions and embargo programs on our businesses, including instances in which the requirements and limitations applicable to the global operations of U.S. companies and their affiliates are more restrictive than those applicable to non-U.S. companies and their affiliates;
|
•
|
regulatory changes, or challenges by regulators, regarding the use of certain issuing carrier or fronting arrangements;
|
•
|
our dependence on a limited number of distribution partners and capacity providers for a large portion of our revenues and third-party capital;
|
•
|
adverse changes in our assigned financial strength or debt ratings could adversely impact us, including our ability to attract and retain business and the availability and cost of capital; and
|
•
|
a number of additional factors may adversely affect our Markel Ventures operations, and the markets they serve, and negatively impact their revenues and profitability, including, among others: adverse weather conditions, plant disease and other contaminants; changes in government support for education, healthcare and infrastructure projects; changes in capital spending levels; changes in the housing market; liability for environmental matters; volatility in the market prices for their products; and volatility in commodity prices and interest and foreign currency exchange rates.
|
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(dollars in thousands, except per share data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
OPERATING REVENUES
|
|
|
|
|
|
|
|
||||||||
Earned premiums
|
$
|
1,131,940
|
|
|
$
|
983,081
|
|
|
$
|
4,247,978
|
|
|
$
|
3,865,870
|
|
Net investment income
|
101,553
|
|
|
93,793
|
|
|
405,709
|
|
|
373,230
|
|
||||
Net realized investment gains (losses):
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment losses
|
(328
|
)
|
|
(6,275
|
)
|
|
(7,589
|
)
|
|
(18,355
|
)
|
||||
Net realized investment gains (losses), excluding other-than-temporary impairment losses
|
(3,460
|
)
|
|
5,586
|
|
|
2,286
|
|
|
83,502
|
|
||||
Net realized investment gains (losses)
|
(3,788
|
)
|
|
(689
|
)
|
|
(5,303
|
)
|
|
65,147
|
|
||||
Other revenues
|
432,562
|
|
|
352,440
|
|
|
1,413,275
|
|
|
1,307,779
|
|
||||
Total Operating Revenues
|
1,662,267
|
|
|
1,428,625
|
|
|
6,061,659
|
|
|
5,612,026
|
|
||||
OPERATING EXPENSES
|
|
|
|
|
|
|
|
||||||||
Losses and loss adjustment expenses
|
655,632
|
|
|
485,819
|
|
|
2,865,761
|
|
|
2,050,744
|
|
||||
Underwriting, acquisition and insurance expenses
|
418,239
|
|
|
385,801
|
|
|
1,587,414
|
|
|
1,498,590
|
|
||||
Amortization of intangible assets
|
27,308
|
|
|
17,059
|
|
|
80,758
|
|
|
68,533
|
|
||||
Other expenses
|
381,996
|
|
|
327,528
|
|
|
1,307,980
|
|
|
1,190,243
|
|
||||
Total Operating Expenses
|
1,483,175
|
|
|
1,216,207
|
|
|
5,841,913
|
|
|
4,808,110
|
|
||||
Operating Income
|
179,092
|
|
|
212,418
|
|
|
219,746
|
|
|
803,916
|
|
||||
Interest expense
|
35,438
|
|
|
32,206
|
|
|
132,451
|
|
|
129,896
|
|
||||
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
44,100
|
|
||||
Income Before Income Taxes
|
143,654
|
|
|
180,212
|
|
|
87,295
|
|
|
629,920
|
|
||||
Income tax expense (benefit)
|
(295,672
|
)
|
|
47,509
|
|
|
(313,463
|
)
|
|
169,477
|
|
||||
Net Income
|
439,326
|
|
|
132,703
|
|
|
400,758
|
|
|
460,443
|
|
||||
Net income (loss) attributable to noncontrolling interests
|
4,445
|
|
|
(23
|
)
|
|
5,489
|
|
|
4,754
|
|
||||
Net Income to Shareholders
|
$
|
434,881
|
|
|
$
|
132,726
|
|
|
$
|
395,269
|
|
|
$
|
455,689
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
||||||||
Change in net unrealized gains on investments, net of taxes:
|
|
|
|
|
|
|
|
||||||||
Net holding gains (losses) arising during the period
|
$
|
209,543
|
|
|
$
|
(135,733
|
)
|
|
$
|
787,339
|
|
|
$
|
275,661
|
|
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period
|
—
|
|
|
75
|
|
|
—
|
|
|
35
|
|
||||
Reclassification adjustments for net gains included in net income
|
(9,698
|
)
|
|
(220
|
)
|
|
(24,296
|
)
|
|
(33,528
|
)
|
||||
Change in net unrealized gains on investments, net of taxes
|
199,845
|
|
|
(135,878
|
)
|
|
763,043
|
|
|
242,168
|
|
||||
Change in foreign currency translation adjustments, net of taxes
|
(9,321
|
)
|
|
(5,563
|
)
|
|
10,449
|
|
|
(11,704
|
)
|
||||
Change in net actuarial pension loss, net of taxes
|
3,868
|
|
|
(20,347
|
)
|
|
6,259
|
|
|
(19,100
|
)
|
||||
Total Other Comprehensive Income (Loss)
|
194,392
|
|
|
(161,788
|
)
|
|
779,751
|
|
|
211,364
|
|
||||
Comprehensive Income (Loss)
|
633,718
|
|
|
(29,085
|
)
|
|
1,180,509
|
|
|
671,807
|
|
||||
Comprehensive income (loss) attributable to noncontrolling interests
|
4,471
|
|
|
(35
|
)
|
|
5,535
|
|
|
4,760
|
|
||||
Comprehensive Income (Loss) to Shareholders
|
$
|
629,247
|
|
|
$
|
(29,050
|
)
|
|
$
|
1,174,974
|
|
|
$
|
667,047
|
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME PER SHARE
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
30.48
|
|
|
$
|
9.14
|
|
|
$
|
25.89
|
|
|
$
|
31.41
|
|
Diluted
|
$
|
30.39
|
|
|
$
|
9.11
|
|
|
$
|
25.81
|
|
|
$
|
31.27
|
|
|
|
|
|
|
|
|
|
||||||||
Selected Data
|
|
|
|
|
December 31,
|
||||||||||
(dollars and shares in thousands, except per share data)
|
|
|
|
|
2017
|
|
2016
|
||||||||
Total investments, cash and cash equivalents and restricted cash and cash equivalents
|
|
|
|
|
$
|
20,570,337
|
|
|
$
|
19,058,666
|
|
||||
Reinsurance recoverable on paid and unpaid losses
|
|
|
|
|
4,745,390
|
|
|
2,071,837
|
|
||||||
Goodwill
|
|
|
|
|
1,777,464
|
|
|
1,142,248
|
|
||||||
Intangible assets
|
|
|
|
|
1,355,681
|
|
|
722,542
|
|
||||||
Total assets
|
|
|
|
|
32,805,016
|
|
|
25,875,299
|
|
||||||
Unpaid losses and loss adjustment expenses
|
|
|
|
|
13,584,281
|
|
|
10,115,662
|
|
||||||
Unearned premiums
|
|
|
|
|
3,308,779
|
|
|
2,263,838
|
|
||||||
Senior long-term debt and other debt
|
|
|
|
|
3,099,230
|
|
|
2,574,529
|
|
||||||
Total shareholders' equity
|
|
|
|
|
9,504,148
|
|
|
8,460,927
|
|
||||||
Book value per common share outstanding
|
|
|
|
|
$
|
683.55
|
|
|
$
|
606.30
|
|
||||
Common shares outstanding
|
|
|
|
|
13,904
|
|
|
13,955
|
|
Gross Written Premiums
|
|||||||||||||||
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
U.S. Insurance
|
$
|
713,798
|
|
|
$
|
634,812
|
|
|
$
|
2,885,279
|
|
|
$
|
2,635,266
|
|
International Insurance
|
306,891
|
|
|
240,737
|
|
|
1,255,922
|
|
|
1,119,815
|
|
||||
Reinsurance
|
86,385
|
|
|
121,017
|
|
|
1,112,101
|
|
|
1,041,055
|
|
||||
Other Insurance (Discontinued Lines)
|
(10
|
)
|
|
(6
|
)
|
|
(195
|
)
|
|
509
|
|
||||
Underwriting total
|
1,107,064
|
|
|
996,560
|
|
|
5,253,107
|
|
|
4,796,645
|
|
||||
Program Services
|
253,853
|
|
|
—
|
|
|
253,853
|
|
|
—
|
|
||||
Consolidated
|
$
|
1,360,917
|
|
|
$
|
996,560
|
|
|
$
|
5,506,960
|
|
|
$
|
4,796,645
|
|
|
|
|
|
|
|
|
|
||||||||
Net Written Premiums
|
|||||||||||||||
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
U.S. Insurance
|
$
|
602,949
|
|
|
$
|
542,970
|
|
|
$
|
2,432,477
|
|
|
$
|
2,237,163
|
|
International Insurance
|
240,748
|
|
|
183,803
|
|
|
1,007,319
|
|
|
864,494
|
|
||||
Reinsurance
|
78,462
|
|
|
112,278
|
|
|
978,160
|
|
|
898,728
|
|
||||
Other Insurance (Discontinued Lines)
|
(12
|
)
|
|
80
|
|
|
(169
|
)
|
|
635
|
|
||||
Consolidated
|
$
|
922,147
|
|
|
$
|
839,131
|
|
|
$
|
4,417,787
|
|
|
$
|
4,001,020
|
|
|
|
|
|
|
|
|
|
||||||||
Net Earned Premiums
|
|||||||||||||||
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
U.S. Insurance
|
$
|
636,250
|
|
|
$
|
560,744
|
|
|
$
|
2,364,121
|
|
|
$
|
2,175,332
|
|
International Insurance
|
276,306
|
|
|
216,147
|
|
|
949,912
|
|
|
853,512
|
|
||||
Reinsurance
|
219,396
|
|
|
206,113
|
|
|
934,114
|
|
|
836,264
|
|
||||
Other Insurance (Discontinued Lines)
|
(12
|
)
|
|
77
|
|
|
(169
|
)
|
|
762
|
|
||||
Consolidated
|
$
|
1,131,940
|
|
|
$
|
983,081
|
|
|
$
|
4,247,978
|
|
|
$
|
3,865,870
|
|
|
|
|
|
|
|
|
|
||||||||
Combined Ratios
|
|||||||||||||||
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
U.S. Insurance
|
83
|
%
|
|
88
|
%
|
|
95
|
%
|
|
93
|
%
|
||||
International Insurance
|
101
|
%
|
|
92
|
%
|
|
104
|
%
|
|
94
|
%
|
||||
Reinsurance
|
122
|
%
|
|
87
|
%
|
|
132
|
%
|
|
87
|
%
|
||||
Consolidated
|
95
|
%
|
|
89
|
%
|
|
105
|
%
|
|
92
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Components of Consolidated Operating Income
|
|||||||||||||||
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
U.S. Insurance Segment Profit
(1)
|
$
|
108,647
|
|
|
$
|
57,718
|
|
|
$
|
122,270
|
|
|
$
|
144,481
|
|
International Insurance Segment Profit (Loss)
(1)
|
(3,023
|
)
|
|
17,248
|
|
|
(35,100
|
)
|
|
47,053
|
|
||||
Reinsurance Segment Profit (Loss)
(1)
|
(47,916
|
)
|
|
26,726
|
|
|
(298,800
|
)
|
|
106,835
|
|
||||
Other Insurance (Discontinued Lines) Segment Loss
(1)
|
(6,613
|
)
|
|
(7,600
|
)
|
|
(18,701
|
)
|
|
(14,862
|
)
|
||||
Investing Segment Profit
|
97,765
|
|
|
93,104
|
|
|
400,406
|
|
|
438,377
|
|
||||
Other Revenues
|
430,781
|
|
|
348,064
|
|
|
1,401,531
|
|
|
1,293,185
|
|
||||
Other Expenses
|
(373,241
|
)
|
|
(305,783
|
)
|
|
(1,271,102
|
)
|
|
(1,142,620
|
)
|
||||
Amortization of Intangible Assets
|
(27,308
|
)
|
|
(17,059
|
)
|
|
(80,758
|
)
|
|
(68,533
|
)
|
||||
Consolidated Operating Income
|
$
|
179,092
|
|
|
$
|
212,418
|
|
|
$
|
219,746
|
|
|
$
|
803,916
|
|
(1)
|
Segment profit (loss) for our underwriting segments includes underwriting profit (loss) as well as other revenues and other expenses from our insurance operations.
|
Other Revenues
|
|||||||||||||||
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Markel Ventures: Manufacturing
|
$
|
185,900
|
|
|
$
|
194,993
|
|
|
$
|
742,591
|
|
|
$
|
784,745
|
|
Markel Ventures: Non-Manufacturing
|
214,100
|
|
|
113,841
|
|
|
590,689
|
|
|
429,704
|
|
||||
Investment management
|
8,856
|
|
|
33,635
|
|
|
28,740
|
|
|
56,455
|
|
||||
Program services
|
15,328
|
|
|
—
|
|
|
15,328
|
|
|
—
|
|
||||
Managing general agent operations
|
909
|
|
|
3,892
|
|
|
8,821
|
|
|
12,703
|
|
||||
Life and annuity
|
388
|
|
|
484
|
|
|
2,022
|
|
|
1,891
|
|
||||
Other
|
7,081
|
|
|
5,595
|
|
|
25,084
|
|
|
22,281
|
|
||||
Total
|
$
|
432,562
|
|
|
$
|
352,440
|
|
|
$
|
1,413,275
|
|
|
$
|
1,307,779
|
|
Other Expenses
|
|||||||||||||||
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Markel Ventures: Manufacturing
|
$
|
166,767
|
|
|
$
|
184,432
|
|
|
$
|
650,491
|
|
|
$
|
675,620
|
|
Markel Ventures: Non-Manufacturing
|
177,803
|
|
|
100,676
|
|
|
535,352
|
|
|
396,323
|
|
||||
Investment management
|
14,954
|
|
|
15,039
|
|
|
52,636
|
|
|
46,190
|
|
||||
Program services
|
6,508
|
|
|
—
|
|
|
6,508
|
|
|
—
|
|
||||
Managing general agent operations
|
1,323
|
|
|
14,673
|
|
|
5,803
|
|
|
21,119
|
|
||||
Life and annuity
|
7,209
|
|
|
7,072
|
|
|
28,218
|
|
|
26,504
|
|
||||
Other
|
7,432
|
|
|
5,636
|
|
|
28,972
|
|
|
24,487
|
|
||||
Total
|
$
|
381,996
|
|
|
$
|
327,528
|
|
|
$
|
1,307,980
|
|
|
$
|
1,190,243
|
|
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income to shareholders
|
$
|
434,881
|
|
|
$
|
132,726
|
|
|
$
|
395,269
|
|
|
$
|
455,689
|
|
(Income) loss before income taxes from other Markel operations
|
(105,008
|
)
|
|
(167,183
|
)
|
|
12,450
|
|
|
(532,989
|
)
|
||||
Income tax expense (benefit) from other Markel operations
|
(264,683
|
)
|
|
41,109
|
|
|
(304,160
|
)
|
|
133,472
|
|
||||
Markel Ventures net income to shareholders
|
65,190
|
|
|
6,652
|
|
|
103,559
|
|
|
56,172
|
|
||||
Interest expense
|
6,607
|
|
|
3,290
|
|
|
18,345
|
|
|
14,900
|
|
||||
Income tax expense (benefit)
|
(31,182
|
)
|
|
6,071
|
|
|
(11,494
|
)
|
|
34,502
|
|
||||
Depreciation expense
|
11,754
|
|
|
8,684
|
|
|
38,514
|
|
|
32,759
|
|
||||
Amortization of intangible assets
|
9,444
|
|
|
6,590
|
|
|
28,691
|
|
|
26,796
|
|
||||
Markel Ventures EBITDA - Total
|
$
|
61,813
|
|
|
$
|
31,287
|
|
|
$
|
177,615
|
|
|
$
|
165,129
|
|
|
|
|
|
|
|
|
|
||||||||
Markel Ventures EBITDA - Manufacturing
|
$
|
22,901
|
|
|
$
|
15,393
|
|
|
$
|
104,938
|
|
|
$
|
120,993
|
|
Markel Ventures EBITDA - Non-Manufacturing
|
38,912
|
|
|
15,894
|
|
|
72,677
|
|
|
44,136
|
|
||||
Markel Ventures EBITDA - Total
|
$
|
61,813
|
|
|
$
|
31,287
|
|
|
$
|
177,615
|
|
|
$
|
165,129
|
|
|
Quarters Ended December 31,
|
|
Years Ended December 31,
|
||||||||||||
(in thousands, except per share amounts)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income to shareholders
|
$
|
434,881
|
|
|
$
|
132,726
|
|
|
$
|
395,269
|
|
|
$
|
455,689
|
|
Adjustment of redeemable noncontrolling interests
|
(10,156
|
)
|
|
(4,563
|
)
|
|
(33,738
|
)
|
|
(15,472
|
)
|
||||
Adjusted net income to shareholders
|
$
|
424,725
|
|
|
$
|
128,163
|
|
|
$
|
361,531
|
|
|
$
|
440,217
|
|
|
|
|
|
|
|
|
|
||||||||
Basic common shares outstanding
|
13,934
|
|
|
14,015
|
|
|
13,964
|
|
|
14,013
|
|
||||
Dilutive potential common shares from conversion of options
|
1
|
|
|
2
|
|
|
1
|
|
|
4
|
|
||||
Dilutive potential common shares from conversion of restricted stock
|
40
|
|
|
55
|
|
|
41
|
|
|
61
|
|
||||
Diluted shares outstanding
|
13,975
|
|
|
14,072
|
|
|
14,006
|
|
|
14,078
|
|
||||
Basic net income per share
|
$
|
30.48
|
|
|
$
|
9.14
|
|
|
$
|
25.89
|
|
|
$
|
31.41
|
|
Diluted net income per share
|
$
|
30.39
|
|
|
$
|
9.11
|
|
|
$
|
25.81
|
|
|
$
|
31.27
|
|