Markel Corp. (NYSE:MKL) stock is sliding 4.9% in Wednesday morning trading after Q2 2022 results reflected a $1.55B net investment loss, suffering the twin hit of slumping bond and equity prices.
“Within our investments engine, our results were impacted by the sharp decline in the equity markets, as well as rising interest rates in the bond market, during the first half of 2022,” said co-CEOs Thomas S. Gayner and Richard R. Whitt.
Q2 EPS of -$69.19 compared with -$6.58 in Q1 and $7.02 in the year-ago quarter.
Q2 earned premiums of $1.83B increased from $1.76B in the prior quarter and $1.57B in the year-ago quarter.
Markel (MKL) Ventures operating revenue increased to $1.35B in Q2 2022 from $950M in Q1 and from $1.08B in Q2 2021.
Q2 net investment loss of $1.55B compared with loss of $358.4M in Q1 and net investment income of $674M in Q2 2021.
Book value per common share of $898.53 at June 30, 2022 fell from $995.53 at March 31.
Combined ratio of 91% increased from 89% in the prior quarter and from 87% in the year-ago period.
“We generally use five-year periods to measure our performance,” they said. Over the five-year period ended June 30, 2022, Markel’s (MKL) compound annual growth in book value per common share was 7% and its share price increased at a compound annual rate of 6%, Gayner and Whitt noted.
Earlier, Markel GAAP EPS of -$69.19
Read More: Markel stock dips after Q2 loss reflects $1.55B net investment loss (NYSE:MKL)