By Emon Reiser

Markel Group said it is conducting a review of its business and will focus on deploying capital toward a $2 billion stock-buyback program as it scrutinizes its structure and capital allocation.

The Richmond, Va., insurance group also announced its annual and fourth-quarter earnings Wednesday, reporting a decrease in earned premiums and added expenses from the wildfires in Southern California.

"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," the company said in an update to its shareholders. "Nonetheless, we believe the value and potential of our combined group of businesses is not fully reflected in our current stock price."

The company said its net income for the quarter ended Dec. 31 was $561.4 million, or $38.74 a share, compared with $751.3 million, or $56.48 a share in the year-ago quarter. Analysts polled by FactSet expected earnings of $22.71 a share.

Markel said its revenue fell to $3.84 billion from $4.64 billion in the year-ago quarter. Analysts expected $2.99 billion.

The company expects the wildfires in California to have an effect on underwriting losses of between $90 million and $130 million before income taxes. The company says it will refine its estimate of net losses, to be recorded in the first quarter, as more details emerge about the actual level of claims.

News of the review comes after the Markel announced Monday that it would be reorganizing its insurance arm into four separate segments: management liability, errors and omissions, cyber and financial institutions.

Write to Emon Reiser at emon.reiser@wsj.com

(END) Dow Jones Newswires

February 05, 2025 17:19 ET (22:19 GMT)

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