Segment Reporting Disclosures (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

The following tables summarize the Company's segment disclosures.



	Quarter Ended June 30, 2019
(dollars in thousands)	Insurance			Reinsurance			Investing		Markel Ventures ⁽¹⁾			Other ⁽²⁾				Consolidated
Gross premium volume	$	1,368,348		$	223,381		$	—	$	—		$	655,418			$	2,247,147
Net written premiums	1,126,170			178,802			—		—			666				1,305,638

Earned premiums	991,269			207,728			—		—			464				1,199,461
Losses and loss adjustment expenses:
Current accident year	(657,372		)	(139,340		)	—		—			—				(796,712		)
Prior accident years	101,721			18,190			—		—			(1,319		)		118,592
Amortization of policy acquisition costs	(208,609		)	(54,456		)	—		—			—				(263,065		)
Other operating expenses	(179,432		)	(23,306		)	—		—			3,487				(199,251		)
Underwriting profit	47,577			8,816			—		—			2,632				59,025
Net investment income	—			—			111,633		198			—				111,831
Net investment gains	—			—			425,653		—			—				425,653
Products revenues	—			—			—		501,676			—				501,676
Services and other revenues	—			—			—		115,311			85,184				200,495
Products expenses	—			—			—		(425,138		)	—				(425,138		)
Services and other expenses	—			—			—		(99,860		)	(70,936		)		(170,796		)
Amortization of intangible assets ⁽³⁾	—			—			—		(10,510		)	(25,790		)		(36,300		)
Segment profit (loss)	$	47,577		$	8,816		$	537,286	$	81,677		$	(8,910	)		$	666,446
Interest expense																(41,267		)
Net foreign exchange gains																25,015
Income before income taxes																$	650,194
U.S. GAAP combined ratio ⁽⁴⁾	95		%	96		%						NM			⁽⁵⁾	95		%


⁽¹⁾	Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $13.5 million for the quarter ended June 30, 2019.


⁽²⁾	Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that are not allocated to a reportable segment.


⁽³⁾	Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments.


⁽⁴⁾	The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.


⁽⁵⁾	NM - Ratio is not meaningful



	Quarter Ended June 30, 2018
(dollars in thousands)	Insurance			Reinsurance			Investing		Markel Ventures ⁽¹⁾			Other ⁽²⁾				Consolidated
Gross premium volume	$	1,233,828		$	208,805		$	—	$	—		$	554,800			$	1,997,433
Net written premiums	1,001,126			178,729			—		—			751				1,180,606

Earned premiums	918,194			229,613			—		—			377				1,148,184
Losses and loss adjustment expenses:
Current accident year	(610,634		)	(145,992		)	—		—			(48		)		(756,674		)
Prior accident years	139,485			18,525			—		—			(514		)		157,496
Amortization of policy acquisition costs	(191,843		)	(57,407		)	—		—			—				(249,250		)
Other operating expenses	(180,928		)	(21,178		)	—		—			(214		)		(202,320		)
Underwriting profit (loss)	74,274			23,561			—		—			(399		)		97,436
Net investment income	—			—			105,195		192			—				105,387
Net investment gains	—			—			105,249		—			—				105,249
Products revenues	—			—			—		472,323			—				472,323
Services and other revenues	—			—			—		106,433			49,437				155,870
Products expenses	—			—			—		(450,585		)	—				(450,585		)
Services and other expenses	—			—			—		(90,344		)	(39,510		)		(129,854		)
Amortization of intangible assets ⁽³⁾	—			—			—		(10,096		)	(19,545		)		(29,641		)
Impairment of goodwill and intangible assets	—			—			—		(14,904		)	—				(14,904		)
Segment profit (loss)	$	74,274		$	23,561		$	210,444	$	13,019		$	(10,017	)		$	311,281
Interest expense																(36,702		)
Net foreign exchange gains																86,158
Income before income taxes																$	360,737
U.S. GAAP combined ratio ⁽⁴⁾	92		%	90		%						NM			⁽⁵⁾	92		%


⁽¹⁾	Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $12.8 million for the quarter ended June 30, 2018.


⁽²⁾	Other represents the total loss attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that are not allocated to a reportable segment.


⁽³⁾	Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments.


⁽⁴⁾	The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.


⁽⁵⁾	NM - Ratio is not meaningful



	Six Months Ended June 30, 2019
(dollars in thousands)	Insurance			Reinsurance			Investing		Markel Ventures ⁽¹⁾			Other ⁽²⁾				Consolidated
Gross premium volume	$	2,561,196		$	736,758		$	—	$	—		$	1,204,235			$	4,502,189
Net written premiums	2,124,528			657,769			—		—			434				2,782,731

Earned premiums	1,964,996			438,238			—		—			204				2,403,438
Losses and loss adjustment expenses:
Current accident year	(1,275,870		)	(278,812		)	—		—			—				(1,554,682		)
Prior accident years	174,295			6,895			—		—			7,626				188,816
Amortization of policy acquisition costs	(408,608		)	(116,284		)	—		—			—				(524,892		)
Other operating expenses	(355,153		)	(37,865		)	—		—			382				(392,636		)
Underwriting profit	99,660			12,172			—		—			8,212				120,044
Net investment income	—			—			225,563		450			—				226,013
Net investment gains	—			—			1,037,844		—			—				1,037,844
Products revenues	—			—			—		850,470			—				850,470
Services and other revenues	—			—			—		221,280			172,559				393,839
Products expenses	—			—			—		(744,564		)	—				(744,564		)
Services and other expenses	—			—			—		(194,730		)	(150,672		)		(345,402		)
Amortization of intangible assets ⁽³⁾	—			—			—		(21,317		)	(55,651		)		(76,968		)
Segment profit (loss)	$	99,660		$	12,172		$	1,263,407	$	111,589		$	(25,552	)		$	1,461,276
Interest expense																(81,557		)
Net foreign exchange gains																3,151
Income before income taxes																$	1,382,870
U.S. GAAP combined ratio ⁽⁴⁾	95		%	97		%						NM			⁽⁵⁾	95		%


⁽¹⁾	Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $27.5 million for the six months ended June 30, 2019.


⁽²⁾	Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that are not allocated to a reportable segment.


⁽³⁾	Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments.


⁽⁴⁾	The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.


⁽⁵⁾	NM - Ratio is not meaningful



	Six Months Ended June 30, 2018
(dollars in thousands)	Insurance			Reinsurance			Investing			Markel Ventures ⁽¹⁾			Other ⁽²⁾				Consolidated
Gross premium volume	$	2,327,190		$	701,138		$	—		$	—		$	1,015,989			$	4,044,317
Net written premiums	1,914,105			599,787			—			—			1,516				2,515,408

Earned premiums	1,821,045			477,577			—			—			583				2,299,205
Losses and loss adjustment expenses:
Current accident year	(1,180,661		)	(299,173		)	—			—			(48		)		(1,479,882		)
Prior accident years	258,658			5,454			—			—			1,474				265,586
Amortization of policy acquisition costs	(371,328		)	(119,827		)	—			—			—				(491,155		)
Other operating expenses	(350,899		)	(33,308		)	—			—			(598		)		(384,805		)
Underwriting profit	176,815			30,723			—			—			1,411				208,949
Net investment income	—			—			213,089			314			—				213,403
Net investment losses	—			—			(17,749		)	—			—				(17,749		)
Products revenues	—			—			—			766,459			—				766,459
Services and other revenues	—			—			—			204,354			96,812				301,166
Products expenses	—			—			—			(720,282		)	—				(720,282		)
Services and other expenses	—			—			—			(178,952		)	(83,335		)		(262,287		)
Amortization of intangible assets ⁽³⁾	—			—			—			(20,193		)	(38,271		)		(58,464		)
Impairment of goodwill and intangible assets	—			—			—			(14,904		)	—				(14,904		)
Segment profit (loss)	$	176,815		$	30,723		$	195,340		$	36,796		$	(23,383	)		$	416,291
Interest expense																	(76,761		)
Net foreign exchange gains																	64,044
Income before income taxes																	$	403,574
U.S. GAAP combined ratio ⁽⁴⁾	90		%	94		%							NM			⁽⁵⁾	91		%


⁽¹⁾	Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $25.5 million for the six months ended June 30, 2018.


⁽²⁾	Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that are not allocated to a reportable segment.


⁽³⁾	Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments.


⁽⁴⁾	The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.

⁽⁵⁾

NM - Ratio is not meaningful

Reconciliation Of Segment Assets To The Company's Consolidated Balance Sheets

The following table reconciles segment assets to the Company's consolidated balance sheets.



(dollars in thousands)	June 30, 2019		December 31, 2018
Segment assets:
Investing	$	21,214,083	$	19,100,790
Underwriting	7,186,643		6,451,984
Markel Ventures	2,308,908		2,124,506
Total segment assets	30,709,634		27,677,280
Other operations	5,711,950		5,628,983
Total assets	$	36,421,584	$	33,306,263