Segment Reporting Disclosures (Tables)

9 Months Ended

Sep. 30, 2019

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

The following tables summarize the Company's segment disclosures.



	Quarter Ended September 30, 2019
(dollars in thousands)	Insurance			Reinsurance			Investing		Markel Ventures ⁽¹⁾			Other ⁽²⁾				Consolidated
Gross premium volume	$	1,418,363		$	226,387		$	—	$	—		$	619,742			$	2,264,492
Net written premiums	1,181,919			187,180			—		—			1,285				1,370,384

Earned premiums	1,058,869			240,144			—		—			1,019				1,300,032
Losses and loss adjustment expenses:
Current accident year	(722,172		)	(178,058		)	—		—			—				(900,230		)
Prior accident years	135,029			13,800			—		—			(733		)		148,096
Amortization of policy acquisition costs	(218,710		)	(61,925		)	—		—			—				(280,635		)
Other operating expenses	(171,731		)	(20,436		)	—		—			(2,417		)		(194,584		)
Underwriting profit (loss)	81,285			(6,475		)	—		—			(2,131		)		72,679
Net investment income	—			—			113,220		162			—				113,382
Net investment gains	—			—			32,144		—			—				32,144
Products revenues	—			—			—		386,708			—				386,708
Services and other revenues	—			—			—		109,373			91,419				200,792
Products expenses	—			—			—		(354,404		)	—				(354,404		)
Services and other expenses	—			—			—		(96,015		)	(57,343		)		(153,358		)
Amortization of intangible assets ⁽³⁾	—			—			—		(10,357		)	(25,338		)		(35,695		)
Segment profit (loss)	$	81,285		$	(6,475	)	$	145,364	$	35,467		$	6,607			$	262,248
Interest expense																(47,465		)
Net foreign exchange gains																53,850
Loss on early extinguishment of debt																(6,705		)
Income before income taxes																$	261,928
U.S. GAAP combined ratio ⁽⁴⁾	92		%	103		%						NM			⁽⁵⁾	94		%


⁽¹⁾	Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $12.9 million for the quarter ended September 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 September 30, 2018
(dollars in thousands)	Insurance			Reinsurance			Investing		Markel Ventures ⁽¹⁾			Other ⁽²⁾				Consolidated
Gross premium volume	$	1,248,150		$	234,360		$	—	$	—		$	561,261			$	2,043,771
Net written premiums	1,021,684			195,349			—		—			(762		)		1,216,271

Earned premiums	961,062			225,277			—		—			(1,016		)		1,185,323
Losses and loss adjustment expenses:
Current accident year	(674,529		)	(186,505		)	—		—			48				(860,986		)
Prior accident years	111,117			12,681			—		—			342				124,140
Amortization of policy acquisition costs	(182,857		)	(58,991		)	—		—			—				(241,848		)
Other operating expenses	(172,340		)	(26,125		)	—		—			(1,648		)		(200,113		)
Underwriting profit (loss)	42,453			(33,663		)	—		—			(2,274		)		6,516
Net investment income	—			—			106,164		143			—				106,307
Net investment gains	—			—			426,075		—			—				426,075
Products revenues	—			—			—		362,577			—				362,577
Services and other revenues	—			—			—		106,694			48,973				155,667
Products expenses	—			—			—		(341,718		)	—				(341,718		)
Services and other expenses	—			—			—		(94,924		)	(37,100		)		(132,024		)
Amortization of intangible assets ⁽³⁾	—			—			—		(9,139		)	(18,656		)		(27,795		)
Segment profit (loss)	$	42,453		$	(33,663	)	$	532,239	$	23,633		$	(9,057	)		$	555,605
Interest expense																(37,961		)
Net foreign exchange gains																1,383
Income before income taxes																$	519,027
U.S. GAAP combined ratio ⁽⁴⁾	96		%	115		%						NM			⁽⁵⁾	99		%


⁽¹⁾	Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $13.0 million for the quarter ended September 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



	Nine Months Ended September 30, 2019
(dollars in thousands)	Insurance			Reinsurance			Investing		Markel Ventures ⁽¹⁾			Other ⁽²⁾				Consolidated
Gross premium volume	$	3,979,559		$	963,145		$	—	$	—		$	1,823,977			$	6,766,681
Net written premiums	3,306,447			844,949			—		—			1,719				4,153,115

Earned premiums	3,023,865			678,382			—		—			1,223				3,703,470
Losses and loss adjustment expenses:
Current accident year	(1,998,042		)	(456,870		)	—		—			—				(2,454,912		)
Prior accident years	309,324			20,695			—		—			6,893				336,912
Amortization of policy acquisition costs	(627,318		)	(178,209		)	—		—			—				(805,527		)
Other operating expenses	(526,884		)	(58,301		)	—		—			(2,035		)		(587,220		)
Underwriting profit	180,945			5,697			—		—			6,081				192,723
Net investment income	—			—			338,783		612			—				339,395
Net investment gains	—			—			1,069,988		—			—				1,069,988
Products revenues	—			—			—		1,237,178			—				1,237,178
Services and other revenues	—			—			—		330,653			263,978				594,631
Products expenses	—			—			—		(1,098,968		)	—				(1,098,968		)
Services and other expenses	—			—			—		(290,745		)	(208,015		)		(498,760		)
Amortization of intangible assets ⁽³⁾	—			—			—		(31,674		)	(80,989		)		(112,663		)
Segment profit (loss)	$	180,945		$	5,697		$	1,408,771	$	147,056		$	(18,945	)		$	1,723,524
Interest expense																(129,022		)
Net foreign exchange gains																57,001
Loss on early extinguishment of debt																(6,705		)
Income before income taxes																$	1,644,798
U.S. GAAP combined ratio ⁽⁴⁾	94		%	99		%						NM			⁽⁵⁾	95		%


⁽¹⁾	Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $40.4 million for the nine months ended September 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



	Nine Months Ended September 30, 2018
(dollars in thousands)	Insurance			Reinsurance			Investing		Markel Ventures ⁽¹⁾			Other ⁽²⁾				Consolidated
Gross premium volume	$	3,575,340		$	935,498		$	—	$	—		$	1,577,250			$	6,088,088
Net written premiums	2,935,789			795,136			—		—			754				3,731,679

Earned premiums	2,782,107			702,854			—		—			(433		)		3,484,528
Losses and loss adjustment expenses:
Current accident year	(1,855,190		)	(485,678		)	—		—			—				(2,340,868		)
Prior accident years	369,775			18,135			—		—			1,816				389,726
Amortization of policy acquisition costs	(554,185		)	(178,818		)	—		—			—				(733,003		)
Other operating expenses	(523,239		)	(59,433		)	—		—			(2,246		)		(584,918		)
Underwriting profit (loss)	219,268			(2,940		)	—		—			(863		)		215,465
Net investment income	—			—			319,253		457			—				319,710
Net investment gains	—			—			408,326		—			—				408,326
Products revenues	—			—			—		1,129,036			—				1,129,036
Services and other revenues	—			—			—		311,048			145,785				456,833
Products expenses	—			—			—		(1,062,000		)	—				(1,062,000		)
Services and other expenses	—			—			—		(273,876		)	(120,435		)		(394,311		)
Amortization of intangible assets ⁽³⁾	—			—			—		(29,332		)	(56,927		)		(86,259		)
Impairment of goodwill and intangible assets	—			—			—		(14,904		)	—				(14,904		)
Segment profit (loss)	$	219,268		$	(2,940	)	$	727,579	$	60,429		$	(32,440	)		$	971,896
Interest expense																(114,722		)
Net foreign exchange gains																65,427
Income before income taxes																$	922,601
U.S. GAAP combined ratio ⁽⁴⁾	92		%	100		%						NM			⁽⁵⁾	94		%


⁽¹⁾	Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $38.5 million for the nine months ended September 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

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)	September 30, 2019		December 31, 2018
Segment assets:
Investing	$	21,893,706	$	19,100,790
Underwriting	6,896,240		6,451,984
Markel Ventures	2,257,878		2,124,506
Total segment assets	31,047,824		27,677,280
Other operations	5,988,372		5,628,983
Total assets	$	37,036,196	$	33,306,263