What the changes say
- Insurance capital risks now emphasize equity-market declines and potential rating downgrades affecting regulatory capital, liquidity, and borrowing costs.
- ILS risks now separately address catastrophe losses disrupting investor capital, assets under management, and management-fee opportunities.
- Investment sensitivity now includes foreign-exchange movements; top-five broker concentration declined from 38% of premiums in 2024 to 37% in 2025.
What changed since the prior 10-K
New
- New
We invest a significant portion of the capital required to be held at our insurance companies in equity securities
Equity-market declines could reduce insurance-company regulatory capital, impair business plans, and require Markel to contribute additional capital.
- New
Our insurance companies are rated by various rating agencies, and a downgrade or potential downgrade in one or more of these ratings could have a material adverse effect on us
Rating-agency methodology changes or downgrades could restrict insurance-company capital deployment and adversely affect Markel’s ratings.
- New
Our ILS operations may experience losses or disruptions from catastrophes and other significant, infrequent loss events
Catastrophes and other infrequent losses could reduce ILS investor capital, assets under management, and management-fee opportunities.
Reworded
- 85% rewritten
Our senior debt is rated by various rating agencies, and a downgrade or potential downgrade in one or more of these ratings could have a material adverse effect on us
The risk now focuses on senior debt ratings and adds effects on liquidity, letter-of-credit facilities, capital-market access, and borrowing costs.
Was: Our insurance companies and senior debt are rated by various rating agencies, and a downgrade or potential downgrade in one or more of these ratings could have a material adverse effect on us
- 66% rewritten
Our liquidity and our ability to meet our debt and other obligations depend on the receipt of funds from our subsidiaries
The risk removes preferred-stock dividends and specifically links subsidiary capital pressure to declines in the fair value of equity securities.
Was: Our liquidity and our ability to meet our debt and other obligations, and pay dividends on our preferred stock, depend on the receipt of funds from our subsidiaries
- 64% rewritten
Our insurance results may be impacted by changes in interest rates, foreign currency exchange rates, U.S. and international monetary and fiscal policies, and broader economic conditions
Foreign-currency movements were added, and the company now acknowledges mitigation may fail in the short term or at all.
Was: Our investment results may be impacted by changes in interest rates, U.S. and international monetary and fiscal policies as well as broader economic conditions
- 54% rewritten
We depend on a few brokers for a large portion of our premiums and the loss of business provided by any one of them could have a material adverse effect on us
The reference period changed to 2025, and top-five broker concentration fell from 38% to 37% of gross premiums.
Was: We depend on a few brokers for a large portion of our revenues and the loss of business provided by any one of them could have a material adverse effect on us
- 52% rewritten
We invest a significant portion of our shareholders' equity in equity securities and our equity portfolio is concentrated, which may result in significant variability in our results and net income and may have a material adverse effect on shareholders' equity and on our ability to carry out our business plans
The comparison now reports equity securities at 70% of shareholders’ equity in 2025 only and adds potential effects on business plans.
Was: We invest a significant portion of our shareholders' equity in equity securities, which may result in significant variability in our investment results and net income and may have a material adverse effect on shareholders' equity. Additionally, our equity investment portfolio is concentrated, and declines in the value of these significant investments could have a material adverse effect on our financial results and on our ability to carry out our business plans
- 49% rewritten
Our ILS operations involve management of third-party capital, which may expose us to risks
The risk is narrowed from operating subsidiaries to ILS operations, and lost opportunities are specifically described as management-fee generating opportunities.
Was: Our ILS operations and our management of third-party capital may expose us to risks
- 45% rewritten
Our businesses operate through independent local management teams, which could result in inconsistent management, governance, and oversight practices
The decentralized-management risk now covers inconsistent governance and oversight, changes listed regions, and removes capital-allocation and staffing concerns.
- 32% rewritten
Our business could be disrupted as a result of a threatened proxy contest or other actions of activist shareholders
The specific JANA Partners example was removed, while the risk now states activist actions occurred previously and may recur.
- 30% rewrittenLegal and Regulatory Risks
General economic, market, or industry conditions could lead to investment losses, adverse effects on our businesses, and limit our access to the capital markets
- 28% rewritten
Competition in the insurance markets could reduce profits from our insurance operations
Was: Competition in the insurance and reinsurance markets could reduce profits from our insurance operations
- 27% rewritten
We may experience losses or disruptions from catastrophes and other significant, infrequent loss events
Was: We may experience losses or disruptions from catastrophes
- 27% rewrittenLegal and Regulatory Risks
Pandemics have had, and could have, material adverse effects on us
- 26% rewrittenLegal and Regulatory Risks
Our businesses, results of operations, and financial condition could be adversely affected by ongoing regional or military conflicts and related disruptions in the global economy
- 24% rewritten
The amount of capital that our insurance subsidiaries have and must hold to maintain their financial strength and meet other requirements can vary significantly from time to time and is sensitive to a number of factors, some of which are outside of our control
Was: The amount of capital that our insurance subsidiaries have and must hold to maintain their financial strength and credit ratings and meet other requirements can vary significantly from time to time and is sensitive to a number of factors, some of which are outside of our control
- 21% rewritten
We use analytical models to assist our decision making in key areas such as pricing, reserving, and capital modeling, and actual results may differ materially from the model outputs and related analyses
- 20% rewritten
We may require additional capital in the future, which may not be available or may only be available on unfavorable terms
- 20% rewritten
Impairment in the value of our goodwill or intangible assets could have a material adverse effect on our operating results and financial condition
Was: Impairment in the value of our goodwill or other intangible assets could have a material adverse effect on our operating results and financial condition
All 41 risk factors
Headings as the filing states them, in filing order.
Other
- 01Our businesses operate through independent local management teams, which could result in inconsistent management, governance, and oversight practices45% rewritten
- 02We invest a significant portion of our shareholders' equity in equity securities and our equity portfolio is concentrated, which may result in significant variability in our results and net income and may have a material adverse effect on shareholders' equity and on our ability to carry out our business plans52% rewritten
- 03The integration of acquired businesses may not be as successful as we anticipate
- 04Impairment in the value of our goodwill or intangible assets could have a material adverse effect on our operating results and financial condition20% rewritten
- 05The loss of, or failure to successfully implement succession planning for, one or more key executives or an inability to attract and retain qualified personnel in our various businesses could have a material adverse effect on us
- 06Our liquidity and our ability to meet our debt and other obligations depend on the receipt of funds from our subsidiaries66% rewritten
- 07We may require additional capital in the future, which may not be available or may only be available on unfavorable terms20% rewritten
- 08A failure to comply with covenants and other requirements under our credit facilities, senior debt, and other indebtedness could have a material adverse effect on us
- 09Our senior debt is rated by various rating agencies, and a downgrade or potential downgrade in one or more of these ratings could have a material adverse effect on us85% rewritten
- 10Our business could be disrupted as a result of a threatened proxy contest or other actions of activist shareholders32% rewritten
- 11We may experience losses or disruptions from catastrophes and other significant, infrequent loss events27% rewritten
- 12The failure of any of the methods we employ to manage our loss exposures could have a material adverse effect on us
- 13The effects of emerging claim and coverage issues on our business are uncertain
- 14We use analytical models to assist our decision making in key areas such as pricing, reserving, and capital modeling, and actual results may differ materially from the model outputs and related analyses21% rewritten
- 15Our results may be affected because actual insured or reinsured losses differ from our loss reserves
- 16Changes in the assumptions and estimates used in establishing reserves for our life and annuity reinsurance book could result in material increases in our estimated loss reserves for such business
- 17We may be unable to purchase reinsurance protection on terms acceptable to us, or we may be unable to collect on loss recoveries from reinsurers
- 18Competition in the insurance markets could reduce profits from our insurance operations28% rewritten
- 19The historical cyclicality in the property and casualty insurance industry could have a material adverse effect on our ability to improve or maintain underwriting profits or to grow or maintain premium volume
- 20We depend on a few brokers for a large portion of our premiums and the loss of business provided by any one of them could have a material adverse effect on us54% rewritten
- 21Our insurance results may be impacted by changes in interest rates, foreign currency exchange rates, U.S. and international monetary and fiscal policies, and broader economic conditions64% rewritten
- 22We invest a significant portion of the capital required to be held at our insurance companies in equity securitiesNew
- 23Our insurance companies are rated by various rating agencies, and a downgrade or potential downgrade in one or more of these ratings could have a material adverse effect on usNew
- 24The amount of capital that our insurance subsidiaries have and must hold to maintain their financial strength and meet other requirements can vary significantly from time to time and is sensitive to a number of factors, some of which are outside of our control24% rewritten
- 25Our insurance subsidiaries are subject to supervision and regulation that may have a material adverse effect on our operations and financial condition
- 26Regulators may challenge our use of fronting arrangements in jurisdictions in which our capacity providers are not licensed
- 27Our ILS operations involve management of third-party capital, which may expose us to risks49% rewritten
- 28Our ILS operations may experience losses or disruptions from catastrophes and other significant, infrequent loss eventsNew
Risks Related to All of Our Operations
- 29Our efforts to develop new products, expand in targeted markets, or improve business processes and workflows may not be successful and may increase or create new risks
Legal and Regulatory Risks
- 30The legal and regulatory requirements applicable to our businesses are extensive. Failure to comply could have a material adverse effect on us
- 31Losses from legal and regulatory actions may have a material adverse effect on us
- 32Changes in tax laws, rates, or regulations could have a material adverse effect on us
- 33We are subject to laws and regulations relating to economic and trade sanctions and bribery and corruption, the violation of which could have a material adverse effect on us
- 34Employee error and misconduct may be difficult to detect and prevent and may result in significant losses
- 35We have substantial international operations and investments, which expose us to increased political, civil, operational, and economic risks
- 36General economic, market, or industry conditions could lead to investment losses, adverse effects on our businesses, and limit our access to the capital markets30% rewritten
- 37Our businesses, results of operations, and financial condition could be adversely affected by ongoing regional or military conflicts and related disruptions in the global economy26% rewritten
- 38Information technology systems that we use could fail or suffer a security breach or cyberattack, which could have a material adverse effect on us or result in the loss of regulated or sensitive information
- 39Third-party providers may perform poorly, breach their obligations to us, or expose us to enhanced risks
- 40Pandemics have had, and could have, material adverse effects on us27% rewritten
- 41The impacts of climate change, and legal or regulatory measures to address climate change, may adversely affect our results of operations or financial condition
Other Markel Group 10-Ks
- FY2024 10-K risk factors38 risks
Insurance underwriting faces catastrophe losses, reserve uncertainty, reinsurance dependence and cyclical pricing pressure.
Filed Feb 24, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.