Subject: Tracking "10-5-1" Target
In 2020 Markel announced the "10-5-1" target i.e. $10 billion of annual insurance premiums in five years and earn $1 billion of annual
underwriting profit while doing so.

In 2020 they wrote $5.9 billion of net insurance premiums. 2020 was a bad year for underwriting profitability and they had only $127 million of insurance profit with a combined ration of 98%

In nine months of 2023, operating revenue form insurance operations (which includes ILS) was $6.327 billion. Without ILS it was $6.122 billion. Insurance segment profitability was $371 million (which includes ILS and amortization of intangibles). Insurance profit without ILS was $284 million, a drop of 41% from 2022. The combined ration was 95.4% compared to 91.2% for 2022.

Annualizing the nine month figures gives us $84.2 billion insurance revenue including ILS and $81.4 billion without. Annualized insurance profit including ILS would be $493 million and $378 million without ILS.

They seem to be on target for the insurance revenue / premium. However underwriting profitability has suffered even in a hardening market and might have to sacrifice premium growth to improve underwriting profits.