Markel turns to profit in Q3 despite declining underwriting profitability
Markel Corporation turned to profit in third quarter of 2016 after a loss in the same period in the previous year despite declining underwriting profitability.
Markel's comprehensive income in the three-month period ending September 30 was $89.2 million, compared to a comprehensive loss of $51.1 million for the same period in 2015.
The company's combined ratio for the third quarter was 98 percent, up 10 percentage points year-on-year.
Alan Kirshner, executive chairman, commented: “While our underwriting results for the quarter were adversely impacted by unfavourable development on our medical malpractice and specified medical product lines, we continue to exercise underwriting discipline and our results for the nine months are in line with our expectations.”
Markel's consolidated gross premium volume for its different business segments in the third quarter was $1.1 billion, down from $1.2 billion in the same period a year ago.
Markel's gross premium volume for its US insurance segment was $663.2 million in the third quarter, up from $635.9 million in the same period a year ago.
Gross premium volume for the international insurance segment was $269 million, down from $284.6 million over the period.
The reinsurance segment's gross premium volume was $196.9 million, down from $239.1 million.
“All three of our operating engines have made substantial contributions to our results in 2016,” Kirshner said.
“Growth in book value per share was also driven by strong performance in both our equity and fixed income investment portfolios. Contributions from our Markel Ventures operations reflect both organic growth and the recent acquisition of CapTech,” he added.
