Markel combined ratio rises on $150m COVID-19 and nat cat hit in Q3
Specialty insurer Markel's comprehensive income increased in the third quarter of 2020 but the company's combined ratio deteriorated by three percentage points due to $150 million underwriting losses attributed to COVID-19 and natural catastrophes in the US.
The insurer reported a comprehensive net income of around $520 million in Q3 2020, compared with $250 million in the prior year period. However, for the first nine months of the year, the comprehensive net income plummeted to $259.6 million from $1.6 billion recorded for the same period in 2019.
The combined ratio for the quarter jumped three percentage points to 97 percent, compared with 94 percent in Q3 2019.
The combined ratio for Q3 included $48.9 million of underwriting losses attributed to the COVID-19 pandemic and $101 million of underwriting losses from Hurricanes Laura, Sally and Isaias, as well as the derecho in Iowa and wildfires in the western US.
"We delivered solid operating results for the quarter by maintaining our focus on managing and executing on factors within our control," said Thomas Gayner and Richard Whitt, co-chief executive officers of Markel.
"Our insurance operations produced an underwriting profit, despite catastrophe losses and increases to reserves related to the COVID-19 pandemic, reflecting the strong underlying performance of our business. Our Markel Ventures operations delivered significant profit, demonstrating the valuable products and services we provide, and our investment portfolio also saw gains amid volatile market conditions.
"We thank our employees, trading partners and customers, all of whom have performed remarkably well given the challenges and uncertainties of the pandemic."
