Markel posts increased profits despite challenging year
Markel posted a 9 percent increase in net income of $283.8 million in 2013 compared with $258.2 in 2012, despite a challenging year.
Premiums written by recently acquired Alterra, as well as higher gross premium volume in the specialty admitted and excess and surplus lines segments, helped the re/insurer to achieve a 56 percent increase in gross written premiums from $3.9 million in 2013 compared with $2.5 million in 2012.
An equal combined ratio of 97 percent was recorded for both 2013 and 2012.
“Our acquisition of Alterra played a significant role in helping us attain these results. Over the past five years, we achieved double-digit, compounded growth in book value per share. We continue to focus on growth opportunities, most recently completing the acquisition of Abbey Protection in January 2014. 2013 has been both a challenging and rewarding year, and it wouldn't have been possible without the hard work and dedication of each of our associates and the support of our shareholders,” said Alan Kirshner, chairman and chief executive officer.
“Our operating revenues increased 44 percent to $4.3 billion, which reflects solid growth across our insurance, investing and Markel Ventures operations.
Revenues from the Markel Ventures operations totalled $686.4 million in 2013, compared with $489.4 million in 2012. Other expenses from the operations were $613.3 million in 2013 compared to $433.0 million in 2012. Net income to shareholders from the Markel Ventures operations was $23.8 million in 2013 compared with $13.5 million in 2012.
While rate changes throughout the first three quarters remained at low to mid-single digits, Markel experienced softening prices on catastrophe exposed property product lines and in its reinsurance book in quarter four.
However the re/insurer has said that it will continue to pursue price increases in 2014 when possible, but it will not write business when the “prevailing market price will not support our underwriting profit targets”.
