Markel returns to profit in Q3
Markel Corporation has returned to profit in the third quarter of 2018 despite having experienced significant catastrophe losses during the period.
The US-based specialty underwriter reported net income of $315.1 million for the third quarter of 2018 compared to a net loss of $19.9 million in the same period a year ago.
The combined ratio was 99 percent for the third quarter of 2018 compared to 134 percent for the third quarter of 2017.
The combined ratio for the 2018 third quarter included $75.7million of underwriting losses, net of reinstatement premiums, from Hurricane Florence and Typhoon Jebi. The combined ratio for the quarter also included $503.0 million of underwriting losses, net of reinstatement premiums, from Hurricanes Harvey, Irma and Maria as well as the earthquakes in Mexico.
“Comprehensive income to shareholders for the third quarter reflects strong performance in our equity portfolio, while our fixed income portfolio was unfavourably impacted by rising interest rates,” Thomas Gayner and Richard Whitt, Co-CEOs, commented. “Our results for the quarter also reflect substantial contributions from our Markel Ventures operations. Within our underwriting operations, we produced a small underwriting profit, despite catastrophe losses in the quarter, and continue to maintain a strong balance sheet.
“We are excited about recent growth opportunities in both our Markel Ventures and insurance operations, including our most recent acquisition of Brahmin earlier this month, and our planned acquisition of Nephila, which is expected to close next month.”
Overall, earned premiums grew to $1.19 billion in the third quarter of 2018 from $1.10 billion in the third quarter of 2017.
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