Profit, GWP soared at Markel in ‘record-setting’ 2021
Re/insurer Markel Corporation enjoyed a "record-setting year" in 2021 with significant improvements in net profit, gross written premiums (GWP) and combined ratio across its three operating engines.
Net profit for the full year 2021 rose to a solid $2.4 billion, compared with $831 million seen in 2020. The combined ratio improved to 90.3% from 97.7% in the previous year.
The gross written premium was up 19% in 2021 reaching $8.5 billion, compared with $7.15 billion in 2020. Its reinsurance business contributed $1.2 billion (10% higher than 2020), and the insurance business added $7.2 billion (20% higher) to the GWP.
Markel explained that the increase in gross premium volume in its reinsurance segment in 2021 was primarily attributable to new business and increases on renewals within the professional liability and general liability product lines, including favorable premium adjustments within professional liability product lines. Although the gains were partially offset by lower gross premiums within the property product lines.
Thomas Gayner (pictured left) and Richard Whitt (pictured right), Markel’s co-chief executive officers, said the results reflect the company’s solid performance across its three engines – insurance, investments and Markel Ventures.
"Each contributed in meaningful ways to a record-setting 2021 across many financial metrics, including operating revenues and operating income, among others," the co-CEOs said in a joint statement.
"Our underwriting operations delivered a 90% combined ratio, which reflected the impact of recent underwriting actions we've taken to enhance our profitability while growing gross premium volume to $8.5 billion."
Gayner and Whitt added: "We added two tremendous companies, Buckner and Metromont, to our Markel Ventures family of companies during a year in which revenues and EBITDA far surpassed previous record levels.
"Our investment portfolio provided strong returns on the back of the terrific performance of our equity portfolio."
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