Markel boosts underwriting profits despite hurricane and flood hits

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The biggest financial impacts for the insurer were natural catastrophes and the covid-19 pandemic

Markel improved underwriting profits, despite taking big hits from natural catastrophes.

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Markel improved its combined ratio to 93% in the third quarter, compared to 97% in the same period last year.

Losses in the quarter included $182.3m from Hurricane Ida, winter storm Uri and floods in Europe.

However, Markel’s improved underwriting discipline and rate rises helped offset the losses.

Earned premiums grew 17% in the quarter.

Markel co-chief executives Thomas Gayner and Richard Whitt said said:

“This quarter our insurance operations saw the benefit of recent changes in our property catastrophe underwriting strategy as we delivered a combined ratio in the low 90s, despite significant natural catastrophe events.

“Our premium growth accelerated in the third quarter as we continued to attract new business and achieved double-digit rate growth, particularly on our preferred product lines.”

Markel 2021 Third Quarter and Nine-Months Results
	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2021			2020			2021			2020
Earned premiums	$	1,630,500		$	1,394,428		$	4,696,232		$	4,085,311
Markel Ventures operating revenues	$	908,185		$	824,132		$	2,690,293		$	2,013,492
Net investment gains (losses)	$	(25,833)		$	539,302		$	1,175,791		$	(230,896)
Comprehensive income to shareholders	$	80,236		$	520,089		$	1,288,887		$	259,673
Diluted net income (loss) per common share	$	15.09		$	31.03		$	114.20		$	(3.76)
Combined ratio	93		%	97		%	91		%	101		%

(in thousands, except per share amounts)	September 30, 2021			December 31, 2020
Book value per common share outstanding	$	980.99		$	885.72
Common shares outstanding	13,685			13,783

The 2025 Insurance Times Awards took place on the evening of Wednesday 3rd December in the iconic Great Room of London’s Grosvenor House.

Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.