Markel reports 18% growth
Premium growth and investment performance counterbalance a rise in combined ratio resulting from significant losses across the insurance industry.
Markel International reported gross written premiums of $194.2 million for the quarter ended 30 September 2011
compared with $178.7 million for the third quarter of 2010. Gross written premiums were $676.9 million for the nine months ended 30 September 2011 compared with $574.0 million for the same period in 2010.
The 18% growth in year-to-date premiums was primarily due to an increase in premiums at Markel International's
Canadian operation, Elliott Special Risks, which was acquired in late 2009 as a managing general agent and now operates as a risk-bearing insurance division, predominately writing Canadian liability business. In addition, Markel International benefited from an improved pricing environment and organic growth in its marine and energy division.
The combined ratio for Markel International was 99% for the quarter ended 30 September 2011 compared with
77% for the same period of 2010. The combined ratio for the nine months ended 30 September 2011 was 119% compared with 99% for the same period of 2010.
The combined ratio for the third quarter of 2011 included $17 million, or 10 points, of underwriting loss related to natural catastrophes. The combined ratio for the nine months ended 30 September 2011 included $101million, or 20 points, of underwriting loss related to natural catastrophes.
Andy Davies, finance director at Markel International, commented, "Against a difficult underwriting background we
are pleased with the premium growth we achieved in the first nine months of 2011. The significant losses reported by the insurance industry are having a
positive effect on pricing and with our disciplined underwriting and strong balance sheet we are in an excellent position to capitalise on opportunities
as they arise. The combined ratio for the nine months reflects the significant losses that have impacted the insurance industry during 2011. These losses were within our risk appetite for market events of this size and represent approximately 15 points of Markel International's full year premium and approximately 3% of Markel Corporation's capital. The underwriting loss was offset by another solid investment performance and as a consequence Markel Corporation reported a net profit for the first nine months of 2011 and an increase in shareholders' equity from 31 December 2010."
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