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Markel Corporation sees major turnaround in financial results

Markel Corporation sees major turnaround in financial results | Insurance Business UK

Markel Corporation sees major turnaround in financial results

Markel Corporation has recovered from the loss it suffered in the first half of 2020.

Reporting its financial results for the three and six months ended June 30, 2021, the Richmond-headquartered insurance group said its comprehensive income to shareholders amounted to US$849.7 million (around £611.4 million) in the second quarter; H1, US$1.2 billion.

The figures compare to Q2 2020’s US$1.1 billion comprehensive income and the US$260.4 million comprehensive loss to shareholders in the first six months of last year.    

Net investment gains, meanwhile, fell to US$674.8 million (from US$911.2 million) in the second quarter of this year, while the half-year result bounced back from net investment losses worth US$770.2 million to net investment gains of US$1.2 billion this time around.

Earned premiums also went up, both in Q2 and H1. Combined ratio in the quarter was 87%; 90% in the first half.

In a joint statement, co-chief executive officers Thomas S. Gayner and Richard R. Whit noted: “Our results for the second quarter of 2021 reflect outstanding performance across our three engines.

“We continued to achieve double-digit premium growth in our underwriting operations through both organic growth in new business and more favourable rates, and we delivered an 87% combined ratio for the quarter demonstrating our strong underwriting discipline and expense management amid this favourable rate environment.”

The bosses went on to highlight Markel Ventures operating revenues, which surpassed US$1 billion in Q2 and which they said translated to an “equally impressive” contribution to the group’s bottom line.

“As we pass the halfway mark of 2021, we remain excited about our position in the markets we serve and look forward to building upon our first-half performance with the continued hard work and dedication of our employees and the support of our trading partners,” they added.