Markel profits increase as it avoids latest cat losses

Markel Corporation, which has offices in Bermuda, reported increase in its profits in the second quarter of 2016 due to solid underwriting results.

The company added that it had barely been affected by some of the recent cat losses, and had been boosted by its investment performance and a contribution from Markel Ventures.

Markel posted a comprehensive income of $209.9 million for the second quarter of 2016 compared with $132.9 million for the same period of last year.

In the first half of the year, the equivalent figures were $606.9 million compared with $148.9 million for the second quarter of 2015.

Markel’s combined ratio for the 2016 period was 93 percent compared with 96 percent for the second quarter of 2015. The combined ratio was 90 percent for the six months ended June 30, 2016 and 2015.

The company’s earned premiums for the second quarter of 2016 dipped slightly to $950.8 million compared with $957.5 million in the same period a year before.

“The second quarter of 2016 results continued to reflect strong performance from our underwriting, investing and Markel Ventures operations. We were pleased with our underwriting results which had minimal impact from the industry-wide large loss events that occurred during the quarter,” said Alan Kirshner, executive chairman of Markel.

“Our investment portfolio benefited from favourable movements in the debt and equity markets and our Markel Ventures operations reported another quarter of year over year growth in operating revenue, EBITDA and net income.”