Markel Corporation has reported 17% growth in earned premiums to $1.63 billion for the third quarter of 2021, while the company’s combined ratio strengthened to 93% on the back of lower losses when compared with the prior year.
Earned premiums also grew for Markel during the nine month period ended September 30th, 2021, by 15% to roughly $4.7 billion.
The insurer attributes the higher earned premiums in both periods to continued growth in gross premium volume from new business and more favourable rates.
For Q3 2021, Markel’s combined ratio improved by four percentage points, year-on-year, to 93%. And for 9M 2021, the combined ratio strengthened from 101% to 91%.
Markel says that the improvements in both periods reflect a lower current accident year loss ratio given the benefit of both a favorable pricing environment and the impact of actions it’s taken to enhance its underwriting.
Net losses and loss adjustment expenses (LAE) attributable to natural catastrophes totalled $114.4 million in Q3 2021, and included the impacts of Hurricane Ida and the European floods. For the nine month period, net losses and LAE totalled $182.3 million, and included Hurricane Ida, the European floods, and winter storm Uri.
At Markel Ventures, operating revenues increased from $824 million in Q3 2020 to $908 million in Q3 2021, and rose from just over $2 billion in 9M 2020 to almost $2.7 billion in 9M 2021. Here, Markel notes expansion through organic growth and contributions from Lansing Building Products, which it acquired in Q2 2020.
On the asset side of the balance sheet, Markel has reported a net investment loss of more than $25 million for Q3 2021, compared with a gain of $539 million a year earlier. However, for 9M 2021, Markel has reported net investment gains of almost $1.2 billion, compared with losses of more than $230 million for the prior year period.
Comprehensive income to shareholders stands at $80.2 million for the third quarter of 2021, representing a decline from income of $520 million a year earlier, reflecting the dip in the investment performance.
For 9M 2021, Markel has reported comprehensive income to shareholders of nearly $1.3 billion, which is an improvement on the $260 million reported for the same period in 2020.
Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers (CEOs) at Markel, commented: “Our third quarter and year-to-date results reflect the strength and balance of our three-engine operating model of insurance, investments and Markel Ventures.
“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.
“Our Markel Ventures businesses continue to grow and add value. We added Buckner HeavyLift Cranes to our group in the third quarter, which further strengthens and diversifies our family of companies. Our investment portfolio delivered solid results for the first nine months, and we continue to evaluate our investment performance with a long-term focus in mind.
“As we enter the final quarter of 2021, we believe we are well-positioned to finish the year strong, and we will look to all three operating engines to power us through the finish line.”
