Re/insurance holding company Markel Corporation was hit by a $325 million underwriting loss in the first quarter as a result of the coronavirus pandemic.
The combined ratio was 118% for the quarter, or 94% after the exclusion of losses related to the pandemic.
This compares to a combined ratio of 95% for the prior year quarter.
Markel’s reported Q1 operating revenues included $1.3 billion of earned premiums in underwriting operations, up from $1.2 billion in 2019.
Also $511.2 million of operating revenues in its Markel Ventures operations, compared to $455 million in 2019; and net investment losses of $1.7 billion attributable to the change in fair value of its equity portfolio, compared to net investment gains of $612.2 million for Q1 2019.
The significant volatility in the equity markets arising from economic uncertainty associated with the COVID-19 pandemic contributed to a comprehensive loss to shareholders of $1.4 billion for Q1
This compares to a comprehensive income of $732.2 million for the first quarter of 2019.
“We applaud the heroic professionalism of those on the frontlines of this pandemic globally, working fearlessly and tirelessly to fight the virus and serve their communities,” said Thomas Gayner and Richard R. Whitt, Co-Chief Executive Officers.
“Within Markel, we remain inspired by how well our employees around the world have quickly adapted to changing circumstances to ensure continuity for our customers, business partners and the communities within which we operate.
“We recognize this is a stressful time for our employees, professionally and personally, and thank them and their loved ones for their support and commitment to keep our communities safe and Markel moving forward.
“For 90 years Markel’s strength and deep expertise have enabled us to support our key stakeholders through many situations and events, and today this is no different.
“While the economic disruption of the pandemic has impacted our financial performance this quarter, we believe we are well positioned to weather the current challenges and continue our focus on the long-term.”
