Markel Corporation has reported that earned premiums grew 12% in Q1 of 2023, reflecting growth in gross premium volume across many of the firm’s product lines.
The company’s net investment income increased 73% to $159,335 million in Q1 of 2023, driven by higher interest rates compared to the same period of 2022.
Markel notes that total net investment gains of $372,563 reflected an increase in the fair value of its equity portfolio resulting from favourable market value movements.
The firm’s combined ratio in Q1 was 94%, up from 89% in 2022.
Markel attributes this increase to a higher attritional loss ratio and the impact of less favourable development on prior accident years loss reserves in 2023 compared to 2022.
Meanwhile, the Markel Ventures unit performed well in Q1, recording operating income growth of 46%, driven by revenue growth and improved operating results.
Comprehensive income to shareholders in Q1 stood at $646,365 million, compared to a loss of $511,914 million in 2022.
Markel explains that this increase is the result of positive bottom-line contributions from all three operating engines (insurance, investments and Markel Ventures) during the period.
Thomas S. Gayner, Chief Executive Officer of Markel, said, “The first quarter of 2023 saw all three engines meaningfully contribute to our strong operating results.
“Markel Ventures achieved impressive organic revenue and profitability growth. In insurance, we continue to grow while maintaining our decades-long approach to disciplined underwriting.
“Our investment income continues to benefit from higher interest rates, and we experienced favourable returns in our equity portfolio.
“As always, we encourage investors to focus on our operating performance over the long term, where our three-engine system continues to demonstrate strength, durability and profitable growth.
“I give my thanks to all the associates of Markel for their constant pursuit of excellence, and serving customers as we continue our daily pursuit to build one of the world’s great companies.”
