Markel Corporation recently announced comprehensive net income of $358.9 million for the opening quarter of 2021, compared with a loss of more than $1.3 billion for the prior year quarter.
The significantly improved result, year-on-year, also included net investment gains of $526.8 million in Q1 2021, compared with net investment losses of roughly $1.7 billion in Q1 2020.
At the same time, Markel has reported 13% growth in earned premiums in the period to $1.497 billion, compared with $1.33 billion a year earlier.
Markel attributes the premium growth to continued expansion in gross written premium volume from new business and more favourable rates.
The combined ratio also strengthened during Q1 2021 to 94% compared with 118% a year earlier.
For Q1 2021, the combined ratio included $64.3 million of net losses and loss adjustment expenses from winter storm Uri, and $18.6 million of net losses and loss adjustment expenses from an increase in Markel’s estimate of ultimate losses and loss adjustment expenses attributed to the COVID-19 pandemic.
At Markel Ventures, operating revenues increased from $511 million in Q1 2020 to $706 million in Q1 2021, and included significant contributions from Lansing Building Products, which Markel acquired in Q2 2020.
Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers of Markel, commented: “Our first quarter results reflected strong, profitable growth across our underwriting operations globally, as we executed on our strategic plans to drive market leadership in key insurance product lines, while maintaining our focus on increasing operational efficiencies.
“Our Markel Ventures companies continue to navigate the current environment well with a solid start to the year, and we also continued to see positive momentum in our investment operations as we actively and prudently manage our investment portfolios with the goal of generating superior returns over the long-term.
“We are very pleased with our positive start to 2021 and we are optimistic about steadily building on our performance across all three operating engines as the year progresses.”
