Markel Corporation saw its operating revenues increase by $900 million to $2.5 billion for the first-quarter of 2019, while net income also improved year-on-year, to $576 million.
The insurer and reinsurer has announced its results for the first-quarter of 2019, which shows that alongside improved operating revenues and net income, Markel’s earned premiums also increased in the period, to $1.2 billion.
“Our results for the quarter reflect strong performance in our investment portfolio, largely driven by favorable movements in the equity markets,” said Thomas Gayner and Richard Whitt, Co-Chief Executive Officers (CEO).
Net investment income increased from $108 million in Q1 2018 to $114 million in Q1 2019. Net investment gains of $612 million came in significantly higher than net investment losses of $122.9 million in Q1 2018.
“We experienced organic growth within both our underwriting and Markel Ventures operations, and our results also reflect contributions from our recent acquisitions of Brahmin, within our Markel Ventures operations, and Nephila, within our insurance-linked securities operations,” added Gayner and Whitt.
Markel’s combined ratio did deteriorate in the first-quarter, from 90% to 95%. Markel’s insurance segment recorded an underwriting profit of $52 million and its reinsurance segment an underwriting profit of $3.4 million in Q1 2019. This compares with an insurance underwriting profit of $102 million and a reinsurance underwriting profit of $7 million in the prior year quarter.
Losses and loss adjustment expenses for the current accident year increased in both the insurance and reinsurance segment for Markel in Q1 2019. In insurance, this hit $618.5 million and in reinsurance, $139.4 million, compared with $570 million and $153 million in Q1 2018, respectively.
