RICHMOND, Va., Nov. 2, 2021 /PRNewswire/ -- Markel
Corporation (NYSE: MKL) today reported its financial results for
the third quarter of 2021. The Company also announced today it has
filed its Form 10-Q for the quarter ended September 30, 2021
with the Securities and Exchange Commission.
The following tables present summary financial data for the
quarters and nine months ended September 30, 2021 and
2020.
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(dollars in
thousands, except per share amounts)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Earned
premiums
|
$
|
1,630,500
|
|
|
$
|
1,394,428
|
|
|
$
|
4,696,232
|
|
|
$
|
4,085,311
|
|
Markel Ventures
operating revenues
|
$
|
908,185
|
|
|
$
|
824,132
|
|
|
$
|
2,690,293
|
|
|
$
|
2,013,492
|
|
Net investment gains
(losses)
|
$
|
(25,833)
|
|
|
$
|
539,302
|
|
|
$
|
1,175,791
|
|
|
$
|
(230,896)
|
|
Comprehensive income
to shareholders
|
$
|
80,236
|
|
|
$
|
520,089
|
|
|
$
|
1,288,887
|
|
|
$
|
259,673
|
|
Diluted net income
(loss) per common share
|
$
|
15.09
|
|
|
$
|
31.03
|
|
|
$
|
114.20
|
|
|
$
|
(3.76)
|
|
Combined
ratio
|
93
|
%
|
|
97
|
%
|
|
91
|
%
|
|
101
|
%
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
September 30,
2021
|
|
December 31,
2020
|
|
|
|
|
Book value per common
share outstanding
|
$
|
980.99
|
|
|
$
|
885.72
|
|
|
|
|
|
Common shares
outstanding
|
13,685
|
|
|
13,783
|
|
|
|
|
|
Highlights of results from the quarter and nine months
include:
- Earned premiums grew 17% and 15% for the quarter and nine
months ended September 30, 2021,
respectively, reflecting continued growth in gross premium volume
from new business and more favorable rates.
- The lower combined ratio for both the quarter and nine months
ended September 30, 2021 compared to
the same periods of 2020 reflected a lower current accident year
loss ratio given the benefit of a favorable pricing environment and
the impact of actions taken to enhance our underwriting
portfolio.
- The combined ratio for the quarter ended September 30, 2021 included $114.4 million, or seven points, of net losses
and loss adjustment expenses attributed to natural catastrophes,
including Hurricane Ida and the floods in Europe. The combined ratio for the quarter
ended September 30, 2020 included
$46.8 million, or three points, of
net losses and loss adjustment expenses attributed to COVID-19 and
$101.8 million, or seven points, of
net losses and loss adjustment expenses attributed to natural
catastrophes that occurred in 2020.
- The combined ratio for the nine months ended September 30, 2021 included $182.3 million, or four points, of net losses and
loss adjustment expenses attributed to Hurricane Ida, the floods in
Europe and Winter Storm Uri. The combined ratio for the
nine months ended September 30, 2020
included $371.8 million, or nine
points, and $101.8 million, or two
points, of net losses and loss adjustment expenses attributed to
COVID-19 and natural catastrophes that occurred in 2020,
respectively.
- Net investment gains for the nine months ended September 30, 2021 reflected a substantial
increase in the fair market value of our equity portfolio driven by
favorable market value movements during 2021. Net investment gains
(losses) in 2020 reflected the impact of significant volatility in
the equity markets following the onset of the COVID-19
pandemic.
- Operating revenues from our Markel Ventures operations for the
quarter and nine months ended September 30,
2021 continued to expand through both organic growth and
contributions from Lansing Building Products, which was acquired in
the second quarter of 2020.
- Comprehensive income to shareholders in 2021 for both the
quarter and nine months reflected the contribution of net income,
partially offset by decreases in net unrealized gains on our fixed
maturity portfolio.
"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," said Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers.
"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," Gayner and Whitt continued. "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," said
Gayner and Whitt.
We believe our financial performance is most meaningfully
measured over longer periods of time, which tends to mitigate the
effects of short-term volatility and also aligns with the
longer-term perspective we apply to operating our businesses. We
generally use five-year periods to measure our performance. Over
the five-year period ended September 30, 2021, the compound
annual growth in book value per common share outstanding was 10%.
Over the five-year period ended September 30, 2021, our share
price increased at a compound annual rate of 5%.
A copy of the Company's Form 10-Q is available on our website at
www.markel.com or on the SEC website at www.sec.gov. Readers are
urged to review the Form 10-Q for a more complete discussion of the
Company's financial performance. The Company's quarterly conference
call, which will involve discussion of the Company's financial
results and business developments and may include forward-looking
information, will be held Wednesday,
November 3, 2021, beginning at 9:30
a.m. (Eastern Time). Investors, analysts and the general
public may listen to the call free over the Internet through the
Company's website at www.markel.com in the "For investors" section.
Any person needing additional information can contact Markel's
Investor Relations Department at IR@markel.com. A replay of the
call also will be available from approximately one hour after the
conclusion of the call until Monday,
November 15, 2021.
About Markel Corporation
Markel Corporation is a
diverse financial holding company serving a variety of niche
markets. The Company's principal business markets and underwrites
specialty insurance products. In each of the Company's businesses,
it seeks to provide quality products and excellent customer service
so that it can be a market leader. The financial goals of the
Company are to earn consistent underwriting and operating profits
and superior investment returns to build shareholder value. Visit
Markel Corporation on the web at www.markel.com.
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SOURCE Markel Corporation