28 October 2020Insurance

Markel combined ratio rises on $150m COVID-19 and nat cat hit in Q3

Specialty insurer Markel's comprehensive income increased in the third quarter of 2020 but the company's combined ratio deteriorated by three percentage points due to $150 million underwriting losses attributed to COVID-19 and natural catastrophes in the US.

The insurer reported a comprehensive net income of around $520 million in Q3 2020, compared with $250 million in the prior year period. However, for the first nine months of the year, the comprehensive net income plummeted to $259.6 million from $1.6 billion recorded for the same period in 2019.

The combined ratio for the quarter jumped three percentage points to 97 percent, compared with 94 percent in Q3 2019.

The combined ratio for Q3 included $48.9 million of underwriting losses attributed to the COVID-19 pandemic and $101 million of underwriting losses from Hurricanes Laura, Sally and Isaias, as well as the derecho in Iowa and wildfires in the western US.

"We delivered solid operating results for the quarter by maintaining our focus on managing and executing on factors within our control," said Thomas Gayner and Richard Whitt, co-chief executive officers of Markel.

"Our insurance operations produced an underwriting profit, despite catastrophe losses and increases to reserves related to the COVID-19 pandemic, reflecting the strong underlying performance of our business. Our Markel Ventures operations delivered significant profit, demonstrating the valuable products and services we provide, and our investment portfolio also saw gains amid volatile market conditions.

"We thank our employees, trading partners and customers, all of whom have performed remarkably well given the challenges and uncertainties of the pandemic."

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
30 April 2021   The company turned around the $1.35 billion loss in Q1 2020 and says it has made a ‘solid start’ to 2021.
Insurance
4 February 2021   The insurer says it 'enters 2021 well positioned to continue the momentum of our excellent fourth quarter'.
Insurance
5 January 2021   The insurer has hired the US head of surety for Euler Hermes and Zurich to lead its new national accounts segment.