Markel swings to loss, combined ratio soars due to COVID-19 hit

Markel Corporation suffered a significant loss in the first quarter of 2020, with the impact of COVID-19 pandemic and related economic disruption contributing 24 points to its combined ratio.

The insurer reported a comprehensive loss of $1.4 billion for Q1 2020, compared with the comprehensive income of $732.2 million for the first quarter of 2019.

Markel was hit by $325 million of underwriting loss attributed to the COVID-19 pandemic, which led to the deterioration in its combined ratio.

The carrier's combined ratio was 118 percent for the first quarter of 2020, compared with a combined ratio of 95 percent in Q1 2019.

The company's results were impacted by the significant volatility in the equity markets arising from economic uncertainty associated with the pandemic. However, co-chief executive officers Thomas Gayner and Richard Whitt, stressed that Markel is "well positioned to weather the current challenges" as it continues to focus on the long-term.

"While the economic disruption of the pandemic has impacted our financial performance this quarter, we believe we are well positioned to weather the current challenges and continue our focus on the long-term," Gayner and Whitt said in a joint statement.

"We applaud the heroic professionalism of those on the frontlines of this pandemic globally, working fearlessly and tirelessly to fight the virus and serve their communities. Within Markel, we remain inspired by how well our employees around the world have quickly adapted to changing circumstances to ensure continuity for our customers, business partners and the communities within which we operate. We recognize this is a stressful time for our employees, professionally and personally, and thank them and their loved ones for their support and commitment to keep our communities safe and Markel moving forward."