Markel results show income loss for shareholders in 2018
Markel year end results showed losses in shareholder income as the company was affected by declines in both our fixed income and equity portfolios, driven by an increase in interest rates and unfavorable movements in the equity markets during 2018, the co-chief executive officers Thomas S. Gayner and Richard R. Whitt said. However, the two leaders pointed to a more optimistic year ahead saying they are “excited” about the strategic opportunities of the Nephila acquisition competed in the fourth quarter of 2018.
Gross written premiums were up to $7.8 billion in 2018 from $5.5 billion in 2017, while net income showed a loss of $128 million in the 2018 year end results compared to $395 million in 2017.
The combined ratio improved to 98 percent in 2018 compared to 105 percent in 2017.
Gayner and Whitt, co-chief executive officers, said: "We continued to see organic growth and substantial contributions from our recent acquisitions within both our insurance and Markel Ventures operations. Our underwriting results for the year were positive, despite significant catastrophe losses in 2018.
“Comprehensive loss to shareholders and book value per share were impacted by declines in both our fixed income and equity portfolios, driven by an increase in interest rates and unfavorable movements in the equity markets during 2018. Our results were also impacted by a goodwill and intangible asset impairment in our Markel CATCo operations; however, we remain committed to our strategy in the insurance-linked securities market. In the fourth quarter, we completed the acquisition of Nephila, the industry's preeminent insurance-linked securities investment manager, and we are excited about the strategic opportunities this business brings to Markel. The acquisition of Nephila, along with our other recent acquisitions, reflects our continued strategy and commitment to build long-term value for our shareholders."
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