Cat losses raise Markel International COR to 119%

Lloyd’s insurer Markel International posted a combined ratio of 119% for the first nine months of 2011 (9m 2010: 99%).

Natural catastrophe losses of $101m increased the nine-month combined ratio by 20 percentage points.

Markel International’s combined ratio for the third quarter alone was 99% (Q3 2010: 77%). Catastrophe losses of $17m in the 2quarter added 10 percentage points to the ratio.

Gross written premiums for the first nine months of 2011 increased 18% to $676.9m (9M 2010: $574m), largely because of an increase at Markel International’s Canadian operation, former MGA  Elliot Special Risks, acquired in 2009.

Third quarter gross written premiums increased 9% to $194.2m (Q3 2010: $178.7m).

“Against a difficult underwriting background we are pleased with the premium growth we achieved in the first nine months of 2011,” said Markel International finance director Andy Davies in a statement. “The significant losses reported by the insurance industry are having a positive effect on pricing and with our disciplined underwriting and strong balance sheet we are in an excellent position to capitalise on opportunities as they arise.”

He added: “The combined ratio for the nine months reflects the significant losses that have impacted the insurance industry during 2011. These losses were within our risk appetite for market events of this size and represent approximately 15 points of Markel International’s full year premium and approximately 3% of Markel Corporation’s capital.”