Markel has slashed its combined ratio from 101% to 87% for 2006.
The New York Stock Exchange-listed property and casualty insurer's gross written premiums increased by 6% from $2.401bn to $2.536bn.
Markel chairman and chief executive Alan I Kirshner said: "2006 was an exceptional year. While part of our success can be attributed to a benign hurricane season, good weather does not deserve all of the credit. Our associates deserve the real credit as their combined energy and discipline produced strong underwriting performance, outstanding investment returns and another year of record earnings."
Markel attributed underwriting losses of $54.9m relating to Hurricanes Katrina, Rita and Wilma, compared with $246.3m for the previous year.
The company's book value per common share outstanding increased 32% to $229.78 at 2006 year end due to comprehensive income of $525.8 million.
