Markel International combined ratio jumps 18 points

Markel International, the London-based division of US insurance group Markel Corporation, reported a combined ratio of 112% for the first half of 2010, up 18 points on the 94% it recorded for the same period last year.

The main cause of the increase was $32.7m, or 12 points, of underwriting loss related to the Chilean Earthquake and the Deepwater Horizon oil rig explosion.

“These losses were well within our risk appetite for a market loss of this size and represent approximately 6 percentage points of Markel International’s full year premium and less than 4% of Markel International’s capital,” said Andy Davies, finance director of Markel International, in a statement. “The underwriting loss was offset by another strong investment performance and as a consequence shareholder’s equity increased by 3% during the first half of 2010.”

Markel International’s gross written premiums, however, increased 10% to $395.3m in the first half of 2010 from $358.m in the same period of 2009. The company attributed the growth to additional writings at its UK operations and overseas operations. The growth at the overseas operations was primarily due to Markel International’s Canadian operation Elliot Special Risks, which was acquired in the fourth quarter of 2009.