The Markel Corporation announced its first quarter results for 2004, reporting a combined ratio of 96%. It also reported a net income of $4.29 per diluted share, up 16% on the same period in 2003.
Markel International, representing the group’s London operations, reported an increase in gross written premiums, up from $199.7m in 2003 to $211.0m for 2004, but the company said this was primarily due to currency movements.
Markel International reported a combined ratio of 119% for the first quarter. It said the combined ratio had been hit by a $30.0m loss reserve increase on the US casualty insurance business financial institutions risks, and general and professional liability exposures written from 1997 to 2001.
Before the reserving provision, Markel said the combined ratio had improved to 101%, down from the 103% for the same period in 2003.
Commenting on the performance of Markel’s London business executive vice president and chief administrative officer Richie Whitt, said: “Markel International continues to make good progress in developing its underwriting performance.
“We are confident that we will continue to see further improvements to meet our objective of consistent underwriting profits.
“While it is disappointing that our results have been impacted by adverse claims developments in largely inherited, long tail business, we are committed to a prudent approach to reserving for these exposures.”
