Markel profits surge in H1 2012

Markel Corporation posted after tax profits of $14.35 per share for the first half of 2012 (H1 2011: $3.95 per share).

Net income for the second quarter of this year was $8.42 per share compared to $3.11 for the same period in 2011.

The combined ratio was 93% for the six months ended 30 June, 2012 (H1 2011: 107%). 

That included $99m or 10 points of underwriting loss related to natural catastrophes.

Markel chairman and chief executive Alan Kirshner said: “We are pleased with our 2012 results, which reflect favourable results from our insurance operations and our long-term focus on underwriting discipline. During the first half of the year we completed acquisitions in our insurance and non-insurance operations and we believe these acquisitions will increase the intrinsic value of our business for our shareholders.

“Premium volume was up 8% for the quarter, due in part to the first quarter acquisition of THOMCO.”

Book value per share outstanding increased 8% to $379.88 at 30 June, 2012 from $352.10 at 31 December, 2011. 

Markel International’s gross written premiums climbed 7% to $514m for the first half of 2012 (H1 2011: $483m), primarily due to an increase in premiums at the marine and energy and specialty divisions which have benefited from an improved pricing environment and organic growth.

Markel International’s combined ratio was 84% for the six months ended 30 June, 2012 (H1 2011: 130%).

Markel International finance director Andy Davies said: “We have experienced an excellent first half of 2012 with strong premium growth, a return to underwriting profitability and excellent investment returns.

“During the first six months we continued to expand our operations in the UK and internationally through the acquisition of Quay Underwriting in the UK, a joint venture with Anglo Underwriting in Germany and the establishment of a Marine underwriting unit at our Canadian operation, Elliott Special Risks.

“Markel International produced underwriting profits and investment returns of $171 million for the first half of 2012 which contributed to Markel Corporation’s increase in book value of 8% during the same period.”