Markel International, London, November 7, 2013 --- Markel Corporation (NYSE – MKL) reported diluted net income per share of $4.67 for the quarter ended September 30, 2013 compared to $5.32 for the third quarter of 2012. Diluted net income per share was $15.33 for the nine months ended September 30, 2013 compared to $19.67 for the same period of 2012. The combined ratio was 96% for the third quarter of 2013 compared to 101% for the third quarter of 2012. The combined ratio was 97% for the nine months ended September 30, 2013 compared to 96% for the same period of 2012. The results for the nine months ended September 30, 2013 included $70.3 million of transaction costs and acquisition-related expenses and $32.4 million of catastrophe losses related to our new Alterra segment. Together these items added three points and one point, respectively, to the consolidated combined ratio for the nine months ended September 30, 2013. The combined ratio for the quarter and nine months ended September 30, 2012 included $6.5 million, or one point, and $41.1 million, or three points, respectively, of underwriting, acquisition and insurance expenses related to the Company’s prospective adoption of Financial Accounting Standards Board Accounting Standard Update No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Book value per common share outstanding increased 14% to $462.33 at September 30, 2013 from $403.85 at December 31, 2012.
Alan I. Kirshner, Chairman and Chief Executive Officer, commented, “We produced strong underwriting results for the quarter and experienced profitable growth across all three of our legacy Markel operating segments. Additionally, our investment portfolio benefited from favorable conditions in the equity markets. Our legacy Alterra operations continue to perform as expected. We are making significant progress on the integration of Alterra into Markel’s operations. We continue to pursue additional growth opportunities in both our insurance and non-insurance operations. We completed the acquisition of Eagle Construction during the third quarter of 2013 and recently announced our offer to acquire Abbey Protection.”
Markel’s London insurance market business, which is managed through Markel International, reported gross written premiums of $725 million for the nine months ended September 30, 2013 compared to $705 million for the third quarter of 2012. The combined ratio was 88% for the nine months ended September 30, 2013 compared to 88% for the same period in 2012. The performance reflected a lower expense ratio offset by lower prior year loss reserve releases.
Andy Davies, Finance Director at Markel International, commented, “We are pleased with the outcome for the third quarter, which continues the strong start reported at the first half. Our prudent reserving philosophy continues to give prior year reserve releases, while the implementation of Eclipse, our universal underwriting and administration platform, together with other cost savings, has significantly reduced our expense ratio. All our divisions have seen year on year growth and we continue to benefit from a strong investment performance primarily due to the excellent returns on our equity portfolio.”
William Stovin, President and Chief Operating Officer of Markel International, commented “We are pleased to have completed the integration of the former Alterra insurance businesses, all of which now operate under the Markel name and which will contribute to the success of our business plans for 2014.
“In October we announced our proposals to acquire Abbey Protection plc, a specialist provider of legal and taxation related professional fees insurance products and services for UK small to medium sized enterprises. While the proposal is subject to shareholder approval later this year, we are looking forward to working with the Abbey Protection management to make the best use of resources we bring to support the continued development of this high quality business.”
For more information:
Markel International 020 7953 6000
Andy Davies, Finance Director
Michael Henman, Director of Communications
About Markel International:
Markel International is a division of Markel Corporation, a US-based holding company trading on the New York Stock Exchange (MKL). Markel International writes insurance and reinsurance business through eight divisions and through offices across the UK, Europe, Canada, Latin America and Asia Pacific. Markel International’s insuring entities include Syndicate 3000, Syndicate 1400, Markel Resseguradora do Brasil S.A. and Markel International Insurance Company Limited. For more information, please visit www.markelinternational.com.