RICHMOND, Va., Aug. 3, 2021 /PRNewswire/ -- Markel
Corporation (NYSE:MKL) today reported its financial results for the
second quarter of 2021. The Company also announced today it has
filed its Form 10-Q for the quarter ended June 30, 2021 with
the Securities and Exchange Commission.
The following tables present summary financial data for the
quarters and six months ended June 30, 2021 and 2020.
|
Quarter Ended June
30,
|
|
Six Months Ended June
30,
|
(dollars in
thousands, except per share amounts)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Earned
premiums
|
$
|
1,568,037
|
|
|
$
|
1,360,174
|
|
|
$
|
3,065,732
|
|
|
$
|
2,690,883
|
|
Markel Ventures
operating revenues
|
$
|
1,075,506
|
|
|
$
|
678,139
|
|
|
$
|
1,782,108
|
|
|
$
|
1,189,360
|
|
Net investment gains
(losses)
|
$
|
674,753
|
|
|
$
|
911,243
|
|
|
$
|
1,201,624
|
|
|
$
|
(770,198)
|
|
Comprehensive income
(loss) to shareholders
|
$
|
849,654
|
|
|
$
|
1,092,393
|
|
|
$
|
1,208,651
|
|
|
$
|
(260,416)
|
|
Diluted net income
(loss) per common share
|
$
|
57.02
|
|
|
$
|
65.75
|
|
|
$
|
99.03
|
|
|
$
|
(34.83)
|
|
Combined
ratio
|
87
|
%
|
|
88
|
%
|
|
90
|
%
|
|
103
|
%
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
June 30,
2021
|
|
December 31,
2020
|
|
|
|
|
Book value per common
share outstanding
|
$
|
974.45
|
|
|
$
|
885.72
|
|
|
|
|
|
Common shares
outstanding
|
13,734
|
|
|
13,783
|
|
|
|
|
|
Highlights of results from the quarter and six months
include:
- Earned premiums grew 15% and 14% for the quarter and six months
ended June 30, 2021, respectively,
reflecting continued growth in gross premium volume from new
business and more favorable rates.
- The lower combined ratio for both the quarter and six months
ended June 30, 2021 compared to the
same periods of 2020 reflected a lower current accident year loss
ratio given the benefit of more favorable premium rates.
- The combined ratio for the six months ended June 30, 2021 included $67.9 million, or two points, of net losses and
loss adjustment expenses from Winter Storm
Uri. The combined ratio for the first half of 2020 included
$325.0 million, or 12 points, of net
losses and loss adjustment expenses attributed to COVID-19.
- Net investment gains in 2021 reflected a substantial increase
in the fair value of our equity portfolio driven by favorable
market value movements. Net investment gains (losses) for the
quarter and six months ended June 30,
2020 reflected the impact of significant volatility in the
equity markets following the onset of the COVID-19 pandemic.
- Operating revenues from our Markel Ventures operations
surpassed $1 billion for the quarter,
reflecting significant contributions from Lansing Building
Products, which was acquired in the second quarter of 2020, as well
as improved performance and growth across our products
businesses.
- Comprehensive income to shareholders in 2021 for both the
quarter and six months was driven by net investment gains, as well
as meaningful contributions from both our underwriting and Markel
Ventures operations.
"Our results for the second quarter of 2021 reflect outstanding
performance across our three engines. We continued to achieve
double-digit premium growth in our underwriting operations through
both organic growth in new business and more favorable rates, and
we delivered an 87% combined ratio for the quarter demonstrating
our strong underwriting discipline and expense management amidst
this favorable rate environment. Markel Ventures revenues surpassed
$1 billion for the quarter, which
translated to an equally impressive contribution to our bottom
line. Within our investment portfolio, significant gains on our
equity portfolio demonstrate the quality of the portfolio as well
as the value of our long-term focus, particularly in a volatile
market," said Thomas S. Gayner and
Richard R. Whitt, Co-Chief Executive
Officers. "As we pass the halfway mark of 2021, we remain excited
about our position in the markets we serve and look forward to
building upon our first-half performance with the continued hard
work and dedication of our employees and the support of our trading
partners."
We believe our financial performance is most meaningfully
measured over longer periods of time, which tends to mitigate the
effects of short-term volatility and also aligns with the
longer-term perspective we apply to operating our businesses. We
generally use five-year periods to measure our performance. Over
the five-year period ended June 30, 2021, the compound annual
growth in book value per common share outstanding was 10%. Over the
five-year period ended June 30, 2021, our share price
increased at a compound annual rate of 4%.
A copy of the Company's Form 10-Q is available on our website at
www.markel.com or on the SEC website at www.sec.gov. Readers
are urged to review the Form 10-Q for a more complete discussion of
the Company's financial performance. The Company's quarterly
conference call, which will involve discussion of the Company's
financial results and business developments and may include
forward-looking information, will be held Wednesday, August 4, 2021, beginning at
9:30 a.m. (Eastern Time). Investors,
analysts and the general public may listen to the call free over
the Internet through the Company's website,
www.markel.com/investor-relations. Any person needing additional
information can contact Markel's Investor Relations Department at
IR@markel.com. A replay of the call also will be available from
approximately one hour after the conclusion of the call until
Monday, August 16, 2021.
About Markel Corporation
Markel Corporation is a
diverse financial holding company serving a variety of niche
markets. The Company's principal business markets and underwrites
specialty insurance products. In each of the Company's businesses,
it seeks to provide quality products and excellent customer service
so that it can be a market leader. The financial goals of the
Company are to earn consistent underwriting and operating profits
and superior investment returns to build shareholder value. Visit
Markel Corporation on the web at www.markel.com.
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SOURCE Markel Corporation