RICHMOND, Va., April 28, 2021 /PRNewswire/ -- Markel
Corporation (NYSE:MKL) today reported its financial results for the
first quarter of 2021. The Company also announced today it has
filed its Form 10-Q for the quarter ended March 31, 2021 with
the Securities and Exchange Commission.
The following tables present summary financial data for the
quarters ended March 31, 2021 and 2020.
|
Three Months Ended
March 31,
|
(dollars in
thousands, except per share amounts)
|
2021
|
|
2020
|
Earned
premiums
|
$
|
1,497,695
|
|
|
$
|
1,330,709
|
|
Markel Ventures
operating revenues
|
$
|
706,602
|
|
|
$
|
511,221
|
|
Net investment gains
(losses)
|
$
|
526,871
|
|
|
$
|
(1,681,441)
|
|
Comprehensive income
(loss) to shareholders
|
$
|
358,997
|
|
|
$
|
(1,352,809)
|
|
Diluted net income
(loss) per common share
|
$
|
42.02
|
|
|
$
|
(100.60)
|
|
Combined
Ratio
|
94
|
%
|
|
118
|
%
|
|
|
|
|
(in thousands,
except per share amounts)
|
March 31,
2021
|
|
December 31,
2020
|
Book value per common
share outstanding
|
$
|
913.33
|
|
|
$
|
885.72
|
|
Common shares
outstanding
|
13,765
|
|
|
13,783
|
|
Highlights of results from the quarter include:
- Earned premiums grew 13% in 2021, reflecting continued growth
in gross premium volume from new business and more favorable
rates.
- The combined ratio for the first quarter of 2021 was 94%, which
included $64.3 million, or four
points, of net losses and loss adjustment expenses from
Winter Storm Uri and $18.6 million, or one point, of net losses and
loss adjustment expenses resulting from an increase in our estimate
of ultimate losses and loss adjustment expenses attributed to
COVID-19. The combined ratio for the first quarter of 2020 included
$325.0 million, or 24 points, of net
losses and loss adjustment expenses attributed to COVID-19.
Excluding these losses attributed to Winter
Storm Uri and COVID-19, the 2021 combined ratio reflected
meaningful improvement in both our current accident year loss ratio
and our expense ratio compared to the first quarter of last
year.
- Net investment gains in 2021 reflected an increase in the fair
value of our equity portfolio driven by favorable market value
movement. Net investment losses in 2020 reflected a decline in the
fair value of our equity portfolio at the onset of the COVID-19
pandemic.
- Operating revenues from our Markel Ventures operations in the
first quarter of 2021 included significant contributions from
Lansing Building Products, which was acquired in the second quarter
of 2020.
- Comprehensive income to shareholders for the first quarter of
2021 reflects the contribution of net income, partially offset by
decreases in net unrealized gains on our fixed maturity portfolio
resulting from increases in interest rates.
"Our first quarter results reflected strong, profitable growth
across our underwriting operations globally, as we executed on our
strategic plans to drive market leadership in key insurance product
lines, while maintaining our focus on increasing operational
efficiencies. Our Markel Ventures companies continue to navigate
the current environment well with a solid start to the year, and we
also continued to see positive momentum in our investment
operations as we actively and prudently manage our investment
portfolios with the goal of generating superior returns over the
long-term," said Thomas S. Gayner
and Richard R. Whitt, Co-Chief
Executive Officers. "We are very pleased with our positive start to
2021 and we are optimistic about steadily building on our
performance across all three operating engines as the year
progresses."
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 ourselves. Over the
five-year period ended March 31,
2021, the compound annual growth in book value per common
share outstanding was 9%. Over the five-year period ended
March 31, 2021, our share price
increased at a compound annual rate of 5%.
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 Thursday, April
29, 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 Friday, May 7, 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