RICHMOND, Va., April 26,
2022 /PRNewswire/ -- Markel Corporation (NYSE: MKL)
today reported its financial results for the first quarter of 2022.
The Company also announced today it has filed its Form 10-Q for the
quarter ended March 31, 2022 with the Securities and Exchange
Commission.
The following tables present summary financial data for the
quarters ended March 31, 2022 and 2021.
|
Three Months Ended
March 31,
|
(dollars in thousands, except per share
amounts)
|
2022
|
|
2021
|
Earned
premiums
|
$
1,759,770
|
|
$
1,497,695
|
Markel Ventures
operating revenues
|
$
950,392
|
|
$
706,602
|
Net investment gains
(losses)
|
$
(358,399)
|
|
$
526,871
|
Comprehensive income
(loss) to shareholders
|
$
(529,027)
|
|
$
358,997
|
Diluted net income
(loss) per common share
|
$
(6.58)
|
|
$
42.02
|
Combined
ratio
|
89%
|
|
94%
|
|
|
|
|
(in thousands, except per share
amounts)
|
March 31, 2022
|
|
December 31,
2021
|
Book value per common
share
|
$
995.53
|
|
$
1,036.20
|
Common shares
outstanding
|
13,570
|
|
13,632
|
Highlights of results from the quarter include:
- Earned premiums grew 17% in the first quarter of 2022,
reflecting continued growth in gross premium volume from new
business and more favorable rates.
- The lower combined ratio in 2022 compared to 2021 was primarily
due to a lower current accident year loss ratio as a result of
lower catastrophe losses and a lower attritional loss ratio in 2022
compared to 2021.
- The combined ratio for the first quarter of 2022 included
$35.0 million, or two points, of net
losses and loss adjustment expenses, as well as $12.3 million of additional reinsurance costs,
attributed to the Russia-Ukraine conflict. The combined ratio for the
first quarter of 2021 included $64.3
million, or four points, of net losses and loss adjustment
expenses attributed to Winter Storm
Uri.
- Net investment losses in 2022 reflected a decrease in the fair
value of our equity portfolio driven by unfavorable market value
movements.
- Growth in operating revenues from our Markel Ventures
operations reflected contributions from our 2021 acquisitions and
growth across many of our other businesses.
- Comprehensive loss to shareholders in 2022 was a result of
unrealized losses on our fixed maturity and equity portfolios.
"Our first quarter results reflect continued progress against
our underwriting initiatives as we grew our premium base through a
combination of rate increases and new business opportunities and
delivered an 89% combined ratio," said Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers.
"These results further demonstrate the effects of our ongoing focus
on underwriting and expense discipline."
"Our Markel Ventures businesses grew revenues by an impressive
35% through a combination of strong organic growth and
contributions from our 2021 acquisitions. Our investing results
reflected the impact of rising interest rates on our fixed maturity
portfolio and unfavorable market value movements on our equity
portfolio during the quarter. We maintain our focus on the
long-term performance of our investment portfolio, which has been
quite strong," Gayner and Whitt remarked. "We are excited about our
start to the year and look forward to taking advantage of
opportunities across our businesses throughout 2022."
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 March 31, 2022, the compound annual
growth in book value per common share was 10%. Over the five-year
period ended March 31, 2022, our share price increased at a
compound annual rate of 9%.
A copy of our 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 our
financial performance. Our quarterly conference call, which will
involve discussion of our financial results and business
developments and may include forward-looking information, will be
held Wednesday, April 27, 2022,
beginning at 9:30 a.m. (Eastern
Time). Investors, analysts and the general public may listen
to the call free over the Internet through our website at
www.markel.com in the "For investors" section. 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 on our website from approximately one hour after
the conclusion of the call until Monday, May
9, 2022.
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