RICHMOND, Va., Aug. 2, 2022 /PRNewswire/ -- Markel Corporation
(NYSE:MKL) today reported its financial results for the second
quarter of 2022. The Company also announced today it has filed its
Form 10-Q for the quarter ended June 30, 2022 with the
Securities and Exchange Commission.
The following tables present summary financial data for the
quarters and six months ended June 30, 2022 and 2021.
|
Quarter Ended June
30,
|
|
Six Months Ended June
30,
|
(dollars in
thousands, except per share amounts)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Earned
premiums
|
$
1,833,104
|
|
$
1,568,037
|
|
$
3,592,874
|
|
$
3,065,732
|
Markel Ventures
operating revenues
|
$
1,361,398
|
|
$
1,075,506
|
|
$
2,311,790
|
|
$
1,782,108
|
Net investment gains
(losses)
|
$
(1,554,643)
|
|
$
674,753
|
|
$
(1,913,042)
|
|
$
1,201,624
|
Comprehensive income
(loss) to shareholders
|
$
(1,281,449)
|
|
$
849,654
|
|
$
(1,810,476)
|
|
$
1,208,651
|
Diluted net income
(loss) per common share
|
$
(69.19)
|
|
$
57.02
|
|
$
(75.68)
|
|
$
99.03
|
Combined
ratio
|
91 %
|
|
87 %
|
|
90 %
|
|
90 %
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
Book value per common
share
|
$
898.53
|
|
$
1,036.20
|
|
|
|
|
Common shares
outstanding
|
13,538
|
|
13,632
|
|
|
|
|
Highlights of results from the quarter and six months
include:
- Earned premiums grew 17% for both the quarter and six months
ended June 30, 2022, reflecting
continued growth in gross premium volume from new business, more
favorable rates and expanded product offerings.
- The higher combined ratio for the quarter ended June 30, 2022 compared to the same period of 2021
was driven by the impact of less favorable development on prior
accident years loss reserves.
- The combined ratio for the six months ended June 30, 2022 included $35.0 million, or one point, 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
six months ended June 30, 2021
included $67.9 million, or two
points, of net losses and loss adjustment expenses from
Winter Storm Uri.
- Net investment losses in 2022 reflected a substantial decrease
in the fair value of our equity portfolio resulting from
significant declines in the public equity markets.
- Growth in operating revenues from our Markel Ventures
operations reflected contributions from our acquisitions in the
second half of 2021 and the impact of increased demand and higher
prices across many of our businesses.
- Comprehensive loss to shareholders in 2022, for both the
quarter and six months, was a result of unrealized losses on our
fixed maturity and equity portfolios.
"Results for the first half of 2022 reflect the benefits of our
diversified, three-engine architecture of insurance, investments,
and Markel Ventures. Within our insurance engine, new business
opportunities, an attractive pricing environment and solid
portfolio construction contributed to strong top line growth and,
when combined with continued expense management efforts, resulted
in a 90% combined ratio for the first six months of 2022," said
Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers.
"Our Markel Ventures engine provided additional thrust with another
record-setting quarter for both revenues and EBITDA."
"Within our investments engine, our results were impacted by the
sharp decline in the equity markets, as well as rising interest
rates in the bond market, during the first half of 2022. Given our
focus on long-term performance and investing discipline, we are
confident in the durability of our portfolio and understand that
periodic volatility is to be expected," Gayner and Whitt remarked.
"Looking forward to the remainder of 2022, we are well-positioned
to execute on our business objectives and remain focused on
building long-term shareholder value."
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, 2022, the compound annual
growth in book value per common share was 7%. Over the five-year
period ended June 30, 2022, our share price increased at a
compound annual rate of 6%.
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, August 3, 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,
August 15, 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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