Markel reports falling profit and rising revenue for 2017

Markel Corporation has posted a fall in profit to $395.3m (£283.7m) for 2017, down 13% on the $455.7m achieved in 2017.

The US-headquartered insurer revealed that gross written premiums (GWP) for the year rose 15% to $5.51bn (2016: $4.8bn).

The combined operating ratio (COR) deteriorated to 105% from 92% in the previous 12 months.

International
It did not provide a breakdown for UK figures, however the international insurance segment had a COR of 104% (2016: 94%).

The firm highlighted that the worsening was due to 13 points on the underwriting loss for 2017 catastrophes whereas 2016 had only recorded one point.

The GWP for the division came in at $1.26bn (2016: $1.12bn).

Markel said that the 12% rise was driven by increases in the marine and energy and general liability product lines.

The insurer also flagged that it had achieved comprehensive income to shareholders for the period of $1.2bn compared to $667m the year before due to an increase in net unrealised gains on investments.

Record
Alan I. Kirshner, executive chairman at Markel noted: “We finished 2017 with record comprehensive income of more than $1bn which drove double-digit growth in book value over the past one-year and five-year periods.

“This was largely due to outstanding performance in our equity portfolio and reflects the benefit of our diversified operations.”

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