Markel Corp. reported decreases in net income for the fourth quarter of 2016 and the full year as underwriting results deteriorated.
The Richmond, Virginia-based surplus lines insurer and reinsurer reported fourth-quarter net income to shareholders of $132.7 million, down 32.9% compared with the same period in 2015. For the full year, net income fell 21.8% to $455.7 million.
In a statement, Markel said the drop in profit “was driven by less favorable underwriting results, a loss on early extinguishment of debt and lower net realized investment gains.”
Gross written premium increased 4.2% for the quarter to $996.6 million, and 3.5% for the full year 2016 to $4.8 billion.
Markel’s combined ratio for the 2016 fourth quarter was 89%, compared with 88% in the same period in a year earlier, and 92% for the year, compared with 89% in 2015. The biggest deterioration was in the international insurance segment, which worsened to 92% from 83% in the quarter, and to 94% from 86% for the year.
Aspen Insurance Holdings Ltd. reported a net loss of $71.5 million for the fourth quarter of 2016, compared with a $117.9 million profit for the same period in 2015, as the Bermuda-based insurer and reinsurer continued to reposition its insurance business.