Markel reports lower profit, higher revenue

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.