Markel has reported net income for the six months ended 30 June 2005 of $13.42 per diluted share compared to $10.04 per diluted share in 2004. For the six months ended 30 June 2005, the combined ratio was 91% compared to 93% in the prior year. Book value per share increased to $177.98 per share at 30 June 2005 from $168.22 per share at 31 December 2004 due to comprehensive income of $96.6m for the six months ended 30 June 2005.
Alan I Kirshner, chairman and chief executive officer, commented, “Despite increased competition resulting in lower premium volume, we produced strong results for the first half of the year. We remain focused on underwriting profitability and look forward to continued success in the second half of the year.”
Markel International represents Markel's London operations and writes specialty property and casualty insurance through Markel International Insurance Company and through Markel Syndicate 3000.
In the first half of 2005 Markel International reduced gross written premium to $351m from $378m the previous year. This was in line with the company's commitment to profitable underwriting.
Over the period, the company continued to see a steady improvement in profitability, with the combined operating ratio for the first six months of the year falling to 103%, compared with 110% in the same period last year.
Gerry Albanese, president and chief operating officer, said: “2005 has been an important half year for Markel International. Our robust attitude to underwriting discipline continues to bring the right results. With a combined ratio of 103% we are now entering the final phase of achieving fundamental underwriting profitability for our international business. We have walked away from business that didn't meet our required rating levels and therefore we are comfortable with the reduction in gross written premium.”
Key strategic developments in the period included the opening of new international businesses in Canada and in Spain and the continued development of the company's UK regional network with new offices in Cambridge, Edinburgh and Bristol.
Mr Albanese said “We plan to increase the size of our successful UK regional business during the next few years and we are in the process of opening a further three offices. Our new office in Cambridge is already open and further openings in Edinburgh and Bristol are planned shortly. The new offices in Toronto and Madrid will give Markel International an increased presence in these markets.”
