Markel Corporation (NYSE – MKL) reported diluted net income per share of $3.41 for the quarter ended March 31, 2008 compared to $9.88 for the first quarter of 2007. The combined ratio for the first quarter of 2008 was 92% compared to 87% for the first quarter of 2007. Book value per common share outstanding was $263.16 at March 31, 2008 compared to $265.26 at December 31, 2007. The decline in book value was primarily due to comprehensive loss of $19.9 million, which was driven by a decline in the market value of the Company’s investment portfolio.
Alan I. Kirshner, Chairman and Chief Executive Officer, commented, “Our first quarter financial results have been impacted by both increased competition in the specialty insurance market and volatility in the financial markets. While our performance for the quarter suffered as a result, our underwriting profitability was in line with expectations and our commitment to a long-term investment philosophy remains unchanged.”
Markel International reported a 5.1% reduction in gross written premiums to $202.6 million for the three months to March 31, 2008 from $213.5 million for the first quarter of 2007. The reduction in gross written premiums reflects single digit rate reductions across the majority of our business lines. The combined ratio was 96% for the first quarter of 2008 compared to 95% reported in the first quarter of 2007.
Andy Davies, Finance Director of Markel International, commented: "Our first quarter underwriting performance was in line with our underwriting profitability targets, despite the challenging market conditions. Our commitment to disciplined underwriting and financial strength allows us to meet our customer needs over the long term."
Markel also announced today that its Board of Directors has elected Anthony F. Markel as Vice Chairman and Paul W. Springman as President and Chief Operating Officer effective May 1, 2008.
Tony Markel has been associated with Markel for over 40 years, serving as President and Chief Operating Officer since 1992. Paul Springman has worked for Markel and its subsidiaries since 1984 and has served as Executive Vice President since 2002.
Commenting on the announcement, Alan Kirshner said, “I want to congratulate both Tony and Paul. The new roles we are announcing for them today allow us to further implement our succession planning, while preserving access to the experience of the management team that has achieved great success since Markel went public in 1986. I look forward to continuing to work with both of them to reach our goals for Markel’s customers, shareholders and associates.”
Tony Markel added, “I’ve reached a point where I think it’s best to step back from day-to-day operations and join Alan Kirshner and Steve Markel in providing strategic focus for the Company. With the three of us, Paul Springman to oversee operations, Tom Gayner as chief
investment officer and Richie Whitt as chief financial officer, we have a stable and experienced management team that is well-equipped to deal with today’s challenging markets.”
Notes to editors:
1. Markel International Limited is a specialty property and casualty insurer. Based in London and comprising the international operations of Markel Corporation, it wrote gross premiums in 2007 of $693 million. It has five operating divisions writing business either through Markel Syndicate 3000 or through Markel International Insurance Company Limited. Markel Corporation is a US listed business, capitalised at around $5 billion, which in 2007 wrote gross premiums of $2.4 billion.
www.markelintl.com
2. Markel Corporation markets and underwrites specialty insurance products and programs to a variety of niche markets. In each of these markets, the Company 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 profits and superior investment returns to build shareholder value.