Markel posts 3Q profit, reversing 2008 loss

Specialty insurer Markel Corp. on Wednesday posted a third-quarter profit, reversing a year ago loss, as the company benefited from market gains, a mild hurricane season and strong international operations.

For the three months ended Sept. 30, Markel reported profit of $59.1 million, or $6.02 per share, compared with a loss of $142.3 million, or $14.46 per share, for the third quarter of 2008.

The results included a gain of about $25 million related to a change in United Kingdom tax law that became effective in the third quarter of 2009.

Net written premiums slipped to $431 million, from $498.1 million a year ago.

The combined ratio for the quarter was 96 percent, compared with 124 percent for the 2008. quarter. The combined ratio measures the amount of money an insurer pays in claims and expenses compared with how much it receives from underwriting premiums. A ratio above 100 percent means the insurer is paying out more than it generates from premiums.

Last year's combined ratio included $115.1 million, or 22 percentage points, of underwriting loss related to Hurricanes Gustav and Ike.

Net investment income edged down to $66.7 million, from $68.2 million a year ago. Net realized investment losses were $29.8 million, compared with losses of $168.7 million last year.

During the quarter, Markel completed its acquisition of Elliott Special Risks, a Canadian managing general agent.

Markel shares closed Wednesday trading down $7.45, or 2.3 percent, at $322.