Markel reports “steady progress” for H1

Markel Group reported solid second quarter and first half results with higher premiums and slightly lower profits as the group emerged from a difficult period that saw the need to bolster reserves for longer tail US lines at the end of last year.

The US-based specialty insurance group reported insurance operating income of $1.746bn for the first half of this year compared with $1.724bn at the same stage in 2023.

This came on the back of total operating revenue of $4.334bn so far this year against $4.119bn at the half year stage last year. The combined ratio was up to 94.4% for the first half from 93.4% at this stage last year.

“Our insurance engine continued to make steady progress in the second quarter…insurance results included notably strong performance in our international operations, and it is encouraging to see that the corrective actions we’ve taken since the end of last year, particularly within our professional and general liability insurance product lines, are beginning to bear fruit,” said Tom Gayner, chief executive officer.

Markel said that revenue growth in its “insurance engine” for the quarter and six months ended June 30, 2024 was primarily attributable to higher earned premiums, particularly within its international business, driven by new business growth and more favourable rates on select lines of business.

The higher combined ratio for the quarter and six months was primarily attributable to higher attritional loss ratios on its US professional liability and general liability product lines, including significant losses on the recently discontinued intellectual property collateral protection insurance product, said the group.

This was partially offset by the impact of more favourable development on prior years’ loss reserves in 2024 compared to 2023.

For six months, the consolidated combined ratio included $96.8m (2.3 points) of losses on the insurer’s intellectual property collateral protection insurance product line.