Richmond, VA – Markel Corporation (NYSE: MKL) recently reported its financial results for the year ended December 31, 2021.
- Earned premiums grew 16% in 2021, reflecting continued growth in gross premium volume from new business and more favorable rates.
- The lower combined ratio in 2021 compared to 2020 was primarily due to significant losses attributed to COVID-19 in 2020 and a lower attritional loss ratio due in part to the benefit of a favorable pricing environment.
- Net investment gains in 2021 reflected a substantial increase in the fair value of our equity portfolio driven by favorable market value movements during the year.
- Operating revenues, operating income and EBITDA from our Markel Ventures operations in 2021 continued to expand through both acquisitions and organic growth.
- Comprehensive income to shareholders in 2021 reflected the contribution of net income, partially offset by decreases in net unrealized gains on our fixed maturity portfolio.
“Our 2021 results show what we can achieve when all three of our operating engines – insurance, investments and Markel Ventures – power us forward. Each contributed in meaningful ways to a record-setting 2021 across many financial metrics, including operating revenues and operating income, among others,” said Thomas S. Gayner and Richard R. Whitt, Co-Chief Executive Officers. “Our underwriting operations delivered a 90% combined ratio, which reflected the impact of recent underwriting actions we’ve taken to enhance our profitability while growing gross premium volume to $8.5 billion.”
“We added two tremendous companies, Buckner and Metromont, to our Markel Ventures family of companies during a year in which revenues and EBITDA far surpassed previous record levels,” Gayner and Whitt continued. “Our investment portfolio provided strong returns on the back of the terrific performance of our equity portfolio.”
“We thank our employees, trading partners and customers, all of whom have played a tremendous role in our record-setting year as we continue our efforts to build shareholder value. We are especially grateful for our employees, who performed admirably in 2021 and continue to show their dedication to building Markel into one of the world’s great companies.”
We believe our financial performance is most meaningfully measured over longer periods of time, which tends to mitigate the effects of short-term volatility and also aligns with the longer-term perspective we apply to operating our businesses. We generally use five-year periods to measure our performance. Over the five-year period ended December 31, 2021, the compound annual growth in book value per common share outstanding was 11%. Over the five-year period ended December 31, 2021, our share price increased at a compound annual rate of 6%.
The complete results release is available here: Markel 2021 Financial Results