1st May 2008
Markel reports first quarter results and promotion of Paul Springman to President and COO of Markel Corporation
Markel Corporation (NYSE - MKL) reported diluted net income per share of $3.41 for the quarter ended March 31st 2008, compared to $9.98 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 31st 2008 compared to $265.26 at December 31st 2007. The decline in book value was primarily due to a comprehensive loss of $19.9 million, which 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 31st 2008 from $213.5 million fir 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 Director has elected Anthony F. Markel as Vice Chairman and Paul W. Springman as President and Chief Operating Officer effective May 1st 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 Kishner 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 ofthe 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 equiped to deal with today's challenging markets.'