Markel Reports First Quarter 2013 Results
RICHMOND, Va., April 30, 2013 /PRNewswire/ -- Markel Corporation (NYSE – MKL) reported diluted net income per share of $9.50 for the quarter ended March 31, 2013 compared to $5.92 for the first quarter of 2012. The results for the first quarter of 2013 reflect more favorable underwriting results compared to the same period of 2012. The combined ratio for the first quarter of 2013 was 91% compared to 100% for the first quarter of 2012. The combined ratio for the first quarter of 2012 included $20 million, or four points, of underwriting, acquisition and insurance expenses related to the Company's prospective adoption of Financial Accounting Standards Board Accounting Standard Update No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. Book value per common share outstanding increased 7% to $431.10 at March 31, 2013 from $403.85 at December 31, 2012.
Alan I. Kirshner, Chairman and Chief Executive Officer, commented, "We are off to an excellent start in 2013. Strong underwriting results for the quarter reflect our long-term focus on underwriting discipline. Premium volume has benefited from both acquisitions and organic growth. Our 2012 acquisition of Thomco and the addition of the Hagerty business in 2013 contributed to a 15% increase in gross premium volume for the quarter. The enthusiasm about our acquisition of Alterra Capital Holdings Limited (NASDAQ: ALTE; BSX: ALTE.BH) continues to build in anticipation of bringing together two strong organizations. This acquisition, which is scheduled to close tomorrow, will create a powerful combination and truly expand our global footprint in the insurance and reinsurance market, while the application of Markel's investment expertise will drive higher returns on the combined investment portfolio."
The Company also announced today it has filed its Form 10-Q for the quarter ended March 31, 2013 with the Securities and Exchange Commission. A copy of the Form 10-Q is available on the Company's website at www.markelcorp.com or on the SEC website at www.sec.gov. Readers are urged to review the Form 10-Q for a more complete discussion of the Company's financial performance. The Company's quarterly conference call, which will involve discussion of the Company's financial results and business developments and may include forward-looking information, will be held Wednesday, May 1, 2013, beginning at 9:30 a.m. (Eastern Daylight Savings Time). Any person interested in listening to the call, or a replay of the call, which will be available from approximately two hours after the conclusion of the call until Monday, May 13, 2013, should contact Markel's Investor Relations Department at 804-747-0136. Investors, analysts and the general public also may listen to the call free over the Internet through the Company's web site, www.markelcorp.com.
FORWARD-LOOKING STATEMENTSThis release includes statements about future economic performance, finances, expectations, plans and prospects of Markel Corporation (Markel) and Alterra Capital Holdings Limited (Alterra), both individually and on a combined basis, that are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by such statements. For further information regarding factors affecting future results of Markel and Alterra, please refer to their respective Annual Reports on Form 10-K for the year ended December 31, 2012 filed by Markel and Alterra with the Securities Exchange Commission (SEC) on February 28, 2013 and Quarterly Reports on Form 10-Q and other documents filed by Markel and Alterra since February 28, 2013. These documents are also available free of charge, in the case of Markel, by directing a request to Bruce Kay, Investor Relations, at 804-747-0136 and in the case of Alterra, by directing a request to Alterra through Susan Spivak Bernstein, Senior Vice President, Investor Relations, at 441-295-8800. Neither Markel nor Alterra undertakes any obligation to update or revise publicly any forward-looking statement whether as a result of new information, future developments or otherwise. This release contains certain forward-looking statements within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about Markel's and Alterra's beliefs, plans or expectations, are forward-looking statements. These statements are based on Markel's or Alterra's current plans, estimates and expectations. Some forward-looking statements may be identified by use of terms such as "believe," "anticipate," "intend," "expect," "project," "plan," "may," "should," "could," "will," "estimate," "predict," "potential," "continue," and similar words, terms or statements of a future or forward-looking nature. In light of the inherent risks and uncertainties in all forward-looking statements, the inclusion of such statements in this filing should not be considered as a representation by Markel, Alterra or any other person that Markel's or Alterra's objectives or plans, both individually and on a combined basis, will be achieved. A non-exclusive list of important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: (a) the occurrence of natural or man-made catastrophic events with a frequency or severity exceeding expectations; (b) the adequacy of loss reserves and the need to adjust such reserves as claims develop over time; (c) the failure of any of the loss limitation methods the parties employ; (d) any adverse change in financial ratings of either company or their subsidiaries; (e) the effect of competition on market trends and pricing; (f) cyclical trends, including with respect to demand and pricing in the insurance and reinsurance markets; (g) changes in general economic conditions, including changes in interest rates and/or equity values in the United States of America and elsewhere; and (h) other factors set forth in Markel's and Alterra's recent reports on Form 10-K, Form 10-Q and other documents filed with the SEC by Markel and Alterra.
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