MARKEL’S INCOME JUMPS 86% ON FAIR-VALUE GAINS

US specialty re/insurer Markel saw its second-quarter net earnings jump 86% to $278.2m, largely reflecting a $99.5m increase in the fair value of equity securities under a recently-changed accounting standard. Earnings per share of $19.97 beat analysts’ estimate by $11.36. Underwriting income fell 10.9% to $97.4m on higher current accident year catastrophe and other losses, as the combined ratio added three points to 92%. Gross written premiums rose 47% to $2.0bn, reflecting in part the group’s acquisition of specialty insurer State National Cos in late 2017. For the first nine months of the year, the Virginia-based group’s net income fell 2.6% to $213.9m owing to a swing to $18m in realised investment losses. Underwriting income nearly doubled to $208.9m, with improvements in both the insurance and reinsurance segments. The six-month combined ratio improved by four points to 91%.