Highlights of #Markel
's $MKL Q4 2013 Earnings released on Feb-10-2014:
Book value per common share outstanding increased 18% to $477.16 at December 31, 2013 from $403.85 at December 31, 2012.
Over the five-year period ended December 31, 2013, compound annual growth in book value per common share outstanding was 17%.
Operating revenues increased 44% to $4.3 billion
Recently completed the acquisition of Abbey Protection plc in January 2014.
Net income to shareholders increased by 11%. Diluted net income per share decreased 13% to $22.48/s. The increase in net income to shareholders during 2013 was driven by more favorable underwriting results and higher investment income, partially offset by higher income tax expense compared to 2012. The decrease in diluted net income per share during 2013 was due to the increase in weighted average diluted shares outstanding, which is attributable to shares issued in connection with the acquisition of Alterra.
The consolidated combined ratio was 97% in both 2013 and 2012. In 2013, a lower current accident year loss ratio and lower expense ratio were offset by a less favorable prior accident years' loss ratio compared to 2012.
Earned premiums for 2013 increased 51% compared to 2012. The increase was primarily attributable to the inclusion of premiums earned by the Alterra segment and higher earned premiums in the Specialty Admitted and Excess and Surplus Lines segments.
Net investment income for 2013 was $317.4 million compared to $282.1 million in 2012. Net investment income in 2013 included $74.3 million of net investment income attributable to the Alterra investment portfolio
Net realized investment gains for 2013 were $63.2 million compared to $31.6 million in 2012.
Net cash provided by operating activities was $745.5 million in 2013 compared to $392.5 million in 2012. The increase in net cash provided by operating activities was due to higher cash flows from underwriting and investing activities, primarily as a result of the acquisition of Alterra. The increase in cash flows from underwriting activities was also driven by higher premium volume, primarily in our Specialty Admitted and Excess and Surplus Lines segments.