On May 1, insurance company Markel
- Book value per share increased 4% sequentially to $238.
- Similar to its property and casualty peers (albeit on the reinsurance side) RenaissanceRe
(NYSE:RNR) and Montpelier Re(NYSE:MRH) , Markel's net investment income increases of 16% boosted the bottom line. - The combined ratio improved 7 points, mostly due to favorable loss development in its professional and product liability insurance lines.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
% Change |
|
---|---|---|---|
$531,410 |
$522,208 |
1.8% |
|
Investment Income |
$77,382 |
$66,724 |
16% |
Net Income |
$98,674 |
$76,590 |
28.8% |
EPS |
$9.88 |
$7.67 |
28.8% |
Get back to basics with a look at an insurer's income statement.
Ratio Checkup
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Loss Ratio |
51.7% |
60.4% |
(8.74%) |
Expense Ratio |
35.1% |
33.9% |
1.17% |
86.8% |
94.4% |
(7.57%) |
What do these ratios mean?
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
% Change |
---|---|---|---|
Investments |
$7,038,904 |
$6,218,167 |
13.2% |
Cash and Equivalent |
$402,982 |
$288,418 |
39.7% |
Liabilities |
|||
---|---|---|---|
$5,520,322 |
$5,775,510 |
(4.4%) |
|
Unearned Premiums |
$1,021,319 |
$1,038,283 |
(1.6%) |
Long Term Debt |
$752,482 |
$706,307 |
6.5% |
Learn your way around an insurer's balance sheet.
Related Foolishness:
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Emil Lee is an analyst and a disciple of value investing. He owns shares in Montpelier Re. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.