Specialty insurer Markel Corp. of Richmond, Va., said Hurricanes Katrina and Rita caused a third-quarter net loss of $111 million, or $11.31 a share, compared with earnings of $13.825 million, or $1.40 a share, for the period in 2004.
Underwriting losses from the two hurricanes totaled $254 million, the company said.
For the first nine months this year Markel said it had a $46.2 million, or $2.52 a share loss compared with earnings of $122.4 million, or $11.44 a share, for the first nine months of 2004, even though it suffered losses from Hurricanes Charley, Frances, Ivan and Jeanne.
Markel said its third-quarter combined ratio was 149 compared to 106 for the same period of 2004.
For the nine months ended Sept. 30, the company reported combined ratio was 109 compared to 97 in the prior year.
Alan I. Kirshner, chairman and CEO of Markel, said that while 2005 hurricane losses "were more than we expected," the "company is working on several fronts to review how we approach" the catastrophe risk business.
"From both an underwriting and capital standpoint, we are well positioned to succeed in the changing insurance marketplace," Mr. Kirshner said.
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