MARKEL CORPORATION ANNOUNCES EARNINGS
MARKEL CORPORATION ANNOUNCES EARNINGS RICHMOND, Va., Nov. 7 /PRNewswire/ -- Markel Corporation
(NASDAQ: MAKL) has announced increased earnings for the third quarter and nine months ended Sept. 30, 1991. Net income for the quarter was $3.3 million, or $.61 per share, compared to $3.1 million, or $.58 per share reported in 1990. Net income for nine months increased 26 percent to $10.9 million, or $2.03 per share, from $8.6 million, or $1.60 per share in 1990.
Operating revenues were $58.4 million for the quarter and $174.9 million for nine months, compared to $20.4 million and $54.5 million for the same periods in 1990. The increases in operating revenues are primarily attributable to the consolidation of the Shand/Evanston Group, Inc. (Shand/Evanston). Operating income was $9.9 million for the third quarter compared to $4.4 million in 1990, and $32.5 million for nine months compared to $11.7 million in 1990. The nine month results reflected growth from the Company's underwriting operations, higher investment income and the net pre-tax gain of $2.4 million from the sale of the nurses' professional liability program in the first quarter of 1991. Operating results were adversely affected by restructuring costs and increased underwriting losses associated with American Underwriting Managers (AUM), a wholly-owned subsidiary of Shand/Evanston. AUM focuses on specialty personal lines such as motorcycles, mobile homes and watercraft. The Company has adopted, and expects to implement before year-end, a plan to downsize AUM's operations and discontinue unprofitable product lines. While the Company anticipates additional restructuring and run-off costs during the fourth quarter, it expects that results will not be materially impacted. Amortization of intangible assets, a non-cash expense, was $2.4 million for the quarter and $6.8 million through September 1991, compared to $1.1 million and $2.8 million for the same periods last year. Interest expense was $2.5 million for the quarter and $9.2 million for nine months, compared to $1.0 million and $2.7 million in 1990. The increases are primarily due to the acquisition of the outstanding interests in Shand/Evanston in December 1990. Book value per common share increased to $14.17 at Sept. 30, 1991 from $10.27 at Dec. 31, 1990. The increase results from net income and recoveries in the market values of equity securities. Long term debt decreased to $97.4 million at Sept. 30, 1991 from $127.0 million at Dec. 31, 1990. Quarter Ended Nine Months Ended September 30 September 30 1991 1990 1991 1990 Operating Revenues $58,380 $20,381 $174,881 $54,529 Operating Income $ 9,936 $ 4,445 $ 32,494 $11,704 Income before Taxes $ 5,126 $ 2,278 $ 16,507 $ 6,157 Earnings From Investments in Unconsolidated Subsidiary (Shand/Evanston) $ -- $ 915 $ -- $ 2,631 Income from Discontinued Operations $ -- $ 632 $ -- $ 1,633 Net Income $ 3,271 $ 3,144 $ 10,913 $ 8,628 Net Income per share: Continuing Operations $ 0.61 $ 0.47 $ 2.03 $ 1.30 Discontinued Operations$ 0.00 $ 0.11 $ 0.00 $ 0.30 Net Income $ 0.61 $ 0.58 $ 2.03 $ 1.60 Markel Corporation markets and underwrites specialty insurance products and programs to a variety of niche markets. In each of these markets, the Company seeks to provide quality products and excellent customer service so that it can be a market leader. The financial goals of the Company are to earn consistent underwriting profits and superior investment returns to build shareholder value. -0- 11/7/91 /CONTACT: Darrell D. Martin of Markel Corporation, 804-965-1635 (Direct Line)/ (MAKL) CO: Markel Corporation ST: Virginia IN: INS SU: ERN CM -- CH003 -- 2081 11/07/91 09:33 EST
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|Date:||Nov 7, 1991|
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