Bucking the trend of other property and casualty insurance companies hit hard by Superstorm Sandy, Markel Corp. reports its net income increased by 11 percent during Q4 2012.

The Richmond, Va.—based specialty insurer says it suffered $107.4 million in underwriting loss from Sandy for the year; generally, major insurers have been reporting losses of about $300 million or more from Sandy and reporting net losses for the quarter.

Despite that loss, Markel reports its net income for the quarter rose $5.8 million, to $58.1 million. Revenues increased 18 percent, or $123 million, to $808 million.

For the year, the carrier's net income jumped 74 percent, or $110 million, to $258 million. Revenues were up 14 percent, or $370 million, to more than $3 billion. For the year, Markel's combined ratio improved 5 points to 97.

Markel's Sandy loss compares to $152.4 million in underwriting losses from natural catastrophes in 2011 that included floods in Thailand, Hurricane Irene, U.S. tornadoes, Japanese earthquake and tsunami, Australian floods and New Zealand earthquakes.

Much of the discussion during yesterday's conference call focused on the direction of pricing in the insurance market.

Markel President and Chief Investment Officer Tom Gayner said pricing on Property coverage “is standing taller” in both the Excess & Surplus and Specialty admitted markets while Casualty lines are seeing “modest” increases that are averaging in the middle single-digits. That rate of increase is expected to continue into early this year, he added.

Gayner said the company remains “somewhat quiet on the acquisition front” as it focuses on its deal to acquire Alterra Capital Holdings Ltd., which it expects to complete in April (In December, Markel announced it would buy the Hamilton, Bermuda—based reinsurer for $3 billion in cash to diversify into reinsurance.)

Alterra also released its fourth-quarter 2012 results yesterday, reporting a net loss of $52 million compared with 2011's Q4 net income of $31 million. Revenues rose slightly by 2 percent, or $6 million, to $408 million.

For the year, Alterra's net income more than doubled, increasing by $78.5 million to $144 million. Revenues were up 2 percent, or $35 million, to $1.66 billion.

The company says it suffered Sandy losses of $115 million, net of reinstatement premiums, compared to net losses of $55.5 million, net of reinstatement premiums, for Q4 2011.

Special Reports /

Markel&rsquo;s Q4 Net Income Up Despite Sandy Losses; Alterra Posts Net Loss

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Markel’s Q4 Net Income Up Despite Sandy Losses; Alterra Posts Net Loss