NU Online News Service, Aug. 9, 3:33 p.m. EDT

Hit by underwriting losses due to the Deepwater Horizon oil rig explosion and the Chilean earthquake, specialty insurer Markel Corp. posted a 36.7 percent decrease in second-quarter net income.

Markel said 2010 second-quarter net income was $20.9 million compared to $33 million a year ago.

Net income for the first six months was $64.1 million compared to $49.5 million, Markel said.

Markel said its combined ratio for the 2010 second quarter was 103 and 102 for the first half, compared to 99 and 97, respectively, during the same periods last year.

Four points were added to the six-month ratio due to $32.7 million of underwriting losses from Deepwater Horizon and the Chilean earthquake.

Second-quarter results were also hampered by a higher expense ratio, which affected results for the first six months, as well as a higher current-year accident-year loss ratio and less favorable reserve developments.

Markel posted underwriting losses of $13.7 million and $18.4 million for the 2010 second quarter and first six months, respectively, but the company was helped out by net investment income of $64.4 million for the second quarter and $132.8 million for the first six months.

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Underwriting Losses Cause 36.7% Drop In Markel&#039;s 2Q Net

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Underwriting Losses Cause 36.7% Drop In Markel's 2Q Net