Markel Corp. indicates talk of a hard market may be premature, as insurers are not exhibiting the same underwriting discipline for new business as they are for renewals.

During a conference call to discuss first-quarter earnings, F. Michael Crowley, Markel's president and co-chief operating officer, says while the insurer has noticed some of its competition announcing rate increases on renewals, Markel also continues to see aggressive competition on new business—perhaps too aggressive.

Crowley says Markel has heard from its agents that “some carriers are raising rates substantially [at renewal], and yet they are being very competitive on new business—not following the same [underwriting] philosophy.”

The Richmond, Va.-based specialty insurer is seeking rate on both fronts, Crowley stresses, “getting price whenever we can.”

Positive rate increases are spotty, depending on the line—and the environment at this point is far from a hard market, say Markel executives.

The specialty insurer reported $57.7 million in net income for Q1 2012.

Earned premiums increased to $529.6 million from $463.1 million a year ago, and catastrophe losses within Markel's insurance segments—primarily in the London insurance market via Markel International—during the first quarter were “immaterial,” the carrier said. Last year it reported a $68.7 million underwriting loss due to the New Zealand earthquakes and Japan earthquake and tsunami.

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Markel Execs: Inconsistent Pricing on Renewals, New Business Betray Notion of Hardening Market

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