A light hurricane season and improvements in its investment portfolio blew winds of good change for Markel Corp, which reported a diluted net income per share of $6.02 for the third quarter.

The Richmond, Va.-based specialty insurer reported a $14.46 net loss per share for the same period last year.

Alan I. Kirshner

The year-to-date numbers also improved. Diluted net income per share was $11.02 for the nine months ended Sept. 30, compared to a diluted net loss per share of $2.63 for the same period of 2008.

“In addition to the increase in market value of our investment portfolio, our third quarter and year-to-date results benefited from a benign hurricane season and strong underwriting profitability from our international operations,” said Alan I. Kirshner, chairman and CEO of Markel, said in a statement.

Kirshner noted “intense competition in all segments of our business.”
Markel officials also said quarterly and nine-month numbers benefited from about $25 million in changes resulting from a modification in United Kingdom tax law, taking effect in the third quarter.

The combined ratio for the third quarter of 2009 was 96% compared to 124% for the third quarter of 2008. The combined ratio was 97% for the first nine months of this year, compared to 104% for the same period of 2008. The combined ratio for the quarter and nine months ending Sept. 30, 2008, which included $115.1 million in underwriting loss related to Hurricanes Gustav and Ike. Book value per common share outstanding increased 23% to $274.33 Sept. 30, from $222.20 at December 31, 2008.

The company cited its improvement in the market value of its investment portfolio for the boost.