Markel International says its combined ratio is 93% for the year ended December 31, 2007 compared to 100% in 2006.

This improvement is down to an improved underwriting performance, primarily due to $49.4 million of favorable development on prior years' loss reserves.

In 2007, the favorable development of prior years' loss reserves was partially offset by a higher current accident year loss ratio due in part to softening insurance market conditions.

This comes as great news for the insurance market which has seen marked rise in the cost of premiums on home insurance and car insurance.

Andy Davies, Finance Director at Markel International, said: “The excellent results reflect the benign hurricane season and strong underwriting performances across all our units. The key for us is producing these strong results through disciplined underwriting throughout the underwriting cycle.”