By Rebecca Zuill

Markel Corporation profits were up for the second quarter, the company reporting net income of $41.141 million compared to $28.676 million for the equivalent 2013 period.

The Richmond, Virginia-based company has a Bermuda presence after buying Bermuda-based Alterra Capital Holdings Ltd and moving into its former offices on Par-la-Ville Road.

These results were despite lower profits in its US insurance business and a reserve charge for asbestos and environmental (A&E) liabilities in its run-off unit.

Comprehensive income to shareholders — which includes changes in net unrealised investment gains and foreign exchange movements — was $250.6 million, compared to a loss of $149.1 million in the same period of last year.

The financial holding company, which describes itself as serving a variety of niche markets, and whose principal business markets underwrite speciality insurance products, is reporting a combined ratio for the second quarter of 2014 of 101 percent, an improvement over 103 percent in the prior-year period.

In a press release announcing the results, Markel explained why the percentage nonetheless remained high for the quarter. “The results for the quarter and six months ended June 30, 2013 were impacted by $61.8 million of transaction costs and acquisition-related expenses related to the acquisition of Alterra and $25.4 million of catastrophe losses.

“Together these items added 11 points and six points to the consolidated combined ratio for the quarter and six months ended June 30, 2013, respectively. The quarter and six months ended June 30, 2014 included less favourable development on prior years’ loss reserves compared to the same periods in 2013, primarily in our US insurance segment.

“Prior year losses for the quarter and six months ended June 30, 2014 included $27.2 million of adverse development on asbestos and environmental exposures within our Other Insurance (Discontinued Lines) segment.

Highlights included:

— A reported book value per common share outstanding of $511.28 at June 30, 2014, up seven percent from $477.16 at December 31, 2013.

— Comprehensive income to shareholders was $480.9 million for the six months ended June 30, 2014 compared to $108.6 million for the same period of 2013.

— Diluted net income per share was $2.66 for the quarter ended June 30, 2014 compared to $2.24 for the second quarter of 2013. Diluted net income per share was $8.91 for the six months ended June 30, 2014 compared to $10.79 for the same period of 2013.