Cat losses take toll on Arch earnings

Arch Capital Group Ltd. reported third-quarter net income of $388.8 million, compared with $408.6 million for the year-earlier period, as catastrophe losses took a toll on results and investment income slipped.

Foreign exchange losses also hit earnings, the insurer said.

Net premiums written grew 20.2% to $2.06 billion, and the company’s combined ratio improved to 91.4% from 93.9% in the third quarter of 2020.

In the insurance segment, net premiums written grew 40.0% to $1.153 billion from $824.2 million.

In the reinsurance segment, net premiums written grew 2.8% to $621.4 million from $604.2 million.

Net investment income slid 11.7% to $88.2 million from $99.9 million.

Current accident year catastrophic losses for Arch’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums of $335.9 million, were primarily related to Hurricane Ida, European floods and other global events, Arch said.

Net foreign exchange losses totaled $36.1 million in the third quarter as opposed to a gain of $39.5 million in the year-earlier period.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.