Arch posts 9% dip in reinsurance GPW in Q3
Bermuda-based re/insurer Arch Capital reported a 9% drop in reinsurance gross premiums written (GPW) to $2.52 billion in Q3, down from $2.76 billion a year earlier.
Reinsurance net premiums written (NPW) fared worse, down nearly 11% to $1.74 billion compared with $1.95 billion a year ago. Arch put the lower level of NPW this quarter down to “the impact of two transactions in the 2024 third quarter in the specialty line of business and the lower level of reinstatement premiums in the 2025 third quarter”.
But Arch’s reinsurance combined ratio improved dramatically from 92.3% to 76.1% year on year.
Meanwhile, Arch’s insurance arm saw its GPW jump by 9.7% to $2.57 billion compared with $2.34 billion a year ago.
Net premiums written also improved by 7.3% to $1.95 billion compared with $1.82 billion in Q3 2024. Growth in NPW primarily reflected business related to Arch's $1.4 billion acquisition of MidCorp and Entertainment (MCE) in August last year, the re/insurer said.
The insurance segment combined ratio was flat at 93.4%.
Overall, Arch’s net income rose to $1.34 billion in Q3 compared with $978 billion in the prior-year period.
Combined ratio improved to 79.8% compared with 86.6% in the prior-year period. Combined ratio excluding catastrophic activity and prior year development worsened to 80.5% compared with 78.3% last year.
Company-wide GPW was marginal down at $5.41 billion compared with $5.44 billion in Q3 2024.
Pre-tax current accident year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, were $72 million.
“We are extremely pleased with our financial performance this quarter, which resulted in us delivering record-level results of operating income,” Arch CEO Nicolas Papadopoulo (pictured) said. “While we benefited from a relatively quiet quarter for natural catastrophes, we remain upbeat about our ability to perform well in the current market, which should lead to strong financial results on behalf of our shareholders.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
