Arch beats earnings estimate
Bermudian Arch Capital Group has beaten earnings estimates as it generated operating income of $142.1 million, or $1.05 per share, in the third quarter of 2014. Analysts’ consensus was below this at $0.96 per share.
The company’s profits hit $223.2 million in the quarter, more than double the $109.3 million it made in the same period a year earlier.
It said its net income represented an annualised return on average common equity of 15.3 percent for the 2014 third quarter, compared to 8.7 percent for the 2013 third quarter.
Its gross written premiums hit $1.13 billion compared with $1 billion a year earlier – an increase of 9.8 percent.
The gross premiums written by its reinsurance segment in the 2014 third quarter were 4.6 percent higher, while net premiums written were 16.1 percent lower than in the 2013 third quarter. The company said the differential in gross versus net premiums written primarily reflects retrocessions of premiums to Watford Re.
Its combined ratio deteriorated slightly to 88.5 percent compared with 86.1 percent a year earlier.