Arch Capital posts healthy Q3 profit

Arch Capital Group reported a profit in its third-quarter results with a net income of $388.8 million, shrugging off cat losses of $335.9m from Hurricane Ida, European floods and other global events. However, that was a fall from $408.6m in the same period last year and included a one-off gain of $62.5m from the closing of its acquisition of Bermuda-based reinsurer Watford Holdings.

Gross written premiums of $3.2 billion were up almost 20% on $2.7bn in the same period last year.

Despite the cat losses, Arch’s combined ratio of 91.4% was an improvement on 94.9% in Q3, 2020. Its combined ratio excluding catastrophic activity and prior year development was 80.1%, compared to 84.3% for the 2020 third quarter.