Arch Capital reports Q1 premiums up but profits down

02-05-2018

Arch Capital Group has announced that its net income for the 2018 first quarter was $137.3 million, compared to $241.9 million for the 2017 first quarter.

The company also reported after-tax operating income, a non-GAAP measure, of $235.1 million, for the 2018 first quarter, compared to after-tax operating income to Arch common shareholders of $198.0 million, for the 2017 first quarter. The company’s after-tax operating income available to Arch common shareholders produced an annualised return on average common equity of 11.3 percent for the 2018 first quarter, compared to 10.3 percent for the 2017 first quarter.

Consolidated gross written premiums for the first three months of the year came to $1.84 billion, a 10.9 percent increase from the $1.66 billion it wrote for the same period of 2017. Net premiums written in the first quarter of 2018 came to $1.41 billion, up 10.7 percent from the $1.27 billion it reported over the first three months of 2017.

Gross premiums written by the insurance segment in the 2018 first quarter were 5.3 percent higher than in the 2017 first quarter while net premiums written were 5.1 percent higher than in the 2017 first quarter. Changes in foreign currency rates resulted in an increase in net premiums written in the 2018 first quarter of $10.3 million, or 1.9 percent, compared to the 2017 first quarter.

According to the company this increase in net premiums written reflected growth in travel, through both new business and growth in existing accounts, in property, primarily due to improved rates and new business, and in professional lines, reflecting increases in small and medium sized accounts. Net premiums earned by the insurance segment in the 2018 first quarter were 6.5 percent higher than in the 2017 first quarter and reflect changes in net premiums written over the previous five quarters.

Gross premiums written by the reinsurance segment in the 2018 first quarter were 21.4 percent higher than in the 2017 first quarter, while net premiums written were 23.3 percent higher than in the 2017 first quarter. Changes in foreign currency rates resulted in an increase in net premiums written in the 2018 first quarter of $22.4 million, or 7.2 percent, compared to the 2017 first quarter. Arch said that the increase in net premiums written reflected growth in international motor contracts. Net premiums earned by the reinsurance segment in the 2018 first quarter were 14.0 percent higher than in the 2017 first quarter and reflect changes in net premiums written over the previous five quarters.

Arch Capital Group, Q1 2018, profits, underwriting, premiums

Bermuda Re