Arch Capital Group saw profits rise in the second quarter of 2018, announcing that net income for the period came to $233.2 million, up 26 percent from the $173.8 million it posted in the same period of 2017.
However, the company posted a half-year 2018 profit of $370.2 million, down on the $415.7 million it reported for the first six months of 2017.
Gross written premiums for the second quarter of 2018 came to $1.7 billion, a rise of 5.4 percent from the $1.6 billion it wrote for the same period of 2017.
The company said that the results included favourable development in prior year loss reserves, net of related adjustments, of $60.3 million. The primary insurance segment saw a lower level of large attritional losses and changes in mix of business. The reinsurance segment benefitted from better than expected claims emergence in short-tail business from more recent underwriting years and, in longer-tail business across earlier underwriting years as well as changes in the business mix.
Overall, Arch grew underwriting income by 20.5 percent year on year to $235.5 million in the second quarter of 2018 after $195.4 million in the same period a year ago. The combined ratio improved to 82.7 percent from 84.6 percent over the period.
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