Arch issues Q4 2018 loss estimate
Arch to purchase McNeil
Arch Capital Group has announced a net profit of $217 million in the third quarter of 2018, a significant uptick from the net loss of $52.8 million it made in the same period of 2017.
The profit came despite the fact that the company was impacted by current accident year catastrophic losses, net of reinsurance and reinstatement premiums, of $58.2 million, primarily related to Hurricane Florence and Typhoon Jebi.
However, Arch issued the caveat that it estimates that its 2018 fourth quarter results will be negatively impacted by Hurricane Michael, which occurred in October 2018, in the range of $40 million to $60 million, net of reinsurance and reinstatement premiums.
The re/insurer secured solid growth in the period its gross written premiums increasing by 5 percent to reach $1.73 billion.
Its reinsurance segment posted gross premiums written of $435 million, 3.2 percent higher than in the 2017 third quarter, while net premiums written were 1.6 percent lower than in the 2017 third quarter. The lower change in net premiums written primarily reflects an increase in retrocessions on other specialty and casualty lines, it said.
Gross premiums written by its insurance segment in the 2018 third quarter reached $836 million, 6.3 percent higher than in the 2017 third quarter while net premiums written were 2.1 percent higher. The increase in net premiums written reflected growth in travel insurance, due to both new business and growth in existing accounts, and in property, primarily due to new business and rate increases.
Arch Capital, Q3, results, profit, caveat, hurricane Michael, damage