Arch doubles Q1 operating income

28-04-2022

Arch doubles Q1 operating income

Arch Capital Group posted a 146% increase in operating income for the first quarter of 2022, thanks to improvements in underwriting income across all three of its main businesses - insurance, reinsurance and mortgage. Net income for the period, however, more than halved from $427.8 million to $185.6 million.

Gross written premium rose 12% to $3.8 billion from $3.4 billion. In its insurance segment, GWP increased by nearly 22% to £1.7 billion from $1.4 billion. The GWP of its reinsurance business rose by almost 17% to $1.7 billion from $1.5 billion.

Combined ratio improved by 12 percentage points to 78.7% from 90.7%, while its combined ratio excluding catastrophic activity and prior year development improved by 0.2% to 80.8% from 81%

Net income fell by 59% to $197 million from $475 million.

In the reinsurance segment, underwriting income amounted to $108.8 million for the quarter, compared to a loss of $19.7 million a year earlier, and the combined ratio also improved, by 16.3 percentage points to 86.6%.

Arch explained that the reinsurance loss ratio reflected 6.5 percentage points of current year catastrophic activity, mostly connected to Russia’s invasion of Ukraine, compared to 24.7 points of catastrophic activity in Q1 2021 that was mainly related to the Uri and Viola winter storms. 

Arch Capital, financial results

Bermuda Re