Arch Capital Group is the latest re/insurer to see its profitability severely hampered by the impact of COVID-19, reporting second quarter profits that were markedly down on the previous year.
Arch reported net profit of $288.4 million for the second quarter of 2020. In Q2 2019 it had generated profit of $458.6 million.
Arch said it had made pre-tax current accident year catastrophic losses in its re/insurance segments, net of reinsurance and reinstatement premiums, of $207.2 million, of which $173.1 million related to COVID-19.
Gross written premiums increased in Q2 2020 to nearly $2.21 billion, up from $1.94 billion in the same period of the previous year.
Its combined ratio increased to 101.8 percent in Q2 2020, up from 80.4 percent in Q2 2019.