Arch reports Q3 profit of $6.9mn

Arch Capital Group has recorded a third-quarter profit available to common shareholders of $6.9 million, compared to $388.8 million for the 2021 third quarter.

Pre-tax current accident year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, stood at $550.8 million and were primarily related to Hurricane Ian, as well as from a series of other global events that occurred this year, including US convective storms, Typhoon Nanmadol and the June French hailstorms.

Its combined ratio improved by 5.9 points to 97.3 percent. Its combined ratio excluding catastrophic activity and prior year development was 82.2%, compared to 80.1% for the 2021 third quarter.

Gross written premium (GWP) increased year on year by 20.4 percent to more than $3.86 billion.

GWP in its insurance segment rose by 16.6 percent year on year to over $1.86 billion and its combined ratio improved by 0.6 points to 102.8 percent.

Its reinsurance segment’s GWP rose by 30.9 percent to more than $1.64 billion and its combined ratio improved by 13.5 points to 119.7 percent.

Its mortgage segment increased GWP by 0.4 points to $362 million, while its combined ratio worsened by 31.4 points to -5.2 percent.