Bermuda-based Arch reported a solid set of results for 2014, as profits hiked and the company experienced strong growth.
Arch posted profits of $812.4 million for the year ended December 31, 2014, compared with $687.8 million for 2013.
Its gross written premiums hiked to $4.8 billion in 2014, compared with $4.2 billion in 2013. Arch’s net written premiums grew 7.9 percent to $3.6 billion in 2014, compared with $3.4 billion in 2013.
Arch recorded a loss of $14.1 million over the year, relating to its investment in Gulf Re, a specialty reinsurer founded jointly by Arch and Gulf Investment Corporation and based in the Dubai International Financial Centre. According to Arch, this primarily resulted from a small number of large losses.
Its combined ratio increased to 86.8 percent in 2014, compared with 85.9 percent in 2013.
In the fourth quarter of 2014, Arch’s insurance division posted a 9.8 percent increase in gross written premiums (GWP), while its net written premiums grew 9.6 percent. The company said that the growth in net premiums written primarily resulted from increases in professional lines, excess and surplus casualty and alternative markets, partially offset by a decrease in construction and national accounts.
Arch’s reinsurance division posted a 4.9 percent increase in GWP for the fourth quarter of 2014, although net premiums written fell 6.5 percent. According to Arch, the differential in gross versus net premiums written primarily reflects retrocessions of premiums to Watford Re in the 2014 fourth quarter. The lower level of net premiums written reflected decreases in casualty and other specialty lines, partially offset by growth in property.
Arch, Bermuda, Gulf Re, Reinsurance