Bermuda-based Arch Capital posted a jump in profits and growth amid a strong set of results for the first quarter of 2015.
Its profits hit $277.9 million in the first quarter of 2015, compared with $177 million in the first quarter of 2014, while its gross written premiums (GWP) grew by 1 percent to $1.3 billion in the quarter.
Arch’s insurance segment drove the growth in premiums, with an increase of 4.9 percent in GWP to $766.2 million in the first quarter of 2015, compared with $730.6 million in the same period of the prior year.
Within the segment, net premiums written were 0.7 percent lower than in the 2014 first quarter. Arch said the differential in gross versus net premiums written primarily reflects growth in alternative markets business which is subject to a high level of cessions to captives.
Its reinsurance segment recorded a 6.2 percent fall in GWP to $485.1 million in the quarter, compared with $517.1 million in the first quarter of 2014, while net premiums written were 21.5 percent lower than in the 2014 first quarter.
Arch explained that the difference in premiums primarily reflected an increase in cessions to Watford Re in the 2015 first quarter compared to the 2014 first quarter.
Arch’s combined ratio deteriorated nearly 3 percentage points to 87.5 percent in the first quarter of 2015, compared with 84.6 percent in the prior year quarter.
Arch Capital, First Quarter 2015 Results, Bermuda