Dagneau to lead Arch Re Canada
Arch Capital Group has blamed a 16 percent fall in its second quarter 2017 income figures on weak market conditions, as well as other factors.
Its second quarter 2017 net income came to $173.8 million, down on the $205.6 million that it made over the same three months in 2016.
The company said that gross premiums written for Q2 2017 came to $1.61 billion, up 21 percent on the $1.33 billion that it recorded over the same period of 2016. Underwriting income was also up, going from $116.6 million in the second quarter of 2016 to $195.4 million in the same period of 2017.
However, the company said that its gross premiums written by the insurance segment in the 2017 second quarter were 2.4 percent lower than in the 2016 second quarter while net premiums written were 3.6 percent lower than in the 2016 second quarter.
According to Arch: “The decrease in net premiums written largely reflected our response to weaker market conditions, with reductions in construction, excess and surplus casualty and property lines, partially offset by growth in programs. The lower level of construction premiums reflected non-renewals as well as lower audit and project premium, while excess and surplus casualty reflected a targeted reduction in certain exposures, increased use of reinsurance and other factors. The reduction in property lines reflected continued weak market conditions while growth in program business primarily reflected the continued impact of two newer programs. Net premiums earned by the insurance segment in the 2017 second quarter were 1.9 percent lower than in the 2016 second quarter, and reflect changes in net premiums written over the previous five quarters.”
Arch added that the 2017 second quarter loss ratio reflected 1.6 points of current year catastrophic activity, compared to 3.9 points in the 2016 second quarter. Estimated net favourable development in prior year loss reserves, before related adjustments, reduced the loss ratio by 0.4 points in the 2017 second quarter, compared to 0.9 points in the 2016 second quarter. The balance of the change in the 2017 second quarter loss ratio resulted, in part, from a softening market environment and changes in the mix of business.
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Arch Capital Group, Second quarter 2017 results, Insurance, Reinsurance, Bermuda