Arch Capital Group Ltd

Latest Results (17.12.2024):

Net Income Growth

In the third quarter of 2024, Arch Capital Group Ltd. reported a net income available to common shareholders of $978 million, or $2.56 per share. This represents a significant increase from the $713 million, or $1.88 per share, reported in the same quarter of 2023. The annualized net income return on average common equity was 19.0% for this period.

Operating Income Decline

Arch Capital Group Ltd. recorded an after-tax operating income available to common shareholders of $762 million, or $1.99 per share, for the third quarter of 2024. This marks a decrease from the $876 million, or $2.31 per share, reported in the third quarter of 2023. The annualized operating return on average common equity was 14.8%.

Impact of Catastrophic Losses

The company faced pre-tax current accident year catastrophic losses of $450 million in its insurance and reinsurance segments during the third quarter of 2024. These losses were primarily due to Hurricane Helene and other global events. Despite these challenges, Arch Capital Group Ltd. managed to maintain a combined ratio excluding catastrophic activity and prior year development of 78.3%, compared to 77.0% in the same quarter of the previous year.

Book Value Increase

Arch Capital Group Ltd. reported a book value per common share of $57.00 as of September 30, 2024. This represents an 8.1% increase from the book value per share recorded on June 30, 2024. The growth in book value reflects the company's strong financial performance and effective capital management strategies.

Segment Performance

In the third quarter of 2024, Arch Capital Group Ltd.'s insurance segment saw a 14.6% increase in gross premiums written compared to the same period in 2023, driven by the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz. The reinsurance segment also experienced growth, with a 29.2% increase in gross premiums written, reflecting rate increases and new business opportunities. However, both segments were impacted by higher catastrophic losses due to global events.