Arch Capital Group Ltd. Reports 2003 2ndQ Results

Arch Capital Group Ltd. reported that net income for the 2003 second quarter was $61.8 million, or $0.91 per share, compared to $19.2 million, or $0.33 per share, for the 2002 second quarter. Net income for the six months ended June 30, 2003 was $114.3 million, or $1.70 per share, compared to $23.2 million, or $0.42 per share, for the six months ended June 30, 2002. Net premiums written for the 2003 second quarter increased to $560.0 million from $223.0 million for the 2002 second quarter, and net premiums written for the six months ended June 30, 2003 increased to $1.3 billion from $503.7 million for the six months ended June 30, 2002. During the 2003 second quarter, diluted book value per share increased by $1.26, or 5.7 percent, to $23.42.

The Company also reported after-tax operating income for the 2003 second quarter of $59.2 million, or $0.87 per share, compared to $15.5 million, or $0.27 per share, for the 2002 second quarter. After-tax operating income for the six months ended June 30, 2003 was $108.4 million, or $1.61 per share, compared to $23.9 million, or $0.43 per share, for the six months ended June 30, 2002. The Company’s after-tax operating income for the six months ended June 30, 2003 represented a 15.4 percent return on beginning equity, on an annualized basis. Operating income, a non-GAAP measure, is defined as net income or loss excluding net realized investment gains or losses, net foreign exchange gains or losses, other income and non-cash compensation charges, net of tax.