Arch Capital Posts $284.7 Million Q4 Net Income; Conference Call Today

February 17, 2010

The Bermuda-based Arch Capital Group Ltd reported that net income available to common shareholders for the 2009 fourth quarter of $284.7 million, or $4.75 per share, compared to a net loss to common shareholders of $143.0 million, or $2.38 per share, for the 2008 fourth quarter.

For the year ended December 31, 2009, net income available to common shareholders was $851.1 million, or $13.74 per share, compared to $265.1 million, or $4.09 per share, for the 2008 period.

Arch also reported after-tax operating income, which excludes capital gains/losses, available to common shareholders of $159.4 million, or $2.66 per share, for the 2009 fourth quarter, compared to $85.9 million, or $1.43 per share, for the 2008 fourth quarter, and $651.8 million, or $10.53 per share, for the year ended December 31, 2009, compared to $537.4 million, or $8.29 per share, for the 2008 period. “All earnings per share amounts discussed in this release are on a diluted basis,” said the bulletin.

Book value per common share was $73.01 at December 31, 2009, a 5.1 percent increase from $69.48 per share at September 30, 2009 and a 42.2 percent increase from $51.36 at December 31, 2008, which the earnings report said was “generated by operating income and investment returns.

“The Company’s after-tax operating income available to common shareholders represented a 15.7 percent annualized return on average common equity for the 2009 fourth quarter, compared to 10.9 percent for the 2008 fourth quarter, and 18.3 percent for the year ended December 31, 2009, compared to 15.8 percent for the 2008 period.”

Arch Capital’s combined ratio improved to 88.8 percent in the fourth quarter of 2009, compared to 101.2 percent in Q4 2008. For the full year the combined ratio was88.1 percent, compared to 95 percent in 2008.

The Company will hold a conference call for investors and analysts at 11:00 a.m. Eastern Time on Wednesday, February 17, 2010. A live webcast of this call will be available via the Investor Relations – Events & Presentations section of the Company’s website at: http://www.archcapgroup.bm.

A telephone replay of the conference call also will be available beginning on February 17 at 2:00 p.m. Eastern Time until February 24, 2010 at midnight Eastern Time. To access the replay, domestic callers should dial 888-286-8010 (passcode 91241337), and international callers should dial 617-801-6888 (passcode 91241337).

Source: Arch Capital Group

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