Arch Capital Reports $210.5 Million Q1 Net Income

April 28, 2010

The Bermuda-based Arch Capital Group Ltd. reported that net income available to common shareholders for the 2010 first quarter was $210.5 million, or $3.79 per share, compared to $139.9 million, or $2.24 per share, for the 2009 first quarter.

The Company also reported after-tax operating income available to common shareholders of $98.7 million, or $1.78 per share, in Q1 2010, compared to $169.0 million, or $2.70 per share, for the 2009 first quarter.

“All earnings per share amounts discussed in this release are on a diluted basis,” the bulletin explained.

In addition Arch said its “book value per common share was $76.91 at March 31, 2010, a 5.3 percent increase from $73.01 per share at December 31, 2009. The growth in book value per common share was generated by operating income and investment returns. The Company’s after-tax operating income available to common shareholders represented a 9.8 percent annualized return on average common equity for the 2010 first quarter, compared to 21.1 percent for the 2009 first quarter.

Arch managed to weather a rather dramatic first quarter, despite seeing its combined ratio rise to, 96.4 percent for the period, compared to 86.7 percent in Q1 2009. “The 2010 first quarter loss ratio included approximately 8.7 points related to current accident year catastrophic events, primarily related to the Chilean earthquake, European Windstorm Xynthia and the Australian hailstorms and floods,” Arch explained.

The full report and a replay of the earnings conference call, held on Tuesday, April 27, may be obtained on the company’s web site at: www.archcapgroup.bm .

Source: Arch Capital

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