Earnings Reports: Arch Capital, SCOR Group

July 27, 2012

Selected earnings highlights from Bermuda-based Arch Capital Group for the second quarter and the first six months of 2012 are as follows:
Q2 2012 Q2 2011
Gross premiums written ———— $1.051813 bn $911.939 mn
Net premiums written ————— $820.233 mn $706.543 mn
Net premiums earned ———– $726.656 mn $642.879 mn
Net income after tax —————- $212.619 mn $90.142 mn
Operating income after tax ——- $141.400 mn $59.739 mn
Net investment income ————- $73.608 mn $86.671 mn

Q2 combined ratio: 87.2 percent (100.0 percent in Q2 2011)

1st Half 2012 1st Half 2011
Gross premiums written ———— $2.118469 bn $1.876505 bn
Net premiums written ————— $1.683844 bn $1.470821 bn
Net premiums earned ———– $1.406968 bn $1.276574 bn
Net income after tax —————- $370.414 mn $109.154 mn
Operating income after tax ——– $255.060 mn $67.315 mn
Net investment income ———— $147.905 mn $174.978 mn
1st half combined ratio: 88.6 percent (105.1 percent in 1st half 2011)

The earnings report also noted that in April 2012 Arch Capital “completed the acquisition of the credit and surety reinsurance operations of Ariel Reinsurance Company Ltd. based in Zurich, Switzerland. In the transaction, which was accounted for as a business combination under U.S. GAAP, the Company acquired $83.1 million of net unearned premiums along with other insurance balances. Under applicable accounting rules for business combinations, the recording of such unearned premiums was not reflected as net premiums written but will result in net premiums earned (primarily over a two year period). Net premiums earned for the 2012 second quarter included $17.3 million related to the acquired net unearned premiums.

Source: Arch Capital

French reinsurer SCOR Group reported its interim results for the 1st half of 2012. The following are selected highlights from SCOR’s report, as calculated in dollars; the original report gave the figures in euros.
1st Half 2012 1st Half 2011
Gross premiums written ———— $5.687 bn $4.172 bn
Net premiums earned ———– $5.062 bn $3.641 bn
Net income after tax —————- $252.76 mn $49.08 mn
*Operating income after tax ——– $401.23 mn $69.94 mn
Investment income —————— $375.46 mn $49.08 mn
1st half combined ratio for P&C Operations: 93.8 percent (113.1 percent in 1st half 2011)
*excludes acquisitions

The complete 37 page report, which gives the full details of the group’s financial activities for the first six months of 2012 is available on it web site in French – the official report – and in English for the convenience of non-French speakers.

Source: SCOR Group

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