Arch Capital Posts $277.9 Million Q1 2015 Net Income

April 29, 2015

Bermuda-based Arch Capital Group Ltd. reported that net income available to Arch common shareholders for the 2015 first quarter was $277.9 million, or $2.16 per share, compared to $177.0 million, or $1.30 per share, for Q1 2014.

The Company also reported after-tax operating income available to Arch common shareholders of $149.8 million, or $1.17 per share, for Q1 2015, compared to after-tax operating income available to common shareholders of $164.4 million, or $1.20 per share, for the first quarter of 2014.

Arch’s after-tax operating income available to common shareholders represented an annualized return on average common equity of 10.2 percent for the 2015 first quarter, compared to 12.1 percent for the 2014 first quarter.

The Company’s net income available to Arch common shareholders represented an annualized return on average common equity of 18.9 percent for the 2015 first quarter, compared to 13.0 percent for the 2014 first quarter.

Book value per common share was $47.80 at March 31, 2015, a 4.9 percent increase from $45.58 per share at December 31, 2014 and a 15.1 percent increase from $41.52 per share at March 31, 2014.

Gross premiums written rose by 1.3 percent to $1.311678 billion from $1.295136 billion in Q1 2014. Net premiums written, however, fell by 8.8 percent to $942.417 million from $1.032796 billion. Net premiums earned were $837.998, a decrease of 2.3 percent compared to $857.614 million in Q1 2014.

Underwriting income declined by 14.1 percent to $114.703 million from $133.578 million in the same period in 2014. Arch’s combined ratio for Q1 2014 was 87.5 percent, an increase of 2.9 percent from Q1 2014, when it was 84.6 percent.

Source: Arch Capital

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