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Arch Reports Q2 Net Income of $110.3M, Compared to $202.5M in Q2 2014

Arch Capital Group Ltd., headquartered in Bermuda, reported second quarter net income of $110.3 million, or $0.88 per share, compared to $202.5 million, or $1.48 per share, for the 2014 second quarter. Net income available to Arch common shareholders for the first half was $388.2 million, compared with $379.6 million reported for the first six months of 2014.

The company also reported after-tax operating income available to Arch common shareholders of $146.0 million, or $1.16 per share, for the 2015 second quarter, compared to $160.7 million, or $1.17 per share, for the 2014 second quarter. After-tax operating income for the first half was $295.8 million, compared with $325.1 million in the first half of 2014.

The company’s after-tax operating income available to Arch common shareholders represented an annualized return on average common equity of 9.9 percent for the 2015 second quarter, compared to 11.2 percent for the 2014 second quarter.

Other highlights for the second quarter and first half include:

• Gross premiums written for the second quarter were $1.2 billion, down 8.1 percent from $1.3 billion reported for the same period in 2014. GPW for the first half came to $2.5 billion, down 3.3 percent from $2.6 billion for the same period in 2014.
• The second quarter combined ratio came to 87.9 percent, compared with 86.2 percent in the second quarter of 2014. The combined ratio for the first half was 87.7 percent, compared with 85.5 percent reported for the first half of 2014.
• Net investment income for the 2015 second quarter was $0.53 per share, or $67.2 million, compared to $0.53 per share, or $72.5 million, for the 2014 second quarter. Net investment income for the first half $137.5 million, compared with $139.5 million for the first six months in 2014.

Source: Arch Capital