Arch Capital Reports Q3 Net Income of $74.5M, vs. $223.2M in Q3 2014

October 29, 2015

Bermuda-headquartered Arch Capital Group Ltd. reported net income available to common shareholders for the third quarter ending 2015 was $74.5 million, or $0.60 per share, compared to $223.2 million, or $1.64 per share, for the same period last year.

For the nine months ended Sept. 30, the company reported net income available to common shareholders of $462.7 million, compared to $602.7 million during the first nine months of 2014.

The company reported after-tax operating income available to Arch common shareholders of $125.8 million, or $1.01 per share, for the 2015 third quarter, compared to $142.1 million, or $1.05 per share, for the 2014 third quarter. This after-tax operating income represents an annualized return on average common equity of 8.6 percent for the 2015 third quarter, compared to 9.7 percent for the third quarter last year.

For the nine months ended Sept. 30, after-tax operating income available to common shareholders was $421.6 million, compared to $467.1 million in the first nine months of 2014.

Gross premiums written for the third quarter were $1.15 billion, compared with $1.13 billion reported for the third quarter in 2014. For the first nine months of 2015, GPW were $3.6 billion, compared with $3.7 billion during the same period last year.

Combined ratio for the third quarter was 89.7 percent, compared with 88.5 percent for the same quarter in 2014. For the first nine months, combined ratio was 88.3 percent, compared with 86.5 percent for the nine month period in 2014.

Net investment income for the 2015 third quarter was $0.54 per share, or $67.3 million, compared to $0.53 per share, or $72.2 million, for the 2014 third quarter, and $0.53 per share, or $67.2 million, for the 2015 second quarter. For the first nine months, net investment income was $204.7 million, compared with $211.7 million for the same period last year.

During the 2015 third quarter, the company repurchased a small amount of shares under its share repurchase program. Since the inception of the share repurchase program through September 30, 2015, Arch Capital has repurchased 124.1 million common shares for an aggregate purchase price of $3.61 billion.

Source: Arch Capital Group Ltd.

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