Arch Capital 2015 Q2 Net Income: $110.3 Million

August 2, 2015

Bermuda-based Arch Capital Group Ltd. reports that net income available to Arch common shareholders for the 2015 second quarter was $110.3 million, or $0.88 per share, compared to $202.5 million, or $1.48 per share, for the 2014 second quarter.

“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,” Arch said.

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

“For the trailing twelve months ended June 30, 2015, after-tax operating income available to Arch common shareholders produced a 10.0% return on average common equity while net income available to Arch common shareholders produced a 14.0% return on average common equity.

“The Company’s book value per common share was $47.49 at June 30, 2015, a 0.6% decrease from $47.80 per share at March 31, 2015 and an 8.6% increase from $43.73 per share at June 30, 2014.

“After-tax operating income or loss available to Arch common shareholders, a non-GAAP measure, is defined as net income available to Arch common shareholders, excluding net realized gains or losses, net impairment losses recognized in earnings, equity in net income or loss of investment funds accounted for using the equity method and net foreign exchange gains or losses, net of income taxes.

The following table summarizes the Company’s underwriting results, excluding amounts related to the ‘other’ segment [i.e., results of Watford Re]. Although the Company owns approximately 11% of Watford Re’s common equity, pursuant to generally accepted accounting principles, it consolidates the results of Watford Re in its financial statements.

Arch Capital Company’s underwriting results July 2015

The following table summarizes, on an after-tax basis, the Company’s consolidated financial data, including a reconciliation of after-tax operating income available to Arch common shareholders to net income available to Arch common shareholders and related diluted per share results:

Arch Capital Company’s consolidated financial data July 2015

 

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