Arch Capital Fourth Quarter Net Income: $62.4M
Bermuda-based Arch Capital Group Ltd. reports that net income available to Arch common shareholders for the 2016 fourth quarter was $62.4 million, or $0.50 per share, compared to $53.1 million, or $0.42 per share, for the 2015 fourth quarter.
The Company’s net income available to Arch common shareholders represented an annualized return on average common equity of 3.9% for the 2016 fourth quarter, due primarily to net realized losses and non-recurring transaction costs related to the Company’s acquisition of United Guaranty Corporation [“UGC”] which closed on December 31, 2016.
For the year ended December 31, 2016, net income available to Arch common shareholders produced a 10.9% return on average common equity. The Company’s book value per common share was $55.19 at December 31, 2016, a 3.5% increase from $53.30 per share at September 30, 2016 and a 15.8% increase from $47.64 per share at December 31, 2015. All earnings per share amounts discussed are on a diluted basis.
The Company also reported after-tax operating income available to Arch common shareholders of $141.5 million, or $1.13 per share, for the 2016 fourth quarter, compared to $143.6 million, or $1.15 per share, for the 2015 fourth quarter.
The Company’s after-tax operating income available to Arch common shareholders represented an annualized return on average common equity of 8.7% for the 2016 fourth quarter, compared to 9.9% for the 2015 fourth quarter. For the year ended December 31, 2016, after-tax operating income available to Arch common shareholders produced a 9.4% return on average common equity.
