Arch Capital Reports Second Quarter Results
Bermuda-based Arch Capital Group Ltd. announces its 2020 second quarter results.
The results included:
- Net income available to Arch common shareholders of $288.4 million, or $0.71 per share, a 10.6% annualized return on average common equity, compared to $458.6 million, or $1.12 per share, for the 2019 second quarter;
- After-tax operating income available to Arch common shareholders[1] of $16.6 million, or $0.04 per share, a 0.6% annualized return on average common equity, compared to $317.4 million, or $0.77 per share, for the 2019 second quarter;
- Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums[1] of $207.2 million, including $173.1 million of COVID-19 related losses;
- Favorable development in prior year loss reserves, net of related adjustments[1] of $31.4 million;
- Combined ratio excluding catastrophic activity and prior year development[1] of 89.7%;
- The percentage of loans in default on U.S. primary mortgage business was 5.14% at June 30, 2020, compared to 1.42% at March 31, 2020;
- Total return on investments[1] of 3.72%;
- Book value per common share of $27.62 at June 30, 2020, a 5.8% increase from March 31, 2020 and a 12.1% increase from June 30, 2019.
