Arch Capital Report 2020 4th Quarter Results

February 11, 2021

Arch Capital Group Ltd. announced their 2020 fourth quarter results.

The results included:

  • Net income available to Arch common shareholders of $533.1 million, or $1.30 per share, a 17.8% annualized return on average common equity, compared to $316.0 million, or $0.76 per share, for the 2019 fourth quarter;
  • After-tax operating income available to Arch common shareholders[1] of $230.4 million, or $0.56 per share, a 7.7% annualized return on average common equity, compared to $308.4 million, or $0.74 per share, for the 2019 fourth quarter;
  • Pre-tax current accident year catastrophic losses for the Company‚Äôs insurance and reinsurance segments, net of reinsurance and reinstatement premiums[1] of $156.4 million, including $0.4 million of COVID-19 related losses;
  • Favorable development in prior year loss reserves, net of related adjustments[1] of $49.8 million;
  • Combined ratio excluding catastrophic activity and prior year development[1] of 80.2%, compared to 81.4% for the 2019 fourth quarter;
  • The percentage of loans in default on U.S. primary mortgage business was 4.19% at December 31, 2020, compared to 4.69% at September 30, 2020;
  • Total return on investments[1] of 2.46%;
  • Book value per common share of $30.31 at December 31, 2020, a 5.4% increase from September 30, 2020 and a 14.7% increase from December 31, 2019.

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