Arch Capital Reports 2021 Third Quarter Results

October 29, 2021 | 0 Comments

Arch Capital Group Ltd. announces its 2021 third quarter results. The results included:

  • Net income available to Arch common shareholders of $388.8 million, or $0.98 per share, a 12.3% annualized net income return on average common equity, compared to $408.6 million, or $1.00 per share, for the 2020 third quarter;
  • After-tax operating income available to Arch common shareholders[1] of $294.7 million, or $0.74 per share, a 9.3% annualized operating return on average common equity, compared to $120.3 million, or $0.29 per share, for the 2020 third quarter;
  • Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums[1] of $335.9 million, primarily related to Hurricane Ida, European floods and other global events;
  • Favorable development in prior year loss reserves, net of related adjustments[1] of $118.3 million;
  • Combined ratio excluding catastrophic activity and prior year development[1] of 80.1%, compared to 84.3% for the 2020 third quarter;
  • The percentage of loans in default on U.S. primary mortgage business was 2.67% at September 30, 2021, compared to 3.11% at June 30, 2021;
  • Closing of the Watford transaction resulted in a one-time net income gain of $62.5 million, or $0.16 per share, as well as an additional $161.2 million in ceded premiums written in the quarter for the reinsurance segment due to retrocessions to Watford, with no corresponding impact to underwriting income;
  • 9.7 million shares repurchased at an aggregate cost of $386.9 million;
  • Book value per common share of $32.43 at September 30, 2021, a 1.3% increase from June 30, 2021 and a 12.8% increase from September 30, 2020.

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