Arch Capital Announces 4th Quarter Results
Arch Capital Group Ltd. announced its fourth quarter 2023 results, with net income available to Arch common shareholders of $2.3 billion, or $6.12 per share.
A spokesperson said, “The results included:
- Net income available to Arch common shareholders of $2.3 billion, or $6.12 per share, representing a 58.2% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $849 million, or $2.26 per share, for the 2022 fourth quarter.
- Fourth quarter results were impacted by the establishment of a net deferred tax asset of $1.18 billion, or $3.10 per share, related to the enactment of Bermuda’s new corporate income tax.
- After-tax operating income available to Arch common shareholders of $945 million, or $2.49 per share, representing a 23.7% annualized operating return on average common equity, compared to $806 million, or $2.14 per share, for the 2022 fourth quarter.
- Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums[1], of $137 million.
- Favorable development in prior year loss reserves, net of related adjustments, of $135 million.
- Combined ratio excluding catastrophic activity and prior year development of 78.9%, compared to 82.0% for the 2022 fourth quarter.
- Book value per common share of $46.94 at December 31, 2023, a 21.5% increase from September 30, 2023.
Marc Grandisson, Chief Executive Officer of ACGL commented: “We finished 2023 on an excellent note, closing the books with a stellar 21.6% operating return on equity for the year and growing our book value per share by 43.9%. We are bullish about our prospects for 2024 as our underwriters continue to lean into the excellent conditions prevalent in most of the markets where we operate.”
