Business
Arch Capital Group Ltd. Reports 2020 First Quarter Results
PEMBROKE, Bermuda--(BUSINESS WIRE)-- Arch Capital Group Ltd. (NASDAQ: ACGL) announces its 2020 first quarter results. The results included: Net income
About this update from Arch Capital Group Ltd.
[{"type":"text","content":" PEMBROKE, Bermuda--(BUSINESS WIRE)--\nArch Capital Group Ltd. (NASDAQ: ACGL) announces its 2020 first quarter results. The results included:\n\n\n\nNet income available to Arch common shareholders of $133.7 million, or $0.32 per share, a 5.0% annualized return on average common equity, compared to $438.1 million, or $1.07 per share, for the 2019 first quarter;\n\n\nAfter-tax operating income available to Arch common shareholders(1) of $189.8 million, or $0.46 per share, a 7.1% annualized return on average common equity, compared to $275.9 million, or $0.67 per share, for the 2019 first quarter;\n\n\nPre-tax current accident year catastrophic losses, net of reinsurance and reinstatement premiums(1) of $118.4 million, which included $86.6 million of losses for exposure through March 31, 2020 related to the COVID-19 global pandemic for the Company’s insurance and reinsurance segments;\n\n\nFavorable development in prior year loss reserves, net of related adjustments(1) of $17.8 million;\n\n\nCombined ratio excluding catastrophic activity and prior year development(1) of 84.2%;\n\n\nTotal return on investments(1) of -0.86% for the 2020 first quarter;\n\n\nBook value per common share of $26.10 at March 31, 2020, a 1.2% decrease from December 31, 2019 and a 12.9% increase from March 31, 2019.\n\n\n\nAll earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results, both (i) on a consolidated basis and (ii) on a consolidated basis excluding the ‘other’ segment (i.e., results of Watford):\n\n\n\n\n(U.S. dollars in thousands)\n\n\n\nConsolidated\n\n\n\n \n\n\n\nConsolidated Excluding ‘Other’ Segment (1)\n\n\n\n\n\n \n\n\n\nThree Months Ended March 31,\n\n\n\n \n\n\n\nThree Months Ended March 31,\n\n\n\n\n\n \n\n\n\n2020\n\n\n\n \n\n\n\n2019\n\n\n\n \n\n\n\n% Change\n\n\n\n \n\n\n\n2020\n\n\n\n \n\n\n\n2019\n\n\n\n \n\n\n\n% Change\n\n\n\n\n\nGross premiums written\n\n\n\n$\n\n\n\n2,832,830\n\n\n\n \n\n\n\n \n\n\n\n$\n\n\n\n2,077,879\n\n\n\n \n\n\n\n \n\n\n\n36.3\n\n\n\n \n\n\n\n \n\n\n\n$\n\n\n\n2,698,537\n\n\n\n \n\n\n\n \n\n\n\n$\n\n\n\n1,980,453\n\n\n\n \n\n\n\n \n\n\n\n36.3\n\n\n\n \n\n\n\n\n\nNet premiums written\n\n\n\n2,137,246\n\n\n\n \n\n\n\n \n\n\n\n1,525,259\n\n\n\n \n\n\n\n \n\n\n\n40.1\n\n\n\n \n\n\n\n \n\n\n\n1,950,546\n\n\n\n \n\n\n\n \n\n\n\...