Business
Arch Capital Group Ltd. Reports 2021 Third Quarter Results
PEMBROKE, Bermuda--(BUSINESS WIRE)-- Arch Capital Group Ltd. (NASDAQ: ACGL) announces its 2021 third 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 2021 third quarter results. The results included:\n\n\nNet 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;\n\n\nAfter-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;\n\n\nPre-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;\n\n\nFavorable development in prior year loss reserves, net of related adjustments(1) of $118.3 million;\n\n\nCombined ratio excluding catastrophic activity and prior year development(1) of 80.1%, compared to 84.3% for the 2020 third quarter;\n\n\nThe 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;\n\n\nClosing 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;\n\n\n9.7 million shares repurchased at an aggregate cost of $386.9 million;\n\n\nBook 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.\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). Effective July 1, 2021, the Company no longer consolidates the results of Watford in its consolidated financial statements.\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 September 30,\n\n\...