Business
Arch Capital Group Ltd. Reports 2022 Fourth Quarter Results
PEMBROKE, Bermuda--(BUSINESS WIRE)-- Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2022 fourth quarter results. The results
About this update from Arch Capital Group Ltd.
[{"type":"text","content":" PEMBROKE, Bermuda--(BUSINESS WIRE)--\nArch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2022 fourth quarter results. The results included:\n\n\nNet income available to Arch common shareholders of $849.5 million, or $2.26 per share, a 29.5% annualized net income return on average common equity, compared to $613.1 million, or $1.58 per share, for the 2021 fourth quarter;\n\n\nAfter-tax operating income available to Arch common shareholders(1) of $805.9 million, or $2.14 per share, a 28.0% annualized operating return on average common equity, compared to $493.3 million, or $1.27 per share, for the 2021 fourth 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 $34.6 million;\n\n\nCombined ratio excluding catastrophic activity and prior year development(1) of 82.0%, compared to 80.1% for the 2021 fourth quarter;\n\n\nFavorable development in prior year loss reserves, net of related adjustments(1) of $270.1 million;\n\n\nBook value per common share of $32.62 at December 31, 2022, a 9.9% increase from September 30, 2022.\n\n\nAll earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results:\n\n\n\n(U.S. Dollars in thousands)\n\n\n\n \n\n\n\nThree Months Ended December 31,\n\n\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n2022\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n2021\n\n\n\n \n\n\n\n \n\n\n\n% Change\n\n\n\n\n\nGross premiums written\n\n\n\n \n\n\n\n$\n\n\n\n3,795,262\n\n\n\n \n\n\n\n \n\n\n\n$\n\n\n\n2,861,575\n\n\n\n \n\n\n\n \n\n\n\n32.6\n\n\n\n \n\n\n\n\n\nNet premiums written\n\n\n\n \n\n\n\n \n\n\n\n3,034,636\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n2,034,427\n\n\n\n \n\n\n\n \n\n\n\n49.2\n\n\n\n \n\n\n\n\n\nNet premiums earned\n\n\n\n \n\n\n\n \n\n\n\n2,760,919\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n2,083,630\n\n\n\n \n\n\n\n \n\n\n\n32.5\n\n\n\n \n\n\n\n\n\nUnderwriting income\n\n\n\n \n\n\n\n \n\n\n\n734,264\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n471,611\n\n\n\n \n\n\n\n \n\n\n\n55.7\n\n\n\n \n\n\n\n\n\nUnderwriting Ratios\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n% Point\nChange\n\n\n\n\n\nLoss ratio\n\n\n\n \n\n\n\n \n\n\n\n45.0\n\n\n\n%\n\n\n\n \n\n\n\n \n\n\n\n47.8\n\n\n\n%\n\n\n\n \n\n\n\n(2.8\n\n\n\n)\n\n\n\n\n\nUn...