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Member, Beacon International Group, Ltd.
HAMILTON, Bermuda—Arch Capital Group Ltd. reported a first-half profit of $111.2 million, down 75.2% from $447.5 million for the first half of 2010.
The Hamilton, Bermuda-based insurer and reinsurer reported that second-quarter profits were down 61.2%, to $91.9 million, from the same period last year due to catastrophe losses.
Arch said Monday that its second-quarter results included catastrophe-related losses of $95 million net of reinsurance and reinstatement premiums. That compares with just $7 million for the second quarter in 2010. Catastrophes, including U.S. storms and the New Zealand earthquake, contributed to $81.5 million in losses. Another $13.5 million in losses were related to increases in previous estimates Arch made for the first three months of 2011.
Arch said in April that it had $178.7 million in catastrophe losses during the first three months of the year.
After taking such hits, Arch's combined ratio deteriorated to 99.6% in the second quarter and 104.8% for the first half.
The company's gross written premiums edged up to $911.9 million during the second quarter compared with $817.1 million during the same period last year. For the first half, its gross premiums were $1.88 billion vs. $1.77 billion a year earlier.
Meanwhile, its net written premiums increased to $706.5 million for the quarter, up from $624.3 million. For the first half, its net written premiums were $1.47 billion compared with $1.39 billion last year.
The company's quarterly investment income slid year over year to $86.7 million, down from $90.5 million. For the half, investment income was $175 million compared with $183.5 million a year earlier.
Arch's performance in recent months comes after similar hits this year when the company had losses from catastrophes such as flooding in Australia and the March 11 earthquake in Japan.