Advertise
Resources
Member, Beacon International Group, Ltd.
Arch Capital Group Ltd. on Wednesday reported a 57% jump in first-quarter net income due in part to improved investment returns, despite increased combined ratios and declining premiums.
For the quarter ended March 31, Hamilton, Bermuda-based Arch reported $277.9 million in net income.
The insurer generated $942.42 million in net written premiums for the recent quarter, down 8.8% from a year ago. Arch’s combined ratio for the period was 87.5%, up from 84.6% a year ago.
On a call with analysts Wednesday, Arch Chairman and CEO Constantine Iordanou said Arch’s profit was driven by “excellent” investment returns.
Arch reported net investment income of $70.3 million, up nearly 5% from a year ago, that was driven primarily by “high-quality fixed-income securities,” according to an earnings statement released late Tuesday.
Arch said in its earnings release that changes in foreign currency rates caused net written premiums to decrease $23 million for its reinsurance segment during the first quarter of 2015 compared with the prior year.
The company also reported declines in its specialty, property catastrophe and casualty lines, due in part to policy nonrenewals.
Bermuda-based Arch Capital Group Ltd. has said that it would take complete ownership of Gulf Reinsurance Ltd., Bloomberg reports.