Arch swings back to profit in third quarter

Arch Capital Group Ltd. on Tuesday reported $217 million in net income for the 2018 third quarter, rebounding from a $52.8 million loss for the comparable period in 2017.

Net premiums written increased 0.6%, to $1.33 billion over the prior-year period. In its insurance segment, net premiums written increased 2.1%, to $576.9 million. Reinsurance premiums decreased 1.6% to $311.7 million.

The Hamilton, Bermuda-based insurer and reinsurer reported an 82.3% combined ratio for the quarter, vs. 111.8% for the prior-year period, which was hit by a series of catastrophe losses.

Pretax net investment income increased 21.5% to $114.3 million.

The company said it anticipates fourth-quarter results will be negatively impacted by Hurricane Michael in the range of $40 million to $60 million, net of reinsurance and reinstatement premiums.