Arch profits jump in Q3

Arch Capital Group Ltd. had third quarter net income of $399.2 million, up 60.4% as gross written premiums rose substantially in the period, the Bermuda-based insurer and reinsurer said in its earnings statement after markets Tuesday.

Net premiums written rose 21.0% to $1.61 billion, the earnings statement said.

Arch’s third quarter combined ratio was 84.2% compared with 82.3% in the year-ago period, the statement said.

Net investment income rose 11.0% to $126.9 million, financial data showed.

Results included a favorable development in prior year loss reserves of $51.7 million, the statement said.

In the insurance segment, net premiums written grew 22% to $703.8 million and the combined ratio was 104% compared with 104.8% in the year-ago period.

In the reinsurance segment, net premiums written jumped 40% to $436.5 million and the combined ratio worsened to 100.3% compared with 89.9% in the year-ago period.

For the nine months ended Sept. 30, net income rose 105.6% to $1.38 billion, the earnings statement said.

Nine-month net written premiums grew 23.3% to $1.46 billion and the combined ratio was 80.9% compared with 81.8% for the same period last year, the statement said.

Nine-month net investment income rose 15.1% to $371.2 million, financial data showed.