Arch Capital profits more than double in Q2, reinsurance fuels growth
Global re/insurer Arch Capital Group more than doubled its profits in the second quarter 2023, driven by growth in all segments and favourable changes in the business mix, especially the reinsurance segment where it enjoyed a significant 42% hike in gross premiums and 75% increase in underwriting income.
The Bermuda-based company reported a Q2 net profit of $661 million, up 68% from $394 million in the second quarter of 2022.
Arch’s overall gross written premiums rose 25.2% to reach $4.85 billion, while underwriting income rose 13.1% to $606 million. However, its combined ratio edged up to 79.8% from 77.1.%.
Gross premiums written by the reinsurance segment in Q2 reached $2.54 billion, a notable 41.9% increase compared to the same period in 2022, and the segment’s combined ratio fell from 85.4% to 81.9%.
The growth was primarily attributed to increased business opportunities and rate increases in property catastrophe, property excluding property catastrophe, and other specialty lines. Additionally, the decline in retrocession activity in Q2 contributed to the rise in net premiums written.
Gross written premiums for the insurance segment rose 14.7% to $1.95 billion in Q2, and the combined ratio increased by 0.8 points to 91.9%.
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