Arch profit plunges by more than half in first quarter despite growth
Arch Capital Group’s profits more than halved in the first quarter of 2022, despite growth in most lines of business, driven chiefly by rate increases and new business opportunities.
The Bermuda-based re/insurer saw its net profit slide to $185.6 million in Q1, less than half of the $427.8 million it reported in the same period of 2021.
The company, however, enjoyed a higher gross premiums written of $3.8 billion in the quarter, up 12% on the $3.4 billion seen a year ago. For the reinsurance segment, the GWP was 16.9% higher than in the 2021 first quarter.
Gross premiums written by the insurance segment were 21.5% higher due to a mix of rate increases, new business opportunities and growth in existing accounts.
Arch's combined ratio in the first three months came in at 78.7%, marking a significant improvement of 12 percentage points year-on-year.
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