Arch dodges cat bullet to post solid Q3 results
Arch Capital Group enjoyed solid growth and a return to profitability in the third quarter of 2018 as it managed to avoid the catastrophe losses that have hit the results of some of its peers.
The company made a net profit of $217 million in the third quarter of 2018 compared with a net loss of $52.8 million a year earlier. Its results were hit by current accident year catastrophic losses, net of reinsurance and reinstatement premiums, of $58.2 million, primarily related to Hurricane Florence and Typhoon Jebi. Its combined ratio for the period was 82.3 percent, a big improvement on the 111.8 percent a year earlier.
The company warned, however, that it estimates that its 2018 fourth quarter results will be negatively impacted by Hurricane Michael, which occurred in October 2018, in the range of $40 million to $60 million, net of reinsurance and reinstatement premiums.
The re/insurer secured solid growth in the period its gross written premiums increasing by 5 percent to reach $1.73 billion.
Its reinsurance segment posted gross premiums written of $435 million, 3.2 percent higher than in the 2017 third quarter, while net premiums written were 1.6 percent lower than in the 2017 third quarter. The lower change in net premiums written primarily reflects an increase in retrocessions on other specialty and casualty lines, it said.
Gross premiums written by its insurance segment in the 2018 third quarter reached $836 million, 6.3 percent higher than in the 2017 third quarter while net premiums written were 2.1 percent higher. The increase in net premiums written reflected growth in travel insurance, due to both new business and growth in existing accounts, and in property, primarily due to new business and rate increases.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Ardonagh sells UK commercial MGA business to Arch for £31m
Swiss Re posts $1.1bn 9M profit after $1.6bn claims loss
AIG CEO promises ‘sense of urgency’ after big Q3 loss
Lancashire hit by another busy period for cat losses
Canopius taps new head of claims from Markel
AXA XL partners with insurtech Slice on new cyber offering
LIIBA outlines key Brexit challenge
No ‘big bang’ disruption in insurance: Munich Re
Japan typhoons expose lack of BI cover
Lloyd’s Asia seeks innovation in mature markets
