Profits at Arch jump to $1.6bn as reinsurance unit grows
Bermuda-based reinsurer Arch Capital Group reported a bullish 2019 full year results, with a surge in income and a combined ratio that fell to 79.7 percent. Gross written premiums also increased significantly.
Its net income for the year was $1.6 billion, a 123.5 percent increase on the $713 million it made in 2018. Its combined ratio fell to 79.7 percent, down from 81 percent in 2018. Its gross premiums written were $7.7 billion compared to $6.5 billion in 2018, an improvement of 17.8 percent.
For Q4 alone, its income was $316 million, compared with $126 million for the same quarter in 2018. Gross written premiums were $1.9 billion, 14 percent up from $1.7 billion for the same quarter of 2018. Its combined ratio was 83.8 percent, compared with 87.8 percent for the same quarter of 2018.
Gross written premiums for the insurance segment were $1 billion, compared to $833 million in the same quarter of 2018, while in the reinsurance segment, gross written premiums were $432 million, compared to $409 million in Q4 2018 while net premiums written were 4.3 percent higher than in 2018 fourth quarter.
The company said that the growth in net premiums written primarily reflected increases in property lines from new business and growth in existing accounts. In addition, the 2018 fourth quarter net premiums written included a higher level of reinstatement premiums, due to 2018 catastrophic events, as well as premium adjustments on a multi-year casualty contract.
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