Arch's Q4 results hit by hurricane and wildfires losses
Bermuda re/insurer Arch Capital Group saw its income fall year-on-year in fourth quarter 2018, primarily due to the impact of catastrophic events in the year
Arch’s Q4 catastrophe losses amount to $118.2 million, net of reinsurance and reinstatement premiums, with losses attributed to Hurricane Michael and the California wildfires, along with some other minor global events.
Its net profit for the quarter was $126.1 million, down from $203.5 million year-on-year. However, for the full-year, the insurer enjoyed a higher net income of $713.6 million, up from $566.5 million in 2017.
Arch's combined ratio in the fourth quarter was 87.8 percent, an improvement of 1.5 percentage points year-on-year.
The company's overall gross premiums written (GPW) for entire group were up 16.7 percent to $1.69 billion in the fourth quarter. For the reinsurance segment, the GPW were $409.3 million, 41.5 percent higher than the same period in 2017.
Gross premiums written by the insurance segment in Q4 were 8.5 percent higher than in the 2017 fourth quarter. The increase reflected growth in most lines of business, due to a mix of new business, growth in existing accounts and rate increases.
Arch, which also writes mortgage insurance globally, increased its gross premiums written by 6.8 percent in the fourth quarter of 2018. The growth has been attributed primarily to an increase in US insurance in force and government sponsored enterprise (GSE) credit-risk sharing transactions, partially offset by a lower level of US single premium business and a decrease in Australian mortgage reinsurance business.
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