Profits slide at Arch Capital due to COVID-19 and cat losses

Bermuda-based Arch Capital Group saw a sharp decline in its profitability in the first quarter of 2020, driven by catastrophe losses, including the impact of COVID-19 pandemic.

The re/insurer reported a net profit of $133.7 million for Q1 2020, compared to $438.1 million for the same period last year.

Pre-tax accident year catastrophic losses, net of reinsurance and reinstatement premiums, was $118.4 million. This included $86.6 million of losses for exposure related to COVID-19 for the company’s insurance and reinsurance segments.

Gross written premiums were $2.83 billion in Q1, up from $2.08 billion in Q1 2019.

The company's combined ratio increased to 91.5 percent for the quarter, compared with 81.7 percent in Q1 2019.