Reinsurance contributes to healthy profit growth at Arch

Arch Capital Group saw its key metrics all moving in the right direction in its first quarter results, with profits and gross written premiums increasing while its combined ratio inched down.

Arch reported net profit of $427.8 million for Q1 2021, a more than threefold increase on the $133.7 million reported in Q1 2020.

Gross written premiums came in at $3.4 billion, up from $2.83 billion in the same period in 2020, while its combined ratio fell slightly to 90.7 percent, from 91.5 percent the previous year.

The reinsurance segment made a healthy contribution to these group level numbers, with gross written premiums in that segment reported at $1.47 billion, up from $1.12 billion in the previous year. However, the combined ratio edged up to 102.9 percent in the reinsurance unit, from 102 percent in Q1 2020.

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