Arch Capital last night reported operating profits of $125.8 million for the third quarter of the year, surpassing analysts’ expectations.

After-tax earnings per share were $1.01, compared to the 98 cents consensus of analysts tracked by Zacks Investment Research.

The figure is $1.3 million down on the amount recorded for the third quarter last year, which was equal to $1.05 a share.

Net income for the quarter was $74.5 million, or 60 cents per share, compared to $223.2 million and $1.64 a share in the third quarter of 2014.

Gross premiums written for the third quarter totalled $1,158,451 compared to $1,138,398 for the same period last year — a 1.8 per cent increase.

The company said net investment income for the quarter fell to $67.3 million, equal to 54 cents a share, compared to $72.2 million and 53 cents a share in quarter three last year.

Arch’s report on the company’s performance said: “Total return in the 2015 third quarter reflected the impact of the strengthening US dollar against the British pound sterling, Canadian dollar and other major currencies on non-US denominated investments.

“Excluding the effects of foreign exchange, total return was 0.04 per cent for the 2015 third quarter as investment grade fixed income returns were substantially offset by negative returns on equities, high yield and alternative strategies.”

Arch added it had also bought up “a small number” of its own shares during the quarter.

The company report said: “Since the inception of the share repurchase programme through September 30, 2015, Arch Capital Group Ltd has repurchased 124.1 million common shares for an aggregate purchase price of $3.61 billion. At September 30, 2015, $521.8 million of repurchases were available under the share repurchase programme.”