Arch Capital Group increased its gross premiums written during the first quarter but saw its profits fall.

The net income available to common shareholders was $149.3 million, down from $277 million for the same period last year.

That result, which equates to $1.20 per common share, beat analysts’ estimates of $1.10.

Pre-tax foreign exchange losses of $22 million were a drag on Arch’s earnings. In the corresponding period in 2015 the company had made $66.9 million of foreign exchange gains. In a statement the company pointed out that the majority of those amounts are unrealised “and resulted from the effects of revaluing the company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date”.

Pre-tax net realised investment gains dropped year-on-year from $61.9 million to $29.9 million.

Gross written premiums rose to $1.39 billion, up 6.1 per cent, while the underwriting combined ratio edged down a fraction to 87.1 per cent.

Among its business units, Arch reported a big jump in the gross premiums written by its mortgage segment, which rose 83.8 per cent to $111.2 million.

Gross written premiums in the insurance segment were $798.5 million, up 4.2 per cent, while the reinsurance segment was little changed year-on-year at $481 million.

During the first quarter Arch repurchased 1.1 million shares, at a cost of $75.3 million. At the end of March there were $446.5 million of repurchases available under the company’s buyback programme.

In New York, Arch shares closed yesterday at $71.40, up 10 cents, or 0.14 per cent.