Arch Capital Group Ltd. incurred a third quarter 2005 loss of $86.3 million, or $1.15 per share, due to hurricanes and the floods in Europe. The Bermuda-based company recorded income of $18 million, or 25 cents per share for the corresponding period of 2004.

Arch?s net income was $155.6 million, or $2.09 per share for the nine months ended September 30, 2005, compared to $209.8 million, or $2.91 per share, for the corresponding period of 2004.

Arch had an operating loss of $81.9 million for the 2005 third quarter compared to income of $9.1 million for the 2004 third quarter

In the third quarter of 2005, Arch recorded estimated losses of $250.9 million related to Hurricanes Dennis, Emily, Katrina and Rita and the European floods. In the 2004 third quarter, the company incurred a loss of $144.6 million related to Hurricanes Charley, Frances, Ivan and Jeanne and Typhoon Songda.

Gross premiums written for the 2005 third quarter were $1.05 billion compared to $927.7 million for the 2004 third quarter. The company?s combined ratio was 117.7 percent for the 2005 third quarter, compared to 103.4 percent for the 2004 third quarter.

Investment income increased to $59.3 million for the 2005 third quarter from $40.8 million for the 2004 third quarter due to a higher level of average invested assets and an increase in the pre-tax investment income yield to 3.6 percent for the 2005 third quarter.