Bermuda-based re/insurer, Arch Capital Group yesterday reported a fourth quarter profit of nearly $14 million despite heavy losses from Hurricane Sandy.The net income of $13.7 million compared to a net income of $138.9 million for the fourth quarter of 2011.After the market close last night, the company reported an operating loss of $24.7 million, or $0.18 per share for the fourth quarter of 2012, compared to an operating income of $128.9 million, or $0.94 per share. The result was attributed to the company’s $203.5 million in Sandy-related claims.Still, the loss of 18 cents per share was better than the loss of 51 cents per share expected by the 18 analysts polled Yahoo Finance.Overall for the year, net income was $568.3 million, or $4.11 per share compared to $410.3 million or $2.97 million per share for the whole of 2011.Arch wrote more business in the last three months of last year, with gross written premiums of $813.9 million representing an increase of $114.3 million, or more than 16 percent, over the fourth quarter of 2011.The company’s book value per common share was $36.19 at December 31, 2012, a 1.6 percent decrease from $36.79 per share at September 30, 2012 and a 13.9 percent increase from $31.76 per share at December 31, 2011.The company’s after-tax operating loss available to common shareholders represented an annualised return on average common equity of 2.0 percent for the 2012 fourth quarter, compared to 12.3 percent for 2011 fourth quarter. For the whole of 2012, the company’s return on common equity was 7.7 percent, compared to 7.2 percent for 2011.Net investment income for the 2012 fourth quarter was $73.8 million, or $0.53 per share, compared to $80.5 million, or $0.59 per share, for the 2011 fourth quarter. The annualised pre-tax investment income yield was 2.46 percent for the 2012 fourth quarter, compared to 2.72 percent for the 2011 fourth quarter.