Bermuda insurer Arch Capital grew its profits by almost five times during 2003 to $280.6 million after it more than doubled its gross and net written premium for the year, according to results released yesterday.

The company, which beefed up its operations in Bermuda following the capital crunch after the September 11 attacks and is considered part of this wave of companies, had a net income for the year ended December 31, 2002 of $59.0 million.

The company also reported it had more than doubled its net income for the fourth quarter of 2003 to $83.7 million to $43.5 million for the 2002 fourth quarter.

Net premiums written for the 2003 fourth quarter increased to $627.4 million from $439.2 million for the 2002 fourth quarter, and net premiums written for the year ended December 31, 2003 increased to $2.74 billion from $1.26 billion for the year ended December 31, 2002.

?The growth in net premiums written was due to substantial increases in business written by both the company?s reinsurance and insurance segments,? said a statement from the company.

Arch also reported after-tax operating income for the 2003 fourth quarter of $87.9 million, or $1.29 per share, compared to $48.6 million, or $0.72 per share for the 2002 fourth quarter.

After-tax operating income for the year ended December 31, 2003 was $266.5 million, or $3.93 per share, compared to $95.0 million, or $1.59 per share, for the year ended December 31, 2002. ?The company?s after-tax operating income represented a 21.5 percent return on beginning equity for the 2003 fourth quarter, on an annualised basis, and a 18.9 percent return on beginning equity for the year ended December 31, 2003,? said the company.

The underwriting income of the company?s insurance and reinsurance subsidiaries increased to $75.8 million for the 2003 fourth quarter from $36.0 million for the 2002 fourth quarter.

And for the year in 2003, underwriting income was $228.7 million, compared to $59.2 million for 2002. The company attributed the increase in underwriting income in 2003 to a significantly higher level of net premiums earned.

?In addition, underwriting results in the 2003 periods also benefited from increased profits recorded in property and other short-tail lines of business due, in part, to a low level of catastrophic activity,? said the company release.

The combined ratio of the company?s insurance and reinsurance subsidiaries was 89.3 for the 2003 fourth quarter, compared to 87.6 percent for the 2002 fourth quarter. It stood at 90.0 percent for the year ended December 31, 2003, compared to 90.9 percent for the year ended December 31, 2002.