Arch Capital feels impact of pandemic
Losses related to the Covid-19 pandemic have impacted the earnings of Bermudian-based Arch Capital Group Ltd.
The company's net income was $288.4 million, or 71 cents per share, for the quarter ending on June 30. That was down from $458.6 million a year ago.
Arch said it had $173.1 million of Covid-related losses, which form part of $207.2 million of pre-tax current accident year catastrophic loses for the its insurance and reinsurance segments.
The company reported that the percentage of loans in default on US primary mortgage business was 5.14 per cent at the end of June, compared with 1.42 per cent at the end of March.
For the second quarter, Arch had gross written premiums of $2.3 billion, a rise of 19 per cent year-on-year.
Its combined ratio was 101.8 per cent, up from 80.4 per cent in the second quarter last year. The combined ratio, excluding catastrophic activity and prior year development, was 89.7 per cent.
The book value per common share at the end of June was $27.62, up 12.1 per cent year-on-year.