Arch Capital nets more than $2 billion for the year
Arch Capital Group Ltd has reported net income available to common shareholders of $2.09 billion for fiscal year 2021.
That compares with net income of $1.36 billion for the prior fiscal year.
The Bermudian-based re/insurer reported fourth-quarter net income of $613.1 million, a 19.4 per cent annualised net income return on average common equity, compared with $533.1 million for the 2020 fourth quarter.
Growth occurred across many lines “as we earned in the rate increases of the past several quarters,” Arch CEO Marc Grandisson said today on an earnings call with analysts.
Professional lines and travel showed the strongest advances, he said.
François Morin, chief financial officer and treasurer, said on the call that growth was particularly strong in North America owing to a combination of rate increases and new business.
Overall submission activity and rate momentum remains healthy, and rate increases were above loss trends, Mr Grandisson said.
Other fourth-quarter highlights included:
• After-tax operating income available to Arch common shareholders of $493.3 million, or $1.27 per share, a 15.6 per cent annualised operating return on average common equity, compared with $230.4 million, or $0.56 per share, for the 2020 fourth quarter
• Pretax current accident-year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums of $72.3 million
• Favourable development in prior-year loss reserves, net of related adjustments of $125.6 million
• Combined ratio excluding catastrophic activity and prior-year development of 80.1 per cent, compared with 80.2 per cent for the 2020 fourth quarter
• 8.7 million shares repurchased at an aggregate cost of $362.1 million
• Book value per common share of $33.56 at December 31, 2021, a 3.5 per cent increase from September 30, 2021 and a 10.7 per cent increase from December 31, 2020
Pretax net investment income for the 2021 fourth quarter was $90.5 million, compared with $88 million for the 2020 fourth quarter.
The annualised pretax investment income yield was 1.46 per cent for the 2021 fourth quarter, consistent with 1.45 per cent for the 2020 fourth quarter.