Bermudian-based re/insurer Arch Capital Group Ltd has reported net income available to Arch common shareholders of $849.5 million for the fourth quarter of 2022.

That result, a 29.5 per cent annualised net income return on average common equity, compared to $613.1 million for the 2021 fourth quarter.

After-tax operating income available to Arch common shareholders was $805.9 million, a 28 per cent annualised operating return on average common equity, compared to $493.3 million for the 2021 fourth quarter.

Pre-tax current accident year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, were $34.6 million.

The combined ratio excluding catastrophic activity and prior year development was 82 per cent, compared to 80.1 per cent for the 2021 fourth quarter.

Favourable development in prior year loss reserves, net of related adjustments, was $270.1 million.

Book value per common share was $32.62 at December 31, 2022, a 9.9 per cent increase from September 30.

Gross premiums written by the insurance segment in the fourth quarter were $1.64 billion, 10.6 per cent higher than in the 2021 fourth quarter ($1.49 billion), while net premiums written were $1.22 billion, 17.4 per cent higher than in the 2021 fourth quarter ($1.04 billion).

Gross premiums written by the reinsurance segment in the fourth quarter were $1.8 billion, 77.4 per cent higher than in the 2021 fourth quarter ($1.01 billion), while net premiums written were $1.54 billion, 117.6 per cent higher than in the 2021 fourth quarter ($709 million).

Gross premiums written by the mortgage segment in the fourth quarter were $355.83 million, 2.3 per cent lower than in the 2021 fourth quarter ($364.13 million), while net premiums written were $274.52 million, 5.1 per cent lower ($289.3 million).

Pre-tax net investment income grew year over year to $181.08 million from $128.64 million, primarily reflecting the effects of higher interest rates available in the market.