Arch Capital Group has released its financial results for the first quarter of 2020, and the international (re)insurer has managed to post a profit – albeit smaller than 2019’s – despite the impact of COVID-19.
In the three-month period, the Bermuda-headquartered group’s net income available to Arch common shareholders amounted to US$133.7 million (around SG$189 million), a decrease from last year’s US$438.1 million (around SG$619.5 million).
According to Arch, its pre-tax current accident year catastrophic losses – net of reinsurance and reinstatement premiums – of US$118.4 million (around SG$167.4 million) include US$86.6 million (around SG$122.4 million) of losses for exposure through March 31 related to the global coronavirus crisis for the company’s insurance and reinsurance segments.
The group – which writes insurance, reinsurance, and mortgage insurance on a worldwide basis – saw underwriting losses in both its insurance and reinsurance operations. Thanks to the mortgage segment’s underwriting income, Arch came out of the first quarter with a positive underwriting result.
Aside from Bermuda, Arch has offices in Australia, Canada, Ireland, the UK, and the US.