Arch Capital Group takes underwriting loss in Q2

Net income available to common shareholders slips

Arch Capital Group takes underwriting loss in Q2

Insurance News

By Terry Gangcuangco

Results season continues, and this time Insurance Business brings you the latest numbers from Bermuda-headquartered Arch Capital Group.

In the second quarter, net income available to Arch common shareholders amounted to US$288.4 million (around SG$395.4 million). The figure represents a decrease from the US$458.6 million (around SG$628.8 million) posted in the same period last year.

According to the company’s financial results report, Arch suffered a US$22.5 million underwriting loss in Q2 – a massive plunge from 2019’s US$293.1 million underwriting income. Both the insurance and reinsurance segments were hit by underwriting losses.

Arch noted pre-tax current accident year catastrophic losses of US$207.2 million for the two segments. Of that total, which is net of reinsurance and reinstatement premiums, US$173.1 million relates to COVID-19.

The insurance group’s gross written premium, on the other hand, grew to US$2.3 billion.

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