Arch Capital Group net income slides to AU$207.5 million

Underwriting losses suffered by both insurance and reinsurance segments
Arch Capital Group net income slides to AU$207.5 million
INSURANCE NEWS
By Terry Gangcuangco
05 May 2020

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 AU$207.5 million), a decrease from last year’s US$438.1 million (around AU$680.1 million).

According to Arch, its pre-tax current accident year catastrophic losses – net of reinsurance and reinstatement premiums – of US$118.4 million (around AU$183.8 million) include US$86.6 million (around AU$134.4 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.

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