Arch Capital Q4 EPS Beats by 19.7%, Premiums Reach $4.8B
Arch Capital Group reported Q4 operating income of $2.98 per share, beating consensus by 19.7% on strong underwriting, up 31.9%. Gross premiums written climbed 1.1% to $4.8 billion and combined ratio improved 440 bps to 80.6, while book value per share rose 22.6% to $65.11 after $798 million buybacks.
1. Q4 Earnings and Underwriting Performance
Arch Capital reported Q4 operating income of $2.98 per share, a 31.9% increase year on year, driven by strong underwriting that lifted segment income to $827 million and improved the combined ratio to 80.6.
2. Premium Growth Trends
Gross premiums written rose 1.1% to $4.8 billion and net premiums earned increased 2.7% to $4.3 billion across the insurance, reinsurance and mortgage segments, reflecting broad-based premium growth.
3. Investment Income and Financial Position
Pre-tax net investment income grew 7.2% to $434 million on higher average invested assets, while cash and cash equivalents reached $993 million and total debt stood at $2.7 billion.
4. Share Repurchase and Capital Returns
Book value per share advanced 22.6% to $65.11 and annualized operating return on equity climbed to 18.9%, supported by $798 million in share repurchases during the quarter.