Arch Capital Q2 net income falls as premiums decline

The company did not provide specific guidance for future quarters or the full year.

• Insurance segment pressure — Lower premiums, higher loss and expense ratios, and increased catastrophic losses weighed on insurance segment results. Transitional expenses from the MCE acquisition also contributed.
• Reinsurance segment decline — Net premiums written fell due to non-renewals, share reductions and increased retrocessions, though profit commissions on retrocessions improved the expense ratio.
• Mortgage segment mixed — Net premiums written rose after termination of certain agreements, but underwriting income fell as favorable reserve development was less pronounced.

The current average analyst rating on the shares is buy, with 12 strong buy or buy recommendations, 9 hold ratings and 1 sell or rating.