Arch Capital Q3 net income falls as catastrophe losses rise
ACGL•Arch Capital’s third-quarter net income and after-tax operating income declined year over year as higher catastrophe losses weighed on results. Gross premiums written were $5.39 billion, and the combined ratio was 82.5%.
1. Quarterly results
Arch Capital reported lower third-quarter net income and after-tax operating income year over year. Gross premiums written were $5.39 billion, earnings per share were $3, and the combined ratio was 82.5%; the adjusted combined ratio was 81.2%.
2. Losses and outlook
Higher catastrophe losses, including losses related to the Iran conflict, weighed on results, while underwriting income fell about 19% from a year earlier. Net investment income rose with growth in average investable assets, while reinsurance premiums declined due to non-renewals and share reductions. The company said market conditions were increasingly uneven and did not provide specific financial guidance for future quarters or the full year.
