Arch Capital Q4 EPS $2.12 with Combined Ratio Improving to 91.4%
Arch Capital posted Q4 net income of $529 million, or $2.12 per share, up from $459 million, or $1.84 per share a year ago. Underwriting combined ratio improved to 91.4% driven by lower catastrophe losses and a 4% increase in net premiums written to $33.4 billion.
1. Q4 Financial Results
Arch Capital reported net income attributable to common shareholders of $529 million in Q4, equivalent to $2.12 per share, compared with $459 million, or $1.84 per share, in the prior year. The insurer achieved a 15% year-over-year increase in earnings driven by strong underwriting and investment results.
2. Underwriting Performance
The combined ratio improved to 91.4% from 96.2% a year earlier, reflecting reduced catastrophe losses and favorable prior-year reserve developments. Net premiums written rose 4% to $33.4 billion, supported by rate increases and growth across specialty and reinsurance lines.
3. Segment Highlights
Professional and specialty insurance saw a 6% rise in premiums, while global reinsurance posted a 3% increase. Loss ratio in the reinsurance segment fell by 5 percentage points due to benign catastrophe activity in primary markets.
4. Capital Management
Arch Capital declared a quarterly dividend of $0.27 per share and authorized a $400 million share repurchase program. Book value per share increased by 7% year over year, underpinned by strong earnings retention and capital deployment.