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NEW YORK - Arch Capital Group Ltd (NASDAQ:ACGL) reported third-quarter earnings that met analyst expectations while revenue surpassed estimates, as the company navigated a quarter marked by significant catastrophic events.
The Bermuda-based insurer and reinsurer announced earnings per share of $1.99, in line with analyst estimates. Net premiums written for the quarter came in at $4.05 billion, exceeding the consensus estimate of $3.93 billion. The company's shares edged up 0.45% following the announcement.
Arch Capital reported net income available to common shareholders of $978 million, or $2.56 per share, representing a 19.0% annualized net income return on average common equity. This compares to $713 million, or $1.88 per share, for the same quarter last year.
The company faced pre-tax current accident year catastrophic losses of $450 million for its insurance and reinsurance segments, attributed partly to Hurricane Helene and other global events. Despite these challenges, Arch Capital reported favorable development in prior year loss reserves of $119 million.
Nicolas Papadopoulo, Chief Executive Officer of ACGL, commented on the results: "Our third quarter results demonstrate the value of our diversified platform with excellent bottom-line contributions from all our units. Arch's culture of adapting to evolving market conditions while maintaining underwriting discipline remains a key element of our long-term success."
The company's combined ratio excluding catastrophic activity and prior year development stood at 78.3%, compared to 77.0% for the third quarter of 2023. Book value per common share increased 8.1% from the previous quarter to $57.00 at September 30, 2024.
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