Arch Capital ( (ACGL) ) has released its Q4 earnings. Here is a breakdown of the information Arch Capital presented to its investors.
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Arch Capital Group Ltd., a Bermuda-based company listed on NASDAQ, operates globally in the insurance, reinsurance, and mortgage insurance sectors through its subsidiaries. As part of the S&P 500 index, Arch provides a diverse range of risk management and insurance solutions.
In its 2024 fourth quarter earnings report, Arch Capital announced a net income of $925 million, equating to $2.42 per share. This compares to a significantly higher net income of $2.3 billion, or $6.12 per share, in the same quarter of the previous year. Despite facing catastrophic losses due to events like Hurricanes Milton and Helene, the company reported favorable development in prior-year loss reserves and continued growth in premiums.
Key highlights of the report include a noticeable increase in gross premiums written, which rose by 11.9% to $4.756 billion, and net premiums earned, which increased by 23.9% to $4.143 billion. The company faced substantial pre-tax catastrophic losses amounting to $393 million but managed to maintain a robust combined ratio, excluding catastrophic activity and prior year development, of 79.0%. Additionally, Arch completed the acquisition of U.S. MidCorp and Entertainment insurance businesses from Allianz, which contributed to its growth in premiums.
The reinsurance and mortgage segments showed mixed results, with the reinsurance segment experiencing a slight decrease in gross premiums written but a significant increase in net premiums earned by 17.5%. The mortgage segment saw a decrease in gross premiums written yet an 8.6% increase in net premiums written, reflecting strategic adjustments and market conditions.
Looking forward, Arch Capital aims to navigate the challenging economic environment and maintain its growth trajectory amid increased market risks and catastrophic events. The management remains focused on leveraging strategic acquisitions and market opportunities to enhance its competitive position.
