Arch Capital reports Q4 EPS $2.26, consensus $1.80

Reports Q4 Combined Ratio excluding catastrophic activity and prior year development of 79.0% vs. 78.9% y/y. Nicolas Papadopoulo, Arch CEO, commented: “We closed the year with a very strong fourth quarter including contributions from all our earnings sources. These are excellent results when you consider the elevated catastrophe environment and the increased risk levels across many lines of business. Additionally, on behalf of everyone at Arch, I would like to offer our thoughts and sympathies to everyone affected by the California wildfires. This devastating event will require the coordinated efforts of many, particularly the insurance industry, to help rebuild. While still too early to fully assess the magnitude of this disaster, our current view of the insured market loss will be between $35 billion and $45 billion, making Arch’s expected share of the event somewhere between $450 million and $550 million.”