Business

Arch Capital’s Q1 operating income soars 26.3%

The group’s net income available to common shareholders also increased from $133.7m (£96.3m) to $427.8m (£308.1m)

Arch Capital Group saw its after-tax operating income rise 26.3% year-on-year to $239.8m (£172.7m) for the first quarter of FY21.

The group’s net income available to common shareholders also soared from $133.7m (£96.3m) in the three months ended 31 March 2020 to $427.8m (£308.1m) for the same period this year.

Gross premiums written at Arch grew 19.9% year-on-year, with insurance GPW climbing 17.2%.

The global firm’s reinsurance segment saw the largest climb in GPW, increasing 31% to almost $1.5bn (£1.08bn).

However, the group did face extraordinarily high catastrophe losses in the first quarter of FY21, with catastrophic activity growing from 12.7 points in Q1 2020 to 24.7 in 2021.

Pre-tax catastrophic losses for the company’s insurance and reinsurance segments represented $188.3m (135.6m) for the three months to 31 March 2021, including Covid-19 losses totalling $600,000 (£432,000).

The company also announced that it expects the transaction of Watford Holdings, which it acquired for £477m in October 2020, to “close in the second quarter of 2021”.

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