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Mar 31, 2023
Arch Capital Q1 2023 Earnings Report
Arch Capital reported a substantial increase in net income and operating income compared to the same quarter last year.
Key Takeaways
Arch Capital Group Ltd. reported a significant increase in its first quarter 2023 results. Net income available to Arch common shareholders was $705 million, or $1.87 per share, compared to $186 million, or $0.48 per share, for the first quarter of 2022. After-tax operating income available to Arch common shareholders was $654 million, or $1.73 per share, compared to $422 million, or $1.10 per share, for the same period last year.
Net income available to Arch common shareholders increased to $705 million, or $1.87 per share.
After-tax operating income available to Arch common shareholders rose to $654 million, or $1.73 per share.
The combined ratio excluding catastrophic activity and prior year development was 82.2%.
Book value per common share increased to $35.35 at March 31, 2023, an 8.4% increase from December 31, 2022.
Arch Capital
Arch Capital
Arch Capital Revenue by Segment
Revenue by Segment
Insurance Revenue
CapyFin.comReinsurance Revenue
CapyFin.comMortgage Revenue
CapyFin.com Forward Guidance
This section of the document is a cautionary note regarding forward-looking statements and does not contain explicit forward guidance. Therefore, the positives and negatives are derived from risk factors outlined in the document.
Positive Outlook
- Successful implementation of business strategy during various market conditions.
- Acceptance of business strategy and financial condition by rating agencies and regulators.
- Ability to consummate acquisitions and integrate acquired businesses.
- Ability to maintain or improve ratings through equity or debt financings.
- Successful enhancement, integration, and maintenance of operating procedures.
Challenges Ahead
- Material differences between actual and expected assessments for guaranty funds.
- Greater than expected loss ratios on business written.
- Adverse development on claim liabilities.
- Inadequacy of loss reserves.
- Greater frequency or severity of unpredictable natural and man-made events.
Revenue & Expenses
Visualization of income flow from segment revenue to net income