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Sep 30, 2022

Arch Capital Q3 2022 Earnings Report

Arch Capital reported mixed Q3 2022 results impacted by catastrophic losses, but also showed growth in premiums written and favorable prior year loss reserve development.

Key Takeaways

Arch Capital Group Ltd. reported a net income of $6.9 million, or $0.02 per share, for the third quarter of 2022, a significant decrease compared to $388.8 million, or $0.98 per share, for the same period in 2021. The results were impacted by pre-tax current accident year catastrophic losses of $550.8 million, primarily related to Hurricane Ian. However, the company saw growth in gross premiums written, net premiums written, and net premiums earned.

Net income available to Arch common shareholders was $6.9 million, or $0.02 per share, compared to $388.8 million, or $0.98 per share, for Q3 2021.

After-tax operating income available to Arch common shareholders was $106.0 million, or $0.28 per share, compared to $294.7 million, or $0.74 per share, for Q3 2021.

Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments were $550.8 million, primarily related to Hurricane Ian.

Combined ratio excluding catastrophic activity and prior year development was 82.2%, compared to 80.1% for Q3 2021.

Total Revenue
$2.47B
Previous year: $1.93B
+28.1%
EPS
$0.28
Previous year: $0.74
-62.2%
Loss Ratio
68.1%
Previous year: 63.5%
+7.2%
Combined Ratio
97.3%
Previous year: 91.4%
+6.5%
Combined Ratio excl. Cat & Dev
82.2%
Gross Profit
$2.19B
Previous year: $1.78B
+23.2%
Cash and Equivalents
$814M
Previous year: $1.14B
-28.5%
Total Assets
$46.3B
Previous year: $44.8B
+3.5%

Arch Capital

Arch Capital

Arch Capital Revenue by Segment

Forward Guidance

The document does not contain specific forward guidance. It includes a cautionary note regarding forward-looking statements, which are subject to risks and uncertainties.

Revenue & Expenses

Visualization of income flow from segment revenue to net income