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Dec 31, 2020

Arch Capital Q4 2020 Earnings Report

Arch Capital reported mixed results with a decrease in operating income but an increase in net income, driven by investment gains and improved underwriting in some segments, offset by higher catastrophic losses.

Key Takeaways

Arch Capital Group Ltd. reported a net income of $533.1 million for Q4 2020, compared to $316.0 million for Q4 2019. After-tax operating income was $230.4 million, down from $308.4 million in the prior year. The combined ratio excluding catastrophic activity and prior year development was 80.2%.

Net income available to Arch common shareholders was $533.1 million, or $1.30 per share, compared to $316.0 million, or $0.76 per share, for the 2019 fourth quarter.

After-tax operating income available to Arch common shareholders was $230.4 million, or $0.56 per share, compared to $308.4 million, or $0.74 per share, for the 2019 fourth quarter.

The combined ratio excluding catastrophic activity and prior year development was 80.2%, compared to 81.4% for the 2019 fourth quarter.

Book value per common share of $30.31 at December 31, 2020, a 5.4% increase from September 30, 2020 and a 14.7% increase from December 31, 2019.

Total Revenue
$1.81B
Previous year: $1.52B
+19.5%
EPS
$0.56
Previous year: $0.74
-24.3%
Loss Ratio
62.3%
Previous year: 55.7%
+11.8%
Combined Ratio
88.3%
Previous year: 83.8%
+5.4%
Gross Profit
$7.85M
Previous year: $5.9B
-99.9%
Cash and Equivalents
$906M
Previous year: $726M
+24.8%
Total Assets
$43.3B
Previous year: $37.9B
+14.2%

Arch Capital

Arch Capital

Arch Capital Revenue by Segment

Forward Guidance

The document does not contain any forward guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income