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Dec 31, 2022
Arch Capital Q4 2022 Earnings Report
Arch Capital reported strong fourth-quarter results driven by growth in net premiums written and underwriting income.
Key Takeaways
Arch Capital Group Ltd. reported a net income available to Arch common shareholders of $849.5 million, or $2.26 per share, for the fourth quarter of 2022, compared to $613.1 million, or $1.58 per share, for the 2021 fourth quarter. After-tax operating income available to Arch common shareholders was $805.9 million, or $2.14 per share, compared to $493.3 million, or $1.27 per share, for the 2021 fourth quarter.
Net income available to Arch common shareholders was $849.5 million, or $2.26 per share.
After-tax operating income available to Arch common shareholders was $805.9 million, or $2.14 per share.
The combined ratio excluding catastrophic activity and prior year development was 82.0%.
Book value per common share was $32.62 at December 31, 2022, a 9.9% increase from September 30, 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
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance.
Positive Outlook
- The Company’s ability to successfully implement its business strategy during “soft” as well as “hard” markets.
- Acceptance of the Company’s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds.
- The Company’s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations.
- The Company’s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein.
- The Company’s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business.
Challenges Ahead
- General economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms and the depth and duration of a recession, including those resulting from COVID-19) and conditions specific to the reinsurance and insurance markets in which the Company operates.
- Competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors.
- Developments in the world’s financial and capital markets and the Company’s access to such markets.
- The loss and addition of key personnel.
- Material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income