ARCH CAPITAL’S NET INCOME RISES 34% AND BEATS ESTIMATE

Bermudian re/insurer Arch Capital Group saw its second-quarter net earnings rise 34% to $233.2m on improved underwriting results and a swing to $53.7m in foreign exchange gains. Operating income per share rose to 59¢ from 40¢ and beat analysts’ estimate of 52¢. Underwriting income rose 20.5% to $235.5m, with the reinsurance and mortgage insurance segments posting increases and the insurance segment swinging into the black. The combined ratio improved by 1.9 points to 82.7%. Gross written premiums grew 5.4% to $1.70bn, driven by property and travel lines and programmes in the insurance segment and non-catastrophe property reinsurance. For the first half, Arch’s net income fell 10.9% to $370.5m owing to a swing to $173.2m in realised losses. Six-month operating income per share rose to $1.15 from 88¢.