Arch Capital sees growth across most lines of business but profit dips in 2020
Bermuda-based re/insurer Arch Capital Group enjoyed growth across most lines of business, due in part to rate increases, new business opportunities and growth in existing accounts, but saw a slight dip in its full-year profit due to the impact of COVID-19 pandemic and catastrophe events.
Arch reported a net profit of $1.36 billion for the full year 2020, slightly down on the $1.59 billion reported in 2019.
For the fourth quarter, it reported net profit of $533.1 million, which was up on the $316 million reported in Q4 2019.
Its consolidated gross written premiums for Q4 increased to $2.26 billion, from $1.94 billion in Q4 2019. Gross written premiums in the reinsurance segment came in at $537.9 million for Q4 2020, up from $432.2 million in the same period of 2019.
Gross premiums written by the insurance segment in the 2020 fourth quarter were 19.6 percent higher than in the prior-year quarter while net premiums written were 21.6 percent higher than in the 2019 fourth quarter. The higher level of net premiums written reflected increases across most lines of business, due in part to rate increases, new business opportunities and growth in existing accounts, partially offset by a decrease in travel business, reflecting the ongoing impact of the COVID-19 global pandemic.
The company's Q4 combined ratio inched up to 88.3 percent, from 83.8 percent in Q4 2019. The combined ratio for the reinsurance segment specifically was 91.3 percent for Q4 2020, down from 93.8 percent in the same period the previous year.
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