Arch Capital posts higher profit after premiums, investment income jump

Arch Capital

30/07/2024 22:33

July 30 (Reuters) - Insurer Arch Capital  ACGL.O 
reported a 90% rise in second-quarter profit on Tuesday after
strong demand boosted premiums and resilient markets lifted
investment returns, mirroring results at peers. 
    Businesses and individuals encouraged by signs of economic
strength are spending more on insurance policies, in contrast to
last year when an uncertain environment led them to seek limited
coverage. 
    Insurers are also reaping benefits from higher payouts on
their bond investments due to elevated interest rates and
healthy returns from their stock portfolios, fueled by hopes of
a soft landing. 
    The company's gross premiums written grew 11.1% to $5.38
billion, while pre-tax net investment income jumped 50.4% to
$364 million in the quarter.
    Profit available to common shareholders was $1.26 billion,
or $3.30 per share, for the three months ended June 30, compared
with $661 million, or $1.75 per share, last year.
    Arch Capital's shares rose 0.5% after the bell. 

 (Reporting by Niket Nishant and Arasu Kannagi Basil in
Bengaluru; editing by Alan Barona)
 ((Niket.Nishant@thomsonreuters.com;))