Insurer Arch Capital's profit jumps on underwriting, investment gains

Arch Capital

29/04/2024 22:07

April 29 (Reuters) - Insurer Arch Capital Group  ACGL.O 
posted a 57.4% rise in first-quarter profit on Monday, driven by
strong underwriting and higher investment income.
    Firming hopes of a soft landing for the economy, rising
wages, and a resilient labor market have renewed individuals'
and businesses' spending on insurance policies.
    Arch's net premiums written jumped 19.3% to $4.09 billion in
the quarter. 
    Meanwhile, the U.S. Federal Reserve's rate hikes to curb
inflation, along with a broader equity market rally amid hopes
of a soft landing for the economy, have boosted insurers'
investment income.
    The company's net investment income jumped to $327 million
in the quarter from $199 million a year earlier.
    Arch reported a combined ratio of 78.8%, compared with 80.6%
last year. A ratio below 100% indicates the insurer earned more
in premiums than it paid out in claims. 
    Pembroke, Bermuda-based Arch provides insurance, reinsurance
and mortgage insurance globally though its wholly-owned
subsidiaries.
    Net income available to Arch common shareholders rose to
$1.11 billion, or $2.92 per share, in the three months ended
March 31, from $705 million, or $1.87 per share, a year earlier.
    Arch's shares have gained 22.9% this year compared with a
17.7% jump in the S&P 500 Property & Casualty Insurance Index
 .SPLRCINPC . 

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Tasim Zahid)
 ((ArasuKannagi.Basil@thomsonreuters.com;))