Global insurer Arch Capital Group has released its financial results for the fourth quarter of 2020, and the numbers tell a contrasting tale for the company’s insurance and reinsurance operations.
According to the Bermuda-headquartered group, its net income available to Arch common shareholders amounted to US$533.1 million (around £385 million) in Q4. The figure represents an increase from the US$316 million posted in the same period in 2019.
In terms of underwriting, here’s how Arch performed in the three months ended December 31:
|
Source |
Underwriting income (loss) in Q4 2020 |
Underwriting income (loss) in Q4 2019 |
|
Insurance |
US$(12.6 million) |
US$(13.9 million) |
|
Reinsurance |
US$53.3 million |
US$26 million |
|
Mortgage |
US$188.9 million |
US$276.5 million |
|
Group |
US$221 million |
US$251.4 million |
The consolidated underwriting result for the group includes the ‘other’ segment, which represents the numbers from Watford. ‘Other’ posted an US$8.6 million loss.
“Management measures segment performance for its three underwriting segments based on underwriting income or loss,” explained Arch. “The company does not manage its assets by underwriting segment and, accordingly, investment income and other non-underwriting related items are not allocated to each underwriting segment.
“As noted earlier, the ‘other’ segment includes the results of Watford. Watford has its own management and board of directors that is responsible for its own results and profitability. For the ‘other’ segment, performance is measured based on net income or loss.”
Meanwhile, the group’s after-tax operating income available to Arch common shareholders in the fourth quarter stood at US$230.4 million.
