Arch Capital Group Ltd. reported on Tuesday a net profit of $ 533.1 million for the fourth quarter of 2020, an increase of 68.7% compared to the same period last year.
Net premiums increased to $ 1.76 billion during the quarter, up 20.8% compared to the fourth quarter of 2019.
"General hardening market conditions" drove growth across all segments, says Marc Grandisson, CEO of the Bermuda-based insurance company and reinsurer during a results interview with analysts on Wednesday.
"Arch is strongly leaning towards improving markets" to accelerate growth, he said.
Net income from investment decreased by 25.8% compared to the previous year to $ 1
Catastrophic losses before the fourth quarter before tax for the insurance and reinsurance segments, net after reinsurance and reinsurance premiums, amounted to $ 156.4 million, including $ 400,000 in COVID-19 related losses. ] Net premiums in the insurance segment increased 21.6% to $ 837.7 million in the fourth quarter, driven by interest rate hikes and new business, Arch said in its income statement. Commanders' responsibilities, property, energy and navy show "strong progress" during the fourth quarter, Grandisson said.
Net premiums in the reinsurance segment increased 44.9% to $ 490.9 million in the fourth quarter, again on interest rate hikes and new deals. Reinsurance renewals in January 2021 showed "continued interest rate hikes in most areas" as reinsurance benefited from the underlying hardening primary market conditions.
Net profit for the year decreased by 14.5% to USD 1.35 billion and net written premiums increased by 25.3% to USD 6.9 billion. Catalog