Arch Capital Group Ltd. reported late Wednesday's second quarter net income of $ 718.7 million, an increase of 54.1% from the same quarter in 2020, as premiums increased.
Net premiums increased by 42.3% to $ 2.22 billion in the second quarter of 2020.
In the insurance segment, net premiums increased by 43.3% to $ 963.6 million.
In the reinsurance segment, net premiums increased by 63.6% to $ 924.7 million.
In the mortgage segment, net premiums were written up 3.3% to $ 335.8 million.
Speaking to analysts about the company's earnings talk Thursday morning, CEO Marc Grandisson said, second-quarter rate hikes averaged 10% and represented the sixth consecutive quarter of rate hikes.
He noted, however, that "interest rate improvements have slowed from previous heights in certain lines", but that Arch still receives "interest on interest."
Mr. Grandisson told analysts that Arch estimates that 30% of premium growth is due to interest rate hikes, about 1
Net investment income in the second quarter amounted to $ 111.6 million, down from $ 131.5 million in the second quarter of 2020.
Catastrophic losses for insurance and reinsurance segments, net after reinsurance and reinsurance premiums, amounted to 46.5 million, including $ 0.9 million in COVID-19 related losses.
The combination rate for the second quarter improved to 79.8% from 101.2% during the second quarter of 2020.
Net income for the six months ended June 30 amounted to $ 1.091 billion, an increase from $ 422.13 million last year.