This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Arch Capital Group Ltd. Reports 2012 Third Quarter Results

Arch Capital Group Ltd. (NASDAQ: ACGL) reports that net income available to common shareholders for the 2012 third quarter was $184.2 million, or $1.33 per share, compared to $162.3 million, or $1.18 per share, for the 2011 third quarter. The Company also reported after-tax operating income available to common shareholders of $120.2 million, or $0.87 per share, for the 2012 third quarter, compared to $107.2 million, or $0.78 per share, for the 2011 third quarter. All earnings per share amounts discussed in this release are on a diluted basis.

The Company’s book value per common share was $36.79 at September 30, 2012, a 6.8% increase from $34.45 per share at June 30, 2012 and a 19.0% increase from $30.91 per share at September 30, 2011. The Company’s after-tax operating income available to common shareholders represented a 9.9% annualized return on average common equity for the 2012 third quarter, compared to 10.5% for the 2011 third quarter. After-tax operating income available to common shareholders, a non-GAAP measure, is defined as net income available to common shareholders, excluding net realized gains or losses, net impairment losses recognized in earnings, equity in net income or loss of investment funds accounted for using the equity method and net foreign exchange gains or losses, net of income taxes. See page 6 for a further discussion of after-tax operating income available to common shareholders and Regulation G.

On October 29, 2012, Hurricane Sandy made landfall on the eastern coast of the United States. It is too early to reasonably estimate losses for this recent event given the significant unknowns, the early stage of the damage assessment process and the unusual nature of the event.

The following table summarizes the Company’s underwriting results:
Three Months Ended Nine Months Ended
September 30, September 30,
(U.S. dollars in thousands) 2012     2011   2012     2011  
Gross premiums written $ 936,764 $ 860,289 $ 3,055,233 $ 2,736,794
Net premiums written 755,249 691,381 2,439,093 2,162,202
Net premiums earned 748,691 682,049 2,155,659 1,958,623
Underwriting income (loss) 73,452 38,567 234,368 (25,456 )
Combined ratio (1) 90.2 % 94.4 % 89.2 % 101.3 %
(1)   The combined ratio represents a measure of underwriting profitability, excluding investment income, and is the sum of the loss ratio and expense ratio. A combined ratio under 100% represents an underwriting profit and a combined ratio over 100% represents an underwriting loss.

For the 2012 third quarter, the combined ratio of the Company’s insurance and reinsurance subsidiaries consisted of a loss ratio of 59.3% and an underwriting expense ratio of 30.9%, compared to a loss ratio of 62.2% and an underwriting expense ratio of 32.2% for the 2011 third quarter. For a discussion of underwriting activities and a review of the Company’s results by operating segment, see “Segment Information” in the Supplemental Financial Information section of this release.

1 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
FB $117.44 -0.95%
GOOG $692.33 -0.84%
TSLA $232.32 -3.92%
YHOO $36.02 -1.40%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs