Arch Capital Group Ltd. (NASDAQ: ACGL) reports that net income available to common shareholders for the 2013 second quarter was $171.5 million, or $1.26 per share, compared to $202.0 million, or $1.46 per share, for the 2012 second quarter. The Company also reported after-tax operating income available to common shareholders of $135.0 million, or $0.99 per share, for the 2013 second quarter, compared to after-tax operating income available to common shareholders of $141.4 million, or $1.02 per share, for the 2012 second quarter. The Company's after-tax operating income available to common shareholders represented an annualized return on average common equity of 10.9% for the 2013 second quarter, compared to 12.3% for the 2012 second quarter, while the Company's net income available to common shareholders represented an annualized return on average common equity of 13.8% for the 2013 second quarter, compared to 17.5% for the 2012 second quarter. The Company's book value per common share was $36.80 at June 30, 2013, a 2.3% decrease from $37.66 per share at March 31, 2013 and a 6.8% increase from $34.45 per share at June 30, 2012.
After-tax operating income or loss 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, net foreign exchange gains or losses and loss on repurchase of preferred shares, net of income taxes. See 'Comments on Regulation G' for a further discussion of after-tax operating income or loss available to common shareholders. All earnings per share amounts discussed in this release are on a diluted basis.
The Company's 2013 second quarter results included losses for current year catastrophic events of $36.3 million, net of reinsurance and reinstatement premiums, primarily related to U.S. tornado and hailstorm activity and flooding in Europe and Canada. The Company's estimates for these events are based on currently available information derived from modeling techniques, industry assessments of exposure, preliminary claims information obtained from the Company's clients and brokers to date and a review of in-force contracts.
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