Arch Capital Group announces Q1 results

by David Masters

Story link: Arch Capital Group announces Q1 results

Bermuda-based Arch Capital Group Ltd. has announced its results for the first quarter of 2008, with net income of $189.4 million, or $2.78 per share.

This is compared to a net income of $198.6 million, or $2.59 per share, for the first quarter of 2007.

The after-tax operating income available to common shareholders was $202.0 million, or $2.97 per share. This is compared to $204.7 million, or $2.67 per share, for the same period in the previous year.

The higher income per share despite a lower total income is due to a share repurchase programme authorised by ACGL’s board in February 2007. In total 2.7 million shares were repurchased for $189.8 million.

The group’s net investment income for the quarter was $122.2 million, a $12.2 million increase on year. However, gross premiums written, net premiums written, net premium earnings and underwriting income all decreased.

Gross premiums written fell 13% to $1.053 billion. Net premiums written decreased 6.9% to $811.3 million. Net premium earnings were down 5% to $708.2 million, and underwriting income was down 21% to $98.4 million.