Arch Capital profit declines in 3Q

Posted by on Oct 26, 2010 in Local News & Alerts | 0 comments

AP

Arch Capital Group Ltd. said Monday its third-quarter profit tumbled 48 percent as the insurer’s revenue dropped sharply compared with a year earlier.

The Bermuda-based company said its net income fell to $141.6 million, or $2.77 per share, in the three months that ended Sept. 30. That compares with net income of $274.4 million, or $4.39 a share, in the same period last year.

Arch Capital’s revenue slipped 18 percent to $797.4 million from $976.2 million the year before.

Analysts polled by Thomson Reuters forecast, on average, earnings of $2.32 a share on revenue of $694.7 million.

The company reported gross premiums written of $831.8 million for the quarter, down from $937.3 million in the same period last year.

Arch Capital reported a third-quarter combined ratio of 90.4 percent compared with the year-ago result of 90 percent. The ratio measures underwriting profitability for an insurer. Anything less than 100 percent represents a profit and a figure over 100 percent means an underwriting loss.

Net investment income for the latest quarter was $90.8 million, down from $100.2 million in last year’s third quarter. Expenses fell to $646.1 million from $693.2 million last year.

Arch Capital shares fell 40 cents to $86.19 in aftermarket trading after rising 66 cents to $86.59 during the regular session.

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