Arch Capital Group lifts net income to SG$706 million

In terms of underwriting, here’s how Arch performed in the three months ended December 31:

Source	Underwriting income (loss) in Q4 2020	Underwriting income (loss) in Q4 2019
Insurance	US$(12.6 million)	US$(13.9 million)
Reinsurance	US$53.3 million	US$26 million
Mortgage	US$188.9 million	US$276.5 million
Group	US$221 million	US$251.4 million

 

The consolidated underwriting result for the group includes the ‘other’ segment, which represents the numbers from Watford. ‘Other’ posted an US$8.6 million loss.

“Management measures segment performance for its three underwriting segments based on underwriting income or loss,” explained Arch. “The company does not manage its assets by underwriting segment and, accordingly, investment income and other non-underwriting related items are not allocated to each underwriting segment.

“As noted earlier, the ‘other’ segment includes the results of Watford. Watford has its own management and board of directors that is responsible for its own results and profitability. For the ‘other’ segment, performance is measured based on net income or loss.”

Meanwhile, the group’s after-tax operating income available to Arch common shareholders in the fourth quarter stood at US$230.4 million.