For the 2018 first quarter, the Company reports:
-
Net income available to Arch common shareholders of $137.3 million, or
$0.99 per share, a 6.6% annualized return on average common equity,
and after-tax operating income to Arch common shareholders, a non-GAAP
measure, of $235.1 million, or $1.69 per share, a 11.3% annualized
return on average common equity;
-
Book value per common share of $61.24 at March 31, 2018, a 0.5%
increase in the 2018 first quarter and a 6.2% increase for the
trailing twelve months;
-
Pre-tax catastrophic losses, net of reinsurance and reinstatement
premiums(1), of $2.0 million;
-
Favorable development in prior year loss reserves, net of related
adjustments(1), of $50.6 million;
-
Combined ratio excluding catastrophic activity and prior year
development(1) of 83.2%.
PEMBROKE, Bermuda--(BUSINESS WIRE)--
Arch Capital Group Ltd. (NASDAQ:ACGL) reports that net income available
to Arch common shareholders for the 2018 first quarter was $137.3
million, or $0.99 per share, compared to $241.9 million, or $1.74 per
share, for the 2017 first quarter. The Company’s net income available to
Arch common shareholders produced an annualized return on average common
equity of 6.6% for the 2018 first quarter, compared to 12.6% for the
2017 first quarter. All earnings per share amounts discussed in this
release are on a diluted basis. The Company’s book value per common
share was $61.24 at March 31, 2018, a 0.5% increase from $60.91 per
share reported at December 31, 2017 and a 6.2% increase from $57.69 per
share at March 31, 2017.
The Company also reported after-tax operating income to Arch common
shareholders, a non-GAAP measure, of $235.1 million, or $1.69 per share,
for the 2018 first quarter, compared to after-tax operating income to
Arch common shareholders of $198.0 million, or $1.42 per share, for the
2017 first quarter. The Company’s after-tax operating income available
to Arch common shareholders produced an annualized return on average
common equity of 11.3% for the 2018 first quarter, compared to 10.3% for
the 2017 first quarter. See ‘Comments on Regulation G’ for further
details.
The following table summarizes the Company’s underwriting results, both
(i) on a consolidated basis and (ii) on a consolidated basis excluding
the ‘other’ segment (i.e., results of Watford Re). Pursuant to
GAAP, the Company consolidates the results of Watford Re in its
financial statements, although it only owns approximately 11% of Watford
Re’s common equity. See ‘Comments on Regulation G’ for further details.
|
|
| |
|
| |
|
(U.S. dollars in thousands)
| | | Consolidated | | | Consolidated Excluding ‘Other’ Segment (1) |
| | | Three Months Ended March 31, | | | Three Months Ended March 31, |
| | | 2018 |
|
| 2017 |
|
| % Change | | | 2018 |
|
| 2017 |
|
| % Change |
|
Gross premiums written
| | |
$
|
1,838,214
| | | |
$
|
1,657,990
| | | |
10.9
| | | |
$
|
1,721,605
| | | |
$
|
1,606,686
| | | |
7.2
| |
|
Net premiums written
| | |
1,412,544
| | | |
1,276,260
| | | |
10.7
| | | |
1,232,992
| | | |
1,132,574
| | | |
8.9
| |
|
Net premiums earned
| | |
1,234,899
| | | |
1,117,017
| | | |
10.6
| | | |
1,098,151
| | | |
995,020
| | | |
10.4
| |
|
Underwriting income
| | |
236,997
| | | |
212,072
| | | |
11.8
| | | |
237,557
| | | |
214,367
| | | |
10.8
| |
| Underwriting Ratios | | | | | | | | | % Point
Change | | | | | | | | | % Point
Change |
|
Loss ratio
| | |
51.6
|
%
| | |
49.5
|
%
| | |
2.1
| | | |
49.1
|
%
| | |
46.9
|
%
| | |
2.2
| |
|
Underwriting expense ratio
| | |
29.7
|
%
| | |
31.9
|
%
| | |
(2.2
|
)
| | |
29.7
|
%
| | |
31.9
|
%
| | |
(2.2
|
)
|
|
Combined ratio
| | |
81.3
|
%
| | |
81.4
|
%
| | |
(0.1
|
)
| | |
78.8
|
%
| | |
78.8
|
%
| | |
—
|
|
|
Combined ratio excluding catastrophic activity and prior year
development
| | | | | | | | | | | |
83.2
|
%
| | |
86.1
|
%
| | |
(2.9
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
|
(1)
|
|
Excluding the ‘other’ segment (i.e., results of Watford Re). See
‘Comments on Regulation G’ for further details.
|
| |
|
The following table summarizes the Company’s consolidated financial
data, including a reconciliation of net income or loss available to Arch
common shareholders to after-tax operating income or loss available to
Arch common shareholders and related diluted per share results:
|
|
| |
|
(U.S. dollars in thousands, except share data)
| | | Three Months Ended |
| | | March 31, |
| | | 2018 |
| 2017 |
|
Net income available to Arch common shareholders
| | |
$
|
137,276
| | |
$
|
241,909
| |
|
Net realized (gains) losses
| | |
111,764
| | |
(29,134
|
)
|
|
Net impairment losses recognized in earnings
| | |
162
| | |
1,807
| |
|
Equity in net (income) loss of investment funds accounted for using
the equity method
| | |
(28,069
|
)
| |
(48,088
|
)
|
|
Net foreign exchange (gains) losses
| | |
15,556
| | |
19,796
| |
|
UGC transaction costs and other
| | |
830
| | |
15,584
| |
|
Loss on redemption of preferred shares
| | |
2,710
| | |
—
| |
|
Income tax expense (benefit) (1)
| | |
(5,086
|
)
| |
(3,909
|
)
|
|
After-tax operating income available to Arch common shareholders
| | |
$
|
235,143
|
| |
$
|
197,965
|
|
| | | | |
|
Diluted per common share results: | | | | | |
|
Net income available to Arch common shareholders
| | |
$
|
0.99
| | |
$
|
1.74
| |
|
Net realized (gains) losses
| | |
0.80
| | |
(0.21
|
)
|
|
Net impairment losses recognized in earnings
| | |
0.00
| | |
0.01
| |
|
Equity in net (income) loss of investment funds accounted for using
the equity method
| | |
(0.20
|
)
| |
(0.34
|
)
|
|
Net foreign exchange (gains) losses
| | |
0.11
| | |
0.14
| |
|
UGC transaction costs and other
| | |
0.01
| | |
0.11
| |
|
Loss on redemption of preferred shares
| | |
0.02
| | |
—
| |
|
Income tax expense (benefit) (1)
| | |
(0.04
|
)
| |
(0.03
|
)
|
|
After-tax operating income available to Arch common shareholders
| | |
$
|
1.69
|
| |
$
|
1.42
|
|
| | | | |
|
|
Weighted average common shares and common share equivalents
outstanding-diluted
| | |
139,297,934
| | |
139,047,672
| |
| | | | |
|
|
Beginning common shareholders’ equity
| | |
$
|
8,324,047
| | |
$
|
7,481,163
| |
|
Ending common shareholders’ equity
| | |
8,370,372
|
| |
7,833,289
|
|
|
Average common shareholders’ equity
| | |
$
|
8,347,210
|
| |
$
|
7,657,226
|
|
| | | | |
|
|
Annualized return on average common equity
| | |
6.6
|
%
| |
12.6
|
%
|
|
Annualized operating return on average common equity
| | |
11.3
|
%
| |
10.3
|
%
|
|
(1)
|
|
Income tax expense on net realized gains or losses, net impairment
losses recognized in earnings, equity in net income (loss) of
investment funds accounted for using the equity method, net foreign
exchange gains or losses, UGC transaction costs and other and loss
on redemption of preferred shares reflects the relative mix reported
by jurisdiction and the varying tax rates in each jurisdiction.
|
| |
|
Each line item in the table above reflects the impact of the Company’s
approximate 11% ownership of Watford Re’s common equity. See ‘Comments
on Regulation G’ for a discussion of non-GAAP financial measures.
Segment Information
The following section provides analysis on the Company’s 2018 first
quarter performance by operating segment.For additional details
regarding the Company’s operating segments, please refer to the
Company’s Financial Supplement dated March 31, 2018. The Company’s
segment information includes the use of underwriting income (loss) and a
combined ratio excluding catastrophic activity and prior year
development for the insurance segment and reinsurance segment and a
combined ratio excluding prior year development for the mortgage
segment. Such items are non-GAAP financial measures (see ‘Comments on
Regulation G’ for further details).
Insurance Segment
|
|
| |
| | | Three Months Ended March 31, |
|
(U.S. dollars in thousands)
| | | 2018 |
|
| 2017 |
|
| % Change |
| | | | | | | | |
|
|
Gross premiums written
| | |
$
|
823,378
| | | |
$
|
782,281
| | | |
5.3
|
|
Net premiums written
| | |
576,198
| | | |
548,186
| | | |
5.1
|
|
Net premiums earned
| | |
538,737
| | | |
505,646
| | | |
6.5
|
| | | | | | | | |
|
|
Underwriting income
| | |
$
|
7,864
| | | |
$
|
10,011
| | | |
(21.4)
|
| | | | | | | | |
|
| Underwriting Ratios | | | | | | | | | % Point Change |
|
Loss ratio
| | |
65.7
|
%
| | |
65.8
|
%
| | |
(0.1)
|
|
Underwriting expense ratio
| | |
32.9
|
%
| | |
32.2
|
%
| | |
0.7
|
|
Combined ratio
| | |
98.6
|
%
| | |
98.0
|
%
| | |
0.6
|
| | | | | | | | |
|
|
Catastrophic activity and prior year development:
| | | | | | | | | |
|
Current accident year catastrophic events, net of reinsurance and
reinstatement premiums
| | |
0.2
|
%
| | |
0.5
|
%
| | |
(0.3)
|
|
Net (favorable) adverse development in prior year loss reserves, net
of related adjustments
| | |
(0.3
|
)%
| | |
(0.3
|
)%
| | |
—
|
|
Combined ratio excluding catastrophic activity and prior year
development (1)
| | |
98.7
|
%
| | |
97.8
|
%
| | |
0.9
|
| | | | | | | | | | |
|
|
(1)
|
|
See ‘Comments on Regulation G’ for further discussion.
|
| |
|
Gross premiums written by the insurance segment in the 2018 first
quarter were 5.3% higher than in the 2017 first quarter while net
premiums written were 5.1% higher than in the 2017 first quarter.
Changes in foreign currency rates resulted in an increase in net
premiums written in the 2018 first quarter of $10.3 million, or 1.9%,
compared to the 2017 first quarter. The increase in net premiums written
reflected growth in travel, through both new business and growth in
existing accounts, in property, primarily due to improved rates and new
business, and in professional lines, reflecting increases in small and
medium sized accounts. Net premiums earned by the insurance segment in
the 2018 first quarter were 6.5% higher than in the 2017 first quarter,
and reflect changes in net premiums written over the previous five
quarters.
The 2018 first quarter loss ratio reflected 0.2 points for current year
catastrophic activity, compared to 0.5 points in the 2017 first quarter.
Estimated net favorable development in prior year loss reserves, before
related adjustments, reduced the loss ratio by 0.4 points in the 2018
first quarter, consistent with the 0.4 points in the 2017 first quarter.
The balance of the change in the 2018 first quarter loss ratio resulted,
in part, from a lower level of large loss activity than in the 2017
first quarter and changes in mix of business.
The underwriting expense ratio was 32.9% in the 2018 first quarter,
compared to 32.2% in the 2017 first quarter, reflecting changes in the
mix and type of business.
Reinsurance Segment
|
|
| |
| | | Three Months Ended March 31, |
|
(U.S. dollars in thousands)
| | | 2018 |
|
| 2017 |
|
| % Change |
| | | | | | | | |
|
|
Gross premiums written
| | |
$
|
577,483
| | | |
$
|
475,782
| | | |
21.4
|
|
Net premiums written
| | |
381,753
| | | |
309,690
| | | |
23.3
|
|
Net premiums earned
| | |
279,172
| | | |
244,851
| | | |
14.0
|
|
Other underwriting income (loss)
| | |
1,232
| | | |
(306
|
)
| | |
(502.6)
|
| | | | | | | | |
|
|
Underwriting income
| | |
$
|
54,839
| | | |
$
|
55,411
| | | |
(1.0)
|
| | | | | | | | |
|
| Underwriting Ratios | | | | | | | | | % Point Change |
|
Loss ratio
| | |
50.7
|
%
| | |
43.1
|
%
| | |
7.6
|
|
Underwriting expense ratio
| | |
30.0
|
%
| | |
34.1
|
%
| | |
(4.1)
|
|
Combined ratio
| | |
80.7
|
%
| | |
77.2
|
%
| | |
3.5
|
| | | | | | | | |
|
|
Catastrophic activity and prior year development:
| | | | | | | | | |
|
Current accident year catastrophic events, net of reinsurance and
reinstatement premiums
| | |
0.3
|
%
| | |
4.0
|
%
| | |
(3.7)
|
|
Net (favorable) adverse development in prior year loss reserves, net
of related adjustments
| | |
(13.0
|
)%
| | |
(24.4
|
)%
| | |
11.4
|
|
Combined ratio excluding catastrophic activity and prior year
development (1)
| | |
93.4
|
%
| | |
97.6
|
%
| | |
(4.2)
|
| | | | | | | | | | |
|
|
(1)
|
|
See ‘Comments on Regulation G’ for further discussion.
|
| |
|
Gross premiums written by the reinsurance segment in the 2018 first
quarter were 21.4% higher than in the 2017 first quarter, while net
premiums written were 23.3% higher than in the 2017 first quarter.
Changes in foreign currency rates resulted in an increase in net
premiums written in the 2018 first quarter of $22.4 million, or 7.2%,
compared to the 2017 first quarter. The increase in net premiums written
reflected growth in international motor contracts. Net premiums earned
by the reinsurance segment in the 2018 first quarter were 14.0% higher
than in the 2017 first quarter, and reflect changes in net premiums
written over the previous five quarters.
The 2018 first quarter loss ratio included 0.4 points of current year
catastrophic activity, compared to 4.0 points of catastrophic activity
in the 2017 first quarter. Estimated net favorable development in prior
year loss reserves, before related adjustments, reduced the loss ratio
by 13.1 points in the 2018 first quarter, compared to 23.4 points in the
2017 first quarter. The estimated net favorable development in the 2018
first quarter primarily resulted from better than expected claims
emergence in short-tail business from more recent underwriting years and
in longer-tail business across earlier underwriting years. The balance
of the change in the 2018 first quarter loss ratio resulted, in part,
from a higher level of large loss activity than in the 2017 first
quarter.
The underwriting expense ratio was 30.0% in the 2018 first quarter,
compared to 34.1% in the 2017 first quarter, reflecting changes in the
mix and type of business and a higher level of net premiums earned. The
underwriting expense ratio benefited from a reduction in federal excise
taxes incurred of $2.5 million, or 0.9 points, as the reinsurance
agreements between the Company’s U.S.-based insurance and reinsurance
subsidiaries and Arch Reinsurance Ltd. were not renewed as of January 1,
2018.
Mortgage Segment
|
|
| |
| | | Three Months Ended March 31, |
|
(U.S. dollars in thousands)
| | | 2018 |
|
| 2017 |
|
| % Change |
| | | | | | | | |
|
|
Gross premiums written
| | |
$
|
321,178
| | | |
$
|
348,623
| | | |
(7.9)
|
|
Net premiums written
| | |
275,041
| | | |
274,698
| | | |
0.1
|
|
Net premiums earned
| | |
280,242
| | | |
244,523
| | | |
14.6
|
|
Other underwriting income
| | |
3,416
| | | |
4,123
| | | |
(17.1)
|
| | | | | | | | |
|
|
Underwriting income
| | |
$
|
174,854
| | | |
$
|
148,945
| | | |
17.4
|
| | | | | | | | |
|
| Underwriting Ratios | | | | | | | | | % Point Change |
|
Loss ratio
| | |
15.5
|
%
| | |
11.9
|
%
| | |
3.6
|
|
Underwriting expense ratio
| | |
23.3
|
%
| | |
28.9
|
%
| | |
(5.6)
|
|
Combined ratio
| | |
38.8
|
%
| | |
40.8
|
%
| | |
(2.0)
|
| | | | | | | | |
|
|
Prior year development:
| | | | | | | | | |
|
Net (favorable) adverse development in prior year loss reserves, net
of related adjustments
| | |
(4.6
|
)%
| | |
(9.6
|
)%
| | |
5.0
|
|
Combined ratio excluding prior year development (1)
| | |
43.4
|
%
| | |
50.4
|
%
| | |
(7.0)
|
| | | | | | | | | | |
|
|
(1)
|
|
See ‘Comments on Regulation G’ for further discussion.
|
| |
|
The mortgage segment includes the Company’s U.S. mortgage insurance
operations (“Arch MI U.S.”), international mortgage insurance and
reinsurance operations as well as government sponsored enterprise
(“GSE”) credit-risk sharing transactions.
Gross premiums written by the mortgage segment in the 2018 first quarter
were 7.9% lower than in the 2017 first quarter, while net premiums
written were 0.1% higher than in the 2017 first quarter. The reduction
in gross premiums written primarily reflected a lower level of
Australian mortgage reinsurance business and a lower level of U.S.
single premium business. Net premiums written for the 2018 first quarter
reflected a declining cession to AIG on the 50% quota share reinsurance
agreement covering 2014 to 2016 policy years of UGC business on a
run-off basis, while the 2017 first quarter also reflected higher
retrocessions of Australian mortgage reinsurance business. The increase
in net premiums earned for the 2018 first quarter primarily reflected
the growth in insurance in force over the last twelve months. Insurance
in force increased to $349.9 billion at March 31, 2018, compared to
$325.2 billion at March 31, 2017.
Arch MI U.S. generated $11.4 billion of new insurance written (“NIW”) in
the 2018 first quarter, compared to $12.7 billion in the 2017 first
quarter, with a decrease in the origination market and a decline in
single premium and other business with higher risk attributes. Monthly
premium policies contributed 91.4% of NIW in the 2018 first quarter,
compared to 81.9% in the 2017 first quarter.
The loss ratio for the 2018 first quarter reflected estimated net
favorable development in prior year loss reserves, before related
adjustments, of 4.6 points, compared to 9.6 points in the 2017 first
quarter. The estimated net favorable development in the 2018 first
quarter was primarily driven by lower than expected claim rates on first
lien business and subrogation activity on second lien business. The
ending percentage of loans in default on first lien business decreased
to 1.98% at March 31, 2018, from 2.23% at December 31, 2017, reflecting
a seasonal reduction in delinquent loans and those attributable to the
2017 third quarter hurricanes.
The mortgage segment’s underwriting expense ratio was 23.3% in the 2018
first quarter, compared to 28.9% in the 2017 first quarter. The lower
underwriting expense ratio in the 2018 first quarter reflected a higher
level of net premiums earned and expense savings from integration
efforts following the acquisition of UGC.
At March 31, 2018, the mortgage segment’s risk-in-force (before
reinsurance) of $70.7 billion consisted of $65.2 billion from Arch MI
U.S. with the remainder from reinsurance and risk-sharing operations.
For additional information on the mortgage segment, please refer to the
Company’s Financial Supplement dated March 31, 2018.
Corporate and Non-Underwriting
Corporate and non-underwriting results include net investment income,
other income (loss), corporate expenses, UGC transaction costs and
other, amortization of intangible assets, interest expense, items
related to the Company’s non-cumulative preferred shares, net realized
gains or losses, net impairment losses included in earnings, equity in
net income or loss of investment funds accounted for using the equity
method, net foreign exchange gains or losses and income taxes. Such
amounts exclude the results of the ‘other’ segment.
Net investment income for the 2018 first quarter was $0.72 per share, or
$100.2 million, compared to $0.69 per share, or $95.8 million, for the
2017 first quarter. The 2018 first quarter net investment income
reflected a higher level of investable assets than in the 2017 first
quarter. The annualized pre-tax investment income yield was 2.13% for
the 2018 first quarter, consistent with the 2.13% for the 2017 first
quarter.
Corporate expenses were $14.5 million for the 2018 first quarter,
compared to $12.2 million for the 2017 first quarter, with the increase
primarily due to higher compensation costs. UGC transaction costs and
other were $0.8 million for the 2018 first quarter, primarily related to
severance and severance related costs. Amortization of intangible assets
for the 2018 first quarter was $26.7 million, compared to $31.3 million
for the 2017 first quarter, with amounts in both periods primarily
related to intangible assets related to the UGC acquisition.
Interest expense for the 2018 first quarter was $25.9 million, compared
to $25.8 million for the 2017 first quarter. Preferred dividends for the
2018 first quarter were $10.4 million, compared to $11.2 million for the
2017 first quarter. On January 2, 2018, the Company redeemed the
remaining $92.6 million of 6.75% Series C preferred shares. As such, in
accordance with GAAP, the Company recorded a loss of $2.7 million to
remove original issuance costs related to the redeemed shares from
additional paid-in capital. For additional information on the Company’s
capital structure, please refer to the Financial Supplement dated March
31, 2018.
On a pre-tax basis, net foreign exchange losses for the 2018 first
quarter were $15.0 million, compared to net foreign exchange losses for
the 2017 first quarter of $19.8 million. For both periods, such amounts
were primarily unrealized and resulted from the effects of revaluing the
Company’s net insurance liabilities required to be settled in foreign
currencies at each balance sheet date. Changes in the value of
available-for-sale investments held in foreign currencies due to foreign
currency rate movements are reflected as a direct increase or decrease
to shareholders’ equity and are not included in the consolidated
statements of income. Although the Company generally attempts to match
the currency of its projected liabilities with investments in the same
currencies, the Company may elect to over or underweight one or more
currencies from time to time, which could increase the Company’s
exposure to foreign currency fluctuations and increase the volatility of
the Company’s shareholders’ equity.
The Company’s effective tax rate on income before income taxes (based on
the Company’s annual effective tax rate) was 12.7% for the 2018 first
quarter, compared to 10.1% for the 2017 first quarter, while the
effective tax rate on pre-tax operating income available to Arch
shareholders was 9.9% for the 2018 first quarter, compared to 13.4% for
the 2017 first quarter. The effective tax rates for the 2018 first
quarter included a discrete income tax benefit of $1.4 million related
to share-based compensation. This benefit had the effect of reducing the
2018 first quarter effective tax rate on operating income available to
Arch shareholders by 0.5%. The Company’s effective tax rate fluctuates
from period to period based upon the relative mix of income or loss
reported by jurisdiction, the level of catastrophic loss activity
incurred, and the varying tax rates in each jurisdiction. The change in
the U.S. federal corporate tax rate from 35% to 21% commencing on
January 1, 2018 contributed to a lower effective tax rate on operating
income for the 2018 first quarter as compared to the 2017 first quarter.
As disclosed previously, the Company adopted new accounting guidance for
equity instruments on January 1, 2018. This accounting guidance had no
net impact on total shareholders’ equity but resulted in a $149.8
million cumulative effect adjustment in retained earnings and an
offsetting decrease in unrealized gains on equity instruments in
accumulated other comprehensive income. In addition, beginning in the
2018 first quarter, changes in fair value for equity instruments are
required to be recognized through net income rather than through other
comprehensive income. For the 2018 first quarter, net realized losses of
$111.9 million included $18.6 million of unrealized losses on equity
instruments pursuant to the new accounting guidance.
Conference Call
The Company will hold a conference call for investors and analysts at
11:00 a.m. Eastern Time on May 2, 2018. A live webcast of this call will
be available via the Investors section of the Company’s website at http://www.archcapgroup.com.
A telephone replay of the conference call also will be available
beginning on May 2, 2018 at 2:00 p.m. Eastern Time until May 9, 2018 at
midnight Eastern Time. To access the replay, domestic callers should
dial 855-859-2056, and international callers should dial 404-537-3406
(passcode 7699499 for all callers).
Please refer to the Company’s Financial Supplement dated March 31, 2018,
which is available via the Investors section of the Company’s website at http://www.archcapgroup.com.
The Financial Supplement provides additional detail regarding the
financial performance of the Company. From time to time, the Company
posts additional financial information and presentations to its website,
including information with respect to its subsidiaries. Investors and
other recipients of this information are encouraged to check the
Company’s website regularly for additional information regarding the
Company.
Arch Capital Group Ltd., a Bermuda-based company with approximately
$11.26 billion in capital at March 31, 2018, provides insurance,
reinsurance and mortgage insurance on a worldwide basis through its
wholly owned subsidiaries.
Comments on Regulation G
Throughout this release, the Company presents its operations in the way
it believes will be the most meaningful and useful to investors,
analysts, rating agencies and others who use the Company’s financial
information in evaluating the performance of the Company and that
investors and such other persons benefit from having a consistent basis
for comparison between quarters and for comparison with other companies
within the industry. These measures may not, however, be comparable to
similarly titled measures used by companies outside of the insurance
industry. Investors are cautioned not to place undue reliance on these
non-GAAP financial measures in assessing the Company’s overall financial
performance.
This presentation includes the use of “after-tax operating income or
loss available to Arch common shareholders,” which is defined as net
income available to Arch 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, UGC transaction costs and
other and loss on redemption of preferred shares, net of income taxes,
and the use of annualized operating return on average common equity. The
presentation of after-tax operating income available to Arch common
shareholders and annualized operating return on average common equity
are non-GAAP financial measures as defined in Regulation G. The
reconciliation of such measures to net income available to Arch common
shareholders and annualized return on average common equity (the most
directly comparable GAAP financial measures) in accordance with
Regulation G is included on the following page of this release.
The Company believes that 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, UGC transaction costs and other and loss on
redemption of preferred shares in any particular period are not
indicative of the performance of, or trends in, the Company’s business
performance. Although 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 are an integral part of the Company’s
operations, the decision to realize investment gains or losses, the
recognition of the change in the carrying value of investments accounted
for using the fair value option in net realized gains or losses, the
recognition of net impairment losses, the recognition of equity in net
income or loss of investment funds accounted for using the equity method
and the recognition of foreign exchange gains or losses are independent
of the insurance underwriting process and result, in large part, from
general economic and financial market conditions. Furthermore, certain
users of the Company’s financial information believe that, for many
companies, the timing of the realization of investment gains or losses
is largely opportunistic. In addition, net impairment losses recognized
in earnings on the Company’s investments represent other-than-temporary
declines in expected recovery values on securities without actual
realization. The use of the equity method on certain of the Company’s
investments in certain funds that invest in fixed maturity securities is
driven by the ownership structure of such funds (either limited
partnerships or limited liability companies). In applying the equity
method, these investments are initially recorded at cost and are
subsequently adjusted based on the Company’s proportionate share of the
net income or loss of the funds (which include changes in the fair value
of the underlying securities in the funds). This method of accounting is
different from the way the Company accounts for its other fixed maturity
securities and the timing of the recognition of equity in net income or
loss of investment funds accounted for using the equity method may
differ from gains or losses in the future upon sale or maturity of such
investments. UGC transaction costs and other include advisory,
financing, legal, severance, incentive compensation and other
transaction costs related to the UGC acquisition. The Company believes
that UGC transaction costs and other, due to their non-recurring nature,
are not indicative of the performance of, or trends in, the Company’s
business performance. The loss on redemption of preferred shares related
to the redemption of the Company's Series C preferred shares in January
2018 and had no impact on shareholders' equity or cash flows. Due to
these reasons, the Company excludes 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, UGC transaction costs and other and loss on
redemption of preferred shares from the calculation of after-tax
operating income or loss available to Arch common shareholders.
The Company believes that showing net income available to Arch common
shareholders exclusive of the items referred to above reflects the
underlying fundamentals of the Company’s business since the Company
evaluates the performance of and manages its business to produce an
underwriting profit. In addition to presenting net income available to
Arch common shareholders, the Company believes that this presentation
enables investors and other users of the Company’s financial information
to analyze the Company’s performance in a manner similar to how the
Company’s management analyzes performance. The Company also believes
that this measure follows industry practice and, therefore, allows the
users of the Company’s financial information to compare the Company’s
performance with its industry peer group. The Company believes that the
equity analysts and certain rating agencies which follow the Company and
the insurance industry as a whole generally exclude these items from
their analyses for the same reasons.
The Company’s segment information includes the presentation of
consolidated underwriting income or loss and a subtotal of underwriting
income or loss before the contribution from the ‘other’ segment. Such
measures represent the pre-tax profitability of its underwriting
operations and include net premiums earned plus other underwriting
income, less losses and loss adjustment expenses, acquisition expenses
and other operating expenses. Other operating expenses include those
operating expenses that are incremental and/or directly attributable to
the Company’s individual underwriting operations. Underwriting income or
loss does not incorporate items included in the Company’s corporate
(non-underwriting) segment. While these measures are presented in the
Segment Information footnote to the Company’s Consolidated Financial
Statements, they are considered non-GAAP financial measures when
presented elsewhere on a consolidated basis. The reconciliations of
underwriting income or loss to income before income taxes (the most
directly comparable GAAP financial measure) on a consolidated basis and
a subtotal before the contribution from the ‘other’ segment, in
accordance with Regulation G, is shown on the following pages.
Management measures segment performance for its three underwriting
segments based on underwriting income or loss. 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 Re. Watford Re has its own management
and board of directors that is responsible for the overall profitability
of the ‘other’ segment. For the ‘other’ segment, performance is measured
based on net income or loss. The Company does not guarantee or provide
credit support for Watford Re, and the Company’s financial exposure to
Watford Re is limited to its investment in Watford Re’s common and
preferred shares and counterparty credit risk (mitigated by collateral)
arising from reinsurance transactions.
Along with consolidated underwriting income, the Company provides a
subtotal of underwriting income or loss before the contribution from the
‘other’ segment and believes that this presentation enables investors
and other users of the Company’s financial information to analyze the
Company’s underwriting performance in a manner similar to how the
Company’s management analyzes performance.
In addition, the Company’s segment information includes the use of a
combined ratio excluding catastrophic activity and prior year
development for the insurance segment and reinsurance segment and a
combined ratio excluding prior year development for the mortgage
segment. These ratios are non-GAAP financial measures as defined in
Regulation G. The reconciliation of such measures to the combined ratio
(the most directly comparable GAAP financial measure) in accordance with
Regulation G are shown on the individual segment pages. The Company’s
management utilizes the adjusted combined ratio excluding current
accident year catastrophic events and favorable or adverse development
in prior year loss reserves in its analysis of the underwriting
performance of each of its underwriting segments.
The following tables summarize the Company’s results by segment for the
2018 first quarter and 2017 first quarter and a reconciliation of
underwriting income or loss to income or loss before income taxes and
net income or loss available to Arch common shareholders:
|
|
| |
|
(U.S. Dollars in thousands)
| | | Three Months Ended |
| | | March 31, 2018 |
| | | Insurance |
|
| Reinsurance |
|
| Mortgage |
|
| Sub-total |
|
| Other |
|
| Total |
|
Gross premiums written (1)
| | |
$
|
823,378
| | | |
$
|
577,483
| | | |
$
|
321,178
| | | |
$
|
1,721,605
| | | |
$
|
213,870
| | | |
$
|
1,838,214
| |
|
Premiums ceded
| | |
(247,180
|
)
| | |
(195,730
|
)
| | |
(46,137
|
)
| | |
(488,613
|
)
| | |
(34,318
|
)
| | |
(425,670
|
)
|
|
Net premiums written
| | |
576,198
| | | |
381,753
| | | |
275,041
| | | |
1,232,992
| | | |
179,552
| | | |
1,412,544
| |
|
Change in unearned premiums
| | |
(37,461
|
)
| | |
(102,581
|
)
| | |
5,201
|
| | |
(134,841
|
)
| | |
(42,804
|
)
| | |
(177,645
|
)
|
|
Net premiums earned
| | |
538,737
| | | |
279,172
| | | |
280,242
| | | |
1,098,151
| | | |
136,748
| | | |
1,234,899
| |
|
Other underwriting income
| | |
—
| | | |
1,232
| | | |
3,416
| | | |
4,648
| | | |
701
| | | |
5,349
| |
|
Losses and loss adjustment expenses
| | |
(353,730
|
)
| | |
(141,675
|
)
| | |
(43,466
|
)
| | |
(538,871
|
)
| | |
(97,989
|
)
| | |
(636,860
|
)
|
|
Acquisition expenses
| | |
(85,169
|
)
| | |
(48,319
|
)
| | |
(26,567
|
)
| | |
(160,055
|
)
| | |
(31,321
|
)
| | |
(191,376
|
)
|
|
Other operating expenses
| | |
(91,974
|
)
| | |
(35,571
|
)
| | |
(38,771
|
)
| | |
(166,316
|
)
| | |
(8,699
|
)
| | |
(175,015
|
)
|
|
Underwriting income (loss)
| | |
$
|
7,864
|
| | |
$
|
54,839
|
| | |
$
|
174,854
|
| | |
237,557
| | | |
(560
|
)
| | |
236,997
| |
| | | | | | | | | | | | | | | | | |
|
|
Net investment income
| | | | | | | | | | | |
100,243
| | | |
26,481
| | | |
126,724
| |
|
Net realized gains (losses)
| | | | | | | | | | | |
(111,859
|
)
| | |
861
| | | |
(110,998
|
)
|
|
Net impairment losses recognized in earnings
| | | | | | | | | | | |
(162
|
)
| | |
—
| | | |
(162
|
)
|
|
Equity in net income (loss) of investment funds accounted for using
the equity method
| | | | | | | | | | | |
28,069
| | | |
—
| | | |
28,069
| |
|
Other income
| | | | | | | | | | | |
74
| | | |
—
| | | |
74
| |
|
Corporate expenses
| | | | | | | | | | | |
(14,482
|
)
| | |
—
| | | |
(14,482
|
)
|
|
UGC transaction costs and other
| | | | | | | | | | | |
(830
|
)
| | |
—
| | | |
(830
|
)
|
|
Amortization of intangible assets
| | | | | | | | | | | |
(26,736
|
)
| | |
—
| | | |
(26,736
|
)
|
|
Interest expense
| | | | | | | | | | | |
(25,907
|
)
| | |
(4,729
|
)
| | |
(30,636
|
)
|
|
Net foreign exchange gains (losses)
| | | | | | | | | | | |
(15,039
|
)
| | |
(4,682
|
)
| | |
(19,721
|
)
|
| Income before income taxes | | | | | | | | | | | |
170,928
| | | |
17,371
| | | |
188,299
| |
|
Income tax expense
| | | | | | | | | | | |
(21,912
|
)
| | |
(3
|
)
| | |
(21,915
|
)
|
| Net income | | | | | | | | | | | |
149,016
| | | |
17,368
| | | |
166,384
| |
|
Dividends attributable to redeemable noncontrolling interests
| | | | | | | | | | | |
—
| | | |
(4,585
|
)
| | |
(4,585
|
)
|
|
Amounts attributable to nonredeemable noncontrolling interests
| | | | | | | | | | | |
—
|
| | |
(11,376
|
)
| | |
(11,376
|
)
|
| Net income available to Arch | | | | | | | | | | | |
149,016
| | | |
1,407
| | | |
150,423
| |
|
Preferred dividends
| | | | | | | | | | | |
(10,437
|
)
| | |
—
| | | |
(10,437
|
)
|
|
Loss on redemption of preferred shares
| | | | | | | | | | | |
(2,710
|
)
| | |
—
|
| | |
(2,710
|
)
|
| Net income available to Arch common shareholders | | | | | | | | | | | |
$
|
135,869
|
| | |
$
|
1,407
|
| | |
$
|
137,276
|
|
| | | | | | | | | | | | | | | | | |
|
| Underwriting Ratios | | | | | | | | | | | | | | | | | | |
|
Loss ratio
| | |
65.7
|
%
| | |
50.7
|
%
| | |
15.5
|
%
| | |
49.1
|
%
| | |
71.7
|
%
| | |
51.6
|
%
|
|
Acquisition expense ratio
| | |
15.8
|
%
| | |
17.3
|
%
| | |
9.5
|
%
| | |
14.6
|
%
| | |
22.9
|
%
| | |
15.5
|
%
|
|
Other operating expense ratio
| | |
17.1
|
%
| | |
12.7
|
%
| | |
13.8
|
%
| | |
15.1
|
%
| | |
6.4
|
%
| | |
14.2
|
%
|
|
Combined ratio
| | |
98.6
|
%
| | |
80.7
|
%
| | |
38.8
|
%
| | |
78.8
|
%
| | |
101.0
|
%
| | |
81.3
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Net premiums written to gross premiums written
| | |
70.0
|
%
| | |
66.1
|
%
| | |
85.6
|
%
| | |
71.6
|
%
| | |
84.0
|
%
| | |
76.8
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
(1)
|
|
Certain amounts included in the gross premiums written of each
segment are related to intersegment transactions and are included in
the gross premiums written of each segment. Accordingly, the sum of
gross premiums written for each segment does not agree to the total
gross premiums written as shown in the table above due to the
elimination of intersegment transactions in the total.
|
| |
|
|
|
| |
|
(U.S. Dollars in thousands)
| | | Three Months Ended |
| | | March 31, 2017 |
| | | Insurance |
|
| Reinsurance |
|
| Mortgage |
|
| Sub-total |
|
| Other |
|
| Total |
|
Gross premiums written (1)
| | |
$
|
782,281
| | | |
$
|
475,782
| | | |
$
|
348,623
| | | |
$
|
1,606,686
| | | |
$
|
154,120
| | | |
$
|
1,657,990
| |
|
Premiums ceded
| | |
(234,095
|
)
| | |
(166,092
|
)
| | |
(73,925
|
)
| | |
(474,112
|
)
| | |
(10,434
|
)
| | |
(381,730
|
)
|
|
Net premiums written
| | |
548,186
| | | |
309,690
| | | |
274,698
| | | |
1,132,574
| | | |
143,686
| | | |
1,276,260
| |
|
Change in unearned premiums
| | |
(42,540
|
)
| | |
(64,839
|
)
| | |
(30,175
|
)
| | |
(137,554
|
)
| | |
(21,689
|
)
| | |
(159,243
|
)
|
|
Net premiums earned
| | |
505,646
| | | |
244,851
| | | |
244,523
| | | |
995,020
| | | |
121,997
| | | |
1,117,017
| |
|
Other underwriting income (loss)
| | |
—
| | | |
(306
|
)
| | |
4,123
| | | |
3,817
| | | |
816
| | | |
4,633
| |
|
Losses and loss adjustment expenses
| | |
(332,641
|
)
| | |
(105,454
|
)
| | |
(29,065
|
)
| | |
(467,160
|
)
| | |
(85,410
|
)
| | |
(552,570
|
)
|
|
Acquisition expenses
| | |
(74,868
|
)
| | |
(46,147
|
)
| | |
(28,766
|
)
| | |
(149,781
|
)
| | |
(32,508
|
)
| | |
(182,289
|
)
|
|
Other operating expenses
| | |
(88,126
|
)
| | |
(37,533
|
)
| | |
(41,870
|
)
| | |
(167,529
|
)
| | |
(7,190
|
)
| | |
(174,719
|
)
|
|
Underwriting income (loss)
| | |
$
|
10,011
|
| | |
$
|
55,411
|
| | |
$
|
148,945
|
| | |
214,367
| | | |
(2,295
|
)
| | |
212,072
| |
| | | | | | | | | | | | | | | | | |
|
|
Net investment income
| | | | | | | | | | | |
95,812
| | | |
22,062
| | | |
117,874
| |
|
Net realized gains (losses)
| | | | | | | | | | | |
28,512
| | | |
5,641
| | | |
34,153
| |
|
Net impairment losses recognized in earnings
| | | | | | | | | | | |
(1,807
|
)
| | |
—
| | | |
(1,807
|
)
|
|
Equity in net income (loss) of investment funds accounted for using
the equity method
| | | | | | | | | | | |
48,088
| | | |
—
| | | |
48,088
| |
|
Other income (loss)
| | | | | | | | | | | |
(782
|
)
| | |
—
| | | |
(782
|
)
|
|
Corporate expenses
| | | | | | | | | | | |
(12,208
|
)
| | |
—
| | | |
(12,208
|
)
|
|
UGC transaction costs and other
| | | | | | | | | | | |
(15,584
|
)
| | |
—
| | | |
(15,584
|
)
|
|
Amortization of intangible assets
| | | | | | | | | | | |
(31,294
|
)
| | |
—
| | | |
(31,294
|
)
|
|
Interest expense
| | | | | | | | | | | |
(25,756
|
)
| | |
(2,920
|
)
| | |
(28,676
|
)
|
|
Net foreign exchange gains (losses)
| | | | | | | | | | | |
(19,845
|
)
| | |
441
|
| | |
(19,404
|
)
|
| Income before income taxes | | | | | | | | | | | |
279,503
| | | |
22,929
| | | |
302,432
| |
|
Income tax (expense) benefit
| | | | | | | | | | | |
(28,397
|
)
| | |
—
|
| | |
(28,397
|
)
|
| Net income | | | | | | | | | | | |
251,106
| | | |
22,929
| | | |
274,035
| |
|
Dividends attributable to redeemable noncontrolling interests
| | | | | | | | | | | |
—
| | | |
(4,584
|
)
| | |
(4,584
|
)
|
|
Amounts attributable to nonredeemable noncontrolling interests
| | | | | | | | | | | |
—
|
| | |
(16,324
|
)
| | |
(16,324
|
)
|
| Net income available to Arch | | | | | | | | | | | |
251,106
| | | |
2,021
| | | |
253,127
| |
|
Preferred dividends
| | | | | | | | | | | |
(11,218
|
)
| | |
—
|
| | |
(11,218
|
)
|
| Net income available to Arch common shareholders | | | | | | | | | | | |
$
|
239,888
|
| | |
$
|
2,021
|
| | |
$
|
241,909
|
|
| | | | | | | | | | | | | | | | | |
|
| Underwriting Ratios | | | | | | | | | | | | | | | | | | |
|
Loss ratio
| | |
65.8
|
%
| | |
43.1
|
%
| | |
11.9
|
%
| | |
46.9
|
%
| | |
70.0
|
%
| | |
49.5
|
%
|
|
Acquisition expense ratio
| | |
14.8
|
%
| | |
18.8
|
%
| | |
11.8
|
%
| | |
15.1
|
%
| | |
26.6
|
%
| | |
16.3
|
%
|
|
Other operating expense ratio
| | |
17.4
|
%
| | |
15.3
|
%
| | |
17.1
|
%
| | |
16.8
|
%
| | |
5.9
|
%
| | |
15.6
|
%
|
|
Combined ratio
| | |
98.0
|
%
| | |
77.2
|
%
| | |
40.8
|
%
| | |
78.8
|
%
| | |
102.5
|
%
| | |
81.4
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Net premiums written to gross premiums written
| | |
70.1
|
%
| | |
65.1
|
%
| | |
78.8
|
%
| | |
70.5
|
%
| | |
93.2
|
%
| | |
77.0
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
(1)
|
|
Certain amounts included in the gross premiums written of each
segment are related to intersegment transactions and are included in
the gross premiums written of each segment. Accordingly, the sum of
gross premiums written for each segment does not agree to the total
gross premiums written as shown in the table above due to the
elimination of intersegment transactions in the total.
|
| |
|
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides
a “safe harbor” for forward-looking statements. This release or any
other written or oral statements made by or on behalf of the Company may
include forward-looking statements, which reflect the Company’s current
views with respect to future events and financial performance. All
statements other than statements of historical fact included in or
incorporated by reference in this release are forward-looking
statements. Forward-looking statements, for purposes of the PSLRA or
otherwise, can generally be identified by the use of forward-looking
terminology such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe” or “continue” and similar statements of a future
or forward-looking nature or their negative or variations or similar
terminology.
Forward-looking statements involve the Company’s current assessment of
risks and uncertainties. Actual events and results may differ materially
from those expressed or implied in these statements. Important factors
that could cause actual events or results to differ materially from
those indicated in such statements are discussed below and elsewhere in
this release and in the Company’s periodic reports filed with the
Securities and Exchange Commission (the “SEC”), and include:
-
the Company’s ability to successfully implement its business strategy
during “soft” as well as “hard” markets;
-
acceptance of the Company’s business strategy, security and financial
condition by rating agencies and regulators, as well as by brokers and
its insureds and reinsureds;
-
the integration of United Guaranty Corporation and any other
businesses the Company has acquired or may acquire into its existing
operations;
-
the Company’s ability to maintain or improve its ratings, which may be
affected by its ability to raise additional equity or debt financings,
by ratings agencies’ existing or new policies and practices, as well
as other factors described herein;
-
general economic and market conditions (including inflation, interest
rates, foreign currency exchange rates, prevailing credit terms and
the depth and duration of a recession) and conditions specific to the
reinsurance and insurance markets (including the length and magnitude
of the current “soft” market) in which the Company operates;
-
competition, including increased competition, on the basis of pricing,
capacity (including alternative sources of capital), coverage terms or
other factors;
-
developments in the world’s financial and capital markets and the
Company’s access to such markets;
-
the Company’s ability to successfully enhance, integrate and maintain
operating procedures (including information technology) to effectively
support its current and new business;
-
the loss of key personnel;
-
accuracy of those estimates and judgments utilized in the preparation
of the Company’s financial statements, including those related to
revenue recognition, insurance and other reserves, reinsurance
recoverables, investment valuations, intangible assets, bad debts,
income taxes, contingencies and litigation, and any determination to
use the deposit method of accounting, which for a relatively new
insurance and reinsurance company, like the Company, are even more
difficult to make than those made in a mature company since relatively
limited historical information has been reported to the Company
through March 31, 2018;
-
greater than expected loss ratios on business written by the Company
and adverse development on claim and/or claim expense liabilities
related to business written by its insurance and reinsurance
subsidiaries;
-
severity and/or frequency of losses;
-
claims resulting from natural or man-made catastrophic events in the
Company’s insurance, reinsurance and mortgage businesses could cause
large losses and substantial volatility in our results of operations;
-
acts of terrorism, political unrest and other hostilities or other
unforecasted and unpredictable events;
-
availability to the Company of reinsurance to manage its gross and net
exposures and the cost of such reinsurance;
-
the failure of reinsurers, managing general agents, third party
administrators or others to meet their obligations to the Company;
-
the timing of loss payments being faster or the receipt of reinsurance
recoverables being slower than anticipated by the Company;
-
the Company’s investment performance, including legislative or
regulatory developments that may adversely affect the fair value of
the Company’s investments;
-
changes in general economic conditions, including new or continued
sovereign debt concerns in Eurozone countries or downgrades of U.S.
securities by credit rating agencies, which could affect the Company’s
business, financial condition and results of operations;
-
the volatility of the Company’s shareholders’ equity from foreign
currency fluctuations, which could increase due to us not matching
portions of the Company’s projected liabilities in foreign currencies
with investments in the same currencies;
-
losses relating to aviation business and business produced by a
certain managing underwriting agency for which the Company may be
liable to the purchaser of its prior reinsurance business or to others
in connection with the May 5, 2000 asset sale described in the
Company’s periodic reports filed with the SEC;
-
changes in accounting principles or policies or in the Company’s
application of such accounting principles or policies;
-
changes in the political environment of certain countries in which the
Company operates, underwrites business or invests;
-
statutory or regulatory developments, including as to tax policy
matters and insurance and other regulatory matters such as the
adoption of proposed legislation that would affect
Bermuda-headquartered companies and/or Bermuda-based insurers or
reinsurers and/or changes in regulations or tax laws applicable to the
Company, its subsidiaries, brokers or customers, including the
recently enacted Tax Cuts and Jobs Act of 2017; and
-
the other matters set forth under Item 1A “Risk Factors”, Item 7
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and other sections of the Company’s Annual
Report on Form 10-K, as well as the other factors set forth in the
Company’s other documents on file with the SEC, and management’s
response to any of the aforementioned factors.
All subsequent written and oral forward-looking statements attributable
to the Company or persons acting on its behalf are expressly qualified
in their entirety by these cautionary statements. The foregoing review
of important factors should not be construed as exhaustive and should be
read in conjunction with other cautionary statements that are included
herein or elsewhere. The Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180501006786/en/
Arch Capital Group Ltd.
Mark D. Lyons, 441-278-9250
or
Investor
Relations
Donald Watson, 914-872-3616
dwatson@archcapservices.com
Source: Arch Capital Group Ltd.