Arch Capital Group Ltd

The spectacular improvement in Arch Capital’s 2006 results was inevitably going to put pressure on the company’s performance in 2007, particularly with the significant increase in the underwriting capacity that flooded into the market and caused rates to decline in most lines of business. But net favourable development of prior year loss reserves and a great performance on the investment front meant that the group was able to increase its net income in 2007 for the fifth year in succession

The Bermuda based Arch Capital Group increased its net income by 20.3% from $713.2mn in 2006 to $857.9mn in 2007.