ARCH INCOME RISES ON BACK OF IMPROVED UNDERWRITING RESULT

Second-quarter net earnings at Bermuda’s Arch Capital rose 18.1% to $202.5m as underwriting income jumped 29% to $124.1m and the combined ratio improved to 86.5% from 87.4%. Earned premiums for the period rose 19.6% to $907.2m and incurred losses climbed 16% to $485.5m. The improved underwriting result was driven by the group’s insurance segment, where underwriting income more than doubled to $34.4m from $13.6m and the combined ratio improved to 93.3% from 97.1%. Catastrophe losses accounted for 0.7 points of the segment’s combined ratio against 1.5 points a year earlier. Underwriting income in Arch’s reinsurance segment grew 5.8% to $81.9m, with the combined ratio rising to 75.7% from 73.2%. Cat losses accounted for 4.1 points of the combined ratio, down from 11.6 points. For the first half of the year, net income fell 11.3% to $379.5m, as improved underwriting income was offset by higher impairment charges, lower equity in net income of investment funds, higher interest expenses and a swing to foreign exchange losses.