Arch Capital Group Ltd

Nearly the group’s entire portfolio is invested in fixed income securities. The idea is to manage the investment portfolio conservatively while taking risks on the underwriting front where risk adjusted returns are more attractive

The Bermuda based Arch Capital Group Ltd increased its net profits by 13% from $280.6mn in 2003 to $316.9mn in 2004. This growth rate represents a significant slowdown on the 376% increase in net profits that the group achieved in 2003, but the rapid jump in earnings was from the relatively low base of the $59.0mn in net income generated by the group in 2002, its first year of operation after the business was relocated to Bermuda in October 2001.