Arch Capital reports declining net income

Arch Capital Group Ltd. (NASDAQ: ACGL) has reported a declining net income of US$189.4 million for 2008 Q1, compared to its profit of US$198.6 million for 2007 Q1.
The combined ratio was 86.2% in 2008 Q1 a change from 2007 Q1’s 83.4%.
Gross premiums written decreased from US$1.2 billion in 2007 Q1 to US$1.05 billion. Net premiums written decreased by US$60 million from US$871 million to US$811 million the company reported.
“Net investment income for the 2008 first quarter was [US]$122.2 million, compared to [US]$110.0 million for the 2007 first quarter,” the company reported in a release. “The increase in net investment income in the 2008 first quarter primarily resulted from a higher level of average invested assets in the 2008 first quarter and also included [US]$3.4 million of interest income resulting from a favorable arbitration decision.”
Total net foreign exchange losses for 2008 Q1 of US$23.6 million consisted of net unrealized losses of US$22.3 million and net realized losses of US$1.3 million.