Arch reports 2006 1Q net income increase

Arch Capital Group Ltd. (NASDAQ: ACGL) reports that net income available to common shareholders for the 2006 first quarter was US$129.6 million, or $1.71 per share, compared to $115.9 million, or $1.57 per share, for the 2005 first quarter.
Gross and net premiums written for the 2006 first quarter were US$1.17 billion and US$873.7 million, respectively, compared to US$980.7 million and US$799.8 million, respectively, for the 2005 first quarter.
Of the US$1.17 billion in gross premiums written, US$615.5 million came from Arch’s insurance segment, while Arch’s reinsurance segment accounted for the remaining US$564.7.
Arch’s combined ratio was 88.3% for the 2006 first quarter, compared to 88.8% for the 2005 first quarter. Breaking the combined ratio into segments, Arch’s insurance side reported a COR of 90.2%, while the reinsurance side accounted for a COR of 85.3%.
The Company’s after-tax operating income available to common shareholders represented a 22.8% annualized return on average common equity for the 2006 first quarter, compared to 19.8% for the 2005 first quarter.
Net investment income for the 2006 first quarter increased to US$80.3 million from US$49.9 million for the 2005 first quarter.
“The higher level of net investment income in the 2006 first quarter resulted from a higher level of average invested assets in the 2006 period and an increase in the pre-tax investment income yield to 4.3% for the 2006 first quarter, compared to 3.4% for the 2005 first quarter,” the company reported in a press release.