Arch Capital Group Ltd. late Wednesday reported second-quarter net income of $718.7 million, up 54.1% from the same quarter in 2020, as premiums soared.
Net premiums written rose 42.3% to $2.22 billion in the second quarter of 2020.
In the insurance segment, net premiums written rose 43.3% to $963.6 million.
In the reinsurance segment, net premiums written rose 63.6% to $924.7 million.
In the mortgage segment, net premiums written rose 3.3% to $335.8 million.
Speaking to analysts on the company’s earnings call Thursday morning, CEO Marc Grandisson, said second-quarter rate increases averaged 10% and represented the sixth consecutive quarter of rate increases.
He noted, however, that “rate improvements have tapered off from previous highs in some lines,” but that Arch is still getting “rate on rate.”
Mr. Grandisson told analysts that Arch estimates 30% of its premium growth is from rate increases, some 15% from higher net retentions, and the