Arch Capital profit jumps on higher premiums, robust investment returns
Oct 30 (Reuters) -Arch Capital's ACGL.O third-quarter profit rose 37% as higher premiums and robust investment returns softened the hit from elevated costs, the insurer said on Wednesday.
The results align with trends seen at other major players in the industry. Growing confidence in their financial stability has spurred clients into seeking more comprehensive policy coverage.
In addition, elevated interest rates have boosted returns on insurers' bond investments while a rally in stocks has increased gains in their equity portfolios.
Gross premiums written rose 20% to $5.44 billion, while pre-tax net investment income grew 48% to $399 million in the quarter.
That helped offset costs from higher expenses on investigating and settling claims. Losses and loss adjustment expenses were $2.40 billion, compared with $1.65 billion a year earlier.
Profit available to common shareholders was $978 million, or $2.56 per share, for the three months ended Sept. 30, compared with $713 million, or $1.88 per, share last year.
Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber
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