Insurer Arch Capital (NASDAQ: ACGL) reported a 90% rise in second-quarter profit on Tuesday after strong demand boosted premiums and resilient markets lifted investment returns, mirroring results at peers.
Businesses and individuals encouraged by signs of economic strength are spending more on insurance policies, in contrast to last year when an uncertain environment led them to seek limited coverage.
Insurers are also reaping benefits from higher payouts on their bond investments due to elevated interest rates and healthy returns from their stock portfolios, fueled by hopes of a soft landing.
The company’s gross premiums written grew 11.1% to $5.38 billion, while pre-tax net investment income jumped 50.4% to $364 million in the quarter.
Profit available to common shareholders was $1.26 billion, or $3.30 per share, for the three months ended June 30, compared with $661 million, or $1.75 per share, last year.
Arch Capital’s (NASDAQ: ACGL) shares fell over 6% after the bell.
(Source: Reuters)
Mary Lee is a freelance writer and journalist based in Toronto, Canada. She holds an M.S. degree in business and economic journalism from Columbia University’s Graduate School of Journalism in New York and a certificate in digital marketing from the University of Toronto.
