The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development. For additional details regarding the Company’s operating segments, please refer to the Company’s Financial Supplement dated December 31, 2021. The following section provides analysis on the Company’s 2021 fourth quarter performance by operating segment. See ‘Comments on Regulation G’ for a discussion of non-GAAP financial measures. Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other and loss on redemption of preferred shares reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.Įach line item in the table above reflects the impact of the Company’s ownership of Somers’ outstanding common equity through June 30, 2021. Weighted average common shares and common share equivalents outstanding - dilutedĪnnualized net income return on average common equityĪnnualized operating return on average common equity Net income available to Arch common shareholdersĮquity in net (income) loss of investment funds accounted for using the equity methodĪfter-tax operating income available to Arch common shareholders The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results: See ‘Comments on Regulation G’ for further details. (“Somers”), formerly known as Watford Holdings Ltd., which the Company consolidated in its financial statements through Jpursuant to GAAP. Such presentation excludes the results of Somers Holdings Ltd. Presentation represents a “non-GAAP” financial measure as defined in Regulation G. Effective July 1, 2021, the Company no longer consolidates the results of Somers in its consolidated financial statements.Ĭonsolidated Excluding ‘Other’ Segment (1)Ĭombined ratio excluding catastrophic activity and prior year development (1)

The following table summarizes the Company’s underwriting results, both (i) on a consolidated basis and (ii) on a consolidated basis excluding the ‘other’ segment ( i.e., results of Somers). Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums (1) of $72.3 million įavorable development in prior year loss reserves, net of related adjustments (1) of $125.6 million Ĭombined ratio excluding catastrophic activity and prior year development (1) of 80.1%, compared to 80.2% for the 2020 fourth quarter Ĩ.7 million shares repurchased at an aggregate cost of $362.1 million īook value per common share of $33.56 at December 31, 2021, a 3.5% increase from Septemand a 10.7% increase from December 31, 2020.Īll earnings per share amounts discussed in this release are on a diluted basis.

Net income available to Arch common shareholders of $613.1 million, or $1.58 per share, a 19.4% annualized net income return on average common equity, compared to $533.1 million, or $1.30 per share, for the 2020 fourth quarter Īfter-tax operating income available to Arch common shareholders (1) of $493.3 million, or $1.27 per share, a 15.6% annualized operating return on average common equity, compared to $230.4 million, or $0.56 per share, for the 2020 fourth quarter (NASDAQ: ACGL “Arch” or “the Company”) announces its 2021 fourth quarter results.

Arch insurance