Arch Capital says higher premiums lifted 3Q profit

posted: 106 DAYS 18 HOURS AGO

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HAMILTON, Bermuda -Insurer Arch Capital Group Ltd. said Monday that stronger revenue from higher premiums and fewer hurricane-related expenses drove up its profit in the third quarter.

For the three months ended Sept. 30, the Bermuda-based company earned $274.4 million, or $4.39 per share. That compared with $26.4 million, or 42 cents per share, in the year-ago period, which included payouts linked to Hurricanes Gustav and Ike.

Quarterly revenue grew to $976.2 million from $746.8 million last year.

The performance easily beat Wall Street expectations. On average, analysts polled by Thomson Reuters had forecast a profit of $2.45 per share on revenue of $742.2 million.

The company said it wrote $727.3 million in premiums for the quarter, compared with $692.7 million last year. It also realized $70.6 million in premium net gains, compared with $23 million in losses in the year-ago period.

Expenses fell to $693.1 million from $715.8 million last year.

Shares of Arch Capital rose $2.20 to $71 in after-hours trading, after slipping 8 cents during the regular session to close Monday at $68.80.

2009-10-26 17:45:35