01—Abstract
Summary
Summary of the 10-K filed February 29, 2012. Cited figures are marked; the original filing is the authoritative source.
Arch Capital Group Ltd. (ACGL) reported a net income of $436.4 milliona for the fiscal year ended December 31, 2011, a decrease from $842.6 million in 2010.
This decline was primarily attributed to a higher incidence of catastrophic events impacting underwriting results and a challenging investment market environment leading to lower yields. Despite this, the company demonstrated resilience, with net premiums written increasing by 6.5% to $2.67 billionb, driven by growth in both insurance and reinsurance segments. Diluted book value per share rose to $32.03 from $29.99 year-over-year, indicating continued growth in shareholder equity.
ACGL maintained strong financial strength ratings across its subsidiaries, which are crucial for its competitive positioning in the specialty insurance and reinsurance markets. The company continues its share repurchase program, repurchasing approximately 9.6 million shares in 2011, demonstrating a commitment to returning capital to shareholders.
02—Key points
Key Highlights
- Net income decreased to $436.4 million in 2011 from $842.6 million in 2010, primarily due to increased catastrophic event losses and lower investment yields.
- Net premiums written increased by 6.5% to $2.67 billion in 2011, reflecting growth across both insurance and reinsurance segments.
- Diluted book value per share grew to $32.03 at December 31, 2011, up from $29.99 at December 31, 2010.
- The company reported a combined ratio of 104.5% for its insurance segment and 87.3% for its reinsurance segment.
- ACGL's total cash and invested assets stood at $12.32 billion at year-end 2011.
- The company repurchased approximately 9.6 million common shares for $288.0 million in 2011, with $942.0 million remaining under its authorized share repurchase program.
- ACGL maintained strong financial strength ratings (A+ from AM Best, A1 from Moody's, A+ from S&P, A+ from Fitch) across its key operating subsidiaries.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 29, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $3.06B$3.24B | −5.6% |
| Interest Expense | $31.69M$30.01M | +5.6% |
| Net Income | $436.16M$842.67M | −48.2% |
| EPS (Basic) | $1.03$1.81 | −42.9% |
| EPS (Diluted) | $0.99$1.73 | −42.7% |
| Shares Outstanding (Basic) | 396.67M451.64M | −12.2% |
| Shares Outstanding (Diluted) | 414.87M472.70M | −12.2% |
05—Questions
Frequently Asked Questions
What was Arch Capital Group's net income for the fiscal year ended December 31, 2011?
Arch Capital Group Ltd. reported a net income of $436.4 million for the fiscal year ended December 31, 2011.
How did the company's premiums written change in 2011 compared to 2010?
Net premiums written increased by 6.5% to $2.67 billion in 2011 from $2.51 billion in 2010.
What is the company's diluted book value per share as of December 31, 2011?
The diluted book value per share was $32.03 as of December 31, 2011.
What are the key reasons for the decrease in net income in 2011?
The decrease in net income was primarily due to a higher number of catastrophic events impacting underwriting results and a challenging investment market environment that led to lower investment yields.
06—Continue