Summary
Arch Capital Group Ltd. (ACGL) reported strong financial performance in its 2021 10-K filing, demonstrating resilience and strategic growth across its insurance, reinsurance, and mortgage segments. The company achieved significant increases in net premiums written and net income available to common shareholders, with book value per share growing to $33.56. This growth was driven by favorable market conditions, including attractive pricing in its insurance markets, and strong underwriting returns, particularly in its reinsurance segment, which saw a substantial increase in underwriting income. The mortgage insurance segment also contributed positively, showing improved results and mid-teen returns on capital. The company's investment portfolio, managed with an emphasis on capital preservation and liquidity, generated a positive total return, outperforming its benchmark in 2021. ACGL continued its share repurchase program, reflecting a commitment to returning value to shareholders, with $1.2 billion remaining authorization at year-end. The company remains focused on its disciplined underwriting strategy, capitalizing on profitable opportunities while maintaining agility in its operations. Despite ongoing economic uncertainties and industry-specific risks, Arch Capital's robust capital base, experienced management team, and diversified business model position it well for continued success.
Financial Highlights
32 data points| Revenue | $9.25B |
| Interest Expense | $139.00M |
| Net Income | $2.16B |
| EPS (Basic) | $5.35 |
| EPS (Diluted) | $5.23 |
| Shares Outstanding (Basic) | 391.70M |
| Shares Outstanding (Diluted) | 400.30M |
Key Highlights
- 1Net income available to Arch common shareholders was $2.1 billion in 2021, a significant increase from $1.4 billion in 2020.
- 2Book value per share grew by 10.7% to $33.56 at December 31, 2021, compared to $30.31 at December 31, 2020.
- 3The reinsurance segment's underwriting income saw a substantial increase of 941.6% to $170 million in 2021, driven by strong premium growth and improved loss ratios.
- 4The mortgage segment's underwriting income increased by 60.6% to $953 million in 2021, with a significant improvement in its combined ratio to 27.1% from 59.0% in 2020.
- 5Total investable assets held by Arch reached $27.4 billion at December 31, 2021, with a portfolio return of 1.90% (pre-tax) outperforming the benchmark return of 1.20%.
- 6The company repurchased approximately $1.23 billion of its common shares under its share repurchase program during 2021.
- 7Capital resources remained strong, with total capital available to Arch of $16.3 billion at December 31, 2021, and a debt-to-total-capital ratio of 16.7%.