NU Online News Service, April 26, 11:19 a.m. EDT
First-quarter net income for Bermuda-based Arch Capital Ltd. dropped to $19.3 million from $210.5 million a year ago during the same time due to $178.7 million in catastrophe losses.
The first-quarter catastrophe losses are net of reinsurance and reinstatement premiums and are compared to catastrophe losses of $58.1 million during the 2010 first quarter, says Arch, a worldwide insurer and reinsurer.
The company's combined ratio for the first quarter was 110, a rise from 96.4 last year. Arch says it took a $63.5 million underwriting loss in the first quarter.
After ceded reinsurance, losses from the Tohoku earthquake and tsunami in Japan on March 11 caused an estimated $79.25 million in total losses, property and marine and personal accident, Arch says.
The New Zealand earthquake resulted in $64.9 million in losses, and the Australian floods and Cyclone Yasi caused $32.9 million in losses.
Arch warned that the loss estimates for first-quarter catastrophe events are derived from models, industry assessments of exposure and claims data currently available. However, the company says the “models used for risk affecting Japan are relatively untested by actual experience and may be subject to even greater variability.”
Net investment income dropped slightly to $88.3 million from $93 million during the first quarter a year ago.
Arch says it has about $4.73 billion in capital of as March 31.
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