Arch Capital Group Ltd booked a $550 million net loss from catastrophes, but still managed to report net income available to common shareholders of $6.9 million in the third quarter.

That result compares with net income of $388.8 million for the 2021 third quarter.

After-tax, operating income was $106 million compared with $294.7 million for the third quarter a year ago.

Pre-tax current accident year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, were $550.8 million, primarily related to Hurricane Ian, as well as from a series of other global events that occurred this year, including US convective storms, Typhoon Nanmadol and the June French hailstorms.

Arch had a combined ratio, excluding catastrophic activity and prior year development, of 82.2 per cent compared with 80.1 per cent for the 2021 third quarter.

Favourable development in prior year loss reserves, net of related adjustments, was $178 million.

Book value per common share was $29.69 at September 30, a 5.4 per cent decrease from June 30.

Gross premiums written by the insurance segment in the third quarter were $1.86 billion, up 16.6 per cent from the 2021 third quarter while net premiums written were $1.37 billion, up 18.6 per cent year over year.

The higher level of net premiums written reflected increases in most lines of business, due in part to rate increases, new business opportunities and growth in existing accounts, the company said.

Net premiums earned in the third quarter were $1.19 billion, up 26.4 per cent on the 2021 third quarter, and reflect changes in net premiums written over the previous five quarters.

The third quarter loss ratio reflected 13.4 points of current year catastrophic activity, primarily related to Hurricane Ian, compared with 12.2 points of catastrophic activity in the 2021 third quarter, primarily related to Hurricane Ida.

Gross premiums written by the reinsurance segment in the third quarter were $1.64 billion, an increase of 30.9 per cent over the 2021 third quarter, while net premiums written were $1.08 billion, 73.6 per cent higher year over year.

Net premiums written for the reinsurance segment in the 2021 third quarter were affected by a one-time $161.2 million adjustment, resulting from retrocessions to Somers Re Ltd – formerly known as Watford Re Ltd – following its ownership change on July 1, 2021. Absent this item, net premiums written by the reinsurance segment were 37.9 per cent higher than in the 2021 third quarter.

The growth in net premiums written reflected increases in all lines of business, primarily related to rate increases, new business opportunities and growth in existing accounts.

Net premiums earned in the third quarter were $1 billion, up 47.6 per cent on the 2021 third quarter, and reflect changes in net premiums written over the previous five quarters, Arch said.