Arch Capital Group has declared 2023 first quarter net income of $705 million, or $1.87 per share, a 22.3 per cent annualised net income return on average common equity.

This compares with $186 million, or $0.48 per share, for the 2022 first quarter.

After-tax operating income available to Arch common shareholders was $654 million, or $1.73 per share, a 20.7 per cent annualised operating return on average common equity, compared with $422 million, or $1.10 per share, for the 2022 first quarter.

Pre-tax current accident year catastrophic losses for Arch’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, was $79 million.

The combined ratio excluding catastrophic activity and prior year development was 82.2 per cent, compared with 80.8 per cent for the 2022 first quarter.

The book value per common share was $35.35 at March 31, 2023, an 8.4 per cent increase from December 31, 2022.

Gross premiums written by the reinsurance segment in the 2023 first quarter were 43.1 per cent higher than in the 2022 first quarter, while net premiums written were 51.5 per cent higher than in the 2022 first quarter.

Growth in net premiums written reflected increases in most lines of business, due in part to rate increases, new business opportunities and growth in existing accounts.

In addition, the reinsurance segment retained more business in the 2023 first quarter due to a lower level of retrocession activity than in the 2022 first quarter and was impacted by changes in the mix of business.

Gross premiums written by the insurance segment in the 2023 first quarter were 15.1 per cent higher than in the 2022 first quarter, while net premiums written were 19.1 per cent higher than in the 2022 first quarter.

Growth in net premiums written reflected increases in most lines of business, due in part to new business opportunities, increases in existing accounts and rate changes.

The growth in net investment income in the 2023 first quarter primarily reflected the effects of higher interest rates available in the market along with growth in invested assets, which benefited from strong operating cash flows.

Net realised gains were $17 million for the 2023 first quarter, compared with losses of $292 million in the 2022 first quarter, and reflected sales of investments along with the impact of financial market movements on the company’s investment portfolio.