Arch Capital Group Ltd. (NASDAQ:ACGL) stock rose 1.39% (As on February 14, 11:10:06 AM UTC-4, Source: Google Finance) after the company beats the earnings expectations for the fourth quarter of FY 22. Net income available to Arch common shareholders of $849.5 million, or $2.26 per share, a 29.5% annualized net income return on average common equity, compared to $613.1 million, or $1.58 per share, for the 2021 fourth quarter. After-tax operating income available to Arch common shareholders of $805.9 million, a 28.0% annualized operating return on average common equity, compared to $493.3 million, for the 2021 fourth quarter. Combined ratio excluding catastrophic activity and prior year development of 82.0%, compared to 80.1% for the 2021 fourth quarter. Favorable development in prior year loss reserves, net of related adjustments of $270.1 million. Book value per common share of $32.62 at December 31, 2022, a 9.9% increase from September 30, 2022

Moreover, gross premiums written by the insurance segment in the 2022 fourth quarter were 10.6% higher than in the 2021 fourth quarter while net premiums written were 17.4% higher than in the 2021 fourth quarter. 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. In addition, the insurance segment is retaining more business due to ongoing changes in its reinsurance programs, as well as higher levels of growth in lines with a higher retention rate. Net premiums earned in the 2022 fourth quarter were 24.0% higher than in the 2021 fourth quarter, and reflect changes in net premiums written over the previous five quarters. Gross premiums written by the reinsurance segment in the 2022 fourth quarter were 77.4% higher than in the 2021 fourth quarter, while net premiums written were 117.6% higher than in the 2021 fourth quarter. The comparison of gross and net premiums written in the 2022 fourth quarter were affected by a few non-recurring transactions, primarily impacting the other specialty line of business. Gross premiums written by the mortgage segment in the 2022 fourth quarter were 2.3% lower than in the 2021 fourth quarter, while net premiums written were 5.1% lower.

ACGL in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.14, beating the analysts’ estimates for the adjusted earnings per share of $1.34, according to Zacks Investment Research. The company had reported the adjusted revenue of $2.95 billion in the fourth quarter of FY 22.