Arch Capital Group Ltd (NASDAQ:ACGL) stock fell 2.24% (As on February 11, 11:31:35 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that beat analyst expectations. Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $393 million, due in part to Hurricanes Milton and Helene. avorable development in prior year loss reserves, net of related adjustments, of $146 million. Combined ratio excluding catastrophic activity and prior year development of 79.0%, compared to 78.9% for the 2023 fourth quarter. Book value per common share of $53.11 at December 31, 2024, a 6.8% decrease from September 30, 2024 (or a 1.9% increase excluding the impact of the special cash dividend).

Moreover, Gross premiums written by the insurance segment in the 2024 fourth quarter were 28.4% higher than in the 2023 fourth quarter (8.1% excluding the MCE Acquisition), while net premiums written were 34.9% higher than in the 2023 fourth quarter (7.7% excluding the MCE Acquisition). Growth in net premiums written included the impact of the MCE Acquisition and also reflected an increase in property and short-tail specialty and other liability—occurrence due, in part, to new business opportunities and rate changes. Net premiums earned in the 2024 fourth quarter were 33.4% higher than in the 2023 fourth quarter (7.1% excluding the MCE Acquisition), and reflect changes in net premiums written over the previous five quarters. Gross premiums written by the reinsurance segment in the 2024 fourth quarter were 1.5% lower than in the 2023 fourth quarter, while net premiums written were 2.0% higher than in the 2023 fourth quarter. Gross premiums written by the mortgage segment in the 2024 fourth quarter were 5.4% lower than in the 2023 fourth quarter, while net premiums written were 8.6% higher.

ACGL in the fourth quarter of FY 24 has reported the adjusted earnings per share of $2.26, beating the analysts’ estimates for the adjusted earnings per share of $1.84. The company had reported the adjusted revenue growth of 35.9 percent to $4.76 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $4.03 billion.

Looking ahead, Arch expects insured losses from recent California wildfires to be between $35 billion and $45 billion industry-wide, with the company’s share estimated at $450 million to $550 million.