Arch Capital FY Net up 19% to $832 Million; Q4 Down Slightly; Conference Call

The Bermuda-based Arch Capital Group Ltd. reported that net income available to common shareholders for the 2007 fourth quarter was $234.4 million, or $3.31 per share, compared to $239.3 million, or $3.12 per share, for the 2006 fourth quarter.

Net income for the full year was $832.1 million, or $11.28 per share, compared to $692.6 million, or $9.08 per share, for the 2006 period. Arch also reported after-tax operating income available to common shareholders of $220.6 million, or $3.11 per share, for the 2007 fourth quarter, compared to $220.7 million, or $2.88 per share, for the 2006 fourth quarter, and $846.3 million, or $11.47 per share, for the year ended December 31, 2007, compared to $734.9 million, or $9.63 per share, for the 2006 period, a 24.3 percent return on equity.

The Company’ s book value per common share, including the net effect of share repurchases, increased to $55.12 at December 31, 2007 from $43.97 per share at December 31, 2006. Gross and net premiums written for the 2007 fourth quarter were $828.2 million and $577.7 million, respectively, compared to $873.2 million and $601.9 million, respectively, for the 2006 fourth quarter, and $4.14 billion and $2.9 billion, respectively, for the year ended December 31, 2007, compared to $4.28 billion and $3.02 billion, respectively, for the 2006 period.

Arch’s combined ratio was 84.4 percent for the 2007 fourth quarter, compared to 83.0 percent for the 2006 fourth quarter, and 84.1 percent for the year ended December 31, 2007, compared to 85.4 percent for the 2006 period.

The full earnings release and a live web cast of the investors’ conference call may be obtained on the Company’s web site at: http://www.archcapgroup.bm. A telephone replay of the conference call is also available until February 19 at midnight Eastern Time. To access the replay, domestic callers should dial 888-286-8010 (passcode 57998007), and international callers should dial 617-801-6888 (passcode 57998007).

Source: Arch Capital