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But based on the in-force portfolio that we have currently for the first quarter, I mean, that's kind of how we see the exposure to cat losses. It isn't a football season yet, but with the NFL draft beginning tonight, football was on my mind. This concludes the program. [indiscernible] the acquisitions are concentrated with large money central banks with no significant exposure to U.S. regional banks. I think we spent a lot of time not only providing coverage and policies but finding clients and being a good market leader right now. So there's a lot of scrutiny. Its not -- there's a lot of data that points to -- that validates what kind of price points we're seeing on the D&O side. And even the market gets a bit more competitive. Thank you, Lisa. Arch Capital Group Ltd. (NASDAQ: ACGL) Q4 2022 Earnings Call Transcript February 14, 2023 Operator: Good day, ladies and gentlemen. This article is reserved for subscribers Signed up already? Good morning, and welcome to the fourth quarter earnings call for Arch Capital Group. Good day, ladies and gentlemen. Overall, our underwriting income reflected $126 million of favorable prior year reserve development on a pretax basis or 4.3 points on the combined ratio and was observed across all 3 segments. This period can be lengthy and it usually allows for still profitable growth, especially for the disciplined underwriters. But just curious to the piece, yes, cat loss levels for the industry in the U.S. were way above a normal 1Q. There's a few reasons for that. Would you like to have closing remarks? Turning to risk management. Please disable your ad-blocker and refresh. Yes. Stage two. I mean plus or minus those types of transactions, that's kind of where they -- yes, that's where the combined ratio is on those. So I think that's kind of showing up in our performance over time. How do you kind of think about it when you look at the Florida market? And that goodwill for lack of a better word, really builds upon itself. As the current expected returns, we believe deploying meaningful capacity in our businesses currently represents our best option to maximize returns for the benefit of our shareholders. I think there's more benefit or more improvements that come, but it doesn't all sell up initially. Arch Resources, Inc. ( NYSE: ARCH) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET Company Participants Deck Slone - SVP, Strategy Paul Lang - CEO John Drexler - COO Matt. So we don't really think of loans and forbearance kind of that differently than we look at the other loans, even though we know there's still a few of them in the inventory. And even when we think beyond that, what are you guys concerned about that could derail the uplift that we've seen in the catastrophe reinsurance market? Arch Capital Group Ltd. (NASDAQ: ACGL; "Arch" or "the Company") announces its 2022 third quarter results. Consequently, actual results may differ materially from those expressed or implied. Can you maybe offer some color on the distribution between the various sources, whether it's Turkey or New Zealand floods, the European stores and so on in both reinsurance and insurance? When you're on a quota share basis, youre side by side with a client as opposed to in excess of loss, you need to be relying on your sole pricing to make it work. For more information on the risks and other factors that may affect future performance, investors should review periodic reports that are filed in the company with the SEC from time to time. Second, I think if you look at the property characters, I think the returns have dramatically improved. I mean to keep it at a fairly high level, those are general -- I mean, I consider them to be kind of capital relief, capital support transactions for a variety of reasons. But can you distinguish between pricing in both reinsurance and insurance on property and more of the cat-exposed business versus the casualty lines? Adjusted EBITDA . But again, like I said, we're later in the stage of the [indiscernible]. At the end of the quarter, over 80% of our net reserves at U.S. MI are from post-COVID accident periods. Arch Capital Group Ltd. ( NASDAQ: ACGL) Q4 2022 Results Conference Call February 14, 2023 11:00 AM ET Company Participants Marc Grandisson - CEO Francois Morin - CFO Conference Call. They are across -- you saw it in our line of business, they did hit multiple of our lines of business. So how would that compare and you see momentum the same or better since January? Arch Capital Group Ltd. reports net income available to Arch common shareholders of $705 million, or $1.87 per share, a 22.3% annualized net income return on average common equity, compared to $186 million, or $0.48 per share, for the 2022 first quarter. So the way we operate and the way we put our reserving or loss ratio you won't be surprised to hear from us is we tend to take a prudent stance. Our P&C underwriting teams continue to lean into attractive market conditions were excellent risk-adjusted returns remain available, growing net premiums written by 35% over the same period last year. Cat pricing and terms both improved, leading to effective rate changes in the plus 30% to plus 50% range. Reinsurance typically react more quickly to the changing environment and primary insurance, and we are witnessing this phenomenon in these early stages of improvement in the property market. I'm not seeing any further questions. Our next question comes from the line of Yaron Kinar with Jefferies. First with P&C. Where would you feel comfortable taking it if the market environment remains favorable? Yes. I think it took a little bit to the market to digest in and to what it means for the overall market. Is this happening to you frequently? But is the momentum is there, clearly. I hope this one covered. Which will then lead to obviously further improvement from the distance as a reinsurer. I mean it's hard to imagine, Elyse. You had very high cues. And welcome to Arch Capital Group Fourth Quarter. Our game plan is to look at the trend and look at the rate level on a quarterly basis, modified if we have a good reason to modify it. And we're pretty good security, Josh. One, the delinquency rates are still very low. The investment management company reported $0.57 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by $0.02. But I think the pickup between the trend and the rate is anywhere between to depending on the line of business. Because I think you've been running at kind of mid-90s. Well, thank for the fulsome answers. And again, we think we have strong balance sheet and capital to support them. For the quarter, we reported after-tax operating income of $1.73 per share for an annualized operating return on average common equity of 20.7%. So a couple of factors were, basically, we're just following effectively the fortunes of the companies. But the more acute the cat need, the more acute in the key zones of capacity demand the higher the pricing. I'm just curious if the discipline there is dissipating a bit more versus reinsurance? With new money rates in our fixed income portfolio holding relatively flat in the 4.5% to 5% range, we should see further improvement in our net investment income returns in the coming quarters. Presentations Citi's 2022 Basic Materials Conference Presentation. where we continue to reap the benefits of the investments we've made in enhancing our specialty businesses in the UK and in the US. Most of our lines of business still benefit from excellent market conditions, both in the US and internationally, and our expectations for the coming year remain very positive. Happy Valentine's Day to all. Thank you, Marc, and good morning to all, and thanks for joining us today. Or does the fact that it pertains to -- well, let me stop there. Should we expect to kind of the expected cat ratio to be higher? I mean it's just the reality of the business we've had this quarter. It's early. My first question, Marc, in your introductory comments, you said that we're in the early stages of improvement in the property market, right? Just quickly. Over the last four years, we've grown property and casualty net premium written threefold to nearly $10 billion from less than $3.6 billion in 2018, while overall rates increased cumulatively by over 40%. So it's -- if there -- we know it's there. In our insurance segment, we continue to take advantage of favorable market conditions. Brilliant. The reconciliation to GAAP for each non-GAAP financial measure can be found in the company's current report on Form 8-K furnished on the SEC yesterday, which contains the company's earnings press release and is available on the company's website and on the SEC's website. Wouldn't that triangulate into margin improvement coming through in the reinsurance book in 2023? 2022 was our third consecutive year of sustained premium and revenue growth, supporting stronger and more stable earnings power for the near term. [Operator Instructions]. So there is definitely less banked for those years to get the right number, the right loss ratio pick. Both these metrics provide some insight into the adequacy of our loss reserves, which constitute an important element in the quality of our balance sheet. I'll stick with the primary insurance segment, given I feel like most of the questions will probably be on reinsurance. Transcript : Arch Capital Group Ltd., Q3 2022 Earnings Call, Oct 27, 2022 10/27/2022 | 11:00am EDT Good day, ladies and gentlemen, and welcome to the Third Quarter 2022 Arch [ Soft ] Capital Group Earnings Conference Call. We most likely have more things to improve on the portfolio. But obviously, the returns there don't show up in investment income. So yes, you saw a little bit of movement on both the loss ratio and the combined ratio impact on the ex cat accident year loss ratio was 2.2 points. We wouldn't be growing that level if we didn't think that the returns were in our favor. But again, the smaller D&Os are not the big ticket items that you would expect, but a lot of them are going to be not for profit small policy. Next, our mortgage team, again, had an acceptable quarter, capping off an excellent year. And while the obviously, what's in front of you is just the underwriting part of it. Arch Resources, Inc. 1 CityPlace Drive, Suite 300 St. Louis, MO 63141. These profits allowed us to redeploy capital into more accretive uses, including $2 billion worth of share repurchases since 2018 and the substantial growth in profitable P&C premium. I think the biggest one for us was we had $25 million loss in Turkey, which is kind of what we do. First, we wonder where you were, so good to see you there. Net premium written by our reinsurance segment grew by an exceptional 118% over same quarter last year. People want to deal with us, we're good for their money. This quarter demonstrates the power of our strategy, namely our management of the underwriting cycle across the diversified specialty portfolio with a prudent reserving and underwriting stance. Quarterly Results - Arch Capital Group Ltd. Yes. But we think the segments, the fundamentals underlying each of the three segments are still very good and they can actually still deliver very healthy results. The bottom line increased 68.5% year over year. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I was looking at the investment return. Do you like to play quota share? Last number we heard on the primary side, we're looking at pricing depending on the cat exposed, obviously, is more acute, but rate increases 40% to 50% plus, definitely, and a little bit less if you're intercoastal, if you win in land, it's many 10% to 15% increase. It's just a realization that this is maybe a likely riskier environment than we were in like a year or two years ago, and our reserves are going to reflect that. More importantly, the underlying performance of the segment this quarter was very good with an ex-cat accident year combined ratio of 82.9% and a de minimis impact from current accident year capacity losses. Overall, the P&C environment continues to offer plenty of opportunities as evidenced by our growth. Arch Capital Group Ltd ( ACGL -0.11%) Q2 2021 Earnings Call Jul 29, 2021, 11:00. For the first quarter, reinsurance cat net premiums written roughly doubled over the last -- over the same period in '22. So there, they're pretty good at picking and choosing their spot in that basis. And I remind you, Tracy that the Tri-County renewal is going to be more important and more apparent at the June 1 renewal. And we have grown our presence in alternative in the last few years, and that's something that -- and for us alternatives is, call it, more right structure kind of investments, and that's where we see the better opportunity and we've been pretty aggressive in growing the money there.