Bermuda Insurers See 2Q Earnings Rise Sharply.
NU Online News Service, July 26, 3:37 p.m. EDT
Two Bermuda insurers reported positive earnings for the second quarter of this year, with substantially better earnings over last year.
Hamilton, Bermuda-based Arch Capital Group Ltd. says second-quarter net income of rose 128 percent, or $124 million, to $220 million. Revenues rose 16 percent, or $114 million, to $820 million.
For the first six months of the year, net income rose by $262 million to $385 million. Revenues during the period increased 14 percent, or $213 million, to $1.7 billion.
The company's second-quarter combined ratio dropped 12.8 points to 87.2 and improved 16.5 points to 88.6 for the first half of the year.
Arch also announced several management changes. John C.R. Hele, chief financial officer, will be leaving the company to join another financial services firm. Mark D. Lyons was named the new CFO effective Sept. 1.
Hele indicated during a conference call today with financial analysts that he was not moving to another insurance company.
David McElroy will succeed Lyons as chairman and cheif executive officer of Arch Worldwide Insurance Group.
Michael R. Murphy was named president of Arch Insurance Group (U.S.) and the Chief Underwriting Officer of Arch Worldwide.
The company also announced the formation of an executive strategy committee that will consist of Constantine "Dinos" Iordanou, chairman, president and CEO of Arch; Marc Grandisson, chairman and CEO of Arch Worldwide Reinsurance Group; Nicolas Papadopoulo, president and CEO of Arch Reinsurance Ltd.; and Lyons, McElroy and Murphy. The committee's aim is "to capitalize on strategic opportunities and oversee operational expansion."
Another Hamilton, Bermuda-based insurer, Everest Re Group Ltd., says second quarter net income rose 63 percent, or more than $83 million, to $215 million. Revenues were up slightly by less than 1 percent, or $5 million, to $1.18 billion.
For the first six months of this year, the company improved from a net loss of $185 million last year to net income of $519 million.
In a statement, Joseph V. Taranto, Everest Re chairman and chief executive officer, says, "This has been an exceptional year" through the first six months.
This story was updated at 4:42 p.m. EDT concerning management changes at Arch.
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|Publication:||Property and Casualty 360|
|Date:||Jul 26, 2012|
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