Arch Capital Group reported 2005 fourth-quarter net income of $100.9 million, down 7 percent from $107.1 million in the comparable 2004 period.
The combined ratio for the quarter for the Bermuda-based company improved slightly to 87.2 from 87.8 in the comparable year-ago period.
For the fourth quarter, the company reported $56.9 million for incurred losses related to Hurricane Wilma and an additional $16 million related to third-quarter hurricanes and European floods.
For the full year, the company reported net income of $256 million, compared with $317 million for 2004.
Bank of America Securities analyst Brian Meredith said that as the fastest-growing Bermuda start-up of the “Class of '01,” he rates the company a buy because in addition to its current profitable book of business, “it is well-positioned to take advantage of the hardening property and reinsurance rates in 2006, in our opinion.”
He also noted the fourth-quarter earnings per share figure was more than twice what he anticipated driven by better than expected underwriting results.
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