Bermudian re/insurer Arch Capital Group saw net income for the first six months of the year rise 53% to $447.5m, an increase that was fueled in part by a swing to $109.9m in net realized gains from year-earlier losses of $17m and an 89% decline in net impairment losses to $6m. The group also benefitted from the strengthening of the dollar versus the euro, which generated $87.2m in net foreign exchange gains against year-earlier losses of $28.5m. The investment results helped offset a 53% decline in underwriting income to $86.2m. The combined ratio rose to 93.4% from 87%, as earned premiums decreased 7.6% to $1.29bn and claims costs fell only 0.9% to $791.2m. The group's book value per share at end-June stood at $82.07, up 12.4% from the beginning of the year.

Bermudian re/insurer Montpelier Re Holdings has ended the first half of the year with net income of $79.8m, marking a decline of 62% that reflected significant current-year catastrophe losses and prior-year unrealized investment gains. Underwriting income fell 75% to $22.3m, as a more than doubling in claims costs, to $251.3m from $111.5m, erased an 11.6% increase in earned premiums, to $306.8m. Incurred losses included $94m related to the Chilean earthquake, unchanged from its Q1 estimate, and $20m in connection with the explosion and sinking of the Deepwater Horizon oil rig. The group's combined ratio for the six months rose to 92.7% from 67.6%. Montpelier's results also reflected year-ago net unrealized investment gains of $94.7m against gains of just $13.6m this year to date. For Q2, net income was $69.9m, down from $159m a year earlier. Operating earning per share was $1, 22¢ a ahead of a year ago and 37¢ above analysts' forecast. With the better-than-projected quarterly result, CEO Christopher Harris said that Montpelier "produced a strong quarter with solid underwriting results and steady investment performance resulting in 4.9% growth in book value per share".

New York-based reinsurer Transatlantic Holdings saw net earnings for the  first six months of the year fall 33% to $126.4m, as a deterioration in underwriting results offset improved investment returns. On the underwriting side of the ledger, Transatlantic swung into the red, as reflected in the rise in its combined ratio to 101.8% from 94.3%. Net earned premiums fell 1.9% to $1.97bn, while claims costs increased 6.2% to $1.44bn. The increase in incurred losses was fueled in part by $157m in pre-tax catastrophe losses this year versus "minimal" losses a year ago. Partially offsetting the underwriting results, Transatlantic posted a swing to $6.4m in realized net capital gains from year-earlier losses of $86.1m. Investment income increased 3.3% to $228.4m. Commenting on a Q2 in which net income fell 1.5% to $110.5m, president and chief executive Robert Orlich said that "our operations were strong and the impact of 2010 catastrophe events modest", saying that book value increased 2.5% and annualized return on equity was 11%.

Lloyd's insurers Amlin, Beazley, Brit, Catlin, Chaucer and Hiscox are expected by Keefe, Bruyette & Woods analyst Chris Hitchings to post combined pre-tax profits down 13% year on year to about £440m ($679m) for the first half, with the combined ratio rising to 94%, from 86% in H1 2009. Gross written premiums are expected to rise by about 6%. Mr Hitchings said that net claims from Chile and Deepwater Horizon were put at $620m, leading to a $340m impact on previously assumed profit. KBW also anticipates a modest reduction in reserve releases. However, the quirks of International Financial Reporting Standards (IFRS) are likely to help the Lloyd's insurers this half, with currency effects leading to a £76m gain. KBW noted that there had been a progressive softening of prices throughout H1, with the exception of energy. "Decisions on what to do with excess capital are likely to be deferred until after the hurricane season". Brit reports tomorrow, with Catlin posting on August 6. Amlin and Hiscox post H1 numbers on August 23, followed by Chaucer on August 26.