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.