The following tables set forth summary historical consolidated financial and operating data (including the results of the ‘other’ segment) and should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and the related notes.
(U.S. dollars in thousands except share data)
Year Ended December 31,
2017
2016
2015
2014
2013
Statement of Income Data:
Net premiums written
$
4,961,373
$
4,031,391
$
3,817,531
$
3,891,938
$
3,351,367
Net premiums earned
4,844,532
3,884,822
3,733,905
3,593,748
3,145,952
Net investment income
470,872
366,742
348,090
302,585
267,219
Equity in net income (loss) of investment funds accounted for using the equity method
142,286
48,475
25,455
19,883
35,701
Net realized gains (losses)
149,141
137,586
(185,842
)
102,917
74,018
Total revenues
5,627,375
4,463,556
3,936,590
3,988,873
3,526,157
Income before income taxes
757,277
855,552
567,194
844,247
734,770
Net income
$
629,709
$
824,178
$
526,582
$
821,260
$
703,119
Net (income) loss attributable to noncontrolling interests
(10,431
)
(131,440
)
11,156
13,095
—
Net income available to Arch
619,278
692,738
537,738
834,355
703,119
Preferred dividends
(46,041
)
(28,070
)
(21,938
)
(21,938
)
(21,938
)
Loss on redemption of preferred shares
(6,735
)
—
—
—
—
Net income available to Arch common shareholders
$
566,502
$
664,668
$
515,800
$
812,417
$
681,181
Diluted net income per share
$
4.07
$
5.33
$
4.09
$
6.02
$
5.02
Cash dividends per share
—
—
—
—
—
After-tax operating income available to Arch common shareholders (1)
$
447,155
$
577,444
$
565,199
$
617,312
$
589,103
After-tax operating income available to Arch common shareholders per share — diluted (1)
$
3.21
$
4.63
$
4.48
$
4.58
$
4.34
After-tax return on average common equity (2)
7.2
%
10.9
%
8.9
%
14.7
%
13.5
%
After-tax operating return on average common equity (2)
5.7
%
9.4
%
9.7
%
11.2
%
11.7
%
Weighted average common shares and common share equivalents outstanding — diluted (2)
139,261,675
124,717,493
126,038,743
134,922,322
135,777,183
(1)
After-tax operating income available to Arch common shareholders is defined as net income available to Arch common shareholders, excluding net realized gains or losses, net impairment losses included in earnings, equity in net income or loss of investment funds accounted for using the equity method, net foreign exchange gains or losses, UGC transaction costs and other and loss on redemption of preferred shares, net of income taxes. The presentation of after-tax operating income available to Arch common shareholders is a “non-GAAP financial measure” as defined in Regulation G. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—General—Comment on Non-GAAP Financial Measures” for further details.
(2)
Equals after-tax operating income available to Arch common shareholders divided by the average of beginning and ending common shareholders’ equity for each period presented. For the 2016 period, the return on average common shareholders’ equity reflects the weighted impact of the $1.10 billion of convertible non-voting common equivalent preferred shares, which were issued on December 31, 2016 as part of the UGC acquisition.
ARCH CAPITAL
53
2017 FORM 10-K
(U.S. dollars in thousands except share data)
December 31,
2017
2016
2015
2014
2013
Balance Sheet Data:
Total investable assets (1)
$
22,156,488
$
20,493,952
$
16,340,938
$
15,762,730
$
14,049,525
Premiums receivable
1,135,249
1,072,435
983,443
948,695
753,924
Reinsurance recoverables on unpaid and paid losses and loss adjustment expenses
2,540,143
2,114,138
1,867,373
1,812,845
1,804,330
Total assets
32,051,658
29,372,109
23,138,931
21,967,742
19,518,715
Reserves for losses and loss adjustment expenses:
Before unpaid losses and loss adjustment expenses recoverable
11,383,792
10,200,960
9,125,250
9,036,448
8,824,696
Net of unpaid losses and loss adjustment expenses recoverable
8,918,882
8,117,385
7,296,413
7,258,145
7,076,446
Unearned premiums:
Before ceded unearned premiums
3,622,314
3,406,870
2,333,932
2,231,578
1,896,365
Net of ceded unearned premiums
2,695,703
2,547,303
1,906,323
1,854,500
1,568,022
Senior notes
1,732,884
1,732,258
791,306
791,141
790,960
Revolving credit agreement borrowings
816,132
756,650
530,434
100,000
100,000
Total liabilities
21,805,723
20,060,984
16,028,376
14,887,435
13,909,558
Total shareholders’ equity
10,040,013
9,105,572
6,905,373
6,860,795
5,609,157
Total shareholders' equity available to Arch
9,196,602
8,253,718
6,166,542
6,091,714
5,609,157
Preferred shareholders' equity
872,555
772,555
325,000
325,000
325,000
Common shareholders' equity available to Arch
$
8,324,047
$
7,481,163
$
5,841,542
$
5,766,714
$
5,284,157
Common shares and common share equivalents outstanding, net of treasury shares (2)
136,652,139
135,550,337
122,627,783
127,367,934
133,674,884
Book value per share (2) (3)
$
60.91
$
55.19
$
47.64
$
45.28
$
39.53
(1)
This table excludes the collateral received and reinvested and includes the securities pledged under securities lending agreements, at fair value.
(2)
Reflects the impact of outstanding convertible non-voting common equivalent preferred shares which were issued on December 31, 2016 as part of the UGC acquisition.
(3)
Excludes the effects of stock options and restricted stock units.
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