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,
2018
2017
2016
2015
2014
Statement of Income Data:
Net premiums written
$
5,346,747
$
4,961,373
$
4,031,391
$
3,817,531
$
3,891,938
Net premiums earned
5,231,975
4,844,532
3,884,822
3,733,905
3,593,748
Net investment income
563,633
470,872
366,742
348,090
302,585
Equity in net income (loss) of investments accounted for using the equity method
45,641
142,286
48,475
25,455
19,883
Net realized gains (losses)
(405,344
)
149,141
137,586
(185,842
)
102,917
Total revenues
5,450,568
5,627,375
4,463,556
3,936,590
3,988,873
Income before income taxes
841,772
757,277
855,552
567,194
844,247
Net income
$
727,821
$
629,709
$
824,178
$
526,582
$
821,260
Net (income) loss attributable to noncontrolling interests
30,150
(10,431
)
(131,440
)
11,156
13,095
Net income available to Arch
757,971
619,278
692,738
537,738
834,355
Preferred dividends
(41,645
)
(46,041
)
(28,070
)
(21,938
)
(21,938
)
Loss on redemption of preferred shares
(2,710
)
(6,735
)
—
—
—
Net income available to Arch common shareholders
$
713,616
$
566,502
$
664,668
$
515,800
$
812,417
Diluted net income per share
$
1.73
$
1.36
$
1.78
$
1.36
$
2.01
Cash dividends per share
—
—
—
—
—
After-tax operating income available to Arch common shareholders (1)
$
909,190
$
447,155
$
577,444
$
565,199
$
617,312
After-tax operating income available to Arch common shareholders per share — diluted (1)
$
2.20
$
1.07
$
1.54
$
1.49
$
1.53
After-tax return on average common equity (2)
8.4
%
7.2
%
10.9
%
8.9
%
14.7
%
After-tax operating return on average common equity (2)
10.7
%
5.7
%
9.4
%
9.7
%
11.2
%
Weighted average common shares and common share equivalents outstanding — diluted (2)
412,906,478
417,785,025
374,152,479
378,116,229
404,766,966
(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 investments accounted for using the equity method, net foreign exchange gains or losses, 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
54
2018 FORM 10-K
(U.S. dollars in thousands except share data)
December 31,
2018
2017
2016
2015
2014
Balance Sheet Data:
Total investable assets (1)
$
22,324,524
$
22,156,488
$
20,493,952
$
16,340,938
$
15,762,730
Premiums receivable
1,299,150
1,135,249
1,072,435
983,443
948,695
Reinsurance recoverables on unpaid and paid losses and loss adjustment expenses
2,919,372
2,540,143
2,114,138
1,867,373
1,812,845
Total assets
32,218,329
32,051,658
29,372,109
23,138,931
21,967,742
Reserves for losses and loss adjustment expenses:
Before unpaid losses and loss adjustment expenses recoverable
11,853,297
11,383,792
10,200,960
9,125,250
9,036,448
Net of unpaid losses and loss adjustment expenses recoverable
9,039,006
8,918,882
8,117,385
7,296,413
7,258,145
Unearned premiums:
Before ceded unearned premiums
3,753,636
3,622,314
3,406,870
2,333,932
2,231,578
Net of ceded unearned premiums
2,778,167
2,695,703
2,547,303
1,906,323
1,854,500
Senior notes
1,733,528
1,732,884
1,732,258
791,306
791,141
Revolving credit agreement borrowings
455,682
816,132
756,650
530,434
100,000
Total liabilities
21,780,650
21,805,723
20,060,984
16,028,376
14,887,435
Total shareholders’ equity
10,231,387
10,040,013
9,105,572
6,905,373
6,860,795
Total shareholders' equity available to Arch
9,439,827
9,196,602
8,253,718
6,166,542
6,091,714
Preferred shareholders' equity
780,000
872,555
772,555
325,000
325,000
Common shareholders' equity available to Arch
$
8,659,827
$
8,324,047
$
7,481,163
$
5,841,542
$
5,766,714
Common shares and common share equivalents outstanding, net of treasury shares (2)
402,454,834
409,956,417
406,651,011
367,883,349
382,103,802
Book value per share (2) (3)
$
21.52
$
20.30
$
18.40
$
15.88
$
15.09
(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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