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,
2019
2018
2017
2016
2015
Statement of Income Data:
Net premiums written
$
6,039,067
$
5,346,747
$
4,961,373
$
4,031,391
$
3,817,531
Net premiums earned
5,786,498
5,231,975
4,844,532
3,884,822
3,733,905
Net investment income
627,738
563,633
470,872
366,742
348,090
Equity in net income (loss) of investments accounted for using the equity method
123,672
45,641
142,286
48,475
25,455
Net realized gains (losses)
366,363
(405,344
)
149,141
137,586
(185,842
)
Total revenues
6,928,200
5,450,568
5,627,375
4,463,556
3,936,590
Income before income taxes
1,849,110
841,772
757,277
855,552
567,194
Net income
$
1,693,300
$
727,821
$
629,709
$
824,178
$
526,582
Net (income) loss attributable to noncontrolling interests
(56,981
)
30,150
(10,431
)
(131,440
)
11,156
Net income available to Arch
1,636,319
757,971
619,278
692,738
537,738
Preferred dividends
(41,612
)
(41,645
)
(46,041
)
(28,070
)
(21,938
)
Loss on redemption of preferred shares
—
(2,710
)
(6,735
)
—
—
Net income available to Arch common shareholders
$
1,594,707
$
713,616
$
566,502
$
664,668
$
515,800
Diluted net income per share
$
3.87
$
1.73
$
1.36
$
1.78
$
1.36
Cash dividends per share
—
—
—
—
—
After-tax operating income available to Arch common shareholders (1)
$
1,162,639
$
909,190
$
447,155
$
577,444
$
565,199
After-tax operating income available to Arch common shareholders per share — diluted (1)
$
2.82
$
2.20
$
1.07
$
1.54
$
1.49
After-tax return on average common equity (2)
16.5
%
8.4
%
7.2
%
10.9
%
8.9
%
After-tax operating return on average common equity (2)
12.0
%
10.7
%
5.7
%
9.4
%
9.7
%
Weighted average common shares and common share equivalents outstanding — diluted (2)
411,609,478
412,906,478
417,785,025
374,152,479
378,116,229
(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—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
2019 FORM 10-K
(U.S. dollars in thousands except share data)
December 31,
2019
2018
2017
2016
2015
Balance Sheet Data:
Total investable assets (1)
$
24,990,265
$
22,324,524
$
22,156,488
$
20,493,952
$
16,340,938
Premiums receivable
1,778,717
1,299,150
1,135,249
1,072,435
983,443
Reinsurance recoverables on unpaid and paid losses and loss adjustment expenses
4,346,816
2,919,372
2,540,143
2,114,138
1,867,373
Total assets
37,885,361
32,218,329
32,051,658
29,372,109
23,138,931
Reserves for losses and loss adjustment expenses:
Before unpaid losses and loss adjustment expenses recoverable
13,891,842
11,853,297
11,383,792
10,200,960
9,125,250
Net of unpaid losses and loss adjustment expenses recoverable
9,809,192
9,039,006
8,918,882
8,117,385
7,296,413
Unearned premiums:
Before ceded unearned premiums
4,339,549
3,753,636
3,622,314
3,406,870
2,333,932
Net of ceded unearned premiums
3,104,866
2,778,167
2,695,703
2,547,303
1,906,323
Senior notes
1,871,626
1,733,528
1,732,884
1,732,258
791,306
Revolving credit agreement borrowings
484,287
455,682
816,132
756,650
530,434
Total liabilities
25,569,809
21,780,650
21,805,723
20,060,984
16,028,376
Total shareholders’ equity
12,260,148
10,231,387
10,040,013
9,105,572
6,905,373
Total shareholders' equity available to Arch
11,497,371
9,439,827
9,196,602
8,253,718
6,166,542
Preferred shareholders' equity
780,000
780,000
872,555
772,555
325,000
Common shareholders' equity available to Arch
$
10,717,371
$
8,659,827
$
8,324,047
$
7,481,163
$
5,841,542
Common shares and common share equivalents outstanding, net of treasury shares (2)
405,619,201
402,454,834
409,956,417
406,651,011
367,883,349
Book value per share (2) (3)
$
26.42
$
21.52
$
20.30
$
18.40
$
15.88
(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 and performance units.
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