Press Release: Arch Capital Group Ltd. Reports -4-
Press Release: Arch Capital Group Ltd. Reports -4-
opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company's investments represent other-than-temporary declines in expected recovery values on securities without actual realization. The use of the equity method on certain of the Company's investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company's proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities and the timing of the recognition of equity in net income or loss of investment funds accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments. Transaction costs and other include advisory, financing, legal, severance, incentive compensation and other costs related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company's business performance. The loss on redemption of preferred shares related to the redemption of the Company's Series E preferred shares in September 2021 and had no impact on shareholders' equity or cash flows. Due to these reasons, the Company excludes net realized gains or losses, equity in net income or loss of investment funds accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other from the calculation of after-tax operating income or loss available to Arch common shareholders.
投機取巧。此外，在公司投資收益中確認的信貸損失準備和淨減值損失的變化代表了證券預期回收價值的非暫時性下降，沒有實際實現。公司對某些投資於固定到期日證券的基金的某些投資採用權益法是受這些基金(有限合夥企業或有限責任公司)的所有權結構的影響。在應用權益法時，這些投資最初按成本入賬，隨後根據本公司在基金淨收入或虧損中的比例進行調整(包括基金中相關證券的公允價值變動)。這種會計方法不同於本公司對其其他固定期限證券的會計處理方式，使用權益法核算的投資基金淨收益或虧損中確認權益的時間可能與該等投資出售或到期後未來的損益有所不同。交易成本和其他成本包括諮詢、融資、法律、遣散費、激勵性薪酬和其他與收購相關的成本。該公司認為，交易成本和其他由於其非經常性性質，並不代表公司業務業績的表現或趨勢。優先股贖回虧損與本公司於2021年9月贖回E系列優先股有關，對股東權益或現金流沒有影響。由於這些原因，本公司不包括已實現淨損益、淨收益中的權益或使用權益法核算的投資基金虧損, 淨匯兑損益和交易成本等來自於計算可供ARCH普通股股東使用的税後營業收入或虧損。
The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company's business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company's financial information to analyze the Company's performance in a manner similar to how the Company's management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company's financial information to compare the Company's performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies which follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.
本公司認為，顯示Arch普通股股東可獲得的不包括上述項目的淨收入反映了本公司業務的基本基本面，因為本公司評估其業務表現並對其業務進行管理以產生承保利潤。除了向Arch普通股股東展示可獲得的淨收入外，該公司認為，這種展示使投資者和公司財務信息的其他用户能夠以類似於公司管理層分析業績的方式來分析公司的業績。該公司還認為，這一措施遵循了行業慣例，因此，允許公司財務信息的用户將公司的業績與其行業同行進行比較。本公司相信，追蹤本公司及整個保險業的股票分析師及某些評級機構，基於同樣理由，一般會將該等項目排除在其分析範圍之外。
The Company's segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss before the contribution from the 'other' segment. Such measures represent the pre-tax profitability of its underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company's individual underwriting operations. Underwriting income or loss does not incorporate items included in the Company's corporate (non-underwriting) segment. While these measures are presented in the Segment Information footnote to the Company's Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis and a subtotal before the contribution from the 'other' segment, in accordance with Regulation G, is shown on the following pages.
該公司的分部信息包括綜合承保收入或虧損的列報，以及在“其他”分部貢獻之前的承保收入或虧損小計。這些指標代表其承保業務的税前盈利能力，包括賺取的淨保費加上其他承保收入、減去虧損和虧損調整費用、收購費用和其他運營費用。其他營業費用包括增加的和/或直接歸因於公司個人承銷業務的營業費用。承保損益不包括公司公司(非承保)部門的項目。雖然這些衡量標準在公司合併財務報表的分部信息腳註中列出，但當它們在合併的基礎上在其他地方公佈時，就被視為非GAAP財務衡量標準。承保收入或虧損與所得税前收益(最直接可比的公認會計準則財務指標)的綜合對賬，以及根據規則G規定的“其他”分部的貢獻前的小計，顯示在以下幾頁中。
Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income and other non-underwriting related items are not allocated to each underwriting segment. As noted earlier, the 'other' segment includes the results of Watford through June 30, 2021.
管理層根據承保收入或虧損衡量其三個承保部門的部門業績。本公司並不按承保分部管理其資產，因此，投資收益及其他與承保無關的項目不會分配至各承銷分部。如前所述，“其他”部分包括沃特福德截至2021年6月30日的業績。
Along with consolidated underwriting income, the Company provides a subtotal of underwriting income or loss before the contribution from the 'other' segment and believes that this presentation enables investors and other users of the Company's financial information to analyze the Company's underwriting performance in a manner similar to how the Company's management analyzes performance. Pursuant to GAAP, Watford was considered a variable interest entity and the Company concluded that it was the primary beneficiary of Watford through June 30, 2021. As such, the Company consolidated the results of Watford in its consolidated financial statements. The Company's presentation of information on a 'core' basis enabled investors and other users of the Company's financial information to analyze the Company's performance in a manner similar to how the Company's management analyzed performance. In the 2020 fourth quarter, Arch Capital, Watford, and Greysbridge Ltd., a wholly-owned subsidiary of Arch Capital ("Greysbridge"), entered into an Agreement and Plan of Merger (as amended, the "Merger Agreement") pursuant to which, among other things, Arch Capital agreed to acquire all of the common shares of Watford Holdings Ltd. not owned by Arch. Arch Capital assigned its rights under the Merger Agreement to Greysbridge. The merger and the related Greysbridge equity financing closed on July 1, 2021. Effective July 1, 2021, Watford is wholly owned by Greysbridge and Greysbridge is owned 40% by the Company, 30% by certain investment funds managed by Kelso & Company and 30% by certain investment funds managed by Warburg Pincus LLC. Based on the governing documents of Greysbridge, the Company has concluded that, while it retains significant influence over Greysbridge, Greysbridge does not constitute a variable interest entity of which the Company is the primary beneficiary. Accordingly, effective July 1, 2021, Arch no longer consolidates the results of Watford in its consolidated financial statements and footnotes.
除綜合承保收入外，該公司還提供了“其他”部分貢獻前的承保收入或虧損的小計，並相信這種陳述使投資者和公司財務信息的其他用户能夠以類似於公司管理層分析業績的方式分析公司的承保業績。根據公認會計準則，沃特福德被視為可變利益實體，該公司得出結論認為，截至2021年6月30日，沃特福德是沃特福德的主要受益者。因此，該公司在其合併財務報表中合併了沃特福德的業績。公司在“核心”基礎上提供的信息使投資者和公司財務信息的其他用户能夠以類似於公司管理層分析業績的方式分析公司的業績。在2020年第四季度，Arch Capital、Watford和Arch Capital(“Greysbridge”)的全資子公司Greysbridge Ltd.簽訂了一項合併協議和計劃(經修訂後的“合併協議”)，根據該協議和計劃，Arch Capital同意收購沃特福德控股有限公司(非Arch所有)的全部普通股。Arch Capital根據合併協議將其權利轉讓給Greysbridge。合併和相關的Greysbridge股權融資於2021年7月1日完成。從2021年7月1日起，沃特福德由Greysbridge全資擁有，Greysbridge由公司擁有40%，凱爾索公司管理的某些投資基金擁有30%，Warburg Pincus LLC管理的某些投資基金擁有30%。根據Greysbridge的管理文件，本公司得出結論，雖然Greysbridge仍對Greysbridge具有重大影響力，但Greysbridge並不構成本公司為主要受益人的可變權益實體。據此，自7月1日起生效, 2021年，Arch不再在其合併財務報表和腳註中合併Watford的結果。
In addition, the Company's segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company's management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments.
此外，該公司的部門信息包括保險和再保險部門使用不包括災難性活動和上一年發展的綜合比率，以及抵押部門使用不包括上一年發展的綜合比率。該等比率為規則G所界定的非公認會計原則財務指標。根據規則G，該等指標與合併比率(最直接可比較的公認會計原則財務指標)的協調顯示於個別分部頁面。公司管理層在分析各承保部門的承保業績時，利用調整後的綜合比率，不包括當前事故年的災難性事件和上一年損失準備金的有利或不利發展。
Total return on investments includes investment income, equity in net income or loss of investment funds accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by Arch's investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses, excludes amounts reflected in the 'other' segment, and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company's investment portfolio against benchmark returns during the periods presented.
總投資回報包括採用權益法核算的投資收入、淨收益權益或投資基金虧損、已實現淨損益(不包括非投資相關金融資產的信貸損失撥備變動)以及Arch投資組合產生的未實現損益變動。總回報按税前及投資開支前計算，不包括反映於“其他”分部的金額，並反映金融市場狀況及外幣波動的影響。管理層使用總投資回報作為衡量Arch普通股股東所獲回報的關鍵指標，並將公司投資組合所產生的回報與報告期間的基準回報進行比較。
The following tables summarize the Company's results by segment for the 2021 third quarter and 2020 third quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders:
下表按部門彙總了公司2021年第三季度和2020年第三季度的業績，並對承保收益或虧損與所得税前收益或虧損以及Arch普通股股東可獲得的淨收益或虧損進行了調整：
(U.S. Dollars
in thousands) Three Months Ended
September 30, 2021
-------------------------------------------------------------------------------------------
Insurance Reinsurance Mortgage Sub-total Other Total
-------------- -------------- ------------ ----------------- ------- -----------------
Gross premiums
written (1) $1,596,619 $1,251,760 $360,934 $ 3,207,415 $-- $ 3,207,415
Premiums ceded (442,806) (630,371) (60,207) (1,131,486) -- (1,131,486)
---------- ---------- -------- ------------- --- -------------
Net premiums
written 1,153,813 621,389 300,727 2,075,929 -- 2,075,929
Change in
unearned
premiums (215,143) 57,313 11,238 (146,592) -- (146,592)
---------- ---------- -------- ------------- --- -------------
Net premiums
earned 938,670 678,702 311,965 1,929,337 -- 1,929,337
Other
underwriting
income (loss) -- 3,293 3,981 7,274 -- 7,274
Losses and loss
adjustment
expenses (668,630) (545,846) (11,543) (1,226,019) -- (1,226,019)
Acquisition
(美元)以千計)三個月結束2021年9月30日 ------------------------------------------------------------------------------------------- 保險再保險按揭小計其他合計 -------------- -------------- ------------ ----------------- ------- ----------------- 毛保費書面(1)$1,596,619$1,251,760$360,934$3,207,415$--$3,207,415分得保費(442,806)(630,371)(60,207)(1,131,486)--(1,131,486) ---------- ---------- -------- ------------- --- ------------- 淨保費書面1,153,813 621,389 300,727 2,075,929--2,075,929改變不勞而獲保費(215,143)57,313 11,238(146,592)--(146,592) ---------- ---------- -------- ------------- --- ------------- 淨保費收入938,670 678,702 311,965 1,929,337--1,929,337其他承保收入(虧損)--3,293,981 7,274--7,274損失和損失調整，調整開支(668,630)(545,846)(11,543)(1,226,019)--(1,226,019)採辦
譯文內容由第三人軟體翻譯。