Arch Capital's first-quarter profit halves on California wildfire losses
The results mirror those of peers W R Berkley and Chubb, who also reported a drop in first-quarter profit last week as industry-wide catastrophe losses offset operational gains. California, whose stringent insurance regulation has long frustrated insurers, experienced a series of wildfires earlier this year, resulting in several fatalities and causing estimated economic damage as high as $250 billion. The insurer reported pre-tax catastrophe loss of $547 million, primarily due to the California wildfires.