Arch Capital Group Ltd. ACGL reported second-quarter 2017 earnings per share of $1.21, beating the Zacks Consensus Estimate of $1.20 by 0.83%. Moreover, earnings improved 7.1% from the year-ago quarter.The second quarter benefited from sturdy performance at the Mortgage segment. Positive impact of the United Guaranty Corporation (“UGC”) buyout and higher net investment income added to the upside. However, soft performance at Insurance and Reinsurance weighed on the upside.Including net realized losses of 13 cents, net impairment losses recognized in earnings of 1 cent, equity in net income loss of investment funds accounted for using the equity method of 24 cents, net foreign exchange (gains) losses of 27 cents, UGC transaction costs of 2 cents and income tax benefit of 3 cents, net income came in at $1.25 per share, down 24% year over year.Arch Capital Group Ltd. Price, Consensus and EPS Surprise Arch Capital Group Ltd. Price, Consensus and EPS Surprise | Arch Capital Group Ltd. QuoteBehind the HeadlinesGross premiums written surged 21% year over year to $1.6 billion. The improvement was primarily fueled by higher premiums written in the Mortgage segment.Net investment income jumped 31% to $92.5 million. The upside was supported by income on the acquired United Guaranty portfolio which was partially offset by high investment expenses.Arch Capital Group’s underwriting income increased 67.6% year over year to $195 million. Combined ratio improved 630 basis points (bps) to 84.6%.Segment ResultInsurance: Gross premiums written declined 2.4% year over year to $743 million due to unfavorable market conditions and reduction in premiums from construction, casualty and property lines.Underwriting loss of $4.5 million compared unfavorably with income of $4.3 million in the year-ago quarter.Combined ratio deteriorated 160 bps to 100.8%.Reinsurance: Gross premiums written in the quarter surged 10% year over year to $453.1 million due to an increase in specialty business pertaining to reinsurance contracts.Underwriting income decreased 73.9% year over year to $18.9 million. Combined ratio deteriorated 1200 bps year over year to 94%.Mortgage: Gross premiums written in the quarter skyrocketed 183.9% year over year to $336.2 million, primarily reflecting growth in insurance force, driven by the acquisition of UGC.Underwriting income increased more than fourfold to $183.6 million. Combined ratio improved 1350 bps year over year to 30.5%.Financial UpdateArch Capital Group exited the second quarter with total capital of $11.13 billion compared with $10.49 at year-end 2016.As of Jun 30, 2017, diluted book value per share was $59.60, up 15.2% year over year.Operating return on equity was 8.5% in the quarter compared with 9.1% in the year ago quarter.Zacks RankArch Capital Group presently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersAmong other players from the insurance industry that have reported their second-quarter earnings, the bottom line at Brown & Brown, Inc. (BRO and Fidelity National Financial, Inc.FNF beat their respective Zacks Consensus Estimate. The Progressive Corporation PGR missed the sameMore Stock News: Tech Opportunity Worth $386 Billion in 2017From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.See these stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Progressive Corporation (The) (PGR): Free Stock Analysis Report Fidelity National Financial, Inc. (FNF): Free Stock Analysis Report Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report Brown & Brown, Inc. (BRO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research