Arch Capital Group Ltd (ACGL)

Arch Capital Group Ltd. Announces $2,000,000,000 Public Offering of Senior NotesJune 2, 2026 5:32 PM
Business Wire Arch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or the “Company”) announced today the pricing of its offering of $600,000,000 aggregate principal amount of 5.250% senior notes due 2036 (the “2036 Notes”) and $1,400,000,000 aggregate principal amount of 5.950% senior notes due 2056 (the “2056 Notes” and, together with the 2036 Notes, the “Notes”). The Company intends to use the net proceeds of this offering (i) to redeem, repurchase, repay or otherwise retire the outstanding $500,000,000 aggregate principal amount of 4.011% Senior Notes due 2026 issued by Arch Capital Finance LLC (“Arch Finance”), (ii) to pay the tender price of the previously announced tender offers through its wholly-owned subsidiaries, Arch Capital Group (U.S.) Inc. (“Arch Capital Group”) and Arch Finance for Arch Capital Group’s 5.144% Senior Notes due 2043 (the “2043 Notes”) and Arch Finance’s 5.031% Senior Notes due 2046 (the “2046 Notes”, and together with the 2043 Notes, the “Tender Offer Notes”), and (iii) the balance, if any, for general corporate purposes. The offering is expected to close on June 9, 2026, subject to the satisfaction of customary closing conditions. The offering is being led by Wells Fargo Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and Lloyds Securities Inc., as active joint book-running managers. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, including the Notes and Tender Offer Notes, in any jurisdiction in which the offer, solicitation or sale is not permitted. The offering is being made pursuant to the Company’s effective shelf registration statement previously filed with the Securities and Exchange Commission. This offering may be made only by means of a prospectus, including a preliminary prospectus supplement, forming a part of the effective registration statement. You may obtain a copy of the preliminary prospectus supplement, the final prospectus supplement, when available, and accompanying prospectus from the Securities and Exchange Commission at www.sec.gov. Alternatively, the underwriters may arrange to send you these documents if you request them by contacting Wells Fargo Securities, LLC toll-free at 1-800-645-3751 or by email at wfscustomerservice @Georgia Bard-294-1322 or by email at dg.prospectus_requests @pcjockey-834-4533; or Lloyds Securities Inc. at 1-212-930-8956 or by email at NALSIBondSyndicate@lbusa.com. About Arch Capital Group Ltd. Arch Capital Group Ltd. (Nasdaq: ACGL) is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 Index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries. Cautionary Note Regarding Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and the Company’s ability to maintain and improve its ratings; investment performance; the loss of key personnel; the adequacy of the Company’s loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events, including the effect of contagious diseases on our business; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters; ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses the Company has acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to the Company of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to the Company; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; and the other matters set forth under ITEM 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of our 2025 10-K, as well as the other factors set forth in our other documents on file with the SEC, and management’s response to any of the aforementioned factors. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward-looking statements attributable to us or persons acting on the Company’s behalf are expressly qualified in their entirety by these cautionary statements. The Company’s forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Source: Arch Capital Group Ltd.
arch-corporate View source version on businesswire.com: https://www.businesswire.com/news/home/20260602139120/en/ Media Contact: Greg Hare — ghare@archgroup.com Original: Arch Capital Group Ltd. Announces $2,000,000,000 Public Offering of Senior Notes

Arch Capital Group Ltd. Announces Cash Tender Offers to Purchase up to a Capped Amount of Certain of Its Subsidiaries’ Debt SecuritiesJune 2, 2026 8:54 AM
Business Wire Arch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or the “Company”) today announced that its wholly-owned subsidiaries, Arch Capital Group (U.S.) Inc. (the “2043 Notes Offeror”) and Arch Capital Finance LLC (the “2046 Notes Offeror” and, together with the 2043 Notes Offeror, the “Offerors”), commenced cash tender offers (the “Tender Offers”) to purchase the outstanding debt securities listed in the table below (collectively, the “Notes” and each a “Series” of Notes) for an aggregate purchase price of up to $350,000,000 (the “Maximum Amount”), in the order of priority shown in the table below. The terms and conditions of the Tender Offers are described in an Offer to Purchase dated June 2, 2026 (as it may be amended or supplemented, the “Offer to Purchase”). Capitalized terms used in this press release and not defined herein have the meanings given to them in the Offer to Purchase. Title of Security   CUSIP / ISIN(1)     Original Issuer Aggregate Principal Amount Outstanding   Acceptance Priority Level(2)   Reference U.S. Treasury Security   Bloomberg Reference Page(3)     Early Tender Premium (per $1,000) Fixed Spread (basis points)(4) 5.144% Senior Notes due 2043   03938JAA7 / US03938JAA79   Arch Capital Group (U.S.) Inc. $500,000,000   1   5.00% U.S. Treasury due May 15 2046   FIT1   $50 +55 bps 5.031% Senior Notes due 2046   03939CAB9 / US03939CAB90   Arch Capital Finance LLC $450,000,000   2   5.00% U.S. Treasury due May 15 2046   FIT1   $50 +55 bps ________________ (1) No representation is made as to the correctness or accuracy of the CUSIP/ISIN numbers listed in this press release, the Offer to Purchase or printed on the Notes. They are provided solely for convenience. (2) The Maximum Amount of Notes that may be purchased in the Tender Offers is the aggregate amount of Notes that will not result in the Aggregate Purchase Price for Notes validly tendered and accepted for purchase pursuant to the Tender Offers exceeding the Maximum Amount. The Offerors reserve the right, in their sole discretion, subject to applicable law, to increase or decrease the Maximum Amount, but there can be no assurance that the Offerors will do so. Notes accepted for purchase on any Settlement Date will be accepted in accordance with their Acceptance Priority Levels set forth herein (with “1” being the highest Acceptance Priority Level and “2” being the lowest Acceptance Priority Level). The Offerors will only accept for purchase Notes up to an aggregate principal amount that will not result in the Aggregate Purchase Price to exceed the Maximum Amount. (3) The Bloomberg Reference Page is provided for convenience only. To the extent any Bloomberg Reference Page changes prior to the Price Determination Date (as defined below), the Dealer Managers (as defined herein) will quote the applicable Reference Treasury Security from the updated Bloomberg Reference Page. (4) Includes the Early Tender Premium of $50 per $1,000 principal amount of Notes for each Series (the “Early Tender Premium”) as set forth in the Offer to Purchase, which will be paid in addition to the Total Tender Offer Consideration or Late Tender Offer Consideration, as applicable. The Tender Offers are subject to the satisfaction of certain conditions as set forth in the Offer to Purchase, including the consummation of the Company’s offering of one or more series of new notes (the “New Notes”) on or prior to the applicable Settlement Date (the “Financing Condition”). Subject to applicable law, the Offerors may waive any and all of these conditions or extend, terminate or withdraw the Tender Offers with respect to one or more Series of Notes or increase or decrease the Maximum Amount, including on or after the Price Determination Date. The Tender Offers are not conditioned upon any minimum amount of Notes being tendered and the offering of the New Notes is not conditioned on the consummation of the Tender Offers or the tender of any specific amount of Notes. The amounts of each Series of Notes that are purchased in each Tender Offer will be determined in accordance with the priorities identified in the column Acceptance Priority Level in the table above. The Tender Offers will expire at 5:00 p.m., New York City time, on July 1, 2026, unless extended (such date and time, as the same may be extended, the “Expiration Date”) or earlier terminated. In order to receive the applicable Total Tender Offer Consideration, holders of Notes subject to each Tender Offer must validly tender and not validly withdraw their Notes before the Early Tender Deadline, which is 5:00 p.m., New York City time, on June 15, 2026, unless extended. Holders of Notes subject to the Tender Offers who validly tender their Notes after the Early Tender Deadline and before the Expiration Date and whose Notes are accepted for purchase will receive the applicable Late Tender Offer Consideration. The applicable Total Tender Offer Consideration for each $1,000 in principal amount of Notes tendered and not withdrawn before the Early Tender Deadline and accepted for payment pursuant to the Tender Offers will be determined in the manner described in the Offer to Purchase. The consideration will be determined by reference to a fixed spread specified for each Series of Notes over the yield based on the bid-side price of the applicable Reference U.S. Treasury Security specified in the table above, as fully described in the Offer to Purchase. The consideration will be calculated by the Dealer Managers for the Tender Offers at 10:00 a.m., New York City time, on the business day immediately following the Early Tender Deadline, unless extended (such date and time, as the same may be extended, the “Price Determination Date”). The Price Determination Date is expected to be June 16, 2026. The Early Tender Premium for each Series of Notes is $50 per $1,000 principal amount of Notes. The “Late Tender Offer Consideration” for the Notes purchased pursuant to the Tender Offers will be calculated by taking the Total Tender Offer Consideration for the applicable Series of Notes and subtracting from it the Early Tender Premium of $50 per $1,000 principal amount of Notes. In addition to the applicable Total Tender Offer Consideration or applicable Late Tender Offer Consideration, as the case may be, applicable accrued and unpaid interest up to, but not including, the applicable Settlement Date (“Accrued Interest”) will be paid in cash on all validly tendered Notes accepted for purchase in the Tender Offers. The Company may elect to pay the purchase price plus applicable Accrued Interest for Notes that are validly tendered and not validly withdrawn on or before the Early Tender Deadline and accepted for purchase following the Early Tender Deadline but prior to the Final Settlement Date (as defined below) (such date, an “Early Settlement Date”). If the Company elects to have an Early Settlement Date, it will accept up to the Maximum Amount of Notes validly tendered (subject to proration) at or prior to the Early Tender Deadline. If the Company elects to have an Early Settlement Date, the Company expects such Early Settlement Date to be the third business day after the Early Tender Deadline. The purchase price plus applicable Accrued Interest for Notes that are validly tendered before the Expiration Date and accepted for purchase that are not purchased on an Early Settlement Date will be paid by the Company in same day funds promptly following the Expiration Date (the “Final Settlement Date”). The Company expects that the Final Settlement Date will be the third business day after the Expiration Date, assuming Notes representing an aggregate principal amount that will result in an Aggregate Purchase Price equal to the Maximum Amount are not purchased on an Early Settlement Date. No tenders will be valid if submitted after the Expiration Date. If Notes are validly tendered and not validly withdrawn having an aggregate principal amount that will result in an Aggregate Purchase Price equal to or greater than the Maximum Amount as of the Early Tender Deadline, Holders who validly tender Notes after the Early Tender Deadline but on or before the Expiration Date will not have any of their Notes accepted for purchase. Holders of Notes subject to the Tender Offers who validly tender their Notes on or before the Early Tender Deadline may not withdraw their Notes after 5:00 p.m., New York City time, on June 15, 2026, unless extended (such date and time, as the same may be extended, the “Withdrawal Deadline”), except in the limited circumstances described in the Offer to Purchase. Holders of Notes subject to the Tender Offers who validly tender their Notes after the Withdrawal Deadline but on or before the Expiration Date may not withdraw their Notes except in the limited circumstances described in the Offer to Purchase. Accordingly, all 2043 Notes having an Acceptance Priority Level 1 validly tendered at or before the Early Tender Deadline will be accepted before any 2046 Notes having a lower Acceptance Priority Level 2 tendered at or before the applicable Early Tender Deadline are accepted in the Tender Offers, and all 2043 Notes validly tendered after the Early Tender Deadline will be accepted before any 2046 Notes tendered after the Early Tender Deadline having a lower Acceptance Priority Level are accepted in the Tender Offers. If the aggregate principal amount of 2043 Notes validly tendered at or before the Early Tender Deadline results in an Aggregate Purchase Price that equals or exceeds the Maximum Amount, the Offerors will not accept for purchase any 2046 Notes tendered (either before or after the Early Tender Deadline) unless the Maximum Amount is increased. Any Notes tendered on or prior to the Early Tender Deadline and accepted for purchase will be accepted on a prorated basis up to the Maximum Amount (subject to rounding down to nearest $1,000 principal amount of Notes). However, if the Aggregate Purchase Price of the 2043 Notes validly tendered and not validly withdrawn is less than the Maximum Amount as of the Early Tender Deadline, any 2046 Notes validly tendered and not validly withdrawn before the Early Tender Deadline will be accepted on a prorated basis up to the Maximum Amount (subject to rounding down to the nearest $1,000 principal amount of Notes), even if 2043 Notes tendered after the Early Tender Deadline have a higher Acceptance Priority Level than 2046 Notes validly tendered and not validly withdrawn before the Early Tender Deadline. From time to time, the Offerors, the Company or any of their respective affiliates may purchase additional Notes in the open market, in privately negotiated transactions, through tender offers or otherwise, or may redeem Notes pursuant to the terms of the applicable indenture governing a Series of Notes. Any future purchases or redemptions may be on the same terms or on terms that are more or less favorable to Holders of Notes than the terms of the Tender Offers. Any future purchases by the Offerors, the Company or any of their respective affiliates will depend on various factors existing at that time. There can be no assurance as to which, if any, of these alternatives (or combinations thereof) the Offerors, the Company or any of their respective affiliates may choose to pursue in the future. The effect of any of these actions may directly or indirectly affect the price of any Notes that remain outstanding after the consummation or termination of the Tender Offer. Notwithstanding any other provision of the Tender Offers, the Offerors will not be obligated to accept for purchase, and pay for, validly tendered Notes of any Series pursuant to the Tender Offers if the General Conditions and the Financing Condition have not been satisfied, or waived by the Offeror, with respect to such Series of Notes. Wells Fargo Securities, LLC and BofA Securities, Inc. are serving as Dealer Managers for the Tender Offers. Global Bondholder Services Corporation is the Tender and Information Agent. Persons with questions regarding the Tender Offers should contact Wells Fargo Securities, LLC at (866) 309-6316 (toll-free) or at (704) 410-4820 (collect) or BofA Securities, Inc. at (888) 292-0070 (toll-free) or at (980) 388-0539 (collect). Questions regarding the tendering of Notes and requests for copies of the Offer to Purchase and related materials should be directed to Global Bondholder Services Corporation at (212) 430-3774 (banks and brokers) or (855) 654-2015 (toll-free), in writing at 65 Broadway – Suite 404, New York, New York 10066 or by email at contact@gbsc-usa.com. This press release is neither an offer to purchase nor a solicitation of an offer to sell the Notes. The Tender Offers are made only by the Offer to Purchase and the information in this press release is qualified by reference to the Offer to Purchase. There is no separate letter of transmittal in connection with the Offer to Purchase. None of the Offerors, Company, their respective board of directors or managers, the Dealer Managers, the Tender and Information Agent or the trustees with respect to any Notes is making any recommendation as to whether holders should tender any Notes in response to the Tender Offers, and none of the Offerors, the Company nor any such other person has authorized any person to make any such recommendation. Holders must make their own decision as to whether to tender any of their Notes, and, if so, the principal amount of Notes to tender. About Arch Capital Group Ltd. Arch Capital Group Ltd. (Nasdaq: ACGL) is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 Index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries. Cautionary Note Regarding Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and the Company’s ability to maintain and improve its ratings; investment performance; the loss of key personnel; the adequacy of the Company’s loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events, including the effect of contagious diseases on our business; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters; ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses the Company has acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to the Company of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to the Company; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; and the other matters set forth under ITEM 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of our 2025 10-K, as well as the other factors set forth in our other documents on file with the SEC, and management’s response to any of the aforementioned factors. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward-looking statements attributable to us or persons acting on the Company’s behalf are expressly qualified in their entirety by these cautionary statements. The Company’s forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Source: Arch Capital Group Ltd.
arch-corporate View source version on businesswire.com: https://www.businesswire.com/news/home/20260602771906/en/ Media Contact: Greg Hare — ghare@archgroup.com Original: Arch Capital Group Ltd. Announces Cash Tender Offers to Purchase up to a Capped Amount of Certain of Its Subsidiaries’ Debt Securities

Arch Capital Group Ltd. Reports 2025 Fourth Quarter ResultsFebruary 9, 2026 4:25 PM
Business Wire
Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2025 fourth quarter results. The results included:



Net income available to Arch common shareholders of $1.2 billion, or $3.35 per share, representing a 21.2% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $925 million, or $2.42 per share, for the 2024 fourth quarter.


After-tax operating income available to Arch common shareholders(1) of $1.1 billion, or $2.98 per share, representing an 18.9% annualized operating return on average common equity(1), compared to $866 million, or $2.26 per share, for the 2024 fourth quarter.


Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $164 million.


Favorable development in prior year loss reserves, net of related adjustments, of $118 million.


Combined ratio excluding catastrophic activity and prior year development(1) of 79.5%, compared to 79.0% for the 2024 fourth quarter.


Share repurchases of $798 million.


Book value per common share of $65.11 at December 31, 2025, a 4.5% increase from September 30, 2025.



“Our 2025 financial performance was outstanding, once again demonstrating the value of our diversified platform and our ability to effectively execute our cycle management strategy. I want to thank each of our 8,000+ employees for making these fantastic results possible,” Arch CEO Nicolas Papadopoulo said. “We enter 2026 with optimism in our ability to continue delivering superior results for our shareholders.”


All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results:




(U.S. Dollars in millions)






 






Three Months Ended December 31,








 






 






 






2025






 






 






2024






 






% Change








Gross premiums written






 






$






4,809






 






$






4,756






 






1.1








Net premiums written






 






 






3,649






 






 






3,819






 






(4.5)








Net premiums earned






 






 






4,255






 






 






4,143






 






2.7








Underwriting income






 






 






827






 






 






625






 






32.3








Underwriting Ratios






 






 






 






 






 






% Point

Change








Loss ratio






 






 






53.6%






 






 






57.5%






 






(3.9)








Underwriting expense ratio (2)






 






 






27.0%






 






 






27.5%






 






(0.5)








Combined ratio






 






 






80.6%






 






 






85.0%






 






(4.4)








 






 






 






 






 






 






 








Combined ratio excluding catastrophic activity and prior year development (1)






 






 






79.5%






 






 






79.0%






 






0.5









(1)







See ‘Comments on Non-GAAP Financial Measures’ for further details.








 







 








(2)







The ‘Underwriting expense ratio’ for the 2025 period includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.







The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see ‘Comments on Non-GAAP Financial Measures’ for further details):




(U.S. Dollars in millions, except per share data)






Three Months Ended








 






December 31,








 






 






2025






 






 






2024








Net income available to Arch common shareholders






$






1,228






 






$






925








Net realized (gains) losses (1)






 






(22)






 






 






161








Equity in net (income) of investments accounted for using the equity method






 






(155)






 






 






(143)








Net foreign exchange (gains) losses






 






6






 






 






(106)








Transaction costs and other






 






26






 






 






26








Income tax expense (benefit) (2)






 






9






 






 






3








After-tax operating income available to Arch common shareholders






$






1,092






 






$






866








 






 






 






 








Diluted per common share results:






 






 






 








Net income available to Arch common shareholders






$






3.35






 






$






2.42








Net realized (gains) losses (1)






 






(0.06)






 






 






0.41








Equity in net (income) of investments accounted for using the equity method






 






(0.42)






 






 






(0.37)








Net foreign exchange (gains) losses






 






0.02






 






 






(0.28)








Transaction costs and other






 






0.07






 






 






0.07








Income tax expense (benefit) (2)






 






0.02






 






 






0.01








After-tax operating income available to Arch common shareholders






$






2.98






 






$






2.26








 






 






 






 








Weighted average common shares and common share equivalents outstanding — diluted






 






366.6






 






 






382.8








 






 






 






 








Beginning common shareholders’ equity






$






22,889






 






$






21,444








Ending common shareholders’ equity






 






23,376






 






 






19,990








Average common shareholders’ equity






$






23,133






 






$






20,717








 






 






 






 








Annualized net income return on average common equity






 






21.2%






 






 






17.9%








Annualized operating return on average common equity






 






18.9%






 






 






16.7%









(1)







Net realized gains or losses include realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries.








 







 








(2)







Income tax expense (benefit) on net realized gains or losses, equity in net income of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.







Segment Information


The following section provides analysis on the Company’s 2025 fourth quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated December 31, 2025. On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (“MCE Acquisition”). The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see ‘Comments on Non-GAAP Financial Measures’ for further details).


Insurance Segment




 






Three Months Ended December 31,








(U.S. Dollars in millions)






 






2025






 






 






2024






 






% Change








 






 






 






 






 






 








Gross premiums written






$






2,542






 






$






2,484






 






2.3








Net premiums written






 






1,876






 






 






1,954






 






(4.0)








Net premiums earned






 






1,973






 






 






1,933






 






2.1








Other underwriting income






 






11






 






 






—






 






n/m








 






 






 






 






 






 








Underwriting income






$






119






 






$






30






 






296.7








 






 






 






 






 






 








Underwriting Ratios






 






 






 






 






% Point

Change








Loss ratio






 






60.6%






 






 






66.3%






 






(5.7)








Underwriting expense ratio






 






33.4%






 






 






32.2%






 






1.2








Combined ratio






 






94.0%






 






 






98.5%






 






(4.5)








 






 






 






 






 






 








Catastrophic activity and prior year development:






 






 






 






 






 








Current accident year catastrophic events, net of reinsurance and reinstatement premiums






 






3.3%






 






 






8.3%






 






(5.0)








Net (favorable) adverse development in prior year loss reserves, net of related adjustments






 






 






 






 






 








Loss ratio impact






 






(0.2)%






 






 






(0.3)%






 






0.1








Underwriting expense ratio impact






 






0.1%






 






 






0.2%






 






(0.1)








Total impact






 






(0.1)%






 






 






(0.1)%






 






—








 






 






 






 






 






 








Combined ratio excluding catastrophic activity and prior year development






 






90.8%






 






 






90.3%






 






0.5







Gross premiums written by the insurance segment in the 2025 fourth quarter were 2.3% higher than in the 2024 fourth quarter, while net premiums written were 4.0% lower than in the 2024 fourth quarter. In North America, we grew our gross premiums written in long-tail lines such as other liability-occurrence, other liability-claims made, and commercial automobile, while gross premium volume decreased for property and short-tail specialty. Changes in net premiums written were impacted by the timing of ceded written premium accruals related to the MCE acquisition in the prior year quarter, and changes in business mix resulting from different levels of net-to-gross retention ratios. We grew our gross and our net premium volume in our International operations, as increases in casualty and other lines were partially offset by small reductions in property and short-tail specialty. Net premiums earned in the 2025 fourth quarter were 2.1% higher than in the 2024 fourth quarter and reflect changes in net premiums written over the previous five quarters.


The 2025 fourth quarter loss ratio reflected 3.3 points of current year catastrophic activity, compared to 8.3 points of catastrophic activity in the 2024 fourth quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 0.2 points in the 2025 fourth quarter, compared to 0.3 points in the 2024 fourth quarter.


The underwriting expense ratio was 33.4% in the 2025 fourth quarter, compared to 32.2% in the 2024 fourth quarter. In the 2024 fourth quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 290 basis points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs.


Reinsurance Segment




 






Three Months Ended December 31,








(U.S. Dollars in millions)






 






2025






 






 






2024






 






% Change








 






 






 






 






 






 








Gross premiums written






$






1,944






 






$






1,941






 






0.2








Net premiums written






 






1,506






 






 






1,588






 






(5.2)








Net premiums earned






 






1,992






 






 






1,904






 






4.6








Other underwriting income






 






36






 






 






4






 






800.0








 






 






 






 






 






 








Underwriting income






$






458






 






$






328






 






39.6








 






 






 






 






 






 








Underwriting Ratios






 






 






 






 






% Point

Change








Loss ratio






 






54.5%






 






 






58.9%






 






(4.4)








Underwriting expense ratio






 






22.5%






 






 






24.1%






 






(1.6)








Combined ratio






 






77.0%






 






 






83.0%






 






(6.0)








 






 






 






 






 






 








Catastrophic activity and prior year development:






 






 






 






 






 








Current accident year catastrophic events, net of reinsurance and reinstatement premiums






 






5.0%






 






 






12.2%






 






(7.2)








Net (favorable) adverse development in prior year loss reserves, net of related adjustments






 






 






 






 






 








Loss ratio impact






 






(3.5)%






 






 






(3.8)%






 






0.3








Underwriting expense ratio impact






 






0.6%






 






 






(0.2)%






 






0.8








Total impact






 






(2.9)%






 






 






(4.0)%






 






1.1








 






 






 






 






 






 








Combined ratio excluding catastrophic activity and prior year development






 






74.9%






 






 






74.8%






 






0.1







Gross premiums written by the reinsurance segment in the 2025 fourth quarter were 0.2% higher than in the 2024 fourth quarter, while net premiums written were 5.2% lower than in the 2024 fourth quarter. We grew our gross premiums written in most lines of business, as a result of new business opportunities and share increases. The only exception was in other specialty, primarily due to the non-renewal of a large transaction. Changes in net premiums written this quarter followed a similar direction to gross premiums written, with the exception of property catastrophe that was impacted by a change in the timing of certain retrocession purchases. Net premiums earned in the 2025 fourth quarter were 4.6% higher than in the 2024 fourth quarter and reflect changes in net premiums written over the previous five quarters.


The 2025 fourth quarter loss ratio reflected 5.4 points of current year catastrophic activity, compared to 12.9 points of current year catastrophic activity in the 2024 fourth quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 3.5 points in the 2025 fourth quarter, compared to 3.8 points in the 2024 fourth quarter. The balance of the change in the loss ratio resulted, in part, from a higher level of attritional losses and changes in the mix of business.


The underwriting expense ratio was 22.5% in the 2025 fourth quarter, compared to 24.1% in the 2024 fourth quarter, with the decrease primarily reflecting a full year benefit of qualified refundable tax credits (“QRTCs”) under the recently enacted Bermuda Tax Credit Act 2025.


Mortgage Segment




 






Three Months Ended December 31,








(U.S. Dollars in millions)






 






2025






 






 






2024






 






% Change








 






 






 






 






 






 








Gross premiums written






$






326






 






$






331






 






(1.5)








Net premiums written






 






267






 






 






277






 






(3.6)








Net premiums earned






 






290






 






 






306






 






(5.2)








Other underwriting income






 






5






 






 






2






 






150.0








 






 






 






 






 






 








Underwriting income






$






250






 






$






267






 






(6.4)








 






 






 






 






 






 








Underwriting Ratios






 






 






 






 






% Point

Change








Loss ratio






 






(0.8)%






 






 






(5.9)%






 






5.1








Underwriting expense ratio






 






14.5%






 






 






19.3%






 






(4.8)








Combined ratio






 






13.7%






 






 






13.4%






 






0.3








 






 






 






 






 






 








Prior year development:






 






 






 






 






 








Net (favorable) adverse development in prior year loss reserves, net of related adjustments






 






 






 






 






 








Loss ratio impact






 






(19.4)%






 






 






(20.2)%






 






0.8








Underwriting expense ratio impact






 






(0.9)%






 






 






(2.1)%






 






1.2








Total impact






 






(20.3)%






 






 






(22.3)%






 






2.0








 






 






 






 






 






 








Combined ratio excluding prior year development






 






34.0%






 






 






35.7%






 






(1.7)







Gross premiums written by the mortgage segment in the 2025 fourth quarter were 1.5% lower than in the 2024 fourth quarter, while net premiums written were 3.6% lower than in the 2024 fourth quarter. The reduction in net premiums written in the 2025 fourth quarter primarily reflected lower U.S. monthly premium volume.


Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 19.4 points, compared to 20.2 points in the 2024 fourth quarter. Such amounts were primarily related to better than expected cure rates.


The underwriting expense ratio was 14.5% in the 2025 fourth quarter, compared to 19.3% in the 2024 fourth quarter. The 2024 fourth quarter reflected a higher level of operating expenses related to a one-time voluntary separation program costs.


Corporate


The Company’s results include net investment income, net realized gains or losses (which includes realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.


Investment returns were as follows:




(U.S. Dollars in millions, except per share data)






 






Three Months Ended








 






 






December 31,






 






September 30,






 






December 31,








 






 






 






2025






 






 






2025






 






 






2024








Pre-tax net investment income






 






$






434






 






$






408






 






$






405








Per share






 






$






1.18






 






$






1.08






 






$






1.06








 






 






 






 






 






 






 








Equity in net income of investments accounted for using the equity method






 






$






155






 






$






134






 






$






143








Per share






 






$






0.42






 






$






0.36






 






$






0.37








 






 






 






 






 






 






 








Pre-tax investment income yield, at amortized cost (1)






 






 






4.22%






 






 






4.07%






 






 






4.32%








 






 






 






 






 






 






 








Total return on investments (2)






 






 






1.36%






 






 






1.80%






 






 






(1.05)%









(1)







Presented on an annualized basis and excluding the impact of investments for which returns are not included within investment income, such as investments accounted for using the equity method and certain equities.








 







 








(2)







See ‘Comments on Non-GAAP Financial Measures’ for further details.







Net investment income for the 2025 fourth quarter primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized gains were $22 million for the 2025 fourth quarter, compared to net realized loss of $161 million in the 2024 fourth quarter, and were primarily the result of financial market movements on the Company’s equity securities, investments accounted for under the fair value option method and derivatives.


Corporate expenses for the 2025 fourth quarter were a benefit of $50 million, compared to an expense of $31 million for the 2024 fourth quarter. Such expenses primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The 2025 fourth quarter benefit reflected a full year impact of QRTCs.


Amortization of intangible assets was $47 million for the 2025 fourth quarter, compared to $99 million for the 2024 fourth quarter. Both periods reflected the amortization of intangible assets related to the MCE Acquisition, including intangible assets attributed to value of business acquired and distribution relationships.


On a pre-tax basis, net foreign exchange losses were $6 million for the 2025 fourth quarter, compared to net foreign exchange gains of $106 million for the 2024 fourth quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders’ equity and are not included in the consolidated statements of income.


The Company’s effective tax rate on income before income taxes was 14.5% for the 2025 fourth quarter, compared to 6.6% for the 2024 fourth quarter. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 15.4% for the 2025 fourth quarter, compared to 6.7% for the 2024 fourth quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction. The higher rates for the 2025 fourth quarter primarily reflected the impact of Bermuda’s Corporate Income Tax Act 2023.


Income from operating affiliates for the 2025 fourth quarter was $61 million, or $0.17 per share, compared to $64 million, or $0.17 per share, for the 2024 fourth quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA.


Conference Call


The Company will hold a conference call for investors and analysts at 10:00 a.m. Eastern Time on February 10, 2026. A live webcast of this call will be available via the Investors section of the Company’s website at http://www.archgroup.com/investors. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company’s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year.


Please refer to the Company’s Financial Supplement dated December 31, 2025, which is available via the Investors section of the Company’s website at http://www.archgroup.com/investors. The Financial Supplement provides additional detail regarding the financial performance of the Company. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries. Investors and other recipients of this information are encouraged to check the Company’s website regularly for additional information regarding the Company.


Arch Capital Group Ltd., is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at December 31, 2025. Arch, which is part of the S&P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.


Comments on Non-GAAP Financial Measures


Throughout this release, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company’s financial information in evaluating the performance of the Company and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP financial measures in assessing the Company’s overall financial performance.


This presentation includes the use of “after-tax operating income or loss available to Arch common shareholders,” which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which includes realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on page 2 of this release.


The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business performance. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely 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 investments 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 integration, advisory, financing, legal, severance, incentive compensation and all other costs directly 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 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 that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.


The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. 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 include certain income and expense items which are included in corporate. 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, in accordance with Regulation G, is shown on the following pages.


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, income from operating affiliates and other items are not allocated to each underwriting segment.


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. Effective in the 2025 first quarter, the ‘Other operating expense ratio’ includes ‘Other underwriting income.’


Total return on investments includes investment income, equity in net income or loss of investments 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 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.


The following tables summarize the Company’s results by segment for the 2025 fourth quarter and 2024 fourth 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:




(U.S. Dollars in millions)






 






Three Months Ended








 






 






December 31, 2025








 






 






Insurance






 






Reinsurance






 






Mortgage






 






Total








Gross premiums written (1)






 






$






2,542






 






$






1,944






 






$






326






 






$






4,809








Premiums ceded (1)






 






 






(666)






 






 






(438)






 






 






(59)






 






 






(1,160)








Net premiums written






 






 






1,876






 






 






1,506






 






 






267






 






 






3,649








Change in unearned premiums






 






 






97






 






 






486






 






 






23






 






 






606








Net premiums earned






 






 






1,973






 






 






1,992






 






 






290






 






 






4,255








Other underwriting income (2)






 






 






11






 






 






36






 






 






5






 






 






52








Losses and loss adjustment expenses






 






 






(1,196)






 






 






(1,086)






 






 






2






 






 






(2,280)








Acquisition expenses






 






 






(380)






 






 






(393)






 






 






(6)






 






 






(779)








Other operating expenses






 






 






(289)






 






 






(91)






 






 






(41)






 






 






(421)








Underwriting income (loss)






 






$






119






 






$






458






 






$






250






 






 






827








 






 






 






 






 






 






 






 






 








Net investment income






 






 






 






 






 






 






 






 






434








Net realized gains (losses)






 






 






 






 






 






 






 






 






22








Equity in net income of investments accounted for using the equity method






 






 






 






 






 






 






 






 






155








Other income (loss)






 






 






 






 






 






 






 






 






16








Corporate benefit (expenses) (3)






 






 






 






 






 






 






 






 






50








Transaction costs and other (3)






 






 






 






 






 






 






 






 






(26)








Amortization of intangible assets






 






 






 






 






 






 






 






 






(47)








Interest expense






 






 






 






 






 






 






 






 






(38)








Net foreign exchange gains (losses)






 






 






 






 






 






 






 






 






(6)








Income (loss) before income taxes and income (loss) from operating affiliates






 






 






 






 






 






 






 






 






1,387








Income tax benefit (expense)






 






 






 






 






 






 






 






 






(210)








Income (loss) from operating affiliates






 






 






 






 






 






 






 






 






61








Net income (loss) available to Arch






 






 






 






 






 






 






 






 






1,238








Preferred dividends






 






 






 






 






 






 






 






 






(10)








Net income (loss) available to Arch common shareholders






 






 






 






 






 






 






 






$






1,228








 






 






 






 






 






 






 






 






 








Underwriting Ratios






 






 






 






 






 






 






 






 








Loss ratio






 






 






60.6%






 






 






54.5%






 






 






(0.8)%






 






 






53.6%








Acquisition expense ratio






 






 






19.3%






 






 






19.7%






 






 






1.9%






 






 






18.3%








Other operating expense ratio (4)






 






 






14.1%






 






 






2.8%






 






 






12.6%






 






 






8.7%








Combined ratio






 






 






94.0%






 






 






77.0%






 






 






13.7%






 






 






80.6%








 






 






 






 






 






 






 






 






 








Net premiums written to gross premiums written






 






 






73.8%






 






 






77.5%






 






 






81.9%






 






 






75.9%









(1)







Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.








 







 








(2)







‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.








 







 








(3)







Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.








 







 








(4)







The ‘Other operating expense ratio’ for the 2025 period includes ‘Other underwriting income.’









(U.S. Dollars in millions)






 






Three Months Ended








 






 






December 31, 2024








 






 






Insurance






 






Reinsurance






 






Mortgage






 






Total








Gross premiums written (1)






 






$






2,484






 






$






1,941






 






$






331






 






$






4,756








Premiums ceded (1)






 






 






(530)






 






 






(353)






 






 






(54)






 






 






(937)








Net premiums written






 






 






1,954






 






 






1,588






 






 






277






 






 






3,819








Change in unearned premiums






 






 






(21)






 






 






316






 






 






29






 






 






324








Net premiums earned






 






 






1,933






 






 






1,904






 






 






306






 






 






4,143








Other underwriting income






 






 






—






 






 






4






 






 






2






 






 






6








Losses and loss adjustment expenses






 






 






(1,281)






 






 






(1,121)






 






 






18






 






 






(2,384)








Acquisition expenses






 






 






(345)






 






 






(382)






 






 






(3)






 






 






(730)








Other operating expenses






 






 






(277)






 






 






(77)






 






 






(56)






 






 






(410)








Underwriting income (loss)






 






$






30






 






$






328






 






$






267






 






 






625








 






 






 






 






 






 






 






 






 








Net investment income






 






 






 






 






 






 






 






 






405








Net realized gains (losses)






 






 






 






 






 






 






 






 






(161)








Equity in net income of investments accounted for using the equity method






 






 






 






 






 






 






 






 






143








Other income (loss)






 






 






 






 






 






 






 






 






12








Corporate benefit (expenses) (2)






 






 






 






 






 






 






 






 






(31)








Transaction costs and other (2)






 






 






 






 






 






 






 






 






(26)








Amortization of intangible assets






 






 






 






 






 






 






 






 






(99)








Interest expense






 






 






 






 






 






 






 






 






(37)








Net foreign exchange gains (losses)






 






 






 






 






 






 






 






 






106








Income (loss) before income taxes and income (loss) from operating affiliates






 






 






 






 






 






 






 






 






937








Income tax benefit (expense)






 






 






 






 






 






 






 






 






(66)








Income (loss) from operating affiliates






 






 






 






 






 






 






 






 






64








Net income (loss) available to Arch






 






 






 






 






 






 






 






 






935








Preferred dividends






 






 






 






 






 






 






 






 






(10)








Net income (loss) available to Arch common shareholders






 






 






 






 






 






 






 






$






925








 






 






 






 






 






 






 






 






 








Underwriting Ratios






 






 






 






 






 






 






 






 








Loss ratio






 






 






66.3%






 






 






58.9%






 






 






(5.9)%






 






 






57.5%








Acquisition expense ratio






 






 






17.9%






 






 






20.0%






 






 






1.0%






 






 






17.6%








Other operating expense ratio






 






 






14.3%






 






 






4.1%






 






 






18.3%






 






 






9.9%








Combined ratio






 






 






98.5%






 






 






83.0%






 






 






13.4%






 






 






85.0%








 






 






 






 






 






 






 






 






 








Net premiums written to gross premiums written






 






 






78.7%






 






 






81.8%






 






 






83.7%






 






 






80.3%









(1)







Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.








 







 








(2)







Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.







Cautionary Note Regarding Forward-Looking Statements


The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” and similar statements of a future or forward-looking nature or their negative or variations or similar terminology.


Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. Important factors that could cause actual events or results to differ materially from those indicated in such statements are discussed below and elsewhere in this release and in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”), and include:



the Company’s ability to successfully implement its business strategy during “soft” as well as “hard” markets;



acceptance of the Company’s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds;



the Company’s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations;



the Company’s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein;



general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs, geopolitical instability and conflict and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which the Company operates;



competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors;



developments in the world’s financial and capital markets and the Company’s access to such markets;



the Company’s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business;



the loss and addition of key personnel;



material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements;



accuracy of those estimates and judgments utilized in the preparation of the Company’s financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred tax assets, contingencies and litigation, and any determination to use the deposit method of accounting;



greater than expected loss ratios on business written by the Company and adverse development on claim and/or claim expense liabilities related to business written by its insurance and reinsurance subsidiaries;



the adequacy of the Company’s loss reserves;



severity and/or frequency of losses;



greater frequency or severity of unpredictable natural and man-made catastrophic events;



claims for natural catastrophic events or severe economic events in the Company’s insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in the Company’s results of operations;



availability to the Company of reinsurance to manage our net exposures and the cost of such reinsurance;



the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to the Company;



the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by the Company;



the Company’s investment performance, including legislative or regulatory developments that may adversely affect the fair value of the Company’s investments;



changes in general economic conditions, resulting in downgrades of U.S. securities or sovereign debt by credit rating agencies, which could affect the Company’s business, financial condition and results of operations;



an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation;



the effect of climate change on the Company’s business;



the effect of contagious diseases or a pandemic on the Company’s business;



acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events caused by humans;



the volatility of the Company’s shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching portions of the Company’s projected liabilities in foreign currencies with investments in the same currencies;



changes in accounting principles or policies or in the Company’s application of such accounting principles or policies;



changes in the political environment of certain countries in which the Company operate or underwrite business;



statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to the Company, its subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development (“OECD”) Pillar I and Pillar II initiative and the enactment of the Bermuda corporate income tax; and



the other matters set forth under Item 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors.



All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company's forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.


Source: Arch Capital Group Ltd.


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View source version on businesswire.com: https://www.businesswire.com/news/home/20260209627716/en/
Arch Capital Group Ltd.

François Morin: (441) 278-9250


Investor Relations

Donald Watson: (914) 872-3616; dwatson@archgroup.com


Original: Arch Capital Group Ltd. Reports 2025 Fourth Quarter Results