as of 08-19-2026 3:50pm EST
Arch Capital Group Ltd is a Bermuda company that writes insurance and reinsurance with operations in the United States, Canada, Europe, Australia, and the United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage. The insurance segment provides specialty risk solutions to clients across various industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
| Founded: | N/A | Country: | Bermuda |
| Employees: | N/A | City: | PEMBROKE |
| Market Cap: | N/A | IPO Year: | 1996 |
| Target Price: | N/A | AVG Volume (30 days): | 36.5K |
| Analyst Decision: | N/A | Number of Analysts: | N/A |
| Dividend Yield: | N/A | Dividend Payout Frequency: | annual |
| EPS: | 5.88 | EPS Growth: | 3.66 |
| 52 Week Low/High: | $15.65 - $18.34 | Next Earning Date: | N/A |
| Revenue: | $19,929,000,000 | Revenue Growth: | 14.27% |
| Revenue Growth (this year): | N/A | Revenue Growth (next year): | N/A |
| P/E Ratio: | 2.78 | Index: | N/A |
| Free Cash Flow: | 6.1B | FCF Growth: | N/A |
SEC 8-K filings with transcript text
Jul 28, 2026 · 100% conf.
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+0.09%
$16.39
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5D
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$16.85
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20D
+3.66%
$16.97
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
July 28, 2026 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2026 second quarter results. The results included:
•Net income available to Arch common shareholders of $1.0 billion, or $3.00 per share, representing an 18.0% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.2 billion, or $3.23 per share, for the 2025 second quarter.
•After-tax operating income available to Arch common shareholders(1) of $893 million, or $2.56 per share, representing a 15.3% annualized operating return on average common equity(1), compared to $979 million, or $2.58 per share, for the 2025 second quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $201 million.
•Favorable development in prior year loss reserves, net of related adjustments, of $165 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 82.5%, compared to 80.9% for the 2025 second quarter.
•Share repurchases of $1.2 billion.
•Book value per common share of $68.04 at June 30, 2026, a 2.8% increase from March 31, 2026.
“We delivered a strong quarter, driven by solid underwriting performance across our three segments, reflecting the continued strength of our diversified platform and disciplined execution across the enterprise,” said Arch CEO Nicolas Papadopoulo. “Our leadership positions in Specialty Insurance, including our Mortgage and Reinsurance operations, provide us with a meaningful competitive advantage. Clients not only come to us for capacity, but also for our underwriting expertise, claims capabilities, creative solutions and valuable perspectives that help them better manage risk.”
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 June 30,
20262025% Change
Gross premiums written$6,126 $6,196 (1.1)
Net premiums written4,049 4,348 (6.9)
Net premiums earned3,985 4,337 (8.1)
Underwriting income (1) 657 818 (19.7)
Underwriting Ratios% Point Change
Loss ratio55.1 %53.1 %2.0
Underwriting expense ratio (2) 28.4 %28.1 %0.3
Combined ratio83.5 %81.2 %2.3
Combined ratio excluding catastrophic activity and prior year development (1) 82.5 %80.9 %1.6
(1) See ‘Comments on Non-GAAP Financial Measures’ for further details.
(2) The ‘Underwriting expense ratio’ includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
1
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
June 30,
20262025
Net income available to Arch common shareholders$1,047 $1,227
Net realized (gains) losses (1)17 (229)
Equity in net (income) of investments accounted for using the equity method(196)(162)
Net foreign exchange (gains) losses(10)88
Transaction costs and other32 18
Income tax expense (benefit) (2)3 37
After-tax operating income available to Arch common shareholders$893 $979
Diluted per common share results:
Net income available to Arch common shareholders$3.00 $3.23
Net realized (gains) losses (1)0.05 (0.60)
Equity in net (income) of investments accounted for using the equity method(0.56)(0.43)
Net foreign exchange (gains) losses(0.03)0.23
Transaction costs and other0.09 0.05
Income tax expense (benefit) (2)0.01 0.10
After-tax operating income available to Arch common shareholders$2.56 $2.58
Weighted average common shares and common share equivalents outstanding — diluted348.8 379.9
Beginning common shareholders’ equity$23,358 $20,715
Ending common shareholders’ equity23,200 22,211
Average common shareholders’ equity$23,279 $21,463
Annualized net income return on average common equity18.0 %22.9 %
Annualized operating return on average common equity15.3 %18.2 %
(1) Net realized gains or losses include, but are not limited to, 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 disposit
Apr 28, 2026
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
April 28, 2026 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2026 first quarter results. The results included:
•Net income available to Arch common shareholders of $1.0 billion, or $2.88 per share, representing a 17.8% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $564 million, or $1.48 per share, for the 2025 first quarter.
•After-tax operating income available to Arch common shareholders(1) of $901 million, or $2.50 per share, representing a 15.4% annualized operating return on average common equity(1), compared to $587 million, or $1.54 per share, for the 2025 first quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $174 million.
•Favorable development in prior year loss reserves, net of related adjustments, of $200 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 82.3%, compared to 81.0% for the 2025 first quarter.
•Share repurchases of $783 million.
•Book value per common share of $66.19 at March 31, 2026, a 1.7% increase from December 31, 2025.
“We started the year on an excellent note, delivering an annualized operating return on average common equity of 15.4%, which reflects our disciplined approach to underwriting and capital allocation,” said Arch CEO Nicolas Papadopoulo. “Our underwriting and cycle management expertise, supported by a strong balance sheet, continue to differentiate Arch and position us to generate best-in-class returns through the cycle.”
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 March 31,
20262025% Change
Gross premiums written$6,425 $6,463 (0.6)
Net premiums written4,348 4,515 (3.7)
Net premiums earned3,986 4,188 (4.8)
Underwriting income (1) 728 417 74.6
Underwriting Ratios% Point Change
Loss ratio52.4 %61.8 %(9.4)
Underwriting expense ratio (2) 29.3 %28.3 %1.0
Combined ratio81.7 %90.1 %(8.4)
Combined ratio excluding catastrophic activity and prior year development (1) 82.3 %81.0 %1.3
(1) See ‘Comments on Non-GAAP Financial Measures’ for further details.
(2) The ‘Underwriting expense ratio’ includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
1
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
March 31,
20262025
Net income available to Arch common shareholders$1,037 $564
Net realized (gains) losses (1)87 (3)
Equity in net (income) of investments accounted for using the equity method(160)(53)
Net foreign exchange (gains) losses(21)27
Transaction costs and other18 10
Income tax expense (benefit) (2)(60)42
After-tax operating income available to Arch common shareholders$901 $587
Diluted per common share results:
Net income available to Arch common shareholders$2.88 $1.48
Net realized (gains) losses (1)0.24 (0.01)
Equity in net (income) of investments accounted for using the equity method(0.44)(0.14)
Net foreign exchange (gains) losses(0.06)0.07
Transaction costs and other0.05 0.03
Income tax expense (benefit) (2)(0.17)0.11
After-tax operating income available to Arch common shareholders$2.50 $1.54
Weighted average common shares and common share equivalents outstanding — diluted359.7 381.9
Beginning common shareholders’ equity$23,376 $19,990
Ending common shareholders’ equity23,358 20,715
Average common shareholders’ equity$23,367 $20,353
Annualized net income return on average common equity17.8 %11.1 %
Annualized operating return on average common equity15.4 %11.5 %
(1) Net realized gains or losses include, but are not limited to, 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 me
Feb 9, 2026
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
February 9, 2026 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(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,
20252024% Change
Gross premiums written$4,809 $4,756 1.1
Net premiums written3,649 3,819 (4.5)
Net premiums earned4,255 4,143 2.7
Underwriting income827 625 32.3
Underwriting Ratios% Point Change
Loss ratio53.6 %57.5 %(3.9)
Underwriting expense ratio (2) 27.0 %27.5 %(0.5)
Combined ratio80.6 %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.
1
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,
20252024
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) losses6 (106)
Transaction costs and other26 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) losses0.02 (0.28)
Transaction costs and other0.07 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 — diluted366.6 382.8
Beginning common shareholders’ equity$22,889 $21,444
Ending common shareholders’ equity23,376 19,990
Average common shareholders’ equity$23,133 $20,717
Annualized net income return on average common equity21.2 %17.9 %
Annualized operating return on average common equity18.9 %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 met
Oct 27, 2025
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
October 27, 2025 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2025 third quarter results. The results included:
•Net income available to Arch common shareholders of $1.3 billion, or $3.56 per share, representing a 23.8% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.0 billion, or $2.56 per share, for the 2024 third quarter.
•After-tax operating income available to Arch common shareholders(1) of $1.0 billion, or $2.77 per share, representing an 18.5% annualized operating return on average common equity(1), compared to $762 million, or $1.99 per share, for the 2024 third quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $72 million.
•Favorable development in prior year loss reserves, net of related adjustments, of $103 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 80.5%, compared to 78.3% for the 2024 third quarter.
•Share repurchases of approximately $732 million.
•Book value per common share of $62.32 at September 30, 2025, a 5.3% increase from June 30, 2025.
"We are extremely pleased with our financial performance this quarter, which resulted in us delivering record-level results of operating income,” Arch CEO Nicolas Papadopoulo said. “While we benefitted from a relatively quiet quarter for natural catastrophes, we remain upbeat about our ability to perform well in the current market, which should lead to strong financial results on behalf of 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 September 30,
20252024% Change
Gross premiums written$5,410 $5,440 (0.6)
Net premiums written3,964 4,047 (2.1)
Net premiums earned4,285 3,970 7.9
Underwriting income871 538 61.9
Underwriting Ratios% Point Change
Loss ratio51.4 %60.5 %(9.1)
Underwriting expense ratio (2) 28.4 %26.1 %2.3
Combined ratio79.8 %86.6 %(6.8)
Combined ratio excluding catastrophic activity and prior year development (1) 80.5 %78.3 %2.2
(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.
1
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
September 30,
20252024
Net income available to Arch common shareholders$1,340 $978
Net realized (gains) losses (1)(210)(169)
Equity in net (income) of investments accounted for using the equity method(134)(171)
Net foreign exchange (gains) losses7 63
Transaction costs and other21 30
Income tax expense (benefit) (2)18 31
After-tax operating income available to Arch common shareholders$1,042 $762
Diluted per common share results:
Net income available to Arch common shareholders$3.56 $2.56
Net realized (gains) losses (1)(0.56)(0.44)
Equity in net (income) of investments accounted for using the equity method(0.36)(0.45)
Net foreign exchange (gains) losses0.02 0.16
Transaction costs and other0.06 0.08
Income tax expense (benefit) (2)0.05 0.08
After-tax operating income available to Arch common shareholders$2.77 $1.99
Weighted average common shares and common share equivalents outstanding — diluted376.1 382.3
Beginning common shareholders’ equity$22,211 $19,835
Ending common shareholders’ equity22,889 21,444
Average common shareholders’ equity$22,550 $20,640
Annualized net income return on average common equity23.8 %19.0 %
Annualized operating return on average common equity18.5 %14.8 %
(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
Jul 29, 2025
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
July 29, 2025 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2025 second quarter results. The results included:
•Net income available to Arch common shareholders of $1.2 billion, or $3.23 per share, representing a 22.9% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.3 billion, or $3.30 per share, for the 2024 second quarter.
•After-tax operating income available to Arch common shareholders(1) of $979 million, or $2.58 per share, representing an 18.2% annualized operating return on average common equity(1), compared to $981 million, or $2.57 per share, for the 2024 second quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $154 million.
•Favorable development in prior year loss reserves, net of related adjustments, of $139 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 80.9%, compared to 76.7% for the 2024 second quarter.
•Share repurchases of approximately $163 million.
•Book value per common share of $59.17 at June 30, 2025, a 7.3% increase from March 31, 2025.
“We achieved these results by staying true to our core principle of cycle management,” Arch CEO Nicolas Papadopoulo said. “This disciplined underwriting approach, paired with dynamic capital management, positions us to consistently generate superior returns across market cycles.”
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 June 30,
20252024% Change
Gross premiums written$6,196 $5,382 15.1
Net premiums written4,348 3,781 15.0
Net premiums earned4,337 3,565 21.7
Underwriting income818 762 7.3
Underwriting Ratios% Point Change
Loss ratio53.1 %51.2 %1.9
Underwriting expense ratio (2) 28.1 %27.5 %0.6
Combined ratio81.2 %78.7 %2.5
Combined ratio excluding catastrophic activity and prior year development (1) 80.9 %76.7 %4.2
(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.
1
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
June 30,
20252024
Net income available to Arch common shareholders$1,227 $1,259
Net realized (gains) losses (1)(229)(122)
Equity in net (income) of investments accounted for using the equity method(162)(167)
Net foreign exchange (gains) losses88 (1)
Transaction costs and other18 18
Income tax expense (benefit) (2)37 (6)
After-tax operating income available to Arch common shareholders$979 $981
Diluted per common share results:
Net income available to Arch common shareholders$3.23 $3.30
Net realized (gains) losses (1)(0.60)(0.32)
Equity in net (income) of investments accounted for using the equity method(0.43)(0.44)
Net foreign exchange (gains) losses0.23 0.00
Transaction costs and other0.05 0.05
Income tax expense (benefit) (2)0.10 (0.02)
After-tax operating income available to Arch common shareholders$2.58 $2.57
Weighted average common shares and common share equivalents outstanding — diluted379.9 381.6
Beginning common shareholders’ equity$20,715 $18,525
Ending common shareholders’ equity22,211 19,835
Average common shareholders’ equity$21,463 $19,180
Annualized net income return on average common equity22.9 %26.3 %
Annualized operating return on average common equity18.2 %20.5 %
(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 varyi
Apr 29, 2025
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
April 29, 2025 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2025 first quarter results. The results included:
•Net income available to Arch common shareholders of $564 million, or $1.48 per share, representing an 11.1% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.1 billion, or $2.92 per share, for the 2024 first quarter.
•After-tax operating income available to Arch common shareholders(1) of $587 million, or $1.54 per share, representing an 11.5% annualized operating return on average common equity(1), compared to $933 million, or $2.45 per share, for the 2024 first quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $547 million, primarily related to the California wildfires.
•Favorable development in prior year loss reserves, net of related adjustments, of $167 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 81.0%, compared to 80.8% for the 2024 first quarter.
•Share repurchases of approximately $196 million.
•Book value per common share of $55.15 at March 31, 2025, a 3.8% increase from December 31, 2024.
Nicolas Papadopoulo, Arch CEO, commented, “We delivered solid results this quarter despite the losses arising from the California wildfires, resulting in an annualized operating return on equity of 11.5%. Although the market has generally become more competitive, we remain optimistic about our prospects to deliver long-term shareholder value. For a company with a strong underwriting culture like Arch, this is a market where we can stand out.”
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 March 31,
20252024% Change
Gross premiums written$6,463 $5,933 8.9
Net premiums written4,515 4,085 10.5
Net premiums earned4,188 3,422 22.4
Underwriting income417 736 (43.3)
Underwriting Ratios% Point Change
Loss ratio61.8 %50.5 %11.3
Underwriting expense ratio (1) 28.3 %28.3 %—
Combined ratio90.1 %78.8 %11.3
Combined ratio excluding catastrophic activity and prior year development (2) 81.0 %80.8 %0.2
(1) The ‘Underwriting expense ratio’ for the 2025 period includes ‘Other underwriting income (loss).’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
(2) See ‘Comments on Non-GAAP Financial Measures’ for further details.
1
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
March 31,
20252024
Net income available to Arch common shareholders$564 $1,110
Net realized (gains) losses (1)(3)(67)
Equity in net (income) loss of investment funds accounted for using the equity method(53)(99)
Net foreign exchange (gains) losses27 (31)
Transaction costs and other10 7
Income tax expense (benefit) (2)42 13
After-tax operating income available to Arch common shareholders$587 $933
Diluted per common share results:
Net income available to Arch common shareholders$1.48 $2.92
Net realized (gains) losses (1)(0.01)(0.18)
Equity in net (income) loss of investment funds accounted for using the equity method(0.14)(0.26)
Net foreign exchange (gains) losses0.07 (0.08)
Transaction costs and other0.03 0.02
Income tax expense (benefit) (2)0.11 0.03
After-tax operating income available to Arch common shareholders$1.54 $2.45
Weighted average common shares and common share equivalents outstanding — diluted381.9 380.5
Beginning common shareholders’ equity$19,990 $17,523
Ending common shareholders’ equity20,715 18,525
Average common shareholders’ equity$20,353 $18,024
Annualized net income return on average common equity11.1 %24.6 %
Annualized operating return on average common equity11.5 %20.7 %
(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 ne
Feb 10, 2025
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
February 10, 2025 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2024 fourth quarter results. The results included:
•Net income available to Arch common shareholders of $925 million, or $2.42 per share, representing a 17.9% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $2.3 billion, or $6.12 per share, for the 2023 fourth quarter.
•After-tax operating income available to Arch common shareholders(1) of $866 million, or $2.26 per share, representing a 16.7% annualized operating return on average common equity(1), compared to $945 million, or $2.49 per share, for the 2023 fourth quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $393 million, due in part to Hurricanes Milton and Helene.
•Favorable development in prior year loss reserves, net of related adjustments, of $146 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 79.0%, compared to 78.9% for the 2023 fourth quarter.
•Share repurchases of approximately $24 million, in addition to the already communicated special cash dividend to common shareholders of $1.9 billion, or $5.00 per share, paid on December 4, 2024.
•Book value per common share of $53.11 at December 31, 2024, a 6.8% decrease from September 30, 2024 (or a 1.9% increase excluding the impact of the special cash dividend noted above).
Nicolas Papadopoulo, Arch CEO, commented “We closed the year with a very strong fourth quarter including contributions from all our earnings sources. These are excellent results when you consider the elevated catastrophe environment and the increased risk levels across many lines of business.” Papadopoulo added, “Additionally, on behalf of everyone at Arch, I would like to offer our thoughts and sympathies to everyone affected by the California wildfires. This devastating event will require the coordinated efforts of many, particularly the insurance industry, to help rebuild. While still too early to fully assess the magnitude of this disaster, our current view of the insured market loss will be between $35 billion and $45 billion, making Arch's expected share of the event somewhere between $450 million and $550 million.”
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,
20242023% Change
Gross premiums written$4,756 $4,251 11.9
Net premiums written3,819 3,261 17.1
Net premiums earned4,143 3,344 23.9
Underwriting income625 715 (12.6)
Underwriting Ratios% Point Change
Loss ratio57.5 %49.0 %8.5
Underwriting expense ratio27.5 %29.9 %(2.4)
Combined ratio85.0 %78.9 %6.1
Combined ratio excluding catastrophic activity and prior year development (1) 79.0 %78.9 %0.1
(1) See ‘Comments on Non-GAAP Financial Measures’ for further details.
1
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,
20242023
Net income available to Arch common shareholders$925 $2,324
Net realized (gains) losses (1)161 (189)
Equity in net (income) loss of investment funds accounted for using the equity method(143)(102)
Net foreign exchange (gains) losses(106)60
Transaction costs and other26 4
Income tax expense (benefit) (2)3 (1,152)
After-tax operating income available to Arch common shareholders$866 $945
Diluted per common share results:
Net income available to Arch common shareholders$2.42 $6.12
Net realized (gains) losses (1)0.41 (0.50)
Equity in net (income) loss of investment funds accounted for using the equity method(0.37)(0.27)
Net foreign exchange (gains) losses(0.28)0.16
Transaction costs and other0.07 0.01
Income tax expense (benefit) (2)0.01 (3.03)
After-tax operating income available to Arch common shareholders$2.26 $2.49
Weighted average common shares and common share equivalents outstanding — diluted382.8 379.8
Beginning common shareholders’ equity$21,444 $14,409
Ending common shareholders’ equity19,990 17,523
Average common shareholders’ equity$20,717 $15,966
Annualized net income return on average common equity17.9 %58.2 %
Annualized operating retur
Oct 30, 2024
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
October 30, 2024 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2024 third quarter results. The results included:
•Net income available to Arch common shareholders of $978 million, or $2.56 per share, representing a 19.0% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $713 million, or $1.88 per share, for the 2023 third quarter.
•After-tax operating income available to Arch common shareholders(1) of $762 million, or $1.99 per share, representing a 14.8% annualized operating return on average common equity(1), compared to $876 million, or $2.31 per share, for the 2023 third quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $450 million, due in part to Hurricane Helene and a series of other global events.
•Favorable development in prior year loss reserves, net of related adjustments, of $119 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 78.3%, compared to 77.0% for the 2023 third quarter.
•Book value per common share of $57.00 at September 30, 2024, an 8.1% increase from June 30, 2024.
Nicolas Papadopoulo, Chief Executive Officer of ACGL commented: “Our third quarter results demonstrate the value of our diversified platform with excellent bottom-line contributions from all our units. Arch’s culture of adapting to evolving market conditions while maintaining underwriting discipline remains a key element of our long-term success.”
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 September 30,
20242023% Change
Gross premiums written$5,440 $4,527 20.2
Net premiums written4,047 3,355 20.6
Net premiums earned3,970 3,248 22.2
Underwriting income538 721 (25.4)
Underwriting Ratios% Point Change
Loss ratio60.5 %50.7 %9.8
Underwriting expense ratio26.1 %27.2 %(1.1)
Combined ratio86.6 %77.9 %8.7
Combined ratio excluding catastrophic activity and prior year development (1) 78.3 %77.0 %1.3
(1) See ‘Comments on Non-GAAP Financial Measures’ for further details.
1
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
September 30,
20242023
Net income available to Arch common shareholders$978 $713
Net realized (gains) losses (1)(169)248
Equity in net (income) loss of investment funds accounted for using the equity method(171)(59)
Net foreign exchange (gains) losses63 (22)
Transaction costs and other30 1
Income tax expense (benefit) (2)31 (5)
After-tax operating income available to Arch common shareholders$762 $876
Diluted per common share results:
Net income available to Arch common shareholders$2.56 $1.88
Net realized (gains) losses (1)(0.44)0.65
Equity in net (income) loss of investment funds accounted for using the equity method(0.45)(0.16)
Net foreign exchange (gains) losses0.16 (0.05)
Transaction costs and other0.08 0.00
Income tax expense (benefit) (2)0.08 (0.01)
After-tax operating income available to Arch common shareholders$1.99 $2.31
Weighted average common shares and common share equivalents outstanding — diluted382.3 379.4
Beginning common shareholders’ equity$19,835 $13,811
Ending common shareholders’ equity21,444 14,409
Average common shareholders’ equity$20,640 $14,110
Annualized net income return on average common equity19.0 %20.2 %
Annualized operating return on average common equity14.8 %24.8 %
(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 (loss) of investment funds 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.
2
Segm
Jul 30, 2024
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
July 30, 2024 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2024 second quarter results. The results included:
•Net income available to Arch common shareholders of $1.3 billion, or $3.30 per share, representing a 26.3% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $661 million, or $1.75 per share, for the 2023 second quarter.
•After-tax operating income available to Arch common shareholders(1) of $981 million, or $2.57 per share, representing a 20.5% annualized operating return on average common equity(1), compared to $726 million, or $1.92 per share, for the 2023 second quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $196 million.
•Favorable development in prior year loss reserves, net of related adjustments, of $124 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 76.7%, compared to 79.7% for the 2023 second quarter.
•Book value per common share of $52.75 at June 30, 2024, a 6.9% increase from March 31, 2024.
Marc Grandisson, Chief Executive Officer of ACGL commented: “Our excellent results this quarter highlight the value of our ongoing commitment to bottom-line returns combined with disciplined execution throughout the underwriting cycle. We are pleased with the contributions made by our underwriting and investment teams, which are key to us being able to consistently generate returns above our target.”
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 June 30,
20242023% Change
Gross premiums written$5,382 $4,845 11.1
Net premiums written3,781 3,428 10.3
Net premiums earned3,565 2,965 20.2
Underwriting income762 606 25.7
Underwriting Ratios% Point Change
Loss ratio51.2 %50.3 %0.9
Underwriting expense ratio27.5 %29.5 %(2.0)
Combined ratio78.7 %79.8 %(1.1)
Combined ratio excluding catastrophic activity and prior year development (1) 76.7 %79.7 %(3.0)
(1) See ‘Comments on Non-GAAP Financial Measures’ for further details.
1
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
June 30,
20242023
Net income available to Arch common shareholders$1,259 $661
Net realized (gains) losses (1)(122)123
Equity in net (income) loss of investment funds accounted for using the equity method(167)(69)
Net foreign exchange (gains) losses(1)6
Transaction costs and other18 2
Income tax expense (benefit) (2)(6)3
After-tax operating income available to Arch common shareholders$981 $726
Diluted per common share results:
Net income available to Arch common shareholders$3.30 $1.75
Net realized (gains) losses (1)(0.32)0.33
Equity in net (income) loss of investment funds accounted for using the equity method(0.44)(0.18)
Net foreign exchange (gains) losses0.00 0.01
Transaction costs and other0.05 0.00
Income tax expense (benefit) (2)(0.02)0.01
After-tax operating income available to Arch common shareholders$2.57 $1.92
Weighted average common shares and common share equivalents outstanding — diluted381.6 378.4
Beginning common shareholders’ equity$18,525 $13,158
Ending common shareholders’ equity19,835 13,811
Average common shareholders’ equity$19,180 $13,485
Annualized net income return on average common equity26.3 %19.6 %
Annualized operating return on average common equity20.5 %21.5 %
(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 (loss) of investment funds 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.
2
Segment Information
The following s
Apr 29, 2024
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
April 29, 2024 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2024 first quarter results. The results included:
•Net income available to Arch common shareholders of $1.1 billion, or $2.92 per share, representing a 24.6% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $705 million, or $1.87 per share, for the 2023 first quarter.
•After-tax operating income available to Arch common shareholders(1) of $933 million, or $2.45 per share, representing a 20.7% annualized operating return on average common equity(1), compared to $654 million, or $1.73 per share, for the 2023 first quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $58 million.
•Favorable development in prior year loss reserves, net of related adjustments, of $126 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 80.8%, compared to 82.2% for the 2023 first quarter.
•Book value per common share of $49.36 at March 31, 2024, a 5.2% increase from December 31, 2023.
Marc Grandisson, Chief Executive Officer of ACGL commented: “We are extremely pleased with the outstanding financial results across our operations in the first quarter. I am especially proud of the ongoing commitment of our Arch colleagues to delivering value-added solutions to our clients and partners in this ever-changing risk environment. This level of hard and smart work bodes well for our future success to the benefit of 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 March 31,
20242023% Change
Gross premiums written$5,933 $4,780 24.1
Net premiums written4,085 3,424 19.3
Net premiums earned3,422 2,883 18.7
Underwriting income736 570 29.1
Underwriting Ratios% Point Change
Loss ratio50.5 %51.0 %(0.5)
Underwriting expense ratio28.3 %29.6 %(1.3)
Combined ratio78.8 %80.6 %(1.8)
Combined ratio excluding catastrophic activity and prior year development (1) 80.8 %82.2 %(1.4)
(1) See ‘Comments on Regulation G - Non-GAAP Financial Measures’ for further details.
1
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 Regulation G - Non-GAAP Financial Measures’ for further details):
(U.S. Dollars in millions, except per share data)Three Months Ended
March 31,
20242023
Net income available to Arch common shareholders$1,110 $705
Net realized (gains) losses (1)(67)(17)
Equity in net (income) loss of investment funds accounted for using the equity method(99)(48)
Net foreign exchange (gains) losses(31)18
Transaction costs and other7 (1)
Income tax expense (benefit) (2)13 (3)
After-tax operating income available to Arch common shareholders$933 $654
Diluted per common share results:
Net income available to Arch common shareholders$2.92 $1.87
Net realized (gains) losses (1)(0.18)(0.05)
Equity in net (income) loss of investment funds accounted for using the equity method(0.26)(0.13)
Net foreign exchange (gains) losses(0.08)0.05
Transaction costs and other0.02 0.00
Income tax expense (benefit) (2)0.03 (0.01)
After-tax operating income available to Arch common shareholders$2.45 $1.73
Weighted average common shares and common share equivalents outstanding — diluted380.5 377.6
Beginning common shareholders’ equity$17,523 $12,080
Ending common shareholders’ equity18,525 13,158
Average common shareholders’ equity$18,024 $12,619
Annualized net income return on average common equity24.6 %22.3 %
Annualized operating return on average common equity20.7 %20.7 %
(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 and changes in the allowance for credit losses on financial assets.
(2) Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds 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.
2
Segment Information
The foll
Feb 14, 2024
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
February 14, 2024 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2023 fourth quarter results. The results included:
•Net income available to Arch common shareholders of $2.3 billion, or $6.12 per share, representing a 58.2% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $849 million, or $2.26 per share, for the 2022 fourth quarter.
•Fourth quarter results were impacted by the establishment of a net deferred tax asset of $1.18 billion, or $3.10 per share, related to the enactment of Bermuda’s new corporate income tax.
•After-tax operating income available to Arch common shareholders(1) of $945 million, or $2.49 per share, representing a 23.7% annualized operating return on average common equity(1), compared to $806 million, or $2.14 per share, for the 2022 fourth quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums(1), of $137 million.
•Favorable development in prior year loss reserves, net of related adjustments(1), of $135 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 78.9%, compared to 82.0% for the 2022 fourth quarter.
•Book value per common share of $46.94 at December 31, 2023, a 21.5% increase from September 30, 2023.
Marc Grandisson, Chief Executive Officer of ACGL commented: “We finished 2023 on an excellent note, closing the books with a stellar 21.6% operating return on equity for the year and growing our book value per share by 43.9%. We are bullish about our prospects for 2024 as our underwriters continue to lean into the excellent conditions prevalent in most of the markets where we operate.”
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,
20232022% Change
Gross premiums written$4,251 $3,795 12.0
Net premiums written3,261 3,035 7.4
Net premiums earned3,344 2,761 21.1
Underwriting income715 734 (2.6)
Underwriting Ratios% Point Change
Loss ratio49.0 %45.0 %4.0
Underwriting expense ratio29.9 %28.5 %1.4
Combined ratio78.9 %73.5 %5.4
Combined ratio excluding catastrophic activity and prior year development (1) 78.9 %82.0 %(3.1)
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. See ‘Comments on Regulation G’ for further details.
1
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 Regulation G’ for a discussion of non-GAAP financial measures):
(U.S. Dollars in millions, except per share data)Three Months Ended
December 31,
20232022
Net income available to Arch common shareholders$2,324 $849
Net realized (gains) losses (1)(189)(80)
Equity in net (income) loss of investment funds accounted for using the equity method(102)(40)
Net foreign exchange (gains) losses60 81
Transaction costs and other4 —
Income tax expense (benefit) (2)(1,152)(4)
After-tax operating income available to Arch common shareholders$945 $806
Diluted per common share results:
Net income available to Arch common shareholders$6.12 $2.26
Net realized (gains) losses (1)(0.50)(0.22)
Equity in net (income) loss of investment funds accounted for using the equity method(0.27)(0.11)
Net foreign exchange (gains) losses0.16 0.22
Transaction costs and other0.01 0.00
Income tax expense (benefit) (2)(3.03)(0.01)
After-tax operating income available to Arch common shareholders$2.49 $2.14
Weighted average common shares and common share equivalents outstanding — diluted379.8 375.9
Beginning common shareholders’ equity$14,409 $10,966
Ending common shareholders’ equity17,523 12,080
Average common shareholders’ equity$15,966 $11,523
Annualized net income return on average common equity58.2 %29.5 %
Annualized operating return on average common equity23.7 %28.0 %
(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 and changes in the allowance for credit losses on financial assets.
(2) Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds accounted for using the equity meth
Oct 30, 2023
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
October 30, 2023 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2023 third quarter results. The results included:
•Net income available to Arch common shareholders of $713 million, or $1.88 per share, a 20.2% annualized net income return on average common equity, compared to $7 million, or $0.02 per share, for the 2022 third quarter.
•After-tax operating income available to Arch common shareholders(1) of $876 million, or $2.31 per share, a 24.8% annualized operating return on average common equity, compared to $106 million, or $0.28 per share, for the 2022 third quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums(1), of $180 million.
•Favorable development in prior year loss reserves, net of related adjustments(1) of $152 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 77.0%, compared to 82.2% for the 2022 third quarter.
•Book value per common share of $38.62 at September 30, 2023, a 4.3% increase from June 30, 2023.
Marc Grandisson, Chief Executive Officer of ACGL commented: “Excellent underwriting performance from all three of our segments, along with improved investment returns, helped us achieve an impressive 24.8% operating return on equity in the third quarter. Growth in net premiums written across our insurance and reinsurance segments was especially strong as hard market rates and rising inflation drove client demand for many of our property and casualty products, resulting in an overall 26.0% year-over-year increase across both segments.”
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 September 30,
20232022% Change
Gross premiums written$4,527 $3,861 17.2
Net premiums written3,355 2,724 23.2
Net premiums earned3,248 2,471 31.4
Underwriting income721 68 960.3
Underwriting Ratios% Point Change
Loss ratio50.7 %68.1 %(17.4)
Underwriting expense ratio27.2 %29.2 %(2.0)
Combined ratio77.9 %97.3 %(19.4)
Combined ratio excluding catastrophic activity and prior year development (1) 77.0 %82.2 %(5.2)
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. See ‘Comments on Regulation G’ for further details.
1
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 Regulation G’ for a discussion of non-GAAP financial measures):
(U.S. Dollars in millions, except per share data)Three Months Ended
September 30,
20232022
Net income available to Arch common shareholders$713 $7
Net realized (gains) losses (1)248 184
Equity in net (income) loss of investment funds accounted for using the equity method(59)19
Net foreign exchange (gains) losses(22)(91)
Transaction costs and other1 —
Income tax expense (benefit) (2)(5)(13)
After-tax operating income available to Arch common shareholders$876 $106
Diluted per common share results:
Net income available to Arch common shareholders$1.88 $0.02
Net realized (gains) losses (1)0.65 0.48
Equity in net (income) loss of investment funds accounted for using the equity method(0.16)0.05
Net foreign exchange (gains) losses(0.05)(0.24)
Transaction costs and other0.00 0.00
Income tax expense (benefit) (2)(0.01)(0.03)
After-tax operating income available to Arch common shareholders$2.31 $0.28
Weighted average common shares and common share equivalents outstanding — diluted379.4 373.7
Beginning common shareholders’ equity$13,811 $11,588
Ending common shareholders’ equity14,409 10,966
Average common shareholders’ equity$14,110 $11,277
Annualized net income return on average common equity20.2 %0.2 %
Annualized operating return on average common equity24.8 %3.8 %
(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 and changes in the allowance for credit losses on financial assets.
(2) Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds 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 varyi
Jul 26, 2023
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
July 26, 2023 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2023 second quarter results. The results included:
•Net income available to Arch common shareholders of $661 million, or $1.75 per share, a 19.6% annualized net income return on average common equity, compared to $394 million, or $1.04 per share, for the 2022 second quarter.
•After-tax operating income available to Arch common shareholders(1) of $726 million, or $1.92 per share, a 21.5% annualized operating return on average common equity, compared to $506 million, or $1.34 per share, for the 2022 second quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums (1), of $119 million.
•Favorable development in prior year loss reserves, net of related adjustments(1) of $116 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 79.7%, compared to 80.8% for the 2022 second quarter.
•Book value per common share of $37.04 at June 30, 2023, a 4.8% increase from March 31, 2023.
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 June 30,
20232022% Change
Gross premiums written$4,845 $3,870 25.2
Net premiums written3,428 2,685 27.7
Net premiums earned2,965 2,326 27.5
Underwriting income606 536 13.1
Underwriting Ratios% Point Change
Loss ratio50.3 %47.4 %2.9
Underwriting expense ratio29.5 %29.7 %(0.2)
Combined ratio79.8 %77.1 %2.7
Combined ratio excluding catastrophic activity and prior year development (1) 79.7 %80.8 %(1.1)
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. See ‘Comments on Regulation G’ for further details.
1
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 Regulation G’ for a discussion of non-GAAP financial measures):
(U.S. Dollars in millions, except per share data)Three Months Ended
June 30,
20232022
Net income available to Arch common shareholders$661 $394
Net realized (gains) losses123 267
Equity in net (income) loss of investment funds accounted for using the equity method(69)(58)
Net foreign exchange (gains) losses6 (88)
Transaction costs and other2 —
Income tax expense (benefit) (1)3 (9)
After-tax operating income available to Arch common shareholders$726 $506
Diluted per common share results:
Net income available to Arch common shareholders$1.75 $1.04
Net realized (gains) losses0.33 0.70
Equity in net (income) loss of investment funds accounted for using the equity method(0.18)(0.15)
Net foreign exchange (gains) losses0.01 (0.23)
Transaction costs and other0.00 0.00
Income tax expense (benefit) (1)0.01 (0.02)
After-tax operating income available to Arch common shareholders$1.92 $1.34
Weighted average common shares and common share equivalents outstanding — diluted378.4 377.9
Beginning common shareholders’ equity$13,158 $12,090
Ending common shareholders’ equity13,811 11,588
Average common shareholders’ equity$13,485 $11,839
Annualized net income return on average common equity19.6 %13.3 %
Annualized operating return on average common equity21.5 %17.1 %
(1) Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds 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.
2
Segment Information
The following section provides analysis on the Company’s 2023 second quarter performance by operating segment. For additional details regarding the Company’s operating segments, please refer to the Company’s Financial Supplement dated June 30, 2023. The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development. Such items are non-GAAP financial measures (see ‘Comments on Regulation G’ for further details).
Insurance Segment
Three Months Ended June 30,
(U.S. Dollars in millions)20232022% Change
Gross premiums written$1,955 $1,705 14.7
Net premiums written1,454 1,228 18.4
Net premiums earned1,328 1,102 20.5
Underwriting income$108 $97 11.3
Underwriting Ratios% Point Change
Loss ratio57.3 %57.1 %0.2
Apr 26, 2023
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
April 26, 2023 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2023 first quarter results. The results included:
•Net income available to Arch common shareholders of $705 million, or $1.87 per share, a 22.3% annualized net income return on average common equity, compared to $186 million, or $0.48 per share, for the 2022 first quarter.
•After-tax operating income available to Arch common shareholders(1) of $654 million, or $1.73 per share, a 20.7% annualized operating return on average common equity, compared to $422 million, or $1.10 per share, for the 2022 first quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums (1), of $79 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 82.2%, compared to 80.8% for the 2022 first quarter.
•Favorable development in prior year loss reserves, net of related adjustments(1) of $126 million.
•Book value per common share of $35.35 at March 31, 2023, an 8.4% increase from December 31, 2022.
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 March 31,
20232022% Change
Gross premiums written$4,780 $3,801 25.8
Net premiums written3,424 2,634 30.0
Net premiums earned2,883 2,121 35.9
Underwriting income570 458 24.5
Underwriting Ratios% Point Change
Loss ratio51.0 %47.2 %3.8
Underwriting expense ratio29.6 %31.5 %(1.9)
Combined ratio80.6 %78.7 %1.9
Combined ratio excluding catastrophic activity and prior year development (1) 82.2 %80.8 %1.4
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. See ‘Comments on Regulation G’ for further details.
1
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 Regulation G’ for a discussion of non-GAAP financial measures):
(U.S. Dollars in millions, except per share data)Three Months Ended
March 31,
20232022
Net income available to Arch common shareholders$705 $186
Net realized (gains) losses(17)292
Equity in net (income) loss of investment funds accounted for using the equity method(48)(36)
Net foreign exchange (gains) losses18 (4)
Transaction costs and other(1)—
Income tax expense (benefit) (1)(3)(16)
After-tax operating income available to Arch common shareholders$654 $422
Diluted per common share results:
Net income available to Arch common shareholders$1.87 $0.48
Net realized (gains) losses(0.05)0.76
Equity in net (income) loss of investment funds accounted for using the equity method(0.13)(0.09)
Net foreign exchange (gains) losses0.05 (0.01)
Transaction costs and other0.00 0.00
Income tax expense (benefit) (1)(0.01)(0.04)
After-tax operating income available to Arch common shareholders$1.73 $1.10
Weighted average common shares and common share equivalents outstanding — diluted377.6 384.2
Beginning common shareholders’ equity$12,080 $12,716
Ending common shareholders’ equity13,158 12,090
Average common shareholders’ equity$12,619 $12,403
Annualized net income return on average common equity22.3 %6.0 %
Annualized operating return on average common equity20.7 %13.6 %
(1) Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds 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.
2
Segment Information
The following section provides analysis on the Company’s 2023 first quarter performance by operating segment. For additional details regarding the Company’s operating segments, please refer to the Company’s Financial Supplement dated March 31, 2023. The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development. Such items are non-GAAP financial measures (see ‘Comments on Regulation G’ for further details).
Insurance Segment
Three Months Ended March 31,
(U.S. Dollars in millions)20232022% Change
Gross premiums written$1,979 $1,720 15.1
Net premiums written1,437 1,207 19.1
Net premiums earned1,257 1,027 22.4
Underwriting income$114 $63 81.0
Underwriting Ratios% Point Change
Loss ratio55.9 %58.5 %
Feb 13, 2023
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
February 13, 2023 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2022 fourth quarter results. The results included:
•Net income available to Arch common shareholders of $849.5 million, or $2.26 per share, a 29.5% annualized net income return on average common equity, compared to $613.1 million, or $1.58 per share, for the 2021 fourth quarter;
•After-tax operating income available to Arch common shareholders(1) of $805.9 million, or $2.14 per share, a 28.0% annualized operating return on average common equity, compared to $493.3 million, or $1.27 per share, for the 2021 fourth quarter;
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums (1), of $34.6 million;
•Combined ratio excluding catastrophic activity and prior year development(1) of 82.0%, compared to 80.1% for the 2021 fourth quarter;
•Favorable development in prior year loss reserves, net of related adjustments(1) of $270.1 million;
•Book value per common share of $32.62 at December 31, 2022, a 9.9% increase from September 30, 2022.
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 thousands)Three Months Ended December 31,
20222021% Change
Gross premiums written$3,795,262 $2,861,575 32.6
Net premiums written3,034,636 2,034,427 49.2
Net premiums earned2,760,919 2,083,630 32.5
Underwriting income734,264 471,611 55.7
Underwriting Ratios% Point Change
Loss ratio45.0 %47.8 %(2.8)
Underwriting expense ratio28.5 %29.8 %(1.3)
Combined ratio73.5 %77.6 %(4.1)
Combined ratio excluding catastrophic activity and prior year development (1) 82.0 %80.1 %1.9
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. See ‘Comments on Regulation G’ for further details.
1
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 Regulation G’ for a discussion of non-GAAP financial measures):
(U.S. Dollars in thousands, except share data)Three Months Ended
December 31,
20222021
Net income available to Arch common shareholders$849,504 $613,081
Net realized (gains) losses(79,932)(59,517)
Equity in net (income) loss of investment funds accounted for using the equity method(40,351)(67,132)
Net foreign exchange (gains) losses81,201 (3,221)
Transaction costs and other358 310
Income tax expense (benefit) (1)(4,858)9,736
After-tax operating income available to Arch common shareholders$805,922 $493,257
Diluted per common share results:
Net income available to Arch common shareholders$2.26 $1.58
Net realized (gains) losses(0.22)(0.16)
Equity in net (income) loss of investment funds accounted for using the equity method(0.11)(0.17)
Net foreign exchange (gains) losses0.22 (0.01)
Transaction costs and other0.00 0.00
Income tax expense (benefit) (1)(0.01)0.03
After-tax operating income available to Arch common shareholders$2.14 $1.27
Weighted average common shares and common share equivalents outstanding — diluted375,878,279 388,869,378
Beginning common shareholders’ equity$10,965,110 $12,557,526
Ending common shareholders’ equity12,080,073 12,715,896
Average common shareholders’ equity$11,522,592 $12,636,711
Annualized net income return on average common equity29.5 %19.4 %
Annualized operating return on average common equity28.0 %15.6 %
(1) Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other and loss on redemption of preferred shares reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.
2
Segment Information
The following section provides analysis on the Company’s 2022 fourth quarter performance by operating segment. For additional details regarding the Company’s operating segments, please refer to the Company’s Financial Supplement dated December 31, 2022. The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development. Such items are non-GAAP financial measures (see ‘Comments on Regulation G’ for further details).
Insurance Segment
Three Months Ended December 31,
(U.S. Dollars in thousands)20222021% Change
Gross prem
Oct 26, 2022
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
October 26, 2022 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2022 third quarter results. The results included:
•Net income available to Arch common shareholders of $6.9 million, or $0.02 per share, a 0.2% annualized net income return on average common equity, compared to $388.8 million, or $0.98 per share, for the 2021 third quarter;
•After-tax operating income available to Arch common shareholders(1) of $106.0 million, or $0.28 per share, a 3.8% annualized operating return on average common equity, compared to $294.7 million, or $0.74 per share, for the 2021 third quarter;
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums (1), of $550.8 million, primarily related to Hurricane Ian, as well as from a series of other global events that occurred this year, including U.S. convective storms, Typhoon Nanmadol and the June French hailstorms;
•Combined ratio excluding catastrophic activity and prior year development(1) of 82.2%, compared to 80.1% for the 2021 third quarter;
•Favorable development in prior year loss reserves, net of related adjustments(1) of $178.0 million;
•Book value per common share of $29.69 at September 30, 2022, a 5.4% decrease from June 30, 2022.
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 thousands)Three Months Ended September 30,
20222021% Change
Gross premiums written$3,860,683 $3,207,415 20.4
Net premiums written2,723,774 2,075,929 31.2
Net premiums earned2,470,750 1,929,337 28.1
Underwriting income68,797 173,745 (60.4)
Underwriting Ratios% Point Change
Loss ratio68.1 %63.5 %4.6
Underwriting expense ratio29.2 %27.9 %1.3
Combined ratio97.3 %91.4 %5.9
Combined ratio excluding catastrophic activity and prior year development (1) 82.2 %80.1 %2.1
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. See ‘Comments on Regulation G’ for further details.
1
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 Regulation G’ for a discussion of non-GAAP financial measures):
(U.S. dollars in thousands, except share data)Three Months Ended
September 30,
20222021
Net income available to Arch common shareholders$6,917 $388,751
Net realized (gains) losses183,674 25,040
Equity in net (income) loss of investment funds accounted for using the equity method18,861 (105,398)
Net foreign exchange (gains) losses(90,537)(36,078)
Transaction costs and other76 1,036
Loss on redemption of preferred shares— 15,101
Income tax expense (benefit) (1)(13,019)6,236
After-tax operating income available to Arch common shareholders$105,972 $294,688
Diluted per common share results:
Net income available to Arch common shareholders$0.02 $0.98
Net realized (gains) losses0.48 0.05
Equity in net (income) loss of investment funds accounted for using the equity method0.05 (0.26)
Net foreign exchange (gains) losses(0.24)(0.09)
Transaction costs and other0.00 0.00
Loss on redemption of preferred shares— 0.04
Income tax expense (benefit) (1)(0.03)0.02
After-tax operating income available to Arch common shareholders$0.28 $0.74
Weighted average common shares and common share equivalents outstanding — diluted373,727,277 397,903,347
Beginning common shareholders’ equity$11,587,566 $12,706,072
Ending common shareholders’ equity10,965,110 12,557,526
Average common shareholders’ equity$11,276,338 $12,631,799
Annualized net income return on average common equity0.2 %12.3 %
Annualized operating return on average common equity3.8 %9.3 %
(1) Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other and loss on redemption of preferred shares reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.
2
Segment Information
The following section provides analysis on the Company’s 2022 third quarter performance by operating segment. For additional details regarding the Company’s operating segments, please refer to the Company’s Financial Supplement dated September 30, 2022. The Company’s segment information includes the use of underwriting income (loss) and a combined ratio ex
Oct 20, 2022
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Exhibit 99.1
Waterloo House, Ground Floor
100 Pitts Bay Road
Pembroke HM 08 Bermuda
archcapgroup.com
•Estimated pre-tax net catastrophe losses of $530 million to $560 million across the property casualty insurance and reinsurance segments in the 2022 third quarter.
•Range of estimates is primarily for natural catastrophe events that occurred in the third quarter.
PEMBROKE, BERMUDA, Oct. 18, 2022 — Arch Capital Group Ltd. [NASDAQ: ACGL; "the Company"] reports that its 2022 third quarter results will be negatively impacted by the effects of Hurricane Ian, as well as from a series of other global events that occurred this year, including U.S. convective storms, Typhoon Nanmadol and the June French hailstorms. As a result, the Company has established a range of pre-tax catastrophe losses of $530 million to $560 million in the 2022 third quarter across its property casualty insurance and reinsurance segments, net of reinsurance recoveries and reinstatement premiums.
The Company’s estimate for Hurricane Ian is commensurate with a range of estimated insured losses across the global property/casualty insurance industry of $50 billion to $60 billion for this event, resulting in an approximate market share of industry losses for the Company that is comparable to prior natural events of a large magnitude. The losses are currently expected to be split approximately 70%/30% between the Company’s reinsurance and insurance businesses, respectively.
At this time, there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events. The Company’s estimates across its insurance and reinsurance segments are based on currently available information derived from modeling techniques, including preliminary claims information obtained from the Company’s clients and brokers, a review of relevant in-force contracts, and estimates of reinsurance recoverables. These estimates include losses only related to claims incurred as of Sept. 30, 2022. Actual losses from these events may vary materially from the estimates due to several factors, including the inherent uncertainties in making such determinations. For Hurricane Ian in particular, the timing of the event late in the third quarter increases the uncertainty in the Company’s estimates, as it is relying on a preliminary view of the claims that may be reported, with limited knowledge of the actual insured damage that may have been sustained during the event.
About Arch Capital Group Ltd.
Arch Capital Group Ltd., a publicly listed Bermuda exempted company with approximately $15.1 billion in capital at June 30, 2022, 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 our 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 our 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 pandemics such as COVID-19; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; the Company’s 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
Jul 27, 2022
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
July 27, 2022 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2022 second quarter results. The results included:
•Net income available to Arch common shareholders of $394.2 million, or $1.04 per share, a 13.3% annualized net income return on average common equity, compared to $663.8 million, or $1.63 per share, for the 2021 second quarter;
•After-tax operating income available to Arch common shareholders(1) of $506.5 million, or $1.34 per share, a 17.1% annualized operating return on average common equity, compared to $407.2 million, or $1.00 per share, for the 2021 second quarter;
•Combined ratio excluding catastrophic activity and prior year development(1) of 80.8%, compared to 80.7% for the 2021 second quarter;
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums(1) of $82.4 million;
•Favorable development in prior year loss reserves, net of related adjustments(1) of $166.6 million;
•7.1 million shares repurchased at an aggregate cost of approximately $320.7 million;
•Book value per common share of $31.37 at June 30, 2022, a 2.5% decrease from March 31, 2022.
All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results, both (i) on a consolidated basis and (ii) on a consolidated basis excluding the ‘other’ segment (i.e., results of Somers). Effective July 1, 2021, the Company no longer consolidates the results of Somers in its consolidated financial statements.
(U.S. dollars in thousands)Consolidated Consolidated Excluding ‘Other’ Segment (1)
Three Months Ended June 30,Three Months Ended June 30,
20222021% Change20222021% Change
Gross premiums written$3,869,727 $3,286,291 17.8 $3,869,727 $3,117,505 24.1
Net premiums written2,684,639 2,399,524 11.9 2,684,639 2,224,133 20.7
Net premiums earned2,325,775 2,120,909 9.7 2,325,775 1,936,672 20.1
Underwriting income535,378 386,521 38.5 535,378 395,387 35.4
Underwriting Ratios% Point Change% Point Change
Loss ratio47.4 %54.7 %(7.3)47.4 %52.6 %(5.2)
Underwriting expense ratio29.7 %27.3 %2.4 29.7 %27.2 %2.5
Combined ratio77.1 %82.0 %(4.9)77.1 %79.8 %(2.7)
Combined ratio excluding catastrophic activity and prior year development (1) 80.8 %80.7 %0.1
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. Such presentation excludes the results of Somers Group Holdings Ltd. (“Somers”), formerly known as Watford Holdings Ltd., which the Company consolidated in its financial statements through June 30, 2021 pursuant to GAAP. See ‘Comments on Regulation G’ for further details.
1
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 Regulation G’ for a discussion of non-GAAP financial measures):
(U.S. dollars in thousands, except share data)Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Net income available to Arch common shareholders$394,160 $663,820 $579,776 $1,091,573
Net realized (gains) losses266,579 (167,438)558,993 (272,989)
Equity in net (income) loss of investment funds accounted for using the equity method(58,061)(122,186)(94,366)(193,872)
Net foreign exchange (gains) losses(87,797)17,888 (91,652)(3,444)
Transaction costs and other261 (1,421)658 (147)
Income tax expense (benefit) (1)(8,646)16,553 (24,914)25,864
After-tax operating income available to Arch common shareholders$506,496 $407,216 $928,495 $646,985
Diluted per common share results:
Net income available to Arch common shareholders$1.04 $1.63 $1.52 $2.68
Net realized (gains) losses0.70 (0.41)1.47 (0.66)
Equity in net (income) loss of investment funds accounted for using the equity method(0.15)(0.30)(0.25)(0.48)
Net foreign exchange (gains) losses(0.23)0.04 (0.24)(0.01)
Transaction costs and other0.00 0.00 0.00 0.00
Income tax expense (benefit) (1)(0.02)0.04 (0.06)0.06
After-tax operating income available to Arch common shareholders$1.34 $1.00 $2.44 $1.59
Weighted average common shares and common share equivalents outstanding — diluted377,952,988 406,485,994 380,905,512 407,687,680
Beginning common shareholders’ equity$12,089,589 $12,316,472 $12,715,896 $12,325,886
Ending common shareholders’ equity11,587,566 12,706,072 11,587,566 12,706,072
Average common shareholders’ equity$11,838,578 $12,511,272 $12,151,731 $12,515,979
Annualized net income return
Apr 27, 2022
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PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
April 27, 2022 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2022 first quarter results. The results included:
•Net income available to Arch common shareholders of $185.6 million, or $0.48 per share, a 6.0% annualized net income return on average common equity, compared to $427.8 million, or $1.05 per share, for the 2021 first quarter;
•After-tax operating income available to Arch common shareholders(1) of $422.0 million, or $1.10 per share, a 13.6% annualized operating return on average common equity, compared to $239.8 million, or $0.59 per share, for the 2021 first quarter;
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums(1) of $85.8 million, including amounts associated with Russia’s invasion of Ukraine;
•Favorable development in prior year loss reserves, net of related adjustments(1) of $129.4 million;
•Combined ratio excluding catastrophic activity and prior year development(1) of 80.8%, compared to 81.0% for the 2021 first quarter;
•5.6 million shares repurchased at an aggregate cost of approximately $255.0 million;
•Book value per common share of $32.18 at March 31, 2022, a 4.1% decrease from December 31, 2021.
All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results, both (i) on a consolidated basis and (ii) on a consolidated basis excluding the ‘other’ segment (i.e., results of Somers). Effective July 1, 2021, the Company no longer consolidates the results of Somers in its consolidated financial statements.
(U.S. dollars in thousands)Consolidated Consolidated Excluding ‘Other’ Segment (1)
Three Months Ended March 31,Three Months Ended March 31,
20222021% Change20222021% Change
Gross premiums written$3,800,775 $3,397,206 11.9 $3,800,775 $3,277,293 16.0
Net premiums written2,634,140 2,508,457 5.0 2,634,140 2,329,146 13.1
Net premiums earned2,120,633 1,948,422 8.8 2,120,633 1,800,691 17.8
Underwriting income457,593 185,918 146.1 457,593 198,997 129.9
Underwriting Ratios% Point Change% Point Change
Loss ratio47.2 %61.7 %(14.5)47.2 %60.2 %(13.0)
Underwriting expense ratio31.5 %29.0 %2.5 31.5 %29.0 %2.5
Combined ratio78.7 %90.7 %(12.0)78.7 %89.2 %(10.5)
Combined ratio excluding catastrophic activity and prior year development (1) 80.8 %81.0 %(0.2)
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. Such presentation excludes the results of Somers Group Holdings Ltd. (“Somers”), formerly known as Watford Holdings Ltd., which the Company consolidated in its financial statements through June 30, 2021 pursuant to GAAP. See ‘Comments on Regulation G’ for further details.
1
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 Regulation G’ for a discussion of non-GAAP financial measures):
(U.S. dollars in thousands, except share data)Three Months Ended
March 31,
20222021
Net income available to Arch common shareholders$185,616 $427,753
Net realized (gains) losses292,414 (105,551)
Equity in net (income) loss of investment funds accounted for using the equity method(36,305)(71,686)
Net foreign exchange (gains) losses(3,855)(21,332)
Transaction costs and other397 1,274
Income tax expense (benefit) (1)(16,268)9,311
After-tax operating income available to Arch common shareholders$421,999 $239,769
Diluted per common share results:
Net income available to Arch common shareholders$0.48 $1.05
Net realized (gains) losses0.76 (0.25)
Equity in net (income) loss of investment funds accounted for using the equity method(0.09)(0.18)
Net foreign exchange (gains) losses(0.01)(0.05)
Transaction costs and other0.00 0.00
Income tax expense (benefit) (1)(0.04)0.02
After-tax operating income available to Arch common shareholders$1.10 $0.59
Weighted average common shares and common share equivalents outstanding — diluted384,194,363 409,223,253
Beginning common shareholders’ equity$12,715,896 $12,325,886
Ending common shareholders’ equity12,089,589 12,316,472
Average common shareholders’ equity$12,402,743 $12,321,179
Annualized net income return on average common equity6.0 %13.9 %
Annualized operating return on average common equity13.6 %7.8 %
(1) Income tax expense (benefit) on net realized gains or losses, equity in net income (loss) of investment funds accounted for using the equ
Feb 9, 2022
2 ex-991release123121.htm
Document
PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
February 9, 2022 Pembroke HM 08 Bermuda
PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2021 fourth quarter results. The results included:
•Net income available to Arch common shareholders of $613.1 million, or $1.58 per share, a 19.4% annualized net income return on average common equity, compared to $533.1 million, or $1.30 per share, for the 2020 fourth quarter;
•After-tax operating income available to Arch common shareholders(1) of $493.3 million, or $1.27 per share, a 15.6% annualized operating return on average common equity, compared to $230.4 million, or $0.56 per share, for the 2020 fourth quarter;
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums(1) of $72.3 million;
•Favorable development in prior year loss reserves, net of related adjustments(1) of $125.6 million;
•Combined ratio excluding catastrophic activity and prior year development(1) of 80.1%, compared to 80.2% for the 2020 fourth quarter;
•8.7 million shares repurchased at an aggregate cost of $362.1 million;
•Book value per common share of $33.56 at December 31, 2021, a 3.5% increase from September 30, 2021 and a 10.7% increase from December 31, 2020.
All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results, both (i) on a consolidated basis and (ii) on a consolidated basis excluding the ‘other’ segment (i.e., results of Somers). Effective July 1, 2021, the Company no longer consolidates the results of Somers in its consolidated financial statements.
(U.S. dollars in thousands)Consolidated Consolidated Excluding ‘Other’ Segment (1)
Three Months Ended December 31,Three Months Ended December 31,
20212020% Change20212020% Change
Gross premiums written$2,861,575 $2,256,514 26.8 $2,861,575 $2,170,831 31.8
Net premiums written2,034,427 1,758,015 15.7 2,034,427 1,660,298 22.5
Net premiums earned2,083,630 1,811,045 15.1 2,083,630 1,668,299 24.9
Underwriting income471,611 220,987 113.4 471,611 229,542 105.5
Underwriting Ratios% Point Change% Point Change
Loss ratio47.8 %62.3 %(14.5)47.8 %61.0 %(13.2)
Underwriting expense ratio29.8 %26.0 %3.8 29.8 %25.6 %4.2
Combined ratio77.6 %88.3 %(10.7)77.6 %86.6 %(9.0)
Combined ratio excluding catastrophic activity and prior year development (1) 80.1 %80.2 %(0.1)
(1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. Such presentation excludes the results of Somers Holdings Ltd. (“Somers”), formerly known as Watford Holdings Ltd., which the Company consolidated in its financial statements through June 30, 2021 pursuant to GAAP. See ‘Comments on Regulation G’ for further details.
1
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:
(U.S. dollars in thousands, except share data)Three Months EndedYear Ended
December 31,December 31,
2021202020212020
Net income available to Arch common shareholders$613,081 $533,141 $2,093,405 $1,363,909
Net realized (gains) losses(59,517)(297,801)(307,466)(814,808)
Equity in net (income) loss of investment funds accounted for using the equity method(67,132)(89,286)(366,402)(146,693)
Net foreign exchange (gains) losses(3,221)63,588 (42,743)80,591
Transaction costs and other310 4,718 1,199 9,964
Loss on redemption of preferred shares— — 15,101 —
Income tax expense (benefit) (1)9,736 16,057 41,836 64,145
After-tax operating income available to Arch common shareholders$493,257 $230,417 $1,434,930 $557,108
Diluted per common share results:
Net income available to Arch common shareholders$1.58 $1.30 $5.23 $3.32
Net realized (gains) losses(0.16)(0.72)(0.77)(1.98)
Equity in net (income) loss of investment funds accounted for using the equity method(0.17)(0.22)(0.92)(0.36)
Net foreign exchange (gains) losses(0.01)0.15 (0.11)0.20
Transaction costs and other0.00 0.01 0.00 0.02
Loss on redemption of preferred shares— — 0.04 —
Income tax expense (benefit) (1)0.03 0.04 0.11 0.16
After-tax operating income available to Arch common shareholders$1.27 $0.56 $3.58 $1.36
Weighted average common shares and common share equivalents outstanding — diluted388,869,378 410,281,852 400,345,936 410,259,455
Beginning common shareholders’ equity$12,557,526 $11,671,997 $12,325,886 $10,717,371
Ending common shareholders’ equity12,715,896 12,325,886 12,715,896 12,325,886
Average common shareholders’ equity$12
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