ACGLO

EX-99.1

2 ex-991release93026.htm

EX-99.1

Document

EXHIBIT 99.1

PRESS RELEASEArch Capital Group Ltd.

NASDAQ Symbol: ACGLWaterloo House, Ground Floor

For Immediate Release100 Pitts Bay Road

October 27, 2026 Pembroke HM 08 Bermuda

ARCH CAPITAL GROUP LTD. REPORTS 2026 THIRD QUARTER RESULTS

PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2026 third quarter results. The results included:

•Net income available to Arch common shareholders of $1.0 billion, or $3.00 per share, representing an 18.1% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.3 billion, or $3.56 per share, for the 2025 third quarter.

•After-tax operating income available to Arch common shareholders(1) of $910 million, or $2.67 per share, representing a 16.0% annualized operating return on average common equity(1), compared to $1.0 billion, or $2.77 per share, for the 2025 third quarter.

•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $234 million.

•Favorable development in prior year loss reserves, net of related adjustments, of $179 million.

•Combined ratio excluding catastrophic activity and prior year development(1) of 81.2%, compared to 80.5% for the 2025 third quarter.

•Share repurchases of $1.4 billion.

•Book value per common share of $67.90 at September 30, 2026, a 0.2% decrease from June 30, 2026.

“We delivered a strong quarter, driven by solid underwriting performance across our three segments and continued strength from our investment portfolio,” said Arch CEO Nicolas Papadopoulo. “We are operating in a transitioning market where conditions are increasingly uneven, but we are prepared and welcome the challenge. The market will continue to evolve, but our core principles will not, and we remain focused on producing superior risk-adjusted returns over the long term. As Arch celebrates its first 25 years, I want to thank our employees for what we have built together: a global franchise, a strong brand and a culture anchored in our Values. I also want to thank our investors for their continued confidence in Arch.”

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,

20262025% Change

Gross premiums written$5,391 $5,410 (0.4)

Net premiums written3,845 3,964 (3.0)

Net premiums earned4,014 4,285 (6.3)

Underwriting income (1) 702 871 (19.4)

Underwriting Ratios% Point Change

Loss ratio55.0 %51.4 %3.6

Underwriting expense ratio (2) 27.5 %28.4 %(0.9)

Combined ratio82.5 %79.8 %2.7

Combined ratio excluding catastrophic activity and prior year development (1) 81.2 %80.5 %0.7

(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

September 30,

20262025

Net income available to Arch common shareholders$1,025 $1,340

Net realized (gains) losses (1)99 (210)

Equity in net (income) of investments accounted for using the equity method(224)(134)

Net foreign exchange (gains) losses(18)7

Transaction costs and other17 21

Income tax expense (benefit) (2)11 18

After-tax operating income available to Arch common shareholders$910 $1,042

Diluted per common share results:

Net income available to Arch common shareholders$3.00 $3.56

Net realized (gains) losses (1)0.29 (0.56)

Equity in net (income) of investments accounted for using the equity method(0.66)(0.36)

Net foreign exchange (gains) losses(0.04)0.02

Transaction costs and other0.05 0.06

Income tax expense (benefit) (2)0.03 0.05

After-tax operating income available to Arch common shareholders$2.67 $2.77

Weighted average common shares and common share equivalents outstanding — diluted341.4 376.1

Beginning common shareholders’ equity$23,200 $22,211

Ending common shareholders’ equity22,162 22,889

Average common shareholders’ equity$22,681 $22,550

Annualized net income return on average common equity18.1 %23.8 %

Annualized operating return on average common equity16.0 %18.5 %

(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