What was ACGL’s book value per share and capital position at June 30, 2026?

Book value per common share was $68.04 at June 30, 2026 , up 2.8% from March 31, 2026. Arch reported approximately $28.3 billion of capital at that date, and shareholders’ equity totaled $24.030 billion with 341.0 million common shares outstanding.

Arch Capital Group Ltd. (NASDAQ: ACGL) earns $1.0B with 83.5% Q2 combined ratio

Q: How did Arch Capital Group (ACGL) perform financially in Q2 2026?

Arch Capital posted Q2 2026 net income of $1.047 billion , or $3.00 diluted EPS , versus $1.227 billion, or $3.23, in Q2 2025. After-tax operating income was $893 million , or $2.56 per share, compared with $979 million, or $2.58, a year earlier.

Q: What was ACGL’s underwriting performance and combined ratio in Q2 2026?

Arch generated underwriting income of $657 million on net premiums earned of $3.985 billion in Q2 2026. The combined ratio was 83.5% , up from 81.2% in Q2 2025, and 82.5% excluding catastrophe activity and prior-year reserve development.

Q: How did ACGL’s insurance, reinsurance and mortgage segments perform in Q2 2026?

In Q2 2026, insurance wrote $2.603 billion of gross premiums with a 98.5% combined ratio. Reinsurance wrote $3.202 billion with a 77.5% combined ratio, while mortgage wrote $324 million with a notably low 22.8% combined ratio.

Q: What were ACGL’s investment results for Q2 2026?

Pre-tax net investment income rose to $417 million in Q2 2026 from $405 million a year earlier. Equity in net income of equity-method investments was $196 million , while net realized results shifted to a $17 million loss from a $229 million gain.

Q: What capital management actions did Arch Capital Group (ACGL) take in Q2 2026?

Arch repurchased $1.2 billion of common shares in Q2 2026 and completed a $2.0 billion senior notes offering. It also repurchased $218.7 million of 2043 notes and $199.1 million of 2046 notes via cash tender offers, realizing a $16 million pre-tax gain.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Arch Capital Group Ltd. reported Q2 2026 net income available to common shareholders of $1.047 billion, or $3.00 per diluted share, compared with $1.227 billion, or $3.23, in Q2 2025. After-tax operating income was $893 million, or $2.56 per share, versus $979 million, or $2.58. Underwriting income was $657 million on net premiums earned of $3.985 billion, producing a combined ratio of 83.5% compared with 81.2% a year earlier. Results included $201 million of pre-tax current accident year catastrophe losses and $165 million of favorable prior-year reserve development; the combined ratio excluding catastrophe activity and prior-year development was 82.5% versus 80.9%.

By segment, the insurance division wrote $2.603 billion of gross premiums with a 98.5% combined ratio, the reinsurance division $3.202 billion with a 77.5% combined ratio, and the mortgage division $324 million with a 22.8% combined ratio. Pre-tax net investment income increased to $417 million from $405 million, while realized results moved to a $17 million loss from a $229 million gain. Arch repurchased $1.2 billion of common shares and increased book value per common share to $68.04 at June 30, 2026, a 2.8% rise from March 31, 2026.

Filing Explained

Arch completed a $2.0 billion debt offering and note tenders, while senior notes stood at $4,286 million on June 30, 2026.

Form 8-K reports specified material events within four business days; here, Arch Capital Group Ltd. discloses completed debt-issuance and debt-tender actions. On June 9, 2026, Arch completed a $2.0 billion public offering of senior notes, and on June 16, 2026, subsidiaries completed cash tenders for specified older notes.

The transaction is debt financing rather than a common-equity issuance, so the filing does not disclose an increase in common shares or dilution from this financing. The company said it expected to use the offering’s net proceeds to repay senior notes due in 2026, fund the tender offers, and support general corporate purposes.

At June 30, 2026, the balance-sheet senior-notes line was $4,286 million, compared with $2,729 million at March 31, 2026. The reported figures show a higher senior-notes balance after the financing activity, although the filing does not assign the entire change to a single transaction.

The financing item to verify next is completion of the planned repayment of the 4.011% senior notes due in 2026; this filing describes that repayment as an expected use of proceeds, not as a completed repayment.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net income available to common shareholders: $1,047 million Diluted EPS: $3.00 After-tax operating income: $893 million +5 more

8 metrics

Net income available to common shareholders $1,047 million For the quarter ended June 30, 2026

Diluted EPS $3.00 Net income per diluted share in Q2 2026

After-tax operating income $893 million After-tax operating income available to Arch common shareholders in Q2 2026

Underwriting income $657 million Consolidated underwriting income in Q2 2026

Combined ratio 83.5% Consolidated combined ratio for Q2 2026

Gross premiums written $6,126 million Consolidated gross premiums written in Q2 2026

Book value per common share $68.04 Book value per common share at June 30, 2026

Share repurchases $1.2 billion Common share repurchases during Q2 2026

Key Terms

combined ratio, current accident year catastrophic events, credit-risk transfer, equity in net income of investments accounted for using the equity method, +1 more

5 terms

combined ratio financial

"Combined ratio excluding catastrophic activity and prior year development of 82.5%"

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

current accident year catastrophic events financial

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

credit-risk transfer financial

"reinsurance and underwriting services related to U.S. credit-risk transfer business"

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

"Equity in net income of investments accounted for using the equity method was $196 million"

A company's share of profit or loss from another business it partly owns and controls, recorded on its income statement rather than as a simple investment sale. Think of it as owning a slice of a bakery: you don’t run the counter, but you record your portion of the bakery’s monthly profit in your own books. Investors watch this line because it changes reported earnings without an immediate cash transfer and reveals how well related businesses are performing under the company’s influence.

total return on investments financial

"Total return on investments was 1.62% in the 2026 second quarter"

Earnings Snapshot

Net income available to common shareholders: $1,047 million

Three months ended June 30, 2026

Net income available to common shareholders $1,047 million down from $1,227 million in Q2 2025

Diluted EPS $3.00 down from $3.23 in Q2 2025

After-tax operating income $893 million down from $979 million in Q2 2025

Underwriting income $657 million down from $818 million in Q2 2025

Combined ratio 83.5% up from 81.2% in Q2 2025

Net premiums earned $3,985 million down from $4,337 million in Q2 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 07/28/2026 - 04:05 PM Accepted by SEC EDGAR 07/28/2026 - 04:04 PM

FAQ

How did Arch Capital Group (ACGL) perform financially in Q2 2026?

Arch Capital posted Q2 2026 net income of $1.047 billion, or $3.00 diluted EPS, versus $1.227 billion, or $3.23, in Q2 2025. After-tax operating income was $893 million, or $2.56 per share, compared with $979 million, or $2.58, a year earlier.

What was ACGL’s underwriting performance and combined ratio in Q2 2026?

Arch generated underwriting income of $657 million on net premiums earned of $3.985 billion in Q2 2026. The combined ratio was 83.5%, up from 81.2% in Q2 2025, and 82.5% excluding catastrophe activity and prior-year reserve development.

How did ACGL’s insurance, reinsurance and mortgage segments perform in Q2 2026?

In Q2 2026, insurance wrote $2.603 billion of gross premiums with a 98.5% combined ratio. Reinsurance wrote $3.202 billion with a 77.5% combined ratio, while mortgage wrote $324 million with a notably low 22.8% combined ratio.

What were ACGL’s investment results for Q2 2026?

Pre-tax net investment income rose to $417 million in Q2 2026 from $405 million a year earlier. Equity in net income of equity-method investments was $196 million, while net realized results shifted to a $17 million loss from a $229 million gain.

What capital management actions did Arch Capital Group (ACGL) take in Q2 2026?

Arch repurchased $1.2 billion of common shares in Q2 2026 and completed a $2.0 billion senior notes offering. It also repurchased $218.7 million of 2043 notes and $199.1 million of 2046 notes via cash tender offers, realizing a $16 million pre-tax gain.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

July 28, 2026

Date of Report (Date of earliest event reported)

Arch Capital Group Ltd.

(Exact name of registrant as specified in its charter)

Bermuda

001-16209

98-0374481

(State or other
jurisdiction of
incorporation or
organization)

(Commission File Number)

(I.R.S. Employer
Identification No.)

Waterloo House, Ground Floor, 100 Pitts Bay Road, Pembroke HM 08, Bermuda

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:

(441) 278-9250

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading Symbol (s)

Name of each exchange on which registered

Common shares, $0.0011 par value per share

ACGL

NASDAQ

Stock Market

Depositary shares, each representing a 1/1,000th interest in a 5.45% Series F preferred share

ACGLO

NASDAQ

Stock Market

Depositary shares, each representing a 1/1,000th interest in a 4.55% Series G preferred share

ACGLN

NASDAQ

Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

ITEM 2.02 Results of Operations and Financial Condition.

On July 28, 2026 Arch Capital Group Ltd. issued a press release reporting its earnings and the availability of its financial supplement for the quarter ended June 30, 2026. The press release and financial supplement are attached to this Current Report on Form 8-K as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.

The information in this Current Report on Form 8-K, including the information set forth in Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01 Financial Statements and Exhibits.

(d): The following exhibits are being filed herewith.


EXHIBIT NO.						DESCRIPTION
99.1						Press Release dated July 28, 2026 announcing the earnings of Arch Capital Group Ltd. for the quarter ended June 30, 2026
99.2						2026 Second Quarter Financial Supplement
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	ARCH CAPITAL GROUP LTD.


Date: July 28, 2026	By:	/s/ François Morin
		Name:	François Morin
		Title:	Executive Vice President, Chief Financial Officer and Treasurer


						EXHIBIT 99.1
			PRESS RELEASE			Arch Capital Group Ltd.
			NASDAQ Symbol: ACGL			Waterloo House, Ground Floor
			For Immediate Release			100 Pitts Bay Road
			July 28, 2026			Pembroke HM 08 Bermuda

ARCH CAPITAL GROUP LTD. REPORTS 2026 SECOND QUARTER RESULTS

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,
		2026			2025			% Change
Gross premiums written		$	6,126		$	6,196		(1.1)
Net premiums written		4,049			4,348			(6.9)
Net premiums earned		3,985			4,337			(8.1)
Underwriting income (1)		657			818			(19.7)
Underwriting Ratios								% Point Change
Loss ratio		55.1		%	53.1		%	2.0
Underwriting expense ratio (2)		28.4		%	28.1		%	0.3
Combined ratio		83.5		%	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.

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,
	2026			2025
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 other	32			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 other	0.09			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 — diluted	348.8			379.9

Beginning common shareholders’ equity	$	23,358		$	20,715
Ending common shareholders’ equity	23,200			22,211
Average common shareholders’ equity	$	23,279		$	21,463

Annualized net income return on average common equity	18.0		%	22.9		%
Annualized operating return on average common equity	15.3		%	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 disposition of subsidiaries.

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

Segment Information

The following section provides analysis on the Company’s 2026 second quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated June 30, 2026. On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (MCE Acquisition). The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see ‘Comments on Non-GAAP Financial Measures’ for further details).

Insurance Segment


	Three Months Ended June 30,
(U.S. Dollars in millions)	2026			2025			% Change

Gross premiums written	$	2,603		$	2,681		(2.9)
Net premiums written	1,933			2,036			(5.1)
Net premiums earned	1,880			1,969			(4.5)
Other underwriting income	15			13			15.4

Underwriting income	$	27		$	129		(79.1)

Underwriting Ratios							% Point Change
Loss ratio	63.0		%	59.8		%	3.2
Underwriting expense ratio	35.5		%	33.6		%	1.9
Combined ratio	98.5		%	93.4		%	5.1

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	8.0		%	2.9		%	5.1
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact	(1.4)		%	(0.4)		%	(1.0)
Underwriting expense ratio impact	0.3		%	0.3		%	—
Total impact	(1.1)		%	(0.1)		%	(1.0)

Combined ratio excluding catastrophic activity and prior year development	91.6		%	90.6		%	1.0

Gross premiums written by the insurance segment in the 2026 second quarter were 2.9% lower than in the 2025 second quarter, while net premiums written were 5.1% lower than in the 2025 second quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have decreased by 1.8% compared to the same quarter one year ago. Net premiums earned in the 2026 second quarter were 4.5% lower than in the 2025 second quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 second quarter loss ratio reflected 7.6 points of current year catastrophic activity, compared to 2.9 points in the 2025 second quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 1.4 points in the 2026 second quarter, compared to 0.4 points in the 2025 second quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.

The underwriting expense ratio was 35.5% in the 2026 second quarter, compared to 33.6% in the 2025 second quarter. The 2026 second quarter ratio reflected transitional expenses associated with the MCE Acquisition, and a lower level of net premiums earned compared to the 2025 second quarter. In the 2025 second quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 0.6 points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs.

Reinsurance Segment


	Three Months Ended June 30,
(U.S. Dollars in millions)	2026			2025			% Change

Gross premiums written	$	3,202		$	3,196		0.2
Net premiums written	1,844			2,059			(10.4)
Net premiums earned	1,820			2,087			(12.8)
Other underwriting income	37			46			(19.6)

Underwriting income	$	410		$	451		(9.1)

Underwriting Ratios							% Point Change
Loss ratio	54.6		%	54.1		%	0.5
Underwriting expense ratio	22.9		%	24.4		%	(1.5)
Combined ratio	77.5		%	78.5		%	(1.0)

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	2.8		%	4.6		%	(1.8)
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact	(5.3)		%	(3.9)		%	(1.4)
Underwriting expense ratio impact	0.1		%	0.6		%	(0.5)
Total impact	(5.2)		%	(3.3)		%	(1.9)

Combined ratio excluding catastrophic activity and prior year development	79.9		%	77.2		%	2.7

Gross premiums written by the reinsurance segment in the 2026 second quarter were 0.2% higher than in the 2025 second quarter, while net premiums written were 10.4% lower than in the 2025 second quarter. Reductions in net premiums written this quarter were due, in part, to non-renewals, share reductions as well as targeted increased retrocessions. Net premiums earned in the 2026 second quarter were 12.8% lower than in the 2025 second quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 second quarter loss ratio reflected 3.0 points of current year catastrophic activity, compared to 5.5 points in the 2025 second quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 5.3 points in the 2026 second quarter, compared to 3.9 points in the 2025 second quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.

The underwriting expense ratio was 22.9% in the 2026 second quarter, compared to 24.4% in the 2025 second quarter, with the decrease primarily reflecting the impact of higher profit commissions on retrocessions.

Mortgage Segment


	Three Months Ended June 30,
(U.S. Dollars in millions)	2026			2025			% Change

Gross premiums written	$	324		$	323		0.3
Net premiums written	272			253			7.5
Net premiums earned	285			281			1.4
Other underwriting income	5			3			66.7

Underwriting income	$	220		$	238		(7.6)

Underwriting Ratios							% Point Change
Loss ratio	6.5		%	(1.2)		%	7.7
Underwriting expense ratio	16.3		%	16.4		%	(0.1)
Combined ratio	22.8		%	15.2		%	7.6

Prior year development:
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact	(15.7)		%	(22.8)		%	7.1
Underwriting expense ratio impact	(1.3)		%	(1.3)		%	—
Total impact	(17.0)		%	(24.1)		%	7.1

Combined ratio excluding prior year development	39.8		%	39.3		%	0.5

Gross premiums written by the mortgage segment in the 2026 second quarter were 0.3% higher than in the 2025 second quarter, with growth in international business offset by a reduction in U.S. monthly premium volume. Net premiums written were 7.5% higher than in the 2025 second quarter, reflecting the termination of certain Bellemeade and quota share agreements on U.S. primary business. Net premiums earned were relatively flat, increasing 1.4%.

Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 15.7 points, compared to 22.8 points in the 2025 second quarter. Such amounts were primarily related to better than expected cure rates. The 2026 second quarter loss ratio, excluding net favorable development, was relatively flat compared to the 2025 second quarter.

The underwriting expense ratio was 16.3% in the 2026 second quarter, consistent with the 16.4% ratio reported in the 2025 second quarter.

Corporate

The Company’s results include net investment income, net realized gains or losses (which 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), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.

Investment returns were as follows:


(U.S. Dollars in millions, except per share data)	Three Months Ended
		June 30,			March 31,			June 30,
		2026			2026			2025
Pre-tax net investment income		$	417		$	408		$	405
Per share		$	1.20		$	1.13		$	1.07

Equity in net income of investments accounted for using the equity method		$	196		$	160		$	162
Per share		$	0.56		$	0.44		$	0.43

Pre-tax investment income yield, at amortized cost (1)		3.91		%	3.99		%	4.25		%

Total return on investments (2)		1.62		%	0.10		%	3.09		%

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

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

Net investment income for the 2026 second quarter, compared to the 2025 second quarter, primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized losses were $17 million for the 2026 second quarter, compared to net realized gains of $229 million in the 2025 second quarter.

Corporate expenses for the 2026 second quarter were $12 million, compared to $29 million for the 2025 second quarter. Such expenses primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The decline in the 2026 second quarter primarily reflected the benefit of Bermuda qualified refundable tax credits.

Amortization of intangible assets was $30 million for the 2026 second quarter, compared to $48 million for the 2025 second quarter.

On June 9, 2026, the Company completed a public offering of $2.0 billion of senior notes, consisting of $600 million of 5.250% senior notes due in 2036 and $1.4 billion of 5.950% senior notes due in 2056. The Company expects to use the net proceeds from this offering to repay its 4.011% senior notes due in 2026, fund purchases from the cash tender offers described below, and for general corporate purposes. On June 16, 2026, the Company completed the cash tender offers for certain outstanding senior notes, with Arch Capital Group (U.S.) Inc. repurchasing $218.7 million of its 5.144% senior notes due in 2043, and Arch Capital Finance LLC repurchasing $199.1 million of its 5.031% senior notes due in 2046. This resulted in a total pre-tax realized gain of $16 million for the 2026 second quarter. Interest expense for the 2026 second quarter was $44 million, compared to $38 million for the 2025 second quarter, with the increase resulting from the Company’s capital raising activity.

On a pre-tax basis, net foreign exchange gains were $10 million for the 2026 second quarter, compared to net foreign exchange losses of $88 million for the 2025 second quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders’ equity and are not included in the consolidated statements of income.

The Company’s effective tax rate on income before income taxes (based on the Company’s annual effective tax rate) was 13.4% for the 2026 second quarter, compared to 14.7% for the 2025 second quarter. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 15.1% for the 2026 second quarter, compared to 15.2% for the 2025 second quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction.

Income from operating affiliates for the 2026 second quarter was $46 million, or $0.13 per share, compared to $40 million, or $0.11 per share, for the 2025 second quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA.

Conference Call

The Company will hold a conference call for investors and analysts at 10 a.m. Eastern Time on July 29, 2026. A live webcast of this call will be available via the Investors section of the Company’s website at http://www.archgroup.com/investors. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company’s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year.

Please refer to the Company’s Financial Supplement dated June 30, 2026, which is available via the Investors section of the Company’s website at http://www.archgroup.com/investors. The Financial Supplement provides additional detail regarding the financial performance of the Company. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries. Investors and other recipients of this information are encouraged to check the Company’s website regularly for additional information regarding the Company.

Arch Capital Group Ltd., is a publicly listed Bermuda exempted company with approximately $28.3 billion in capital at June 30, 2026. Arch, which is part of the S&P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Comments on Non-GAAP Financial Measures

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

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

The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business performance. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization.

The use of the equity method on certain of the Company’s investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities

and the timing of the recognition of equity in net income or loss of investments accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments.

Transaction costs and other include integration, advisory, financing, legal, severance, incentive compensation and all other costs directly related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance.

The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company’s business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company’s financial information to analyze the Company’s performance in a manner similar to how the Company’s management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company’s financial information to compare the Company’s performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.

The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of its underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on the following pages.

Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income, income from operating affiliates and other items are not allocated to each underwriting segment.

In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by Arch’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented.

The following tables summarize the Company’s results by segment for the 2026 second quarter and 2025 second quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders:


(U.S. Dollars in millions)	Three Months Ended
	June 30, 2026
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	2,603		$	3,202		$	324		$	6,126
Premiums ceded (1)	(670)			(1,358)			(52)			(2,077)
Net premiums written	1,933			1,844			272			4,049
Change in unearned premiums	(53)			(24)			13			(64)
Net premiums earned	1,880			1,820			285			3,985
Other underwriting income (2)	15			37			5			57
Losses and loss adjustment expenses	(1,185)			(992)			(19)			(2,196)
Acquisition expenses	(375)			(341)			(2)			(718)
Other operating expenses	(308)			(114)			(49)			(471)
Underwriting income (loss)	$	27		$	410		$	220		657

Net investment income										417
Net realized gains (losses)										(17)

Equity in net income of investments accounted for using the equity method										196
Other income (loss)										30
Corporate benefit (expenses) (3)										(12)
Transaction costs and other (3)										(32)
Amortization of intangible assets										(30)
Interest expense										(44)
Net foreign exchange gains (losses)										10
Income (loss) before income taxes and income (loss) from operating affiliates										1,175
Income tax benefit (expense)										(164)
Income (loss) from operating affiliates										46



Net income (loss) available to Arch										1,057
Preferred dividends										(10)

Net income (loss) available to Arch common shareholders										$	1,047

Underwriting Ratios
Loss ratio	63.0		%	54.6		%	6.5		%	55.1		%
Acquisition expense ratio	19.9		%	18.7		%	0.9		%	18.0		%
Other operating expense ratio (4)	15.6		%	4.2		%	15.4		%	10.4		%
Combined ratio	98.5		%	77.5		%	22.8		%	83.5		%

Net premiums written to gross premiums written	74.3		%	57.6		%	84.0		%	66.1		%

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

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

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

(4) The ‘Other operating expense ratio’ includes ‘Other underwriting income.’


(U.S. Dollars in millions)	Three Months Ended
	June 30, 2025
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	2,681		$	3,196		$	323		$	6,196
Premiums ceded (1)	(645)			(1,137)			(70)			(1,848)
Net premiums written	2,036			2,059			253			4,348
Change in unearned premiums	(67)			28			28			(11)
Net premiums earned	1,969			2,087			281			4,337
Other underwriting income (2)	13			46			3			62
Losses and loss adjustment expenses	(1,178)			(1,128)			3			(2,303)
Acquisition expenses	(387)			(436)			(1)			(824)
Other operating expenses	(288)			(118)			(48)			(454)
Underwriting income (loss)	$	129		$	451		$	238		818

Net investment income										405
Net realized gains (losses)										229

Equity in net income of investments accounted for using the equity method										162
Other income (loss)										18
Corporate benefit (expenses) (3)										(29)
Transaction costs and other (3)										(18)
Amortization of intangible assets										(48)
Interest expense										(38)
Net foreign exchange gains (losses)										(88)
Income (loss) before income taxes and income (loss) from operating affiliates										1,411
Income tax benefit (expense)										(214)
Income (loss) from operating affiliates										40



Net income (loss) available to Arch										1,237
Preferred dividends										(10)

Net income (loss) available to Arch common shareholders										$	1,227

Underwriting Ratios
Loss ratio	59.8		%	54.1		%	(1.2)		%	53.1		%
Acquisition expense ratio	19.6		%	20.9		%	0.4		%	19.0		%
Other operating expense ratio (4)	14.0		%	3.5		%	16.0		%	9.1		%
Combined ratio	93.4		%	78.5		%	15.2		%	81.2		%

Net premiums written to gross premiums written	75.9		%	64.4		%	78.3		%	70.2		%

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

(4) The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Cautionary Note Regarding Forward-Looking Statements

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

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

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

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

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

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

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

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

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

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

•the loss and addition of key personnel;

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

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

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

•the adequacy of the Company’s loss reserves;

•severity and/or frequency of losses;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

•the other matters set forth under Item 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors.

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


Contacts
Arch Capital Group Ltd.			Investor Relations
François Morin: (441) 278-9250			Donald Watson: (914) 872-3616; dwatson@archgroup.com


Source: Arch Capital Group Ltd.
arch-corporate

EXHIBIT 99.2




			Arch Capital Group Ltd.
			Waterloo House, Ground Floor
			100 Pitts Bay Road
			Pembroke HM 08 Bermuda

Financial Supplement

June 30, 2026

The following financial supplement is provided to assist in your understanding of Arch Capital Group Ltd. (“Arch”) and its subsidiaries (collectively, the “Company”).

This report is for informational purposes only. It should be read in conjunction with documents filed by Arch with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and the Quarterly Reports on Form 10-Q. Please refer to the Company’s website at www.archgroup.com for further information describing Arch.




Arch Capital Group Ltd.			Investor Relations
François Morin: (441) 278-9250			Donald Watson: (914) 872-3616; dwatson@archgroup.com

Arch Capital Group Ltd. and Subsidiaries

Table of Contents


			Page

I.	Financial Highlights		3

II.	Consolidated Financial Statements
	a.	Consolidated Statements of Income	4

	b.	Consolidated Balance Sheets	5
	c.	Consolidated Statements of Changes in Shareholders’ Equity	6
	d.	Consolidated Statements of Cash Flows	7

III.	Segment Information
	a.	Overview	8
	b.	Consolidated Results	9
	c.	Insurance Segment Results	13
	d.	Reinsurance Segment Results	15
	e.	Mortgage Segment Results	17
	f.	Segment Consolidated Results	22
	g.	Selected Information on Losses and Loss Adjustment Expenses	23

IV.	Investment Information
	a.	Investable Asset Summary and Investment Portfolio Metrics	24
	b.	Composition of Net Investment Income, Yield and Total Return	25
	c.	Composition of Fixed Maturities	26
	d.	Credit Quality Distribution and Maturity Profile	27
	e.	Analysis of Corporate Exposures	28
	f.	Structured Securities	29

V.	Other
	a.	Comments on Non-GAAP Financial Measures	30
	b.	Operating Income Reconciliation and Annualized Operating Return on Average Common Equity	31
	c.	Operating Income and Effective Tax Rate Calculations	32
	d.	Capital Structure and Share Repurchase Activity	33


			1

Arch Capital Group Ltd. and Subsidiaries

Basis of Presentation

All financial information contained herein is unaudited, however, certain information relating to the consolidated balance sheet at December 31, 2025 is derived from or agrees to audited financial information. Unless otherwise noted, all amounts are in millions, except for per share amounts and ratio information. Amounts presented have been rounded for presentation purposes and may not reconcile due to rounding differences.

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 and its subsidiaries may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or their negative or variations or similar terminology. Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and the Company’s ability to maintain and improve the Company’s ratings; investment performance; the loss and addition 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; 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 we have acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to the Company of reinsurance to manage gross and net exposures; the failure of others to meet their obligations to the Company; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; and other matters set forth under Item 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors.


			2

Arch Capital Group Ltd. and Subsidiaries

Financial Highlights

The following table presents financial highlights:


(U.S. Dollars and shares in millions, except per share data)	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2026			2025			Change		2026			2025			Change
Underwriting results:
Gross premiums written	$	6,126		$	6,196		(1.1)	%	$	12,551		$	12,659		(0.9)	%
Net premiums written	4,049			4,348			(6.9)	%	8,397			8,863			(5.3)	%
Net premiums earned	3,985			4,337			(8.1)	%	7,971			8,525			(6.5)	%
Underwriting income (loss) (1)	657			818			(19.7)	%	1,385			1,235			12.1	%

Loss ratio	55.1		%	53.1		%	2.0		53.8		%	57.4		%	(3.6)
Acquisition expense ratio	18.0		%	19.0		%	(1.0)		18.2		%	18.6		%	(0.4)
Other operating expense ratio (2)	10.4		%	9.1		%	1.3		10.7		%	9.5		%	1.2
Combined ratio	83.5		%	81.2		%	2.3		82.7		%	85.5		%	(2.8)

Pre-tax net investment income	$	417		$	405		3.0	%	$	825		$	783		5.4	%
Per diluted share	$	1.20		$	1.07		12.1	%	$	2.33		$	2.06		13.1	%

Net income available to Arch common shareholders	$	1,047		$	1,227		(14.7)	%	$	2,084		$	1,791		16.4	%
Per diluted share	$	3.00		$	3.23		(7.1)	%	$	5.88		$	4.70		25.1	%

After-tax operating income available to Arch common shareholders (1)	$	893		$	979		(8.8)	%	$	1,794		$	1,566		14.6	%
Per diluted share	$	2.56		$	2.58		(0.8)	%	$	5.06		$	4.11		23.1	%

Comprehensive income (loss) available to Arch	$	977		$	1,597		(38.8)	%	$	1,686		$	2,483		(32.1)	%

Net cash provided by operating activities	$	1,322		$	1,124		17.6	%	$	2,510		$	2,582		(2.8)	%

Weighted average common shares and common share equivalents outstanding — diluted	348.8			379.9			(8.2)	%	354.2			380.8			(7.0)	%

Financial measures:
Change in book value per common share during period	2.8		%	7.3		%	(4.5)		4.5		%	11.4		%	(6.9)


Annualized net income return on average common equity	18.0		%	22.9		%	(4.9)		17.9		%	17.0		%	0.9
Annualized operating return on average common equity (1)	15.3		%	18.2		%	(2.9)		15.4		%	14.8		%	0.6

Total return on investments (3)	1.62		%	3.09		%	-148 bps		1.72		%	5.17		%	-345 bps

(1)See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of consolidated underwriting income or loss, after-tax operating income or loss available to Arch common shareholders and annualized operating return on average common equity.

(2)The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

(3)Total return on investments includes investment income, equity in net income of investments accounted for using the equity method, net realized gains and losses and the change in unrealized gains and losses and is calculated on a pre-tax basis and before investment expenses. See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of the presentation of total return on investments.


			3

Arch Capital Group Ltd. and Subsidiaries

Consolidated Statements of Income


(U.S. Dollars and shares in millions, except per share data)	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
	2026		2026		2025		2025		2025		2026		2025
Revenues


Net premiums earned	$	3,985	$	3,986	$	4,255	$	4,285	$	4,337	$	7,971	$	8,525
Net investment income	417		408		434		408		405		825		783
Net realized gains (losses)	(17)		(87)		22		210		229		(104)		232

Other underwriting income (1)	57		59		52		50		62		116		115
Equity in net income of investments accounted for using the equity method	196		160		155		134		162		356		215
Other income (loss)	30		(5)		16		22		18		25		16
Total revenues	4,668		4,521		4,934		5,109		5,213		9,189		9,886

Expenses
Losses and loss adjustment expenses	(2,196)		(2,089)		(2,280)		(2,200)		(2,303)		(4,285)		(4,890)
Acquisition expenses	(718)		(730)		(779)		(786)		(824)		(1,448)		(1,588)
Other operating expenses	(471)		(498)		(421)		(478)		(454)		(969)		(927)
Corporate benefit (expenses)	(44)		(49)		24		(49)		(47)		(93)		(107)
Amortization of intangible assets	(30)		(30)		(47)		(49)		(48)		(60)		(97)
Interest expense	(44)		(37)		(38)		(37)		(38)		(81)		(73)
Net foreign exchange gains (losses)	10		21		(6)		(7)		(88)		31		(115)
Total expenses	(3,493)		(3,412)		(3,547)		(3,606)		(3,802)		(6,905)		(7,797)

Income (loss) before income taxes and income (loss) from operating affiliates	1,175		1,109		1,387		1,503		1,411		2,284		2,089
Income tax (expense) benefit	(164)		(98)		(210)		(215)		(214)		(262)		(335)
Income (loss) from operating affiliates	46		36		61		62		40		82		57


Net income (loss) attributable to Arch	1,057		1,047		1,238		1,350		1,237		2,104		1,811
Preferred dividends	(10)		(10)		(10)		(10)		(10)		(20)		(20)

Net income (loss) available to Arch common shareholders	$	1,047	$	1,037	$	1,228	$	1,340	$	1,227	$	2,084	$	1,791

Comprehensive income (loss) available to Arch	$	977	$	709	$	1,243	$	1,398	$	1,597	$	1,686	$	2,483

Net income (loss) per common share and common share equivalent
Basic	$	3.05	$	2.94	$	3.42	$	3.63	$	3.30	$	5.99	$	4.81
Diluted	$	3.00	$	2.88	$	3.35	$	3.56	$	3.23	$	5.88	$	4.70

Weighted average common shares and common share equivalents outstanding
Basic	343.2		353.2		359.4		369.0		372.2		348.2		372.6
Diluted	348.8		359.7		366.6		376.1		379.9		354.2		380.8

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


			4

Arch Capital Group Ltd. and Subsidiaries

Consolidated Balance Sheets


(U.S. Dollars and shares in millions, except per share data)	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		2025		2025		2025
Assets
Investments:
Fixed maturities available for sale, at fair value	$	33,155	$	32,399	$	32,426	$	31,908	$	30,332
Short-term investments available for sale, at fair value	3,298		2,638		2,625		2,351		2,788

Equity securities, at fair value	2,280		1,766		1,864		1,805		1,715

Other investments	3,381		3,331		3,136		3,027		2,892
Investments accounted for using the equity method	6,852		6,652		6,453		6,232		6,566
Total investments	48,966		46,786		46,504		45,323		44,293
Cash	1,109		914		993		1,063		983
Accrued investment income	325		302		338		307		329


Investment in operating affiliates	1,323		1,330		1,313		1,417		1,356
Premiums receivable	7,160		6,526		5,723		6,450		7,067
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	9,964		9,732		9,526		9,070		9,044
Contractholder receivables	2,264		2,253		2,270		2,287		2,280
Ceded unearned premiums	3,669		3,183		2,659		3,079		3,229
Deferred acquisition costs	1,794		1,774		1,717		1,786		1,814
Receivable for securities sold	564		643		180		695		390
Goodwill and intangible assets	1,163		1,190		1,222		1,268		1,319

Other assets	6,878		6,813		6,796		6,440		6,684
Total assets	$	85,179	$	81,446	$	79,241	$	79,185	$	78,788

Liabilities
Reserve for losses and loss adjustment expenses	$	34,775	$	34,105	$	33,547	$	32,822	$	32,089
Unearned premiums	11,493		10,939		10,100		11,124		11,625
Reinsurance balances payable	3,234		2,737		2,320		2,638		2,841
Contractholder payables	2,270		2,260		2,277		2,293		2,286
Collateral held for insured obligations	240		260		237		239		225
Senior notes	4,286		2,729		2,729		2,728		2,728


Payable for securities purchased	1,136		798		308		335		728
Other liabilities	3,715		3,430		3,517		3,287		3,225
Total liabilities	61,149		57,258		55,035		55,466		55,747



Shareholders’ equity
Non-cumulative preferred shares	830		830		830		830		830

Common shares	1		1		1		1		1
Additional paid-in capital	2,873		2,831		2,735		2,682		2,660
Retained earnings	29,129		28,082		27,045		25,817		24,477
Accumulated other comprehensive income (loss), net of deferred income tax	(413)		(333)		5		—		(48)
Common shares held in treasury, at cost	(8,390)		(7,223)		(6,410)		(5,611)		(4,879)


Total shareholders’ equity	24,030		24,188		24,206		23,719		23,041
Total liabilities and shareholders’ equity	$	85,179	$	81,446	$	79,241	$	79,185	$	78,788

Common shares and common share equivalents outstanding, net of treasury shares	341.0		352.9		359.0		367.3		375.4
Book value per common share (1)	$	68.04	$	66.19	$	65.11	$	62.32	$	59.17

(1) Excludes the effects of stock options and restricted stock units outstanding.


			5

Arch Capital Group Ltd. and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity


(U.S. Dollars in millions)	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
	2026		2026		2025		2025		2025		2026		2025
Non-cumulative preferred shares



Balance at beginning and end of period	$	830	$	830	$	830	$	830	$	830	$	830	$	830







Common shares


Balance at beginning and end of period	1		1		1		1		1		1		1

Additional paid-in capital
Balance at beginning of period	2,831		2,735		2,682		2,660		2,588		2,735		2,510





Amortization of share-based compensation	15		82		24		25		25		97		99



All other	27		14		29		(3)		47		41		51
Balance at end of period	2,873		2,831		2,735		2,682		2,660		2,873		2,660

Retained earnings
Balance at beginning of period	28,082		27,045		25,817		24,477		23,250		27,045		22,686


Net income	1,057		1,047		1,238		1,350		1,237		2,104		1,811


Preferred share dividends	(10)		(10)		(10)		(10)		(10)		(20)		(20)

Balance at end of period	29,129		28,082		27,045		25,817		24,477		29,129		24,477

Accumulated other comprehensive income (loss), net of deferred income tax
Balance at beginning of period	(333)		5		—		(48)		(408)		5		(720)

Change in unrealized appreciation (decline) in value of available-for-sale investments	(71)		(338)		12		47		296		(409)		582
Change in foreign currency translation adjustments	(9)		—		(7)		1		64		(9)		90
Balance at end of period	(413)		(333)		5		—		(48)		(413)		(48)

Common shares held in treasury, at cost
Balance at beginning of period	(7,223)		(6,410)		(5,611)		(4,879)		(4,716)		(6,410)		(4,487)
Shares repurchased for treasury	(1,167)		(813)		(799)		(732)		(163)		(1,980)		(392)
Balance at end of period	(8,390)		(7,223)		(6,410)		(5,611)		(4,879)		(8,390)		(4,879)



Total shareholders’ equity	$	24,030	$	24,188	$	24,206	$	23,719	$	23,041	$	24,030	$	23,041


			6

Arch Capital Group Ltd. and Subsidiaries

Consolidated Statements of Cash Flows


(U.S. Dollars in millions)	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
	2026		2026		2025		2025		2025		2026		2025
Operating Activities
Net income (loss)	$	1,057	$	1,047	$	1,238	$	1,350	$	1,237	$	2,104	$	1,811
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized (gains) losses	(134)		91		(7)		(202)		(225)		(43)		(231)

Equity in net (income) of investments accounted for using the equity method and other income or loss	(126)		(137)		(194)		(158)		(95)		(263)		(107)
Amortization of intangible assets	30		30		47		49		48		60		97
Share-based compensation	15		82		24		25		25		97		99
Changes in:
Reserve for losses and loss adjustment expenses, net	499		540		330		634		560		1,039		1,386
Unearned premiums, net	64		362		(606)		(321)		11		426		338
Premiums receivable	(630)		(820)		731		601		(352)		(1,450)		(1,294)
Deferred acquisition costs	4		(48)		53		14		33		(44)		19
Reinsurance balances payable	496		419		(319)		(207)		159		915		663
Deferred income tax assets, net	59		20		19		46		80		79		109
Other items, net	(12)		(398)		88		355		(357)		(410)		(308)
Net cash provided by operating activities	1,322		1,188		1,404		2,186		1,124		2,510		2,582
Investing Activities
Purchases of fixed maturity investments	(9,875)		(9,288)		(8,293)		(10,619)		(8,150)		(19,163)		(17,568)
Purchases of equity securities	(472)		(185)		(184)		(277)		(179)		(657)		(987)
Purchases of other investments	(453)		(499)		(493)		(513)		(535)		(952)		(1,232)
Proceeds from sales of fixed maturity investments	8,383		7,984		7,055		8,435		6,522		16,367		13,823
Proceeds from sales of equity securities	253		202		183		281		223		455		1,043
Proceeds from sales, redemptions and maturities of other investments	306		240		759		336		431		546		1,091
Proceeds from redemptions and maturities of fixed maturity investments	1,082		957		693		475		568		2,039		1,326
Net settlements of derivative instruments	(80)		(26)		35		35		147		(106)		240

Net (purchases) sales of short-term investments	(644)		(11)		(272)		478		(242)		(655)		52




Purchases of fixed assets	(14)		(8)		(11)		(12)		(12)		(22)		(21)
Other	(21)		(5)		111		(2)		(1)		(26)		(3)
Net cash provided by (used for) investing activities	(1,535)		(639)		(417)		(1,383)		(1,228)		(2,174)		(2,236)
Financing Activities


Purchases of common shares under share repurchase program	(1,166)		(783)		(798)		(732)		(163)		(1,949)		(359)
Proceeds from common shares issued, net	26		(17)		30		1		47		9		19
Proceeds from borrowings	1,977		—		—		—		—		1,977		—
Repayments of borrowings	(398)		—		—		—		—		(398)		—




Common dividends paid	—		(5)		—		—		(2)		(5)		(7)
Preferred dividends paid	(10)		(10)		(10)		(10)		(10)		(20)		(20)
Other	—		(12)		—		(2)		—		(12)		(2)
Net cash provided by (used for) financing activities	429		(827)		(778)		(743)		(128)		(398)		(369)
Effects of exchange rate changes on foreign currency cash and restricted cash	9		(8)		4		(14)		55		1		71
Increase (decrease) in cash and restricted cash	225		(286)		213		46		(177)		(61)		48
Cash and restricted cash, beginning of period	1,781		2,067		1,854		1,808		1,985		2,067		1,760
Cash and restricted cash, end of period	$	2,006	$	1,781	$	2,067	$	1,854	$	1,808	$	2,006	$	1,808
Income taxes paid (received)	$	169	$	22	$	143	$	166	$	131	$	191	$	149
Interest paid	$	65	$	—	$	63	$	—	$	64	$	65	$	64


			7

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Overview

The Company’s Insurance, Reinsurance and Mortgage segments each have managers who are responsible for the overall profitability of their respective segments and who are directly accountable to the Company’s chief operating decision-makers, the Chief Executive Officer and the Chief Financial Officer and Treasurer. The chief operating decision-makers do not assess performance, measure return on equity or make resource allocation decisions on a line of business basis. Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income is not allocated to each underwriting segment.

The Company determined its reportable operating segments using the management approach described in accounting guidance regarding disclosures about segments of an enterprise and related information. The accounting policies of the segments are the same as those used for the preparation of the Company’s consolidated financial statements. Intersegment business is allocated to the segment accountable for the underwriting results.

Insurance Segment

The Company’s insurance segment primarily consists of commercial insurance lines of business, with a focus on specialty insurance products. These products are mainly offered in North America, Bermuda, the United Kingdom, continental Europe and Australia. Products offered in North America include: commercial automobile; commercial multi‐peril; other liability—claims made, which includes financial and professional lines; other liability—occurrence, which includes admitted and excess and surplus casualty lines; property and short-tail specialty; workers compensation; and other. Products offered across the Company’s International units include: property and short-tail specialty; and casualty and other.

Reinsurance Segment

The Company’s reinsurance segment offers reinsurance products on a worldwide basis. Lines of business include: casualty; marine and aviation; specialty; property catastrophe; property excluding property catastrophe; and other.

Mortgage Segment

The Company’s mortgage segment consists of U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), each a government sponsored entity (“GSE”) and also through non GSE approved entities (combined “Arch MI U.S.”); reinsurance and underwriting services related to U.S. credit-risk transfer (“CRT”) business which are predominately with the GSEs and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans primarily in Australia and Europe.

The Company’s results also include net investment income, net realized gains or losses (which 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 acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income taxes items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.


			8

Arch Capital Group Ltd. and Subsidiaries

Segment Information


(U.S. Dollars in millions)	Three Months Ended
	June 30, 2026
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	2,603		$	3,202		$	324		$	6,126
Premiums ceded (1)	(670)			(1,358)			(52)			(2,077)
Net premiums written	1,933			1,844			272			4,049
Change in unearned premiums	(53)			(24)			13			(64)
Net premiums earned	1,880			1,820			285			3,985
Other underwriting income (2)	15			37			5			57
Losses and loss adjustment expenses	(1,185)			(992)			(19)			(2,196)
Acquisition expenses	(375)			(341)			(2)			(718)
Other operating expenses	(308)			(114)			(49)			(471)
Underwriting income (loss)	$	27		$	410		$	220		657

Net investment income										417
Net realized gains (losses)										(17)

Equity in net income of investments accounted for using the equity method										196
Other income (loss)										30
Corporate benefit (expenses) (3)										(12)
Transaction costs and other (3)										(32)
Amortization of intangible assets										(30)
Interest expense										(44)
Net foreign exchange gains (losses)										10
Income (loss) before income taxes and income (loss) from operating affiliates										1,175
Income tax (expense) benefit										(164)
Income (loss) from operating affiliates										46



Net income (loss) available to Arch										1,057
Preferred dividends										(10)

Net income (loss) available to Arch common shareholders										$	1,047

Underwriting Ratios
Loss ratio	63.0		%	54.6		%	6.5		%	55.1		%
Acquisition expense ratio	19.9		%	18.7		%	0.9		%	18.0		%
Other operating expense ratio (4)	15.6		%	4.2		%	15.4		%	10.4		%
Combined ratio	98.5		%	77.5		%	22.8		%	83.5		%

Net premiums written to gross premiums written	74.3		%	57.6		%	84.0		%	66.1		%

Total investable assets										$	49,503
Total assets										85,179
Total liabilities										61,149

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

(4) The ‘Other operating expense ratio’ includes ‘Other underwriting income.’


			9

Arch Capital Group Ltd. and Subsidiaries

Segment Information


(U.S. Dollars in millions)	Three Months Ended
	June 30, 2025
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	2,681		$	3,196		$	323		$	6,196
Premiums ceded (1)	(645)			(1,137)			(70)			(1,848)
Net premiums written	2,036			2,059			253			4,348
Change in unearned premiums	(67)			28			28			(11)
Net premiums earned	1,969			2,087			281			4,337
Other underwriting income (2)	13			46			3			62
Losses and loss adjustment expenses	(1,178)			(1,128)			3			(2,303)
Acquisition expenses	(387)			(436)			(1)			(824)
Other operating expenses	(288)			(118)			(48)			(454)
Underwriting income (loss)	$	129		$	451		$	238		818

Net investment income										405
Net realized gains (losses)										229

Equity in net income of investments accounted for using the equity method										162
Other income (loss)										18
Corporate benefit (expenses) (3)										(29)
Transaction costs and other (3)										(18)
Amortization of intangible assets										(48)
Interest expense										(38)
Net foreign exchange gains (losses)										(88)
Income (loss) before income taxes and income (loss) from operating affiliates										1,411
Income tax (expense) benefit										(214)
Income (loss) from operating affiliates										40



Net income (loss) available to Arch										1,237
Preferred dividends										(10)

Net income (loss) available to Arch common shareholders										$	1,227

Underwriting Ratios
Loss ratio	59.8		%	54.1		%	(1.2)		%	53.1		%
Acquisition expense ratio	19.6		%	20.9		%	0.4		%	19.0		%
Other operating expense ratio (4)	14.0		%	3.5		%	16.0		%	9.1		%
Combined ratio	93.4		%	78.5		%	15.2		%	81.2		%

Net premiums written to gross premiums written	75.9		%	64.4		%	78.3		%	70.2		%

Total investable assets										$	44,938
Total assets										78,788
Total liabilities										55,747

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

(4) The ‘Other operating expense ratio’ includes ‘Other underwriting income.’


			10

Arch Capital Group Ltd. and Subsidiaries

Segment Information


(U.S. Dollars in millions)	Six Months Ended
	June 30, 2026
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	5,300		$	6,616		$	640		$	12,551
Premiums ceded (1)	(1,461)			(2,596)			(102)			(4,154)
Net premiums written	3,839			4,020			538			8,397
Change in unearned premiums	(88)			(369)			31			(426)
Net premiums earned	3,751			3,651			569			7,971
Other underwriting income (2)	26			74			16			116
Losses and loss adjustment expenses	(2,311)			(1,940)			(34)			(4,285)
Acquisition expenses	(750)			(688)			(10)			(1,448)
Other operating expenses	(623)			(246)			(100)			(969)
Underwriting income (loss)	$	93		$	851		$	441		1,385

Net investment income										825
Net realized gains (losses)										(104)

Equity in net income of investments accounted for using the equity method										356
Other income (loss)										25
Corporate benefit (expenses) (3)										(43)
Transaction costs and other (3)										(50)
Amortization of intangible assets										(60)
Interest expense										(81)
Net foreign exchange gains (losses)										31
Income (loss) before income taxes and income (loss) from operating affiliates										2,284
Income tax (expense) benefit										(262)
Income (loss) from operating affiliates										82



Net income (loss) available to Arch										2,104
Preferred dividends										(20)

Net income (loss) available to Arch common shareholders										$	2,084

Underwriting Ratios
Loss ratio	61.6		%	53.1		%	5.9		%	53.8		%
Acquisition expense ratio	20.0		%	18.8		%	1.9		%	18.2		%
Other operating expense ratio (4)	15.9		%	4.7		%	14.8		%	10.7		%
Combined ratio	97.5		%	76.6		%	22.6		%	82.7		%

Net premiums written to gross premiums written	72.4		%	60.8		%	84.1		%	66.9		%

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

(4) The ‘Other operating expense ratio’ includes ‘Other underwriting income.’


			11

Arch Capital Group Ltd. and Subsidiaries

Segment Information


(U.S. Dollars in millions)	Six Months Ended
	June 30, 2025
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	5,326		$	6,690		$	649		$	12,659
Premiums ceded (1)	(1,357)			(2,315)			(130)			(3,796)
Net premiums written	3,969			4,375			519			8,863
Change in unearned premiums	(140)			(260)			62			(338)
Net premiums earned	3,829			4,115			581			8,525
Other underwriting income (2)	16			85			14			115
Losses and loss adjustment expenses	(2,406)			(2,484)			—			(4,890)
Acquisition expenses	(730)			(853)			(5)			(1,588)
Other operating expenses	(582)			(245)			(100)			(927)
Underwriting income (loss)	$	127		$	618		$	490		1,235

Net investment income										783
Net realized gains (losses)										232

Equity in net income of investments accounted for using the equity method										215
Other income (loss)										16
Corporate benefit (expenses) (3)										(79)
Transaction costs and other (3)										(28)
Amortization of intangible assets										(97)
Interest expense										(73)
Net foreign exchange gains (losses)										(115)
Income (loss) before income taxes and income (loss) from operating affiliates										2,089
Income tax (expense) benefit										(335)
Income (loss) from operating affiliates										57



Net income (loss) available to Arch										1,811
Preferred dividends										(20)

Net income (loss) available to Arch common shareholders										$	1,791

Underwriting Ratios
Loss ratio	62.8		%	60.4		%	—		%	57.4		%
Acquisition expense ratio	19.1		%	20.7		%	0.9		%	18.6		%
Other operating expense ratio (4)	14.8		%	3.9		%	14.9		%	9.5		%
Combined ratio	96.7		%	85.0		%	15.8		%	85.5		%

Net premiums written to gross premiums written	74.5		%	65.4		%	80.0		%	70.0		%

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

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

(4) The ‘Other operating expense ratio’ includes ‘Other underwriting income.’


			12

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Insurance Segment


(U.S. Dollars in millions)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Gross premiums written	$	2,603		$	2,697		$	2,542		$	2,567		$	2,681		$	5,300		$	5,326
Premiums ceded	(670)			(791)			(666)			(614)			(645)			(1,461)			(1,357)
Net premiums written	1,933			1,906			1,876			1,953			2,036			3,839			3,969
Change in unearned premiums	(53)			(35)			97			16			(67)			(88)			(140)
Net premiums earned	1,880			1,871			1,973			1,969			1,969			3,751			3,829
Other underwriting income (1)	15			11			11			9			13			26			16
Losses and loss adjustment expenses	(1,185)			(1,126)			(1,196)			(1,162)			(1,178)			(2,311)			(2,406)
Acquisition expenses	(375)			(375)			(380)			(386)			(387)			(750)			(730)
Other operating expenses	(308)			(315)			(289)			(301)			(288)			(623)			(582)
Underwriting income (loss)	$	27		$	66		$	119		$	129		$	129		$	93		$	127

Underwriting Ratios
Loss ratio	63.0		%	60.2		%	60.6		%	59.0		%	59.8		%	61.6		%	62.8		%
Acquisition expense ratio	19.9		%	20.0		%	19.3		%	19.6		%	19.6		%	20.0		%	19.1		%
Other operating expense ratio (2)	15.6		%	16.3		%	14.1		%	14.8		%	14.0		%	15.9		%	14.8		%
Combined ratio	98.5		%	96.5		%	94.0		%	93.4		%	93.4		%	97.5		%	96.7		%

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	8.0		%	4.2		%	3.3		%	2.2		%	2.9		%	6.1		%	6.1		%
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact	(1.4)		%	(0.7)		%	(0.2)		%	(0.7)		%	(0.4)		%	(1.1)		%	(0.6)		%
Acquisition expense ratio impact	0.3		%	0.3		%	0.1		%	0.6		%	0.3		%	0.3		%	0.3		%
Total impact	(1.1)		%	(0.4)		%	(0.1)		%	(0.1)		%	(0.1)		%	(0.8)		%	(0.3)		%

Combined ratio excluding catastrophic activity and prior year development (3)	91.6		%	92.7		%	90.8		%	91.3		%	90.6		%	92.2		%	90.9		%





Net premiums written to gross premiums written	74.3		%	70.7		%	73.8		%	76.1		%	75.9		%	72.4		%	74.5		%

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

(2)The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

(3)See ‘Comments on Non-GAAP Financial Measures’ for further discussion.


			13

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Insurance Segment


(U.S. Dollars in millions)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2026				2026				2025				2025				2025				2026				2025
Net Premiums Written by Line of Business
North America
Other liability - occurrence	$	364	18.8	%	$	315	16.5	%	$	309	16.5	%	$	297	15.2	%	$	366	18.0	%	$	679	17.7	%	$	696	17.5	%
Property and short-tail specialty	362		18.7	%	322		16.9	%	273		14.6	%	339		17.4	%	369		18.1	%	684		17.8	%	717		18.1	%
Other liability - claims made	212		11.0	%	175		9.2	%	229		12.2	%	209		10.7	%	206		10.1	%	387		10.1	%	355		8.9	%
Commercial automobile	158		8.2	%	149		7.8	%	126		6.7	%	150		7.7	%	165		8.1	%	307		8.0	%	326		8.2	%
Commercial multi-peril	130		6.7	%	173		9.1	%	184		9.8	%	194		9.9	%	205		10.1	%	303		7.9	%	403		10.2	%
Workers compensation	121		6.3	%	157		8.2	%	142		7.6	%	151		7.7	%	130		6.4	%	278		7.2	%	283		7.1	%
Other	87		4.5	%	74		3.9	%	90		4.8	%	86		4.4	%	89		4.4	%	161		4.2	%	165		4.2	%
Total North America	$	1,434	74.2	%	$	1,365	71.6	%	$	1,353	72.1	%	$	1,426	73.0	%	$	1,530	75.1	%	$	2,799	72.9	%	$	2,945	74.2	%

International
Property and short-tail specialty	$	280	14.5	%	$	282	14.8	%	$	251	13.4	%	$	284	14.5	%	$	296	14.5	%	$	562	14.6	%	$	567	14.3	%
Casualty and other	219		11.3	%	259		13.6	%	272		14.5	%	243		12.4	%	210		10.3	%	478		12.5	%	457		11.5	%
Total International	$	499	25.8	%	$	541	28.4	%	$	523	27.9	%	$	527	27.0	%	$	506	24.9	%	$	1,040	27.1	%	$	1,024	25.8	%
Total	$	1,933	100.0	%	$	1,906	100.0	%	$	1,876	100.0	%	$	1,953	100.0	%	$	2,036	100.0	%	$	3,839	100.0	%	$	3,969	100.0	%







Net Premiums Earned by Line of Business
North America
Other liability - occurrence	$	289	15.4	%	$	300	16.0	%	$	325	16.5	%	$	329	16.7	%	$	338	17.2	%	$	589	15.7	%	$	667	17.4	%
Property and short-tail specialty	334		17.8	%	315		16.8	%	338		17.1	%	339		17.2	%	363		18.4	%	649		17.3	%	696		18.2	%
Other liability - claims made	199		10.6	%	200		10.7	%	203		10.3	%	205		10.4	%	186		9.4	%	399		10.6	%	378		9.9	%
Commercial automobile	148		7.9	%	146		7.8	%	146		7.4	%	143		7.3	%	147		7.5	%	294		7.8	%	292		7.6	%
Commercial multi-peril	185		9.8	%	195		10.4	%	193		9.8	%	195		9.9	%	203		10.3	%	380		10.1	%	404		10.6	%
Workers compensation	135		7.2	%	135		7.2	%	153		7.8	%	160		8.1	%	147		7.5	%	270		7.2	%	278		7.3	%
Other	76		4.0	%	69		3.7	%	78		4.0	%	70		3.6	%	71		3.6	%	145		3.9	%	143		3.7	%
Total North America	$	1,366	72.7	%	$	1,360	72.7	%	$	1,436	72.8	%	$	1,441	73.2	%	$	1,455	73.9	%	$	2,726	72.7	%	$	2,858	74.6	%

International
Property and short-tail specialty	$	277	14.7	%	$	279	14.9	%	$	283	14.3	%	$	292	14.8	%	$	278	14.1	%	$	556	14.8	%	$	524	13.7	%
Casualty and other	237		12.6	%	232		12.4	%	254		12.9	%	236		12.0	%	236		12.0	%	469		12.5	%	447		11.7	%
Total International	$	514	27.3	%	$	511	27.3	%	$	537	27.2	%	$	528	26.8	%	$	514	26.1	%	$	1,025	27.3	%	$	971	25.4	%
Total	$	1,880	100.0	%	$	1,871	100.0	%	$	1,973	100.0	%	$	1,969	100.0	%	$	1,969	100.0	%	$	3,751	100.0	%	$	3,829	100.0	%


			14

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Reinsurance Segment


(U.S. Dollars in millions)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Gross premiums written	$	3,202		$	3,414		$	1,944		$	2,515		$	3,196		$	6,616		$	6,690
Premiums ceded	(1,358)			(1,238)			(438)			(778)			(1,137)			(2,596)			(2,315)
Net premiums written	1,844			2,176			1,506			1,737			2,059			4,020			4,375
Change in unearned premiums	(24)			(345)			486			278			28			(369)			(260)
Net premiums earned	1,820			1,831			1,992			2,015			2,087			3,651			4,115
Other underwriting income (1)	37			37			36			38			46			74			85
Losses and loss adjustment expenses	(992)			(948)			(1,086)			(1,040)			(1,128)			(1,940)			(2,484)
Acquisition expenses	(341)			(347)			(393)			(398)			(436)			(688)			(853)
Other operating expenses	(114)			(132)			(91)			(133)			(118)			(246)			(245)
Underwriting income (loss)	$	410		$	441		$	458		$	482		$	451		$	851		$	618

Underwriting Ratios
Loss ratio	54.6		%	51.7		%	54.5		%	51.6		%	54.1		%	53.1		%	60.4		%
Acquisition expense ratio	18.7		%	19.0		%	19.7		%	19.8		%	20.9		%	18.8		%	20.7		%
Other operating expense ratio (2)	4.2		%	5.2		%	2.8		%	4.7		%	3.5		%	4.7		%	3.9		%
Combined ratio	77.5		%	75.9		%	77.0		%	76.1		%	78.5		%	76.6		%	85.0		%

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	2.8		%	5.2		%	5.0		%	1.5		%	4.6		%	4.0		%	11.3		%
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact	(5.3)		%	(8.3)		%	(3.5)		%	(2.6)		%	(3.9)		%	(6.8)		%	(4.9)		%
Acquisition expense ratio impact	0.1		%	0.9		%	0.6		%	0.4		%	0.6		%	0.5		%	1.0		%
Total impact	(5.2)		%	(7.4)		%	(2.9)		%	(2.2)		%	(3.3)		%	(6.3)		%	(3.9)		%

Combined ratio excluding catastrophic activity and prior year development (3)	79.9		%	78.1		%	74.9		%	76.8		%	77.2		%	78.9		%	77.6		%





Net premiums written to gross premiums written	57.6		%	63.7		%	77.5		%	69.1		%	64.4		%	60.8		%	65.4		%

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

(2)The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

(3)See ‘Comments on Non-GAAP Financial Measures’ for further discussion.


			15

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Reinsurance Segment


(U.S. Dollars in millions)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2026				2026				2025				2025				2025				2026				2025
Net Premiums Written by Line of Business
Specialty	$	563	30.5	%	$	687	31.6	%	$	587	39.0	%	$	633	36.4	%	$	729	35.4	%	$	1,250	31.1	%	$	1,323	30.2	%
Property excluding property catastrophe	451		24.5	%	548		25.2	%	475		31.5	%	557		32.1	%	430		20.9	%	999		24.9	%	1,011		23.1	%
Property catastrophe	392		21.3	%	307		14.1	%	48		3.2	%	64		3.7	%	484		23.5	%	699		17.4	%	961		22.0	%
Casualty	312		16.9	%	478		22.0	%	301		20.0	%	399		23.0	%	308		15.0	%	790		19.7	%	807		18.4	%
Marine and aviation	58		3.1	%	78		3.6	%	52		3.5	%	60		3.5	%	68		3.3	%	136		3.4	%	189		4.3	%
Other	68		3.7	%	78		3.6	%	43		2.9	%	24		1.4	%	40		1.9	%	146		3.6	%	84		1.9	%
Total	$	1,844	100.0	%	$	2,176	100.0	%	$	1,506	100.0	%	$	1,737	100.0	%	$	2,059	100.0	%	$	4,020	100.0	%	$	4,375	100.0	%













Net Premiums Earned by Line of Business
Specialty	$	617	33.9	%	$	586	32.0	%	$	700	35.1	%	$	719	35.7	%	$	760	36.4	%	$	1,203	32.9	%	$	1,487	36.1	%
Property excluding property catastrophe	489		26.9	%	519		28.3	%	536		26.9	%	581		28.8	%	587		28.1	%	1,008		27.6	%	1,135		27.6	%
Property catastrophe	208		11.4	%	226		12.3	%	246		12.3	%	253		12.6	%	260		12.5	%	434		11.9	%	566		13.8	%
Casualty	367		20.2	%	353		19.3	%	392		19.7	%	360		17.9	%	355		17.0	%	720		19.7	%	680		16.5	%
Marine and aviation	71		3.9	%	70		3.8	%	78		3.9	%	77		3.8	%	82		3.9	%	141		3.9	%	162		3.9	%
Other	68		3.7	%	77		4.2	%	40		2.0	%	25		1.2	%	43		2.1	%	145		4.0	%	85		2.1	%
Total	$	1,820	100.0	%	$	1,831	100.0	%	$	1,992	100.0	%	$	2,015	100.0	%	$	2,087	100.0	%	$	3,651	100.0	%	$	4,115	100.0	%

Net Premiums Written by Underwriting Location
Bermuda	$	997	54.1	%	$	962	44.2	%	$	697	46.3	%	$	761	43.8	%	$	1,060	51.5	%	$	1,959	48.7	%	$	2,214	50.6	%
United States	389		21.1	%	512		23.5	%	386		25.6	%	488		28.1	%	447		21.7	%	901		22.4	%	924		21.1	%
Europe and other	458		24.8	%	702		32.3	%	423		28.1	%	488		28.1	%	552		26.8	%	1,160		28.9	%	1,237		28.3	%
Total	$	1,844	100.0	%	$	2,176	100.0	%	$	1,506	100.0	%	$	1,737	100.0	%	$	2,059	100.0	%	$	4,020	100.0	%	$	4,375	100.0	%


			16

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Mortgage Segment


(U.S. Dollars in millions)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Gross premiums written	$	324		$	316		$	326		$	330		$	323		$	640		$	649
Premiums ceded	(52)			(50)			(59)			(56)			(70)			(102)			(130)
Net premiums written	272			266			267			274			253			538			519
Change in unearned premiums	13			18			23			27			28			31			62
Net premiums earned	285			284			290			301			281			569			581
Other underwriting income (1)	5			11			5			3			3			16			14
Losses and loss adjustment expenses	(19)			(15)			2			2			3			(34)			—
Acquisition expenses	(2)			(8)			(6)			(2)			(1)			(10)			(5)
Other operating expenses	(49)			(51)			(41)			(44)			(48)			(100)			(100)
Underwriting income	$	220		$	221		$	250		$	260		$	238		$	441		$	490

Underwriting Ratios
Loss ratio	6.5		%	5.3		%	(0.8)		%	(0.5)		%	(1.2)		%	5.9		%	—		%
Acquisition expense ratio	0.9		%	2.9		%	1.9		%	0.7		%	0.4		%	1.9		%	0.9		%
Other operating expense ratio (2)	15.4		%	14.1		%	12.6		%	13.3		%	16.0		%	14.8		%	14.9		%
Combined ratio	22.8		%	22.3		%	13.7		%	13.5		%	15.2		%	22.6		%	15.8		%

Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact	(15.7)		%	(19.2)		%	(19.4)		%	(18.1)		%	(22.8)		%	(17.4)		%	(21.6)		%
Acquisition expense ratio impact	(1.3)		%	(0.7)		%	(0.9)		%	(1.1)		%	(1.3)		%	(1.1)		%	(1.3)		%
Total impact	(17.0)		%	(19.9)		%	(20.3)		%	(19.2)		%	(24.1)		%	(18.5)		%	(22.9)		%

Combined ratio excluding prior year development (3)	39.8		%	42.2		%	34.0		%	32.7		%	39.3		%	41.1		%	38.7		%

Net premiums written to gross premiums written	84.0		%	84.2		%	81.9		%	83.0		%	78.3		%	84.1		%	80.0		%

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

(2)The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

(3) See ‘Comments on Non-GAAP Financial Measures’ for further discussion.


			17

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Mortgage Segment


(U.S. Dollars in millions)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2026				2026				2025				2025				2025				2026				2025
Net Premiums Written by Underwriting Unit
U.S. primary mortgage insurance	$	202	74.3	%	$	204	76.7	%	$	195	73.0	%	$	197	71.9	%	$	184	72.7	%	$	406	75.5	%	$	387	74.6	%
U.S. credit risk transfer (CRT) and other	35		12.9	%	37		13.9	%	51		19.1	%	55		20.1	%	51		20.2	%	72		13.4	%	101		19.5	%
International mortgage insurance/reinsurance	35		12.9	%	25		9.4	%	21		7.9	%	22		8.0	%	18		7.1	%	60		11.2	%	31		6.0	%
Total	$	272	100.0	%	$	266	100.0	%	$	267	100.0	%	$	274	100.0	%	$	253	100.0	%	$	538	100.0	%	$	519	100.0	%






Net Premiums Earned by Underwriting Unit
U.S. primary mortgage insurance	$	206	72.3	%	$	209	73.6	%	$	201	69.3	%	$	204	67.8	%	$	188	66.9	%	$	415	72.9	%	$	397	68.3	%
U.S. credit risk transfer (CRT) and other	35		12.3	%	37		13.0	%	51		17.6	%	55		18.3	%	51		18.1	%	72		12.7	%	101		17.4	%
International mortgage insurance/reinsurance	44		15.4	%	38		13.4	%	38		13.1	%	42		14.0	%	42		14.9	%	82		14.4	%	83		14.3	%
Total	$	285	100.0	%	$	284	100.0	%	$	290	100.0	%	$	301	100.0	%	$	281	100.0	%	$	569	100.0	%	$	581	100.0	%

Net Premiums Written by Underwriting Location
United States	$	202	74.3	%	$	204	76.7	%	$	196	73.4	%	$	197	71.9	%	$	184	72.7	%	$	406	75.5	%	$	387	74.6	%
Other	70		25.7	%	62		23.3	%	71		26.6	%	77		28.1	%	69		27.3	%	132		24.5	%	132		25.4	%
Total	$	272	100.0	%	$	266	100.0	%	$	267	100.0	%	$	274	100.0	%	$	253	100.0	%	$	538	100.0	%	$	519	100.0	%


(U.S. Dollars in millions)
	June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
Insurance In Force (IIF) (1)
U.S. primary mortgage insurance	$	286,399	59.8	%	$	286,523	59.7	%	$	286,318	59.1	%	$	286,785	57.9	%	$	286,410	57.7	%
U.S. credit risk transfer (CRT) and other	128,228		26.8	%	128,338		26.7	%	132,205		27.3	%	141,889		28.7	%	145,883		29.4	%
International mortgage insurance/reinsurance	64,254		13.4	%	65,223		13.6	%	66,084		13.6	%	66,277		13.4	%	64,374		13.0	%
Total	$	478,881	100.0	%	$	480,084	100.0	%	$	484,607	100.0	%	$	494,951	100.0	%	$	496,667	100.0	%

Risk In Force (RIF) (2)
U.S. primary mortgage insurance	$	73,978	84.3	%	$	74,281	84.8	%	$	74,679	85.0	%	$	74,952	84.9	%	$	74,948	85.1	%
U.S. credit risk transfer and other	5,194		5.9	%	5,214		6.0	%	5,358		6.1	%	5,688		6.4	%	5,892		6.7	%
International mortgage insurance/reinsurance	8,599		9.8	%	8,120		9.3	%	7,864		8.9	%	7,633		8.6	%	7,221		8.2	%
Total	$	87,771	100.0	%	$	87,615	100.0	%	$	87,901	100.0	%	$	88,273	100.0	%	$	88,061	100.0	%




(1) The aggregate dollar amount of each insured mortgage loan’s current principal balance. Such amounts are shown before external reinsurance.
(2) The aggregate dollar amount of each insured mortgage loan’s current principal balance multiplied by the insurance coverage percentage specified in the policy for insurance policies issued and after contract limits and/or loss ratio caps for risk-sharing or reinsurance transactions. Such amounts are shown before external reinsurance.


			18

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Mortgage Segment

The following table provides supplemental disclosures for the Company’s U.S. primary mortgage insurance operations:


(U.S. Dollars in millions)
	June 30, 2026					March 31, 2026					December 31, 2025					September 30, 2025					June 30, 2025












Total RIF by credit quality:
>=740	$	48,123		65.1	%	$	47,842		64.4	%	$	47,757		63.9	%	$	47,575		63.5	%	$	47,261		63.1	%
680-739	22,351			30.2	%	22,861			30.8	%	23,271			31.2	%	23,638			31.5	%	23,880			31.9	%
620-679	3,208			4.3	%	3,274			4.4	%	3,340			4.5	%	3,419			4.6	%	3,479			4.6	%
<620	296			0.4	%	304			0.4	%	311			0.4	%	320			0.4	%	328			0.4	%
Total	$	73,978		100.0	%	$	74,281		100.0	%	$	74,679		100.0	%	$	74,952		100.0	%	$	74,948		100.0	%
Weighted average credit score	751					750					749					749					749
Total RIF by Loan-To-Value (LTV):
95.01% and above	$	7,417		10.0	%	$	7,436		10.0	%	$	7,314		9.8	%	$	7,362		9.8	%	$	7,361		9.8	%
90.01% to 95.00%	43,944			59.4	%	44,147			59.4	%	44,494			59.6	%	44,720			59.7	%	44,711			59.7	%
85.01% to 90.00%	19,727			26.7	%	19,951			26.9	%	20,195			27.0	%	20,251			27.0	%	20,293			27.1	%
85.00% and below	2,890			3.9	%	2,747			3.7	%	2,676			3.6	%	2,619			3.5	%	2,583			3.4	%
Total	$	73,978		100.0	%	$	74,281		100.0	%	$	74,679		100.0	%	$	74,952		100.0	%	$	74,948		100.0	%
Weighted average LTV	93.2		%			93.2		%			93.2		%			93.2		%			93.2		%
Total RIF by State:
California	$	5,945		8.0	%	$	5,922		8.0	%	$	5,901		7.9	%	$	5,892		7.9	%	$	5,894		7.9	%
Texas	5,385			7.3	%	5,376			7.2	%	5,382			7.2	%	5,393			7.2	%	5,432			7.2	%
North Carolina	3,266			4.4	%	3,285			4.4	%	3,343			4.5	%	3,358			4.5	%	3,347			4.5	%
Minnesota	3,099			4.2	%	3,100			4.2	%	3,129			4.2	%	3,137			4.2	%	3,147			4.2	%
Illinois	3,067			4.1	%	3,037			4.1	%	3,042			4.1	%	3,046			4.1	%	3,033			4.0	%
Georgia	2,927			4.0	%	2,966			4.0	%	3,005			4.0	%	3,043			4.1	%	3,063			4.1	%
Michigan	2,766			3.7	%	2,785			3.7	%	2,816			3.8	%	2,822			3.8	%	2,816			3.8	%
Florida	2,678			3.6	%	2,659			3.6	%	2,672			3.6	%	2,690			3.6	%	2,714			3.6	%
Ohio	2,648			3.6	%	2,670			3.6	%	2,666			3.6	%	2,697			3.6	%	2,702			3.6	%
Massachusetts	2,635			3.6	%	2,704			3.6	%	2,780			3.7	%	2,829			3.8	%	2,841			3.8	%
Other	39,562			53.5	%	39,777			53.5	%	39,943			53.5	%	40,045			53.4	%	39,959			53.3	%
Total	$	73,978		100.0	%	$	74,281		100.0	%	$	74,679		100.0	%	$	74,952		100.0	%	$	74,948		100.0	%
Weighted average coverage (end of period RIF divided by IIF)	25.8		%			25.9		%			26.1		%			26.1		%			26.2		%
U.S. mortgage insurance total RIF, net of reinsurance (1)	$	61,982				$	62,366				$	60,259				$	60,662				$	60,436
Analysts’ persistency (2)	79.9		%			80.7		%			81.8		%			82.3		%			81.9		%
Risk-to-capital ratio — Arch MI U.S. (3)	8.8:1					8.4:1					8.2:1					7.9:1					8.3:1
PMIER sufficiency ratio — Arch MI U.S. (4)	165		%			175		%			179		%			176		%			168		%


(1) Total RIF for the U.S. mortgage insurance operations after external reinsurance.
(2) Represents the % of IIF at the beginning of a 12 month period that remained in force at the end of the period.
(3) Represents current (non-delinquent) RIF, net of reinsurance, divided by statutory capital (estimate for June 30, 2026).
(4) On August 21, 2024, Fannie Mae and Freddie Mac (collectively the GSEs) each updated their Private Mortgage Insurer Eligibility Requirements (PMIERs) to incorporate new deductions to available assets for investment risk. This update became effective on March 31, 2025; but the impact will be phased in through September 30, 2026. If the GSEs had fully implemented this update to PMIERs as of June 30, 2026, the changes would have reduced the available assets by 3% and resulted in a pro-forma PMIERs Sufficiency Ratio of 162%.


			19

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Mortgage Segment

The following table provides supplemental disclosures for the Company’s U.S. primary mortgage insurance operations:


(U.S. Dollars in millions, except policy/loan/claim count)	Three Months Ended
	June 30, 2026					March 31, 2026					December 31, 2025					September 30, 2025					June 30, 2025
Total new insurance written (NIW) (1)	$	15,624				$	14,812				$	14,296				$	12,965				$	12,254

Total NIW by credit quality:
>=740	$	12,637		80.9	%	$	11,720		79.1	%	$	11,239		78.6	%	$	9,850		76.0	%	$	9,411		76.8	%
680-739	2,619			16.8	%	2,698			18.2	%	2,759			19.3	%	2,753			21.2	%	2,527			20.6	%
620-679	357			2.3	%	371			2.5	%	293			2.0	%	359			2.8	%	313			2.6	%
<620	11			0.1	%	23			0.2	%	5			0.0	%	3			0.0	%	3			0.0	%
Total	$	15,624		100.0	%	$	14,812		100.0	%	$	14,296		100.0	%	$	12,965		100.0	%	$	12,254		100.0	%

Total NIW by LTV:
95.01% and above	$	1,108		7.1	%	$	2,064		13.9	%	$	779		5.4	%	$	1,038		8.0	%	$	814		6.6	%
90.01% to 95.00%	6,560			42.0	%	5,804			39.2	%	5,894			41.2	%	5,668			43.7	%	5,632			46.0	%
85.01% to 90.00%	5,359			34.3	%	4,690			31.7	%	5,337			37.3	%	4,323			33.3	%	3,945			32.2	%
85.00% and below	2,597			16.6	%	2,254			15.2	%	2,286			16.0	%	1,936			14.9	%	1,863			15.2	%
Total	$	15,624		100.0	%	$	14,812		100.0	%	$	14,296		100.0	%	$	12,965		100.0	%	$	12,254		100.0	%

Total NIW monthly vs. single:
Monthly	$	14,941		95.6	%	$	14,273		96.4	%	$	13,653		95.5	%	$	12,267		94.6	%	$	11,779		96.1	%
Single	683			4.4	%	539			3.6	%	643			4.5	%	698			5.4	%	475			3.9	%
Total	$	15,624		100.0	%	$	14,812		100.0	%	$	14,296		100.0	%	$	12,965		100.0	%	$	12,254		100.0	%

Total NIW purchase vs. refinance:
Purchase	$	13,854		88.7	%	$	11,754		79.4	%	$	11,640		81.4	%	$	12,319		95.0	%	$	11,633		94.9	%
Refinance	1,770			11.3	%	3,058			20.6	%	2,656			18.6	%	646			5.0	%	621			5.1	%
Total	$	15,624		100.0	%	$	14,812		100.0	%	$	14,296		100.0	%	$	12,965		100.0	%	$	12,254		100.0	%

Ending number of policies in force (PIF) (2)	1,039,751					1,049,661					1,058,907					1,067,147					1,073,477

Rollforward of insured loans in default:
Beginning delinquent number of loans	21,606					22,985					21,821					20,762					21,299
Plus: new notices	11,122					11,938					12,825					12,168					10,856
Less: cures	(10,824)					(12,969)					(11,337)					(10,715)					(11,085)
Less: paid claims	(385)					(348)					(324)					(394)					(308)


Ending delinquent number of loans (2)	21,519					21,606					22,985					21,821					20,762

Ending percentage of loans in default (2)	2.07		%			2.06		%			2.17		%			2.04		%			1.93		%

Losses:
Number of claims paid	385					348					324					394					308
Total paid claims (in thousands)	$	19,091				$	15,557				$	15,917				$	12,934				$	12,703
Average paid per claim (in thousands)	$	49.6				$	44.7				$	49.1				$	32.8				$	41.2
Severity (3)	78.8		%			77.9		%			81.6		%			73.2		%			75.3		%

Average case reserve per default (in thousands)	$	16.9				$	16.6				$	15.3				$	16.1				$	16.8

(1) The original principal balance of all loans that received coverage during the period.

(2) Includes first lien primary and pool policies.

(3) Represents total direct first lien paid claims divided by RIF of loans for which claims were paid, excluding paid claim settlements.


			20

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Mortgage Segment

The following table provides supplemental disclosures for the Company’s U.S. primary mortgage insurance operations:


(U.S. Dollars in millions)

	June 30, 2026												December 31, 2025
	Loss Reserves, Net (1)		Primary IIF (2)				Primary RIF (3)				Delinquency Rate		Loss Reserves, Net (1)		Primary IIF (2)				Primary RIF (3)				Delinquency Rate
	% of Total		Total		% of Total		Total		% of Total				% of Total		Total		% of Total		Total		% of Total
Policy year:
2016 and prior	19.8	%	$	18,210	6.4	%	$	4,632	6.3	%	4.72	%	24.9	%	$	19,384	6.8	%	$	4,923	6.6	%	5.08	%
2017	3.3	%	3,188		1.1	%	825		1.1	%	4.48	%	3.9	%	4,250		1.5	%	1,127		1.5	%	3.87	%
2018	5.5	%	4,956		1.7	%	1,293		1.7	%	4.46	%	6.1	%	5,673		2.0	%	1,479		2.0	%	4.48	%
2019	6.4	%	9,003		3.1	%	2,374		3.2	%	2.97	%	7.3	%	10,553		3.7	%	2,770		3.7	%	3.08	%
2020	11.5	%	26,603		9.3	%	7,338		9.9	%	1.88	%	12.3	%	30,968		10.8	%	8,487		11.4	%	1.85	%
2021	17.1	%	45,079		15.7	%	12,454		16.8	%	1.92	%	17.4	%	50,141		17.5	%	13,767		18.4	%	1.88	%
2022	17.0	%	45,532		15.9	%	12,290		16.6	%	1.94	%	14.5	%	49,492		17.3	%	13,236		17.7	%	1.87	%
2023	10.4	%	27,590		9.6	%	7,125		9.6	%	2.09	%	7.9	%	31,049		10.8	%	8,006		10.7	%	1.93	%
2024	6.9	%	35,074		12.2	%	8,807		11.9	%	1.45	%	5.0	%	39,306		13.7	%	9,840		13.2	%	1.17	%
2025	1.9	%	41,632		14.5	%	10,106		13.7	%	0.45	%	0.7	%	45,502		15.9	%	11,044		14.8	%	0.20	%
2026	0.1	%	29,532		10.3	%	6,734		9.1	%	0.06	%
Total	100.0	%	$	286,399	100.0	%	$	73,978	100.0	%	2.07	%	100.0	%	$	286,318	100.0	%	$	74,679	100.0	%	2.17	%

(1) Total reserves for losses and loss adjustment expenses, net of recoverables, was $340.6 million at June 30, 2026, compared to $320.6 million at December 31, 2025.

(2) The aggregate dollar amount of each insured mortgage loan’s current principal balance.

(3) The aggregate dollar amount of each insured mortgage loan’s current principal balance multiplied by the insurance coverage percentage specified in the policy for insurance policies issued and after contract limits and/or loss ratio caps for risk-sharing transactions.


			21

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Consolidated


(U.S. Dollars in millions)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Gross premiums written	$	6,126		$	6,425		$	4,809		$	5,410		$	6,196		$	12,551		$	12,659
Premiums ceded	(2,077)			(2,077)			(1,160)			(1,446)			(1,848)			(4,154)			(3,796)
Net premiums written	4,049			4,348			3,649			3,964			4,348			8,397			8,863
Change in unearned premiums	(64)			(362)			606			321			(11)			(426)			(338)
Net premiums earned	3,985			3,986			4,255			4,285			4,337			7,971			8,525
Other underwriting income (1)	57			59			52			50			62			116			115
Losses and loss adjustment expenses	(2,196)			(2,089)			(2,280)			(2,200)			(2,303)			(4,285)			(4,890)
Acquisition expenses	(718)			(730)			(779)			(786)			(824)			(1,448)			(1,588)
Other operating expenses	(471)			(498)			(421)			(478)			(454)			(969)			(927)
Underwriting income (loss) (2)	$	657		$	728		$	827		$	871		$	818		$	1,385		$	1,235

Underwriting Ratios
Loss ratio	55.1		%	52.4		%	53.6		%	51.4		%	53.1		%	53.8		%	57.4		%
Acquisition expense ratio	18.0		%	18.3		%	18.3		%	18.4		%	19.0		%	18.2		%	18.6		%
Other operating expense ratio (3)	10.4		%	11.0		%	8.7		%	10.0		%	9.1		%	10.7		%	9.5		%
Combined ratio	83.5		%	81.7		%	80.6		%	79.8		%	81.2		%	82.7		%	85.5		%

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	5.1		%	4.4		%	3.9		%	1.7		%	3.5		%	4.7		%	8.2		%
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact	(4.2)		%	(5.5)		%	(3.0)		%	(2.8)		%	(3.5)		%	(4.9)		%	(4.1)		%
Acquisition expense ratio impact	0.1		%	0.5		%	0.2		%	0.4		%	0.3		%	0.3		%	0.5		%
Total impact	(4.1)		%	(5.0)		%	(2.8)		%	(2.4)		%	(3.2)		%	(4.6)		%	(3.6)		%

Combined ratio excluding catastrophic activity and prior year development (2)	82.5		%	82.3		%	79.5		%	80.5		%	80.9		%	82.6		%	80.9		%





Components of losses and loss adjustment expenses incurred
Paid losses and loss adjustment expenses	$	1,697		$	1,549		$	1,951		$	1,569		$	1,744		$	3,246		$	3,505
Change in unpaid losses and loss adjustment expenses	499			540			329			631			559			1,039			1,385
Total losses and loss adjustment expenses	$	2,196		$	2,089		$	2,280		$	2,200		$	2,303		$	4,285		$	4,890

Net premiums written to gross premiums written	66.1		%	67.7		%	75.9		%	73.3		%	70.2		%	66.9		%	70.0		%

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

(2)See ‘Comments on Non-GAAP Financial Measures’ for further discussion.

(3)The ‘Other operating expense ratio’ includes ‘Other underwriting income.’


			22

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Selected Information on Losses and Loss Adjustment Expenses


(U.S. Dollars in millions)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025





Estimated net (favorable) adverse development in prior year loss reserves, net of related adjustments
Net impact on underwriting results:
Insurance	$	(21)		$	(8)		$	(1)		$	(2)		$	(2)		$	(29)		$	(12)
Reinsurance	(95)			(136)			(58)			(44)			(69)			(231)			(161)
Mortgage	(49)			(56)			(59)			(57)			(68)			(105)			(133)
Total	$	(165)		$	(200)		$	(118)		$	(103)		$	(139)		$	(365)		$	(306)
Impact on losses and loss adjustment expenses:
Insurance	$	(27)		$	(14)		$	(4)		$	(14)		$	(8)		$	(41)		$	(25)
Reinsurance	(97)			(152)			(69)			(53)			(81)			(249)			(200)
Mortgage	(45)			(54)			(56)			(54)			(64)			(99)			(125)
Total	$	(169)		$	(220)		$	(129)		$	(121)		$	(153)		$	(389)		$	(350)
Impact on acquisition expenses:
Insurance	$	6		$	6		$	3		$	12		$	6		$	12		$	13
Reinsurance	2			16			11			9			12			18			39
Mortgage	(4)			(2)			(3)			(3)			(4)			(6)			(8)
Total	$	4		$	20		$	11		$	18		$	14		$	24		$	44
Impact on combined ratio:
Insurance	(1.1)		%	(0.4)		%	(0.1)		%	(0.1)		%	(0.1)		%	(0.8)		%	(0.3)		%
Reinsurance	(5.2)		%	(7.4)		%	(2.9)		%	(2.2)		%	(3.3)		%	(6.3)		%	(3.9)		%
Mortgage	(17.0)		%	(19.9)		%	(20.3)		%	(19.2)		%	(24.1)		%	(18.5)		%	(22.9)		%
Total	(4.1)		%	(5.0)		%	(2.8)		%	(2.4)		%	(3.2)		%	(4.6)		%	(3.6)		%
Impact on loss ratio:
Insurance	(1.4)		%	(0.7)		%	(0.2)		%	(0.7)		%	(0.4)		%	(1.1)		%	(0.6)		%
Reinsurance	(5.3)		%	(8.3)		%	(3.5)		%	(2.6)		%	(3.9)		%	(6.8)		%	(4.9)		%
Mortgage	(15.7)		%	(19.2)		%	(19.4)		%	(18.1)		%	(22.8)		%	(17.4)		%	(21.6)		%
Total	(4.2)		%	(5.5)		%	(3.0)		%	(2.8)		%	(3.5)		%	(4.9)		%	(4.1)		%
Impact on acquisition expense ratio:
Insurance	0.3		%	0.3		%	0.1		%	0.6		%	0.3		%	0.3		%	0.3		%
Reinsurance	0.1		%	0.9		%	0.6		%	0.4		%	0.6		%	0.5		%	1.0		%
Mortgage	(1.3)		%	(0.7)		%	(0.9)		%	(1.1)		%	(1.3)		%	(1.1)		%	(1.3)		%
Total	0.1		%	0.5		%	0.2		%	0.4		%	0.3		%	0.3		%	0.5		%
Estimated net losses incurred from current accident year catastrophic events (1)
Insurance	$	151		$	79		$	64		$	43		$	58		$	230		$	235
Reinsurance	50			95			100			29			96			145			466
Total	$	201		$	174		$	164		$	72		$	154		$	375		$	701
Impact on combined ratio:
Insurance	8.0		%	4.2		%	3.3		%	2.2		%	2.9		%	6.1		%	6.1		%
Reinsurance	2.8		%	5.2		%	5.0		%	1.5		%	4.6		%	4.0		%	11.3		%
Total	5.1		%	4.4		%	3.9		%	1.7		%	3.5		%	4.7		%	8.2		%

(1)Equals estimated losses from catastrophic events occurring in the current accident year (e.g. natural catastrophes, man-made events, pandemic events), net of reinsurance and reinstatement premiums. As regards the natural catastrophe estimates included within, amounts shown for the insurance and reinsurance segments generally include (i) North American events with a Property Claim Services ("PCS") code and (ii) named catastrophic events outside of North America. Amounts not applicable for the mortgage segment.


			23

Arch Capital Group Ltd. and Subsidiaries

Investment Information — Investable Asset Summary and Investment Portfolio Metrics

The following table summarizes the Company’s investable assets and portfolio metrics:


(U.S. Dollars in millions)	June 30,				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
Investable assets:
Fixed maturities available for sale, at fair value	$	33,155	67.0	%	$	32,399	68.1	%	$	32,426	68.5	%	$	31,908	68.3	%	$	30,332	67.5	%
Fixed maturities—fair value option (1)	1,175		2.4	%	1,129		2.4	%	1,110		2.3	%	1,050		2.2	%	1,009		2.2	%

Total fixed maturities	34,330		69.3	%	33,528		70.5	%	33,536		70.8	%	32,958		70.5	%	31,341		69.7	%

Equity securities, at fair value	2,280		4.6	%	1,766		3.7	%	1,864		3.9	%	1,805		3.9	%	1,715		3.8	%
Equity securities—fair value option (1)	5		0.0	%	4		0.0	%	5		0.0	%	5		0.0	%	5		0.0	%

Total equity securities	2,285		4.6	%	1,770		3.7	%	1,869		3.9	%	1,810		3.9	%	1,720		3.8	%

Other investments—fair value option (1)	2,144		4.3	%	2,129		4.5	%	1,957		4.1	%	1,911		4.1	%	1,810		4.0	%



Investments accounted for using the equity method (2)	6,852		13.8	%	6,652		14.0	%	6,453		13.6	%	6,232		13.3	%	6,566		14.6	%

Short-term investments available for sale, at fair value	3,298		6.7	%	2,638		5.5	%	2,625		5.5	%	2,351		5.0	%	2,788		6.2	%
Short-term investments—fair value option (1)	57		0.1	%	69		0.1	%	64		0.1	%	61		0.1	%	68		0.2	%

Total short-term investments	3,355		6.8	%	2,707		5.7	%	2,689		5.7	%	2,412		5.2	%	2,856		6.4	%

Cash	1,109		2.2	%	914		1.9	%	993		2.1	%	1,063		2.3	%	983		2.2	%


Securities transactions entered into but not settled at the balance sheet date	(572)		(1.2)	%	(155)		(0.3)	%	(128)		(0.3)	%	360		0.8	%	(338)		(0.8)	%
Total investable assets held by the Company	$	49,503	100.0	%	$	47,545	100.0	%	$	47,369	100.0	%	$	46,746	100.0	%	$	44,938	100.0	%


Average effective duration of fixed maturities (in years)	3.50				3.43				3.34				3.24				3.48
Average S&P/Moody’s credit ratings (3)	AA-/Aa3				AA-/Aa3				AA-/Aa3				AA-/Aa3				AA-/Aa3

(1) Included in “other investments” on the balance sheet.

(2) Changes in the carrying value of investments accounted for using the equity method are recorded as “equity in net income of investments accounted for using the equity method” rather than as an unrealized gain or loss component of accumulated other comprehensive income.

(3) Average credit ratings on the Company’s investment portfolio on securities with ratings assigned by Standard & Poor’s (“S&P”) and Moody’s Investors Service (“Moody’s”).


			24

Arch Capital Group Ltd. and Subsidiaries

Investment Information — Composition of Net Investment Income, Yield and Total Return

The following table summarizes the Company’s net investment income, yield and total return:


(U.S. Dollars in millions, except per share data)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Composition of pre-tax net investment income:
Fixed maturities	$	386		$	384		$	384		$	379		$	360		$	770		$	702
Short-term investments	26			24			27			25			24			50			50
Equity securities (dividends)	9			8			10			10			10			17			21
Other (1)	21			21			27			19			35			42			63
Gross investment income	442			437			448			433			429			879			836
Investment expenses	(25)			(29)			(14)			(25)			(24)			(54)			(53)
Pre-tax net investment income	$	417		$	408		$	434		$	408		$	405		$	825		$	783
Per share	$	1.20		$	1.13		$	1.18		$	1.08		$	1.07		$	2.33		$	2.06

Pre-tax equity in net income of investments accounted for using the equity method	196			160			155			134			162			356			215
Per share	$	0.56		$	0.44		$	0.42		$	0.36		$	0.43		$	1.01		$	0.56


Investment income yield, at amortized cost (2):
Pre-tax	3.91		%	3.99		%	4.22		%	4.07		%	4.25		%	3.98		%	4.19		%
After-tax	3.19		%	3.26		%	3.45		%	3.32		%	3.43		%	3.25		%	3.38		%

Total return on investments (3)	1.62		%	0.10		%	1.36		%	1.80		%	3.09		%	1.72		%	5.17		%

(1)Amounts include dividends and other distributions on investment funds, term loan investments, funds held balances, cash balances and other.

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

(3)Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in allowance for credit losses on non-investment related financial assets) and the change in unrealized gains or losses and is calculated on a pre-tax basis and before investment expenses. See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of the presentation of total return on investments.


			25

Arch Capital Group Ltd. and Subsidiaries

Investment Information — Composition of Fixed Maturities

The following table summarizes the Company’s fixed maturities:


(U.S. Dollars in millions)	Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Net Unrealized Gains (Losses)		Allowance for Credit Losses		Amortized Cost		Fair Value / Amortized Cost		Fair Value % of Total
At June 30, 2026
Corporates	$	15,399	$	102	$	(198)	$	(96)	$	(6)	$	15,501	99.3	%	44.9	%
U.S. government and government agencies	8,064		8		(64)		(56)		—		8,120		99.3	%	23.5	%
Asset-backed securities	3,677		6		(26)		(20)		(9)		3,706		99.2	%	10.7	%
Non-U.S. government securities	2,879		26		(77)		(51)		(1)		2,931		98.2	%	8.4	%
Residential mortgage-backed securities	2,643		11		(38)		(27)		—		2,670		99.0	%	7.7	%
Commercial mortgage-backed securities	1,549		5		(7)		(2)		—		1,551		99.9	%	4.5	%
Municipal bonds	119		—		(4)		(4)		—		123		96.7	%	0.3	%
Total	$	34,330	$	158	$	(414)	$	(256)	$	(16)	$	34,602	99.2	%	100.0	%

At December 31, 2025
Corporates	$	15,160	$	265	$	(142)	$	123	$	(10)	$	15,047	100.8	%	45.2	%
U.S. government and government agencies	7,450		23		(21)		2		—		7,448		100.0	%	22.2	%
Asset-backed securities	3,574		20		(15)		5		(8)		3,577		99.9	%	10.7	%
Non-U.S. government securities	3,273		53		(81)		(28)		(1)		3,302		99.1	%	9.8	%
Residential mortgage-backed securities	2,705		34		(21)		13		—		2,692		100.5	%	8.1	%
Commercial mortgage-backed securities	1,212		11		(5)		6		(1)		1,207		100.4	%	3.6	%
Municipal bonds	162		—		(4)		(4)		—		166		97.6	%	0.5	%
Total	$	33,536	$	406	$	(289)	$	117	$	(20)	$	33,439	100.3	%	100.0	%


			26

Arch Capital Group Ltd. and Subsidiaries

Investment Information — Credit Quality Distribution and Maturity Profile

The following table summarizes the credit quality distribution and maturity profile of the Company’s fixed maturities:


(U.S. Dollars in millions)	June 30,				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
Credit quality distribution of total fixed maturities (1):
U.S. government and government agencies (2)	$	10,011	29.2	%	$	9,665	28.8	%	$	9,561	28.5	%	$	8,409	25.5	%	$	8,355	26.7	%
AAA	5,580		16.3	%	5,769		17.2	%	5,667		16.9	%	5,425		16.5	%	4,745		15.1	%
AA	2,638		7.7	%	2,554		7.6	%	2,564		7.6	%	2,449		7.4	%	2,491		7.9	%
A	6,526		19.0	%	6,405		19.1	%	6,448		19.2	%	6,904		20.9	%	6,645		21.2	%
BBB	6,698		19.5	%	6,526		19.5	%	6,533		19.5	%	7,167		21.7	%	6,673		21.3	%
BB	1,391		4.1	%	1,340		4.0	%	1,330		4.0	%	1,175		3.6	%	1,110		3.5	%
B	818		2.4	%	806		2.4	%	734		2.2	%	685		2.1	%	657		2.1	%
Lower than B	42		0.1	%	35		0.1	%	35		0.1	%	29		0.1	%	30		0.1	%
Not rated	626		1.8	%	428		1.3	%	664		2.0	%	715		2.2	%	635		2.0	%
Total fixed maturities, at fair value	$	34,330	100.0	%	$	33,528	100.0	%	$	33,536	100.0	%	$	32,958	100.0	%	$	31,341	100.0	%

Maturity profile of total fixed maturities:
Due in one year or less	$	740	2.2	%	$	582	1.7	%	$	412	1.2	%	$	570	1.7	%	$	518	1.7	%
Due after one year through five years	17,498		51.0	%	17,540		52.3	%	17,680		52.7	%	17,379		52.7	%	17,632		56.3	%
Due after five years through ten years	7,522		21.9	%	6,659		19.9	%	7,149		21.3	%	7,047		21.4	%	6,350		20.3	%
Due after 10 years	701		2.0	%	727		2.2	%	804		2.4	%	798		2.4	%	847		2.7	%
	26,461		77.1	%	25,508		76.1	%	26,045		77.7	%	25,794		78.3	%	25,347		80.9	%
Residential mortgage-backed securities	2,643		7.7	%	2,892		8.6	%	2,705		8.1	%	2,766		8.4	%	2,386		7.6	%
Commercial mortgage-backed securities	1,549		4.5	%	1,391		4.1	%	1,212		3.6	%	1,249		3.8	%	838		2.7	%
Asset-backed securities	3,677		10.7	%	3,737		11.1	%	3,574		10.7	%	3,149		9.6	%	2,770		8.8	%
Total fixed maturities, at fair value	$	34,330	100.0	%	$	33,528	100.0	%	$	33,536	100.0	%	$	32,958	100.0	%	$	31,341	100.0	%

(1) For individual fixed maturities, S&P ratings are used. In the absence of an S&P rating, ratings from Moody’s are used, followed by ratings from Fitch Ratings.

(2) Includes U.S. government-sponsored agency mortgage backed securities and agency commercial mortgage backed securities.


			27

Arch Capital Group Ltd. and Subsidiaries

Investment Information — Analysis of Corporate Exposures

The following table summarizes the Company’s corporate bonds by sector:


(U.S. Dollars in millions)	June 30,				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
Sector:
Industrials	$	8,439	54.8	%	$	8,286	55.5	%	$	7,840	51.7	%	$	8,262	51.5	%	$	7,974	51.7	%
Financials	5,623		36.5	%	5,450		36.5	%	6,066		40.0	%	6,251		39.0	%	5,939		38.5	%
Utilities	1,054		6.8	%	942		6.3	%	949		6.3	%	1,225		7.6	%	1,201		7.8	%

All other (1)	283		1.8	%	251		1.7	%	305		2.0	%	306		1.9	%	303		2.0	%
Total	$	15,399	100.0	%	$	14,929	100.0	%	$	15,160	100.0	%	$	16,044	100.0	%	$	15,417	100.0	%

Credit quality distribution (2):
AAA	$	185	1.2	%	$	176	1.2	%	$	195	1.3	%	$	195	1.2	%	$	180	1.2	%
AA	1,220		7.9	%	1,093		7.3	%	968		6.4	%	807		5.0	%	953		6.2	%
A	5,286		34.3	%	5,173		34.7	%	5,315		35.1	%	5,882		36.7	%	5,712		37.1	%
BBB	6,256		40.6	%	6,111		40.9	%	6,210		41.0	%	6,891		43.0	%	6,392		41.5	%
BB	1,315		8.5	%	1,266		8.5	%	1,262		8.3	%	1,128		7.0	%	1,054		6.8	%
B	815		5.3	%	800		5.4	%	728		4.8	%	676		4.2	%	652		4.2	%
Lower than B	42		0.3	%	35		0.2	%	35		0.2	%	29		0.2	%	30		0.2	%
Not rated	280		1.8	%	275		1.8	%	447		2.9	%	436		2.7	%	444		2.9	%
Total	$	15,399	100.0	%	$	14,929	100.0	%	$	15,160	100.0	%	$	16,044	100.0	%	$	15,417	100.0	%

(1) Includes sovereign securities, supranational securities and other.

(2) For individual fixed maturities, S&P ratings are used. In the absence of an S&P rating, ratings from Moody’s are used, followed by ratings from Fitch Ratings.

The following table summarizes the Company’s top ten exposures to fixed income corporate issuers by fair value at June 30, 2026:


(U.S. Dollars in millions)	Fair Value		% of Asset Class		% of Investable Assets		Credit Quality (1)
Issuer:
Morgan Stanley	$	482	3.1	%	1.0	%	A/A1
The Goldman Sachs Group, Inc.	293		1.9	%	0.6	%	BBB+/A2
JPMorgan Chase & Co.	261		1.7	%	0.5	%	A/A1
Citigroup Inc.	256		1.7	%	0.5	%	A-/A2
Bank of America Corporation	255		1.7	%	0.5	%	A-/A1
Amazon.com, Inc.	221		1.4	%	0.4	%	AA/A1
The Toronto-Dominion Bank	213		1.4	%	0.4	%	A-/A2
UBS Group AG	175		1.1	%	0.4	%	A/A1
Hyundai Motor Company	155		1.0	%	0.3	%	A-/A3
Oracle Corporation	146		0.9	%	0.3	%	BBB/Baa2
Total	$	2,457	16.0	%	5.0	%

(1) Average credit ratings assigned by S&P and Moody’s, respectively.


			28

Arch Capital Group Ltd. and Subsidiaries

Investment Information — Structured Securities

The following table provides the composition of the Company’s structured securities:


(U.S. Dollars in millions)	Agencies		AAA		AA		A		BBB		Non-Investment Grade		Total
At June 30, 2026
Residential mortgage-backed securities	$	1,942	$	697	$	—	$	—	$	—	$	4	$	2,643
Commercial mortgage-backed securities	6		1,009		138		32		252		112		1,549
Asset-backed securities	—		1,891		244		1,052		189		301		3,677
Total	$	1,948	$	3,597	$	382	$	1,084	$	441	$	417	$	7,869

At December 31, 2025
Residential mortgage-backed securities	$	2,105	$	598	$	2	$	—	$	—	$	—	$	2,705
Commercial mortgage-backed securities	6		730		159		47		193		77		1,212
Asset-backed securities	—		2,026		310		904		128		206		3,574
Total	$	2,111	$	3,354	$	471	$	951	$	321	$	283	$	7,491


			29

Arch Capital Group Ltd. and Subsidiaries

Comments on Non-GAAP Financial Measures

Throughout this financial supplement, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company’s financial information in evaluating the performance of the Company. This presentation includes the use of after-tax operating income available to Arch common shareholders, which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which 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), equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on the following page.

The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization.

Transaction costs and other include advisory, financing, legal, severance, incentive compensation and other transaction costs related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance.

The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of the Company’s underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on pages 9 to 12.

In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. Effective in the 2025 first quarter, the ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by the Company’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses, and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented.


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Arch Capital Group Ltd. and Subsidiaries

Operating Income Reconciliation and Annualized Operating Return on Average Common Equity

The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income (loss) available to Arch common shareholders to after-tax operating income (loss) available to Arch common shareholders and related diluted per share results:


(U.S. Dollars and shares in millions, except per share data)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Net income available to Arch common shareholders	$	1,047		$	1,037		$	1,228		$	1,340		$	1,227		$	2,084		$	1,791
Net realized (gains) losses (1)	17			87			(22)			(210)			(229)			104			(232)

Equity in net (income) of investments accounted for using the equity method	(196)			(160)			(155)			(134)			(162)			(356)			(215)
Net foreign exchange (gains) losses	(10)			(21)			6			7			88			(31)			115
Transaction costs and other	32			18			26			21			18			50			28

Income tax expense (benefit) (2)	3			(60)			9			18			37			(57)			79
After-tax operating income available to Arch common shareholders	$	893		$	901		$	1,092		$	1,042		$	979		$	1,794		$	1,566

Diluted per common share results:
Net income available to Arch common shareholders	$	3.00		$	2.88		$	3.35		$	3.56		$	3.23		$	5.88		$	4.70
Net realized (gains) losses (1)	0.05			0.24			(0.06)			(0.56)			(0.60)			0.29			(0.61)

Equity in net (income) of investments accounted for using the equity method	(0.56)			(0.44)			(0.42)			(0.36)			(0.43)			(1.00)			(0.57)
Net foreign exchange (gains) losses	(0.03)			(0.06)			0.02			0.02			0.23			(0.09)			0.30
Transaction costs and other	0.09			0.05			0.07			0.06			0.05			0.14			0.08

Income tax expense (benefit) (2)	0.01			(0.17)			0.02			0.05			0.10			(0.16)			0.21
After-tax operating income available to Arch common shareholders	$	2.56		$	2.50		$	2.98		$	2.77		$	2.58		$	5.06		$	4.11

Weighted average common shares and common share equivalents outstanding - diluted	348.8			359.7			366.6			376.1			379.9			354.2			380.8

Beginning common shareholders’ equity	$	23,358		$	23,376		$	22,889		$	22,211		$	20,715		$	23,376		$	19,990
Ending common shareholders’ equity	23,200			23,358			23,376			22,889			22,211			23,200			22,211
Average common shareholders’ equity	$	23,279		$	23,367		$	23,133		$	22,550		$	21,463		$	23,288		$	21,101

Annualized net income return on average common equity	18.0		%	17.8		%	21.2		%	23.8		%	22.9		%	17.9		%	17.0		%
Annualized operating return on average common equity	15.3		%	15.4		%	18.9		%	18.5		%	18.2		%	15.4		%	14.8		%


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Arch Capital Group Ltd. and Subsidiaries

Operating Income and Effective Tax Rate Calculations

The following table provides a reconciliation of income (loss) before income taxes to after-tax operating income (loss) available to Arch common shareholders and an analysis of the effective tax rate on pre-tax operating income (loss) available to Arch common shareholders:


(U.S. Dollars in millions)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Arch Operating Income Components:
Income (loss) before income taxes and income (loss) from operating affiliates	$	1,175		$	1,109		$	1,387		$	1,503		$	1,411		$	2,284		$	2,089
Net realized (gains) losses	17			87			(22)			(210)			(229)			104			(232)

Equity in net (income) of investments accounted for using the equity method	(196)			(160)			(155)			(134)			(162)			(356)			(215)
Net foreign exchange (gains) losses	(10)			(21)			6			7			88			(31)			115
Transaction costs and other	32			18			26			21			18			50			28
Income (loss) from operating affiliates	46			36			61			62			40			82			57


Pre-tax operating income available to Arch (b)	1,064			1,069			1,303			1,249			1,166			2,133			1,842
Income tax (expense) benefit (a)	(161)			(158)			(201)			(197)			(177)			(319)			(256)
After-tax operating income available to Arch	903			911			1,102			1,052			989			1,814			1,586
Preferred dividends	(10)			(10)			(10)			(10)			(10)			(20)			(20)
After-tax operating income available to Arch common shareholders	$	893		$	901		$	1,092		$	1,042		$	979		$	1,794		$	1,566

Effective tax rate on pre-tax operating income (loss) available to Arch (a)/(b)	15.1		%	14.8		%	15.4		%	15.8		%	15.2		%	15.0		%	13.9		%


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Arch Capital Group Ltd. and Subsidiaries

Capital Structure and Share Repurchase Activity

The following table provides an analysis of the Company’s capital structure:


(U.S. Dollars and shares in millions, except per share data)	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Debt:
Arch 7.350% senior notes, due May 1, 2034	$	300		$	300		$	300		$	300		$	300
Arch 5.250% senior notes, due June 15, 2036	600			—			—			—			—
Arch 3.635% senior notes, due June 30, 2050	1,000			1,000			1,000			1,000			1,000
Arch 5.950% senior notes, due June 15, 2056	1,400			—			—			—			—
Arch-U.S. 5.144% senior notes, due November 1, 2043 (1)	281			500			500			500			500
Arch Finance 4.011% senior notes, due December 15, 2026 (2)	500			500			500			500			500
Arch Finance 5.031% senior notes, due December 15, 2046 (2)	251			450			450			450			450
Deferred debt costs on senior notes	(46)			(21)			(21)			(22)			(22)
Revolving credit agreement borrowings, due August 23, 2028	—			—			—			—			—
Total debt	$	4,286		$	2,729		$	2,729		$	2,728		$	2,728

Shareholders’ equity available to Arch:


Series F non-cumulative preferred shares (5.45%)	330			330			330			330			330
Series G non-cumulative preferred shares (4.55%)	500			500			500			500			500
Common shareholders’ equity (a)	23,200			23,358			23,376			22,889			22,211
Total shareholders’ equity available to Arch	$	24,030		$	24,188		$	24,206		$	23,719		$	23,041

Total capital available to Arch	$	28,316		$	26,917		$	26,935		$	26,447		$	25,769

Common shares outstanding, net of treasury shares (b)	341.0			352.9			359.0			367.3			375.4

Book value per common share (3) (a)/(b)	$	68.04		$	66.19		$	65.11		$	62.32		$	59.17

Leverage ratios:
Senior notes/total capital available to Arch	15.1		%	10.1		%	10.1		%	10.3		%	10.6		%
Revolving credit agreement borrowings/total capital available to Arch	—		%	—		%	—		%	—		%	—		%
Debt/total capital available to Arch	15.1		%	10.1		%	10.1		%	10.3		%	10.6		%
Preferred/total capital available to Arch	2.9		%	3.1		%	3.1		%	3.1		%	3.2		%
Debt and preferred/total capital available to Arch	18.1		%	13.2		%	13.2		%	13.5		%	13.8		%

(1) Issued by Arch Capital Group (U.S.) Inc. (“Arch-U.S.”), a wholly owned subsidiary of Arch, and fully and unconditionally guaranteed by Arch.

(2) Issued by Arch Capital Finance LLC (“Arch Finance”), a wholly owned subsidiary of Arch U.S. MI Holdings Inc., and fully and unconditionally guaranteed by Arch.

(3) Excludes the effects of stock options, restricted and performance stock units outstanding.

The following table provides the impact of share repurchases under the Company’s share repurchase program:


(U.S. Dollars and shares in millions, except per share data)	Three Months Ended										Cumulative
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,
	2026		2026		2025		2025		2025		2026
Effect of share repurchases:
Aggregate cost of shares repurchased	$	1,165.8	$	783.0	$	797.9	$	732.3	$	163.2	$	9,731.8
Shares repurchased	12.4		8.3		8.9		8.2		1.9		475.7
Average price per share repurchased	$	94.38	$	94.01	$	90.04	$	88.82	$	87.94	$	20.46




Remaining share repurchase authorization (1)											$	2,158.2

(1) Repurchases under the share repurchase authorization may be effected from time to time in open market or privately negotiated transactions. On April 19, 2026, the Company increased its authorization for its existing share repurchase program by $3.0 billion.


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Source: View Original Filing on SEC EDGAR

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Arch Capital Group Ltd. (NASDAQ: ACGL) earns $1.0B with 83.5% Q2 combined ratio

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