Arch Capital Q3 earnings fall 23.5% to $1.03B

Q: What was ACGL's third-quarter 2026 net income?

Net income available to common shareholders was $1.025 billion for the quarter ended September 30, 2026, compared with $1.340 billion in the 2025 third quarter. Diluted net income per common share was $3.00, compared with $3.56.

ACGL repurchased $1.4 billion of shares during a quarter in which net income and operating cash flow declined year over year.

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Form Type

8-K

Rhea-AI Filing Summary

Arch Capital Group Ltd. (ACGL) reported third-quarter 2026 net income available to common shareholders of $1.025 billion, compared with $1.340 billion a year earlier. After-tax operating income was $910 million, versus $1.042 billion. Net premiums earned declined 6.3% to $4.014 billion, and underwriting income declined 19.4% to $702 million. Net investment income increased 10.5% to $451 million.

Current accident-year catastrophic losses in the insurance and reinsurance segments were $234 million, while favorable development in prior-year loss reserves was $179 million. The combined ratio was 82.5%, compared with 79.8% a year earlier. ACGL repurchased $1.4 billion of shares. Book value per common share was $67.90 as of September 30, 2026, down 0.2% from June 30, 2026.

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Positive

Moderate pointNet investment income rose 10.5% to $451 million year over year.

Negative

Moderate pointCommon-shareholder net income fell 23.5% to $1.025 billion year over year.
Moderate pointOperating cash flow declined 19.5% to $1.759 billion year over year.
Moderate pointUnderwriting income decreased 19.4% to $702 million year over year.

Filing Explained

Arch repurchased shares during the quarter; common shares outstanding, net of treasury shares, fell from June 30, 2026 to September 30, 2026, so an unchanged holding represented a larger fraction of outstanding common shares.

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, or exhibit attachments filed with this report.

Key Figures

Net income available to common shareholders: $1.025 billion After-tax operating income: $910 million Net premiums earned: $4.014 billion +5 more

8 metrics

Net income available to common shareholders $1.025 billion Three months ended September 30, 2026; $1.340 billion in 2025

After-tax operating income $910 million Three months ended September 30, 2026; $1.042 billion in 2025

Net premiums earned $4.014 billion Three months ended September 30, 2026; down 6.3% year over year

Underwriting income $702 million Three months ended September 30, 2026; down 19.4% year over year

Net investment income $451 million Three months ended September 30, 2026; up 10.5% year over year

Combined ratio 82.5% Three months ended September 30, 2026; 79.8% in 2025

Share repurchases $1.4 billion Third quarter 2026

Book value per common share $67.90 As of September 30, 2026

Key Terms

Combined ratio excluding catastrophic activity and prior year development, Favorable development in prior year loss reserves, Qualified refundable tax credits, Equity method

4 terms

Combined ratio excluding catastrophic activity and prior year development financial

"Combined ratio excluding catastrophic activity and prior year development of 81.2%"

Favorable development in prior year loss reserves financial

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

Qualified refundable tax credits financial

"benefit of Bermuda qualified refundable tax credits"

Equity method financial

"investments accounted for using the equity method"

An equity method investment is an accounting approach used when a company owns enough of another business to influence its decisions but not control it (commonly around 20–50% ownership). Instead of counting only dividends, the investor records its share of the other company’s profits and losses on its own income statement and adjusts the investment’s value on the balance sheet—like tracking a friend’s joint project by noting your share of their gains or setbacks. For investors, this matters because it can significantly affect reported earnings, asset values, and the apparent strength of a company’s financial results.

Earnings Snapshot

Net income available to Arch common shareholders: $1.025 billion

Third quarter ended September 30, 2026

Net income available to Arch common shareholders $1.025 billion Down 23.5% year over year

After-tax operating income available to Arch common shareholders $910 million Down 12.7% year over year

Net premiums earned $4.014 billion Down 6.3% year over year

Net investment income $451 million Up 10.5% year over year

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was ACGL's third-quarter 2026 net income?

Net income available to common shareholders was $1.025 billion for the quarter ended September 30, 2026, compared with $1.340 billion in the 2025 third quarter. Diluted net income per common share was $3.00, compared with $3.56.

When is ACGL's third-quarter 2026 earnings call?

ACGL scheduled its investor and analyst conference call for 10:00 a.m. Eastern Time on October 28, 2026. The company said a live webcast would be available through the Investors section of its website.

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Available on EDGAR 10/27/2026 - 04:07 PM EDT Accepted by SEC EDGAR 10/27/2026 - 04:06 PM EDT

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

October 27, 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 October 27, 2026 Arch Capital Group Ltd. issued a press release reporting its earnings and the availability of its financial supplement for the quarter ended September 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 October 27, 2026 announcing the earnings of Arch Capital Group Ltd. for the quarter ended September 30, 2026
99.2						2026 Third 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: October 27, 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
			October 27, 2026			Pembroke HM 08 Bermuda

ARCH CAPITAL GROUP LTD. REPORTS 2026 THIRD QUARTER RESULTS

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

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

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

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

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

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

•Share repurchases of $1.4 billion.

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

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

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



(U.S. Dollars in millions)	Three Months Ended September 30,
		2026			2025			% Change
Gross premiums written		$	5,391		$	5,410		(0.4)
Net premiums written		3,845			3,964			(3.0)
Net premiums earned		4,014			4,285			(6.3)
Underwriting income (1)		702			871			(19.4)
Underwriting Ratios								% Point Change
Loss ratio		55.0		%	51.4		%	3.6
Underwriting expense ratio (2)		27.5		%	28.4		%	(0.9)
Combined ratio		82.5		%	79.8		%	2.7

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

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

(2) The ‘Underwriting expense ratio’ includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.

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


(U.S. Dollars in millions, except per share data)	Three Months Ended
	September 30,
	2026			2025
Net income available to Arch common shareholders	$	1,025		$	1,340
Net realized (gains) losses (1)	99			(210)

Equity in net (income) of investments accounted for using the equity method	(224)			(134)
Net foreign exchange (gains) losses	(18)			7
Transaction costs and other	17			21

Income tax expense (benefit) (2)	11			18
After-tax operating income available to Arch common shareholders	$	910		$	1,042

Diluted per common share results:
Net income available to Arch common shareholders	$	3.00		$	3.56
Net realized (gains) losses (1)	0.29			(0.56)

Equity in net (income) of investments accounted for using the equity method	(0.66)			(0.36)
Net foreign exchange (gains) losses	(0.04)			0.02
Transaction costs and other	0.05			0.06

Income tax expense (benefit) (2)	0.03			0.05
After-tax operating income available to Arch common shareholders	$	2.67		$	2.77

Weighted average common shares and common share equivalents outstanding — diluted	341.4			376.1

Beginning common shareholders’ equity	$	23,200		$	22,211
Ending common shareholders’ equity	22,162			22,889
Average common shareholders’ equity	$	22,681		$	22,550

Annualized net income return on average common equity	18.1		%	23.8		%
Annualized operating return on average common equity	16.0		%	18.5		%

(1) Net realized gains or losses include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and 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 third quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated September 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 September 30,
(U.S. Dollars in millions)	2026			2025			% Change

Gross premiums written	$	2,766		$	2,567		7.8
Net premiums written	2,006			1,953			2.7
Net premiums earned	1,937			1,969			(1.6)
Other underwriting income	15			9			66.7

Underwriting income	$	108		$	129		(16.3)

Underwriting Ratios							% Point Change
Loss ratio	60.8		%	59.0		%	1.8
Underwriting expense ratio	33.6		%	34.4		%	(0.8)
Combined ratio	94.4		%	93.4		%	1.0

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	5.7		%	2.2		%	3.5
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact	(0.7)		%	(0.7)		%	—
Underwriting expense ratio impact	0.2		%	0.6		%	(0.4)
Total impact	(0.5)		%	(0.1)		%	(0.4)

Combined ratio excluding catastrophic activity and prior year development	89.2		%	91.3		%	(2.1)

Gross premiums written by the insurance segment in the 2026 third quarter were 7.8% higher than in the 2025 third quarter, while net premiums written were 2.7% higher than in the 2025 third quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have increased by 5.8% compared to the same quarter one year ago and reflected strong growth in international business. Net premiums earned in the 2026 third quarter were 1.6% lower than in the 2025 third quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 third quarter loss ratio reflected 5.7 points of current year catastrophic activity, which includes losses related to the Iran conflict, compared to 2.2 points in the 2025 third quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 0.7 points in the 2026 third quarter, compared to 0.7 points in the 2025 third quarter. The balance of the change in the loss ratio resulted, in part, from the incremental earned premium in the quarter resulting from the Iran conflict.

The underwriting expense ratio was 33.6% in the 2026 third quarter, compared to 34.4% in the 2025 third quarter. The 2026 third quarter ratio primarily reflected the benefit of Bermuda qualified refundable tax credits (“QRTCs”).

Reinsurance Segment


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

Gross premiums written	$	2,313		$	2,515		(8.0)
Net premiums written	1,576			1,737			(9.3)
Net premiums earned	1,807			2,015			(10.3)
Other underwriting income	43			38			13.2

Underwriting income	$	393		$	482		(18.5)

Underwriting Ratios							% Point Change
Loss ratio	55.9		%	51.6		%	4.3
Underwriting expense ratio	22.4		%	24.5		%	(2.1)
Combined ratio	78.3		%	76.1		%	2.2

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	6.9		%	1.5		%	5.4
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact	(7.4)		%	(2.6)		%	(4.8)
Underwriting expense ratio impact	0.4		%	0.4		%	—
Total impact	(7.0)		%	(2.2)		%	(4.8)

Combined ratio excluding catastrophic activity and prior year development	78.4		%	76.8		%	1.6

Gross premiums written by the reinsurance segment in the 2026 third quarter were 8.0% lower than in the 2025 third quarter, while net premiums written were 9.3% lower than in the 2025 third quarter. Reductions in net premiums written this quarter were due, in part, to non-renewals and share reductions. Net premiums earned in the 2026 third quarter were 10.3% lower than in the 2025 third quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 third quarter loss ratio reflected 7.5 points of current year catastrophic activity, compared to 1.3 points in the 2025 third quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 7.4 points in the 2026 third quarter, compared to 2.6 points in the 2025 third quarter. The loss ratio was also impacted by changes in rate and mix of business.

The underwriting expense ratio was 22.4% in the 2026 third quarter, compared to 24.5% in the 2025 third quarter, with the decrease primarily reflecting the impact of higher commissions on retrocessions. The 2026 third quarter also reflected the benefit of QRTCs.

Mortgage Segment


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

Gross premiums written	$	316		$	330		(4.2)
Net premiums written	263			274			(4.0)
Net premiums earned	270			301			(10.3)
Other underwriting income	3			3			—

Underwriting income	$	201		$	260		(22.7)

Underwriting Ratios							% Point Change
Loss ratio	6.9		%	(0.5)		%	7.4
Underwriting expense ratio	18.6		%	14.0		%	4.6
Combined ratio	25.5		%	13.5		%	12.0

Prior year development:
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact	(15.4)		%	(18.1)		%	2.7
Underwriting expense ratio impact	(0.7)		%	(1.1)		%	0.4
Total impact	(16.1)		%	(19.2)		%	3.1

Combined ratio excluding prior year development	41.6		%	32.7		%	8.9

Gross premiums written by the mortgage segment in the 2026 third quarter were 4.2% lower than in the 2025 third quarter, with lower U.S. primary mortgage insurance monthly premiums and U.S. credit risk transfer premiums partially offset by growth in international business. Net premiums written were 4.0% lower than in the 2025 third quarter, primarily reflecting lower U.S. credit risk transfer premiums.

Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 15.4 points, compared to 18.1 points in the 2025 third quarter. Such amounts were primarily related to better than expected cure rates. The 2026 third quarter loss ratio, excluding net favorable development, reflected a modestly higher level of delinquencies compared to the 2025 third quarter.

The underwriting expense ratio was 18.6% in the 2026 third quarter, compared to 14.0% in the 2025 third quarter. The increase was primarily due to lower ceding and profit commissions. The 2026 third quarter ratio also reflected the impact of a lower level of net premiums earned.

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
		September 30,			June 30,			September 30,
		2026			2026			2025
Pre-tax net investment income		$	451		$	417		$	408
Per share		$	1.32		$	1.20		$	1.08

Equity in net income of investments accounted for using the equity method		$	224		$	196		$	134
Per share		$	0.66		$	0.56		$	0.36

Pre-tax investment income yield, at amortized cost (1)		4.09		%	3.91		%	4.07		%

Total return on investments (2)		(0.42)		%	1.62		%	1.80		%

(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 third quarter was $451 million, compared to $408 million in the 2025 third quarter, with the increase reflecting growth in average investable assets. Net realized losses were $99 million for the 2026 third quarter, compared to net realized gains of $210 million in the 2025 third quarter. The negative total return on investments for the 2026 third quarter primarily reflected the impact of rising interest rates on fixed income securities.

Corporate expenses for the 2026 third quarter were $5 million, compared to $28 million for the 2025 third 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 third quarter primarily reflected the benefit of QRTCs.

Amortization of intangible assets was $30 million for the 2026 third quarter, compared to $49 million for the 2025 third quarter. The decrease primarily related to lower amortization of intangible assets related to the MCE Acquisition.

Interest expense for the 2026 third quarter was $62 million, compared to $37 million for the 2025 third quarter. The increase primarily resulted from the Company’s June 2026 capital raising activity.

On a pre-tax basis, net foreign exchange gains were $18 million for the 2026 third quarter, compared to net foreign exchange losses of $7 million for the 2025 third 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 15.1% for the 2026 third quarter, compared to 13.7% for the 2025 third quarter. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 15.8% for the 2026 third quarter consistent with 15.8% for the 2025 third 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 third quarter was $33 million, or $0.10 per share, compared to $62 million, or $0.16 per share, for the 2025 third quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA.

Conference Call

The Company will hold a conference call for investors and analysts at 10:00 a.m. Eastern Time on October 28, 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 September 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 $27.3 billion in capital at September 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 third quarter and 2025 third 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
	September 30, 2026
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	2,766		$	2,313		$	316		$	5,391
Premiums ceded (1)	(760)			(737)			(53)			(1,546)
Net premiums written	2,006			1,576			263			3,845
Change in unearned premiums	(69)			231			7			169
Net premiums earned	1,937			1,807			270			4,014
Other underwriting income (2)	15			43			3			61
Losses and loss adjustment expenses	(1,178)			(1,010)			(18)			(2,206)
Acquisition expenses	(371)			(334)			(7)			(712)
Other operating expenses	(295)			(113)			(47)			(455)
Underwriting income (loss)	$	108		$	393		$	201		702

Net investment income										451
Net realized gains (losses)										(99)

Equity in net income of investments accounted for using the equity method										224
Other income (loss)										4
Corporate benefit (expenses) (3)										(5)
Transaction costs and other (3)										(17)
Amortization of intangible assets										(30)
Interest expense										(62)
Net foreign exchange gains (losses)										18
Income (loss) before income taxes and income (loss) from operating affiliates										1,186
Income tax benefit (expense)										(184)
Income (loss) from operating affiliates										33



Net income (loss) available to Arch										1,035
Preferred dividends										(10)

Net income (loss) available to Arch common shareholders										$	1,025

Underwriting Ratios
Loss ratio	60.8		%	55.9		%	6.9		%	55.0		%
Acquisition expense ratio	19.2		%	18.5		%	2.4		%	17.7		%
Other operating expense ratio (4)	14.4		%	3.9		%	16.2		%	9.8		%
Combined ratio	94.4		%	78.3		%	25.5		%	82.5		%

Net premiums written to gross premiums written	72.5		%	68.1		%	83.2		%	71.3		%

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

(2) ‘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
	September 30, 2025
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	2,567		$	2,515		$	330		$	5,410
Premiums ceded (1)	(614)			(778)			(56)			(1,446)
Net premiums written	1,953			1,737			274			3,964
Change in unearned premiums	16			278			27			321
Net premiums earned	1,969			2,015			301			4,285
Other underwriting income (2)	9			38			3			50
Losses and loss adjustment expenses	(1,162)			(1,040)			2			(2,200)
Acquisition expenses	(386)			(398)			(2)			(786)
Other operating expenses	(301)			(133)			(44)			(478)
Underwriting income (loss)	$	129		$	482		$	260		871

Net investment income										408
Net realized gains (losses)										210

Equity in net income of investments accounted for using the equity method										134
Other income (loss)										22
Corporate benefit (expenses) (3)										(28)
Transaction costs and other (3)										(21)
Amortization of intangible assets										(49)
Interest expense										(37)
Net foreign exchange gains (losses)										(7)
Income (loss) before income taxes and income (loss) from operating affiliates										1,503
Income tax benefit (expense)										(215)
Income (loss) from operating affiliates										62



Net income (loss) available to Arch										1,350
Preferred dividends										(10)

Net income (loss) available to Arch common shareholders										$	1,340

Underwriting Ratios
Loss ratio	59.0		%	51.6		%	(0.5)		%	51.4		%
Acquisition expense ratio	19.6		%	19.8		%	0.7		%	18.4		%
Other operating expense ratio (4)	14.8		%	4.7		%	13.3		%	10.0		%
Combined ratio	93.4		%	76.1		%	13.5		%	79.8		%

Net premiums written to gross premiums written	76.1		%	69.1		%	83.0		%	73.3		%

(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

September 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	33
	e.	Book Value, Tangible Book Value and Share Repurchase Activity	34


			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								Nine Months Ended
	September 30,								September 30,
	2026			2025			Change		2026			2025			Change
Underwriting results:
Gross premiums written	$	5,391		$	5,410		(0.4)	%	$	17,942		$	18,069		(0.7)	%
Net premiums written	3,845			3,964			(3.0)	%	12,242			12,827			(4.6)	%
Net premiums earned	4,014			4,285			(6.3)	%	11,985			12,810			(6.4)	%
Underwriting income (loss) (1)	702			871			(19.4)	%	2,087			2,106			(0.9)	%

Loss ratio	55.0		%	51.4		%	3.6		54.2		%	55.4		%	(1.2)
Acquisition expense ratio	17.7		%	18.4		%	(0.7)		18.0		%	18.5		%	(0.5)
Other operating expense ratio (2)	9.8		%	10.0		%	(0.2)		10.4		%	9.7		%	0.7
Combined ratio	82.5		%	79.8		%	2.7		82.6		%	83.6		%	(1.0)

Pre-tax net investment income	$	451		$	408		10.5	%	$	1,276		$	1,191		7.1	%
Per diluted share	$	1.32		$	1.08		22.2	%	$	3.65		$	3.14		16.2	%

Net income available to Arch common shareholders	$	1,025		$	1,340		(23.5)	%	$	3,109		$	3,131		(0.7)	%
Per diluted share	$	3.00		$	3.56		(15.7)	%	$	8.89		$	8.26		7.6	%

After-tax operating income available to Arch common shareholders (1)	$	910		$	1,042		(12.7)	%	$	2,704		$	2,608		3.7	%
Per diluted share	$	2.67		$	2.77		(3.6)	%	$	7.73		$	6.88		12.4	%

Comprehensive income (loss) available to Arch	$	372		$	1,398		(73.4)	%	$	2,058		$	3,881		(47.0)	%

Net cash provided by operating activities	$	1,759		$	2,186		(19.5)	%	$	4,269		$	4,768		(10.5)	%

Weighted average common shares and common share equivalents outstanding — diluted	341.4			376.1			(9.2)	%	349.7			379.1			(7.8)	%

Financial measures:
Change in book value per common share during period	(0.2)		%	5.3		%	(5.5)		4.3		%	17.3		%	(13.0)


Annualized net income return on average common equity	18.1		%	23.8		%	(5.7)		18.2		%	19.5		%	(1.3)
Annualized operating return on average common equity (1)	16.0		%	18.5		%	(2.5)		15.8		%	16.2		%	(0.4)

Total return on investments (3)	(0.42)		%	1.80		%	-222 bps		1.29		%	7.07		%	-578 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										Nine Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
	2026		2026		2026		2025		2025		2026		2025
Revenues


Net premiums earned	$	4,014	$	3,985	$	3,986	$	4,255	$	4,285	$	11,985	$	12,810
Net investment income	451		417		408		434		408		1,276		1,191
Net realized gains (losses)	(99)		(17)		(87)		22		210		(203)		442

Other underwriting income (1)	61		57		59		52		50		177		165
Equity in net income of investments accounted for using the equity method	224		196		160		155		134		580		349
Other income (loss)	4		30		(5)		16		22		29		38
Total revenues	4,655		4,668		4,521		4,934		5,109		13,844		14,995

Expenses
Losses and loss adjustment expenses	(2,206)		(2,196)		(2,089)		(2,280)		(2,200)		(6,491)		(7,090)
Acquisition expenses	(712)		(718)		(730)		(779)		(786)		(2,160)		(2,374)
Other operating expenses	(455)		(471)		(498)		(421)		(478)		(1,424)		(1,405)
Corporate benefit (expenses)	(22)		(44)		(49)		24		(49)		(115)		(156)
Amortization of intangible assets	(30)		(30)		(30)		(47)		(49)		(90)		(146)
Interest expense	(62)		(44)		(37)		(38)		(37)		(143)		(110)
Net foreign exchange gains (losses)	18		10		21		(6)		(7)		49		(122)
Total expenses	(3,469)		(3,493)		(3,412)		(3,547)		(3,606)		(10,374)		(11,403)

Income (loss) before income taxes and income (loss) from operating affiliates	1,186		1,175		1,109		1,387		1,503		3,470		3,592
Income tax (expense) benefit	(184)		(164)		(98)		(210)		(215)		(446)		(550)
Income (loss) from operating affiliates	33		46		36		61		62		115		119


Net income (loss) attributable to Arch	1,035		1,057		1,047		1,238		1,350		3,139		3,161
Preferred dividends	(10)		(10)		(10)		(10)		(10)		(30)		(30)

Net income (loss) available to Arch common shareholders	$	1,025	$	1,047	$	1,037	$	1,228	$	1,340	$	3,109	$	3,131

Comprehensive income (loss) available to Arch	$	372	$	977	$	709	$	1,243	$	1,398	$	2,058	$	3,881

Net income (loss) per common share and common share equivalent
Basic	$	3.05	$	3.05	$	2.94	$	3.42	$	3.63	$	9.04	$	8.43
Diluted	$	3.00	$	3.00	$	2.88	$	3.35	$	3.56	$	8.89	$	8.26

Weighted average common shares and common share equivalents outstanding
Basic	335.8		343.2		353.2		359.4		369.0		344.0		371.4
Diluted	341.4		348.8		359.7		366.6		376.1		349.7		379.1

(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)	September 30,		June 30,		March 31,		December 31,		September 30,
	2026		2026		2026		2025		2025
Assets
Investments:
Fixed maturities available for sale, at fair value	$	32,119	$	33,155	$	32,399	$	32,426	$	31,908
Short-term investments available for sale, at fair value	3,253		3,298		2,638		2,625		2,351

Equity securities, at fair value	2,396		2,280		1,766		1,864		1,805

Other investments	3,364		3,381		3,331		3,136		3,027
Investments accounted for using the equity method	7,126		6,852		6,652		6,453		6,232
Total investments	48,258		48,966		46,786		46,504		45,323
Cash	1,152		1,109		914		993		1,063
Accrued investment income	334		325		302		338		307


Investment in operating affiliates	1,338		1,323		1,330		1,313		1,417
Premiums receivable	6,919		7,160		6,526		5,723		6,450
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	10,253		9,964		9,732		9,526		9,070
Contractholder receivables	2,357		2,264		2,253		2,270		2,287
Ceded unearned premiums	3,557		3,669		3,183		2,659		3,079
Deferred acquisition costs	1,767		1,794		1,774		1,717		1,786
Receivable for securities sold	123		564		643		180		695
Goodwill and intangible assets	1,133		1,163		1,190		1,222		1,268

Other assets	6,885		6,878		6,813		6,796		6,440
Total assets	$	84,076	$	85,179	$	81,446	$	79,241	$	79,185

Liabilities
Reserve for losses and loss adjustment expenses	$	35,505	$	34,775	$	34,105	$	33,547	$	32,822
Unearned premiums	11,208		11,493		10,939		10,100		11,124
Reinsurance balances payable	3,045		3,234		2,737		2,320		2,638
Contractholder payables	2,364		2,270		2,260		2,277		2,293
Collateral held for insured obligations	244		240		260		237		239
Senior notes	4,286		4,286		2,729		2,729		2,728


Payable for securities purchased	325		1,136		798		308		335
Other liabilities	4,107		3,715		3,430		3,517		3,287
Total liabilities	61,084		61,149		57,258		55,035		55,466



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

Common shares	1		1		1		1		1
Additional paid-in capital	2,906		2,873		2,831		2,735		2,682
Retained earnings	30,154		29,129		28,082		27,045		25,817
Accumulated other comprehensive income (loss), net of deferred income tax	(1,076)		(413)		(333)		5		—
Common shares held in treasury, at cost	(9,823)		(8,390)		(7,223)		(6,410)		(5,611)


Total shareholders’ equity	22,992		24,030		24,188		24,206		23,719
Total liabilities and shareholders’ equity	$	84,076	$	85,179	$	81,446	$	79,241	$	79,185

Common shares and common share equivalents outstanding, net of treasury shares	326.4		341.0		352.9		359.0		367.3
Book value per common share (1)	$	67.90	$	68.04	$	66.19	$	65.11	$	62.32

(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										Nine Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
	2026		2026		2026		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	2,873		2,831		2,735		2,682		2,660		2,735		2,510





Amortization of share-based compensation	20		15		82		24		25		117		124



All other	13		27		14		29		(3)		54		48
Balance at end of period	2,906		2,873		2,831		2,735		2,682		2,906		2,682

Retained earnings
Balance at beginning of period	29,129		28,082		27,045		25,817		24,477		27,045		22,686


Net income	1,035		1,057		1,047		1,238		1,350		3,139		3,161


Preferred share dividends	(10)		(10)		(10)		(10)		(10)		(30)		(30)

Balance at end of period	30,154		29,129		28,082		27,045		25,817		30,154		25,817

Accumulated other comprehensive income (loss), net of deferred income tax
Balance at beginning of period	(413)		(333)		5		—		(48)		5		(720)

Change in unrealized appreciation (decline) in value of available-for-sale investments	(657)		(71)		(338)		12		47		(1,066)		629
Change in foreign currency translation adjustments	(6)		(9)		—		(7)		1		(15)		91
Balance at end of period	(1,076)		(413)		(333)		5		—		(1,076)		—

Common shares held in treasury, at cost
Balance at beginning of period	(8,390)		(7,223)		(6,410)		(5,611)		(4,879)		(6,410)		(4,487)
Shares repurchased for treasury	(1,433)		(1,167)		(813)		(799)		(732)		(3,413)		(1,124)
Balance at end of period	(9,823)		(8,390)		(7,223)		(6,410)		(5,611)		(9,823)		(5,611)



Total shareholders’ equity	$	22,992	$	24,030	$	24,188	$	24,206	$	23,719	$	22,992	$	23,719


			6

Arch Capital Group Ltd. and Subsidiaries

Consolidated Statements of Cash Flows


(U.S. Dollars in millions)	Three Months Ended										Nine Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
	2026		2026		2026		2025		2025		2026		2025
Operating Activities
Net income (loss)	$	1,035	$	1,057	$	1,047	$	1,238	$	1,350	$	3,139	$	3,161
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized (gains) losses	115		(134)		91		(7)		(202)		72		(433)

Equity in net (income) of investments accounted for using the equity method and other income or loss	(184)		(126)		(137)		(194)		(158)		(447)		(265)
Amortization of intangible assets	30		30		30		47		49		90		146
Share-based compensation	20		15		82		24		25		117		124
Changes in:
Reserve for losses and loss adjustment expenses, net	439		499		540		330		634		1,478		2,020
Unearned premiums, net	(169)		64		362		(606)		(321)		257		17
Premiums receivable	234		(630)		(820)		731		601		(1,216)		(693)
Deferred acquisition costs	21		4		(48)		53		14		(23)		33
Reinsurance balances payable	(187)		496		419		(319)		(207)		728		456
Deferred income tax assets, net	104		59		20		19		46		183		155
Other items, net	301		(12)		(398)		88		355		(109)		47
Net cash provided by operating activities	1,759		1,322		1,188		1,404		2,186		4,269		4,768
Investing Activities
Purchases of fixed maturity investments	(9,119)		(9,875)		(9,288)		(8,293)		(10,619)		(28,282)		(28,187)
Purchases of equity securities	(217)		(472)		(185)		(184)		(277)		(874)		(1,264)
Purchases of other investments	(424)		(453)		(499)		(493)		(513)		(1,376)		(1,745)
Proceeds from sales of fixed maturity investments	8,212		8,383		7,984		7,055		8,435		24,579		22,258
Proceeds from sales of equity securities	195		253		202		183		281		650		1,324
Proceeds from sales, redemptions and maturities of other investments	272		306		240		759		336		818		1,427
Proceeds from redemptions and maturities of fixed maturity investments	717		1,082		957		693		475		2,756		1,801
Net settlements of derivative instruments	(24)		(80)		(26)		35		35		(130)		275

Net (purchases) sales of short-term investments	48		(644)		(11)		(272)		478		(607)		530




Purchases of fixed assets	(11)		(14)		(8)		(11)		(12)		(33)		(33)
Other	—		(21)		(5)		111		(2)		(26)		(5)
Net cash provided by (used for) investing activities	(351)		(1,535)		(639)		(417)		(1,383)		(2,525)		(3,619)
Financing Activities


Purchases of common shares under share repurchase program	(1,433)		(1,166)		(783)		(798)		(732)		(3,382)		(1,091)
Proceeds from common shares issued, net	12		26		(17)		30		1		21		20
Proceeds from borrowings, net	(6)		1,977		—		—		—		1,971		—
Repayments of borrowings	—		(398)		—		—		—		(398)		—




Common dividends paid	—		—		(5)		—		—		(5)		(7)
Preferred dividends paid	(10)		(10)		(10)		(10)		(10)		(30)		(30)
Other	(7)		—		(12)		—		(2)		(19)		(4)
Net cash provided by (used for) financing activities	(1,444)		429		(827)		(778)		(743)		(1,842)		(1,112)
Effects of exchange rate changes on foreign currency cash and restricted cash	7		9		(8)		4		(14)		8		57
Increase (decrease) in cash and restricted cash	(29)		225		(286)		213		46		(90)		94
Cash and restricted cash, beginning of period	2,006		1,781		2,067		1,854		1,808		2,067		1,760
Cash and restricted cash, end of period	$	1,977	$	2,006	$	1,781	$	2,067	$	1,854	$	1,977	$	1,854
Income taxes paid (received)	$	112	$	169	$	22	$	143	$	166	$	303	$	315
Interest paid	$	—	$	65	$	—	$	63	$	—	$	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
	September 30, 2026
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	2,766		$	2,313		$	316		$	5,391
Premiums ceded (1)	(760)			(737)			(53)			(1,546)
Net premiums written	2,006			1,576			263			3,845
Change in unearned premiums	(69)			231			7			169
Net premiums earned	1,937			1,807			270			4,014
Other underwriting income (2)	15			43			3			61
Losses and loss adjustment expenses	(1,178)			(1,010)			(18)			(2,206)
Acquisition expenses	(371)			(334)			(7)			(712)
Other operating expenses	(295)			(113)			(47)			(455)
Underwriting income (loss)	$	108		$	393		$	201		702

Net investment income										451
Net realized gains (losses)										(99)

Equity in net income of investments accounted for using the equity method										224
Other income (loss)										4
Corporate benefit (expenses) (3)										(5)
Transaction costs and other (3)										(17)
Amortization of intangible assets										(30)
Interest expense										(62)
Net foreign exchange gains (losses)										18
Income (loss) before income taxes and income (loss) from operating affiliates										1,186
Income tax (expense) benefit										(184)
Income (loss) from operating affiliates										33



Net income (loss) available to Arch										1,035
Preferred dividends										(10)

Net income (loss) available to Arch common shareholders										$	1,025

Underwriting Ratios
Loss ratio	60.8		%	55.9		%	6.9		%	55.0		%
Acquisition expense ratio	19.2		%	18.5		%	2.4		%	17.7		%
Other operating expense ratio (4)	14.4		%	3.9		%	16.2		%	9.8		%
Combined ratio	94.4		%	78.3		%	25.5		%	82.5		%

Net premiums written to gross premiums written	72.5		%	68.1		%	83.2		%	71.3		%

Total investable assets										$	49,208
Total assets										84,076
Total liabilities										61,084

(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
	September 30, 2025
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	2,567		$	2,515		$	330		$	5,410
Premiums ceded (1)	(614)			(778)			(56)			(1,446)
Net premiums written	1,953			1,737			274			3,964
Change in unearned premiums	16			278			27			321
Net premiums earned	1,969			2,015			301			4,285
Other underwriting income (2)	9			38			3			50
Losses and loss adjustment expenses	(1,162)			(1,040)			2			(2,200)
Acquisition expenses	(386)			(398)			(2)			(786)
Other operating expenses	(301)			(133)			(44)			(478)
Underwriting income (loss)	$	129		$	482		$	260		871

Net investment income										408
Net realized gains (losses)										210

Equity in net income of investments accounted for using the equity method										134
Other income (loss)										22
Corporate benefit (expenses) (3)										(28)
Transaction costs and other (3)										(21)
Amortization of intangible assets										(49)
Interest expense										(37)
Net foreign exchange gains (losses)										(7)
Income (loss) before income taxes and income (loss) from operating affiliates										1,503
Income tax (expense) benefit										(215)
Income (loss) from operating affiliates										62



Net income (loss) available to Arch										1,350
Preferred dividends										(10)

Net income (loss) available to Arch common shareholders										$	1,340

Underwriting Ratios
Loss ratio	59.0		%	51.6		%	(0.5)		%	51.4		%
Acquisition expense ratio	19.6		%	19.8		%	0.7		%	18.4		%
Other operating expense ratio (4)	14.8		%	4.7		%	13.3		%	10.0		%
Combined ratio	93.4		%	76.1		%	13.5		%	79.8		%

Net premiums written to gross premiums written	76.1		%	69.1		%	83.0		%	73.3		%

Total investable assets										$	46,746
Total assets										79,185
Total liabilities										55,466

(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)	Nine Months Ended
	September 30, 2026
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	8,066		$	8,929		$	956		$	17,942
Premiums ceded (1)	(2,221)			(3,333)			(155)			(5,700)
Net premiums written	5,845			5,596			801			12,242
Change in unearned premiums	(157)			(138)			38			(257)
Net premiums earned	5,688			5,458			839			11,985
Other underwriting income (2)	41			117			19			177
Losses and loss adjustment expenses	(3,489)			(2,950)			(52)			(6,491)
Acquisition expenses	(1,121)			(1,022)			(17)			(2,160)
Other operating expenses	(918)			(359)			(147)			(1,424)
Underwriting income (loss)	$	201		$	1,244		$	642		2,087

Net investment income										1,276
Net realized gains (losses)										(203)

Equity in net income of investments accounted for using the equity method										580
Other income (loss)										29
Corporate benefit (expenses) (3)										(48)
Transaction costs and other (3)										(67)
Amortization of intangible assets										(90)
Interest expense										(143)
Net foreign exchange gains (losses)										49
Income (loss) before income taxes and income (loss) from operating affiliates										3,470
Income tax (expense) benefit										(446)
Income (loss) from operating affiliates										115



Net income (loss) available to Arch										3,139
Preferred dividends										(30)

Net income (loss) available to Arch common shareholders										$	3,109

Underwriting Ratios
Loss ratio	61.3		%	54.1		%	6.2		%	54.2		%
Acquisition expense ratio	19.7		%	18.7		%	2.0		%	18.0		%
Other operating expense ratio (4)	15.4		%	4.4		%	15.2		%	10.4		%
Combined ratio	96.4		%	77.2		%	23.4		%	82.6		%

Net premiums written to gross premiums written	72.5		%	62.7		%	83.8		%	68.2		%

(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.’


			11

Arch Capital Group Ltd. and Subsidiaries

Segment Information


(U.S. Dollars in millions)	Nine Months Ended
	September 30, 2025
	Insurance			Reinsurance			Mortgage			Total
Gross premiums written (1)	$	7,893		$	9,205		$	979		$	18,069
Premiums ceded (1)	(1,971)			(3,093)			(186)			(5,242)
Net premiums written	5,922			6,112			793			12,827
Change in unearned premiums	(124)			18			89			(17)
Net premiums earned	5,798			6,130			882			12,810
Other underwriting income (2)	25			123			17			165
Losses and loss adjustment expenses	(3,568)			(3,524)			2			(7,090)
Acquisition expenses	(1,116)			(1,251)			(7)			(2,374)
Other operating expenses	(883)			(378)			(144)			(1,405)
Underwriting income (loss)	$	256		$	1,100		$	750		2,106

Net investment income										1,191
Net realized gains (losses)										442

Equity in net income of investments accounted for using the equity method										349
Other income (loss)										38
Corporate benefit (expenses) (3)										(107)
Transaction costs and other (3)										(49)
Amortization of intangible assets										(146)
Interest expense										(110)
Net foreign exchange gains (losses)										(122)
Income (loss) before income taxes and income (loss) from operating affiliates										3,592
Income tax (expense) benefit										(550)
Income (loss) from operating affiliates										119



Net income (loss) available to Arch										3,161
Preferred dividends										(30)

Net income (loss) available to Arch common shareholders										$	3,131

Underwriting Ratios
Loss ratio	61.5		%	57.5		%	(0.2)		%	55.4		%
Acquisition expense ratio	19.3		%	20.4		%	0.8		%	18.5		%
Other operating expense ratio (4)	14.8		%	4.2		%	14.3		%	9.7		%
Combined ratio	95.6		%	82.1		%	14.9		%	83.6		%

Net premiums written to gross premiums written	75.0		%	66.4		%	81.0		%	71.0		%

(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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Gross premiums written	$	2,766		$	2,603		$	2,697		$	2,542		$	2,567		$	8,066		$	7,893
Premiums ceded	(760)			(670)			(791)			(666)			(614)			(2,221)			(1,971)
Net premiums written	2,006			1,933			1,906			1,876			1,953			5,845			5,922
Change in unearned premiums	(69)			(53)			(35)			97			16			(157)			(124)
Net premiums earned	1,937			1,880			1,871			1,973			1,969			5,688			5,798
Other underwriting income (1)	15			15			11			11			9			41			25
Losses and loss adjustment expenses	(1,178)			(1,185)			(1,126)			(1,196)			(1,162)			(3,489)			(3,568)
Acquisition expenses	(371)			(375)			(375)			(380)			(386)			(1,121)			(1,116)
Other operating expenses	(295)			(308)			(315)			(289)			(301)			(918)			(883)
Underwriting income (loss)	$	108		$	27		$	66		$	119		$	129		$	201		$	256

Underwriting Ratios
Loss ratio	60.8		%	63.0		%	60.2		%	60.6		%	59.0		%	61.3		%	61.5		%
Acquisition expense ratio	19.2		%	19.9		%	20.0		%	19.3		%	19.6		%	19.7		%	19.3		%
Other operating expense ratio (2)	14.4		%	15.6		%	16.3		%	14.1		%	14.8		%	15.4		%	14.8		%
Combined ratio	94.4		%	98.5		%	96.5		%	94.0		%	93.4		%	96.4		%	95.6		%

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	5.7		%	8.0		%	4.2		%	3.3		%	2.2		%	6.0		%	4.8		%
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact	(0.7)		%	(1.4)		%	(0.7)		%	(0.2)		%	(0.7)		%	(1.0)		%	(0.7)		%
Acquisition expense ratio impact	0.2		%	0.3		%	0.3		%	0.1		%	0.6		%	0.3		%	0.5		%
Total impact	(0.5)		%	(1.1)		%	(0.4)		%	(0.1)		%	(0.1)		%	(0.7)		%	(0.2)		%

Combined ratio excluding catastrophic activity and prior year development (3)	89.2		%	91.6		%	92.7		%	90.8		%	91.3		%	91.1		%	91.0		%





Net premiums written to gross premiums written	72.5		%	74.3		%	70.7		%	73.8		%	76.1		%	72.5		%	75.0		%

(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.


			13

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Insurance Segment


(U.S. Dollars in millions)	Three Months Ended																				Nine Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
	2026				2026				2026				2025				2025				2026				2025
Net Premiums Written by Line of Business
North America
Other liability - occurrence	$	363	18.1	%	$	364	18.8	%	$	315	16.5	%	$	309	16.5	%	$	297	15.2	%	$	1,042	17.8	%	$	993	16.8	%
Property and short-tail specialty	303		15.1	%	362		18.7	%	322		16.9	%	273		14.6	%	339		17.4	%	987		16.9	%	1,056		17.8	%
Other liability - claims made	192		9.6	%	212		11.0	%	175		9.2	%	229		12.2	%	209		10.7	%	579		9.9	%	564		9.5	%
Workers compensation	172		8.6	%	121		6.3	%	157		8.2	%	142		7.6	%	151		7.7	%	450		7.7	%	434		7.3	%
Commercial automobile	167		8.3	%	158		8.2	%	149		7.8	%	126		6.7	%	150		7.7	%	474		8.1	%	476		8.0	%
Commercial multi-peril	128		6.4	%	130		6.7	%	173		9.1	%	184		9.8	%	194		9.9	%	431		7.4	%	597		10.1	%
Other	92		4.6	%	87		4.5	%	74		3.9	%	90		4.8	%	86		4.4	%	253		4.3	%	251		4.2	%
Total North America	$	1,417	70.6	%	$	1,434	74.2	%	$	1,365	71.6	%	$	1,353	72.1	%	$	1,426	73.0	%	$	4,216	72.1	%	$	4,371	73.8	%

International
Property and short-tail specialty	$	314	15.7	%	$	280	14.5	%	$	282	14.8	%	$	251	13.4	%	$	284	14.5	%	$	876	15.0	%	$	851	14.4	%
Casualty and other	275		13.7	%	219		11.3	%	259		13.6	%	272		14.5	%	243		12.4	%	753		12.9	%	700		11.8	%
Total International	$	589	29.4	%	$	499	25.8	%	$	541	28.4	%	$	523	27.9	%	$	527	27.0	%	$	1,629	27.9	%	$	1,551	26.2	%
Total	$	2,006	100.0	%	$	1,933	100.0	%	$	1,906	100.0	%	$	1,876	100.0	%	$	1,953	100.0	%	$	5,845	100.0	%	$	5,922	100.0	%







Net Premiums Earned by Line of Business
North America
Other liability - occurrence	$	307	15.8	%	$	289	15.4	%	$	300	16.0	%	$	325	16.5	%	$	329	16.7	%	$	896	15.8	%	$	996	17.2	%
Property and short-tail specialty	333		17.2	%	334		17.8	%	315		16.8	%	338		17.1	%	339		17.2	%	982		17.3	%	1,035		17.9	%
Other liability - claims made	205		10.6	%	199		10.6	%	200		10.7	%	203		10.3	%	205		10.4	%	604		10.6	%	583		10.1	%
Workers compensation	153		7.9	%	135		7.2	%	135		7.2	%	153		7.8	%	160		8.1	%	423		7.4	%	438		7.6	%
Commercial automobile	148		7.6	%	148		7.9	%	146		7.8	%	146		7.4	%	143		7.3	%	442		7.8	%	435		7.5	%
Commercial multi-peril	136		7.0	%	185		9.8	%	195		10.4	%	193		9.8	%	195		9.9	%	516		9.1	%	599		10.3	%
Other	74		3.8	%	76		4.0	%	69		3.7	%	78		4.0	%	70		3.6	%	219		3.9	%	213		3.7	%
Total North America	$	1,356	70.0	%	$	1,366	72.7	%	$	1,360	72.7	%	$	1,436	72.8	%	$	1,441	73.2	%	$	4,082	71.8	%	$	4,299	74.1	%

International
Property and short-tail specialty	$	329	17.0	%	$	277	14.7	%	$	279	14.9	%	$	283	14.3	%	$	292	14.8	%	$	885	15.6	%	$	816	14.1	%
Casualty and other	252		13.0	%	237		12.6	%	232		12.4	%	254		12.9	%	236		12.0	%	721		12.7	%	683		11.8	%
Total International	$	581	30.0	%	$	514	27.3	%	$	511	27.3	%	$	537	27.2	%	$	528	26.8	%	$	1,606	28.2	%	$	1,499	25.9	%
Total	$	1,937	100.0	%	$	1,880	100.0	%	$	1,871	100.0	%	$	1,973	100.0	%	$	1,969	100.0	%	$	5,688	100.0	%	$	5,798	100.0	%


			14

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Reinsurance Segment


(U.S. Dollars in millions)	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Gross premiums written	$	2,313		$	3,202		$	3,414		$	1,944		$	2,515		$	8,929		$	9,205
Premiums ceded	(737)			(1,358)			(1,238)			(438)			(778)			(3,333)			(3,093)
Net premiums written	1,576			1,844			2,176			1,506			1,737			5,596			6,112
Change in unearned premiums	231			(24)			(345)			486			278			(138)			18
Net premiums earned	1,807			1,820			1,831			1,992			2,015			5,458			6,130
Other underwriting income (1)	43			37			37			36			38			117			123
Losses and loss adjustment expenses	(1,010)			(992)			(948)			(1,086)			(1,040)			(2,950)			(3,524)
Acquisition expenses	(334)			(341)			(347)			(393)			(398)			(1,022)			(1,251)
Other operating expenses	(113)			(114)			(132)			(91)			(133)			(359)			(378)
Underwriting income (loss)	$	393		$	410		$	441		$	458		$	482		$	1,244		$	1,100

Underwriting Ratios
Loss ratio	55.9		%	54.6		%	51.7		%	54.5		%	51.6		%	54.1		%	57.5		%
Acquisition expense ratio	18.5		%	18.7		%	19.0		%	19.7		%	19.8		%	18.7		%	20.4		%
Other operating expense ratio (2)	3.9		%	4.2		%	5.2		%	2.8		%	4.7		%	4.4		%	4.2		%
Combined ratio	78.3		%	77.5		%	75.9		%	77.0		%	76.1		%	77.2		%	82.1		%

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	6.9		%	2.8		%	5.2		%	5.0		%	1.5		%	4.9		%	8.1		%
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact	(7.4)		%	(5.3)		%	(8.3)		%	(3.5)		%	(2.6)		%	(7.0)		%	(4.1)		%
Acquisition expense ratio impact	0.4		%	0.1		%	0.9		%	0.6		%	0.4		%	0.5		%	0.8		%
Total impact	(7.0)		%	(5.2)		%	(7.4)		%	(2.9)		%	(2.2)		%	(6.5)		%	(3.3)		%

Combined ratio excluding catastrophic activity and prior year development (3)	78.4		%	79.9		%	78.1		%	74.9		%	76.8		%	78.8		%	77.3		%





Net premiums written to gross premiums written	68.1		%	57.6		%	63.7		%	77.5		%	69.1		%	62.7		%	66.4		%

(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																				Nine Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
	2026				2026				2026				2025				2025				2026				2025
Net Premiums Written by Line of Business
Specialty	$	527	33.4	%	$	563	30.5	%	$	687	31.6	%	$	587	39.0	%	$	633	36.4	%	$	1,777	31.8	%	$	1,956	32.0	%
Property excluding property catastrophe	477		30.3	%	451		24.5	%	548		25.2	%	475		31.5	%	557		32.1	%	1,476		26.4	%	1,568		25.7	%
Casualty	428		27.2	%	312		16.9	%	478		22.0	%	301		20.0	%	399		23.0	%	1,218		21.8	%	1,206		19.7	%
Marine and aviation	54		3.4	%	58		3.1	%	78		3.6	%	52		3.5	%	60		3.5	%	190		3.4	%	249		4.1	%
Property catastrophe	42		2.7	%	392		21.3	%	307		14.1	%	48		3.2	%	64		3.7	%	741		13.2	%	1,025		16.8	%
Other	48		3.0	%	68		3.7	%	78		3.6	%	43		2.9	%	24		1.4	%	194		3.5	%	108		1.8	%
Total	$	1,576	100.0	%	$	1,844	100.0	%	$	2,176	100.0	%	$	1,506	100.0	%	$	1,737	100.0	%	$	5,596	100.0	%	$	6,112	100.0	%













Net Premiums Earned by Line of Business
Specialty	$	604	33.4	%	$	617	33.9	%	$	586	32.0	%	$	700	35.1	%	$	719	35.7	%	$	1,807	33.1	%	$	2,206	36.0	%
Property excluding property catastrophe	502		27.8	%	489		26.9	%	519		28.3	%	536		26.9	%	581		28.8	%	1,510		27.7	%	1,716		28.0	%
Casualty	401		22.2	%	367		20.2	%	353		19.3	%	392		19.7	%	360		17.9	%	1,121		20.5	%	1,040		17.0	%
Marine and aviation	61		3.4	%	71		3.9	%	70		3.8	%	78		3.9	%	77		3.8	%	202		3.7	%	239		3.9	%
Property catastrophe	191		10.6	%	208		11.4	%	226		12.3	%	246		12.3	%	253		12.6	%	625		11.5	%	819		13.4	%
Other	48		2.7	%	68		3.7	%	77		4.2	%	40		2.0	%	25		1.2	%	193		3.5	%	110		1.8	%
Total	$	1,807	100.0	%	$	1,820	100.0	%	$	1,831	100.0	%	$	1,992	100.0	%	$	2,015	100.0	%	$	5,458	100.0	%	$	6,130	100.0	%

Net Premiums Written by Underwriting Location
Bermuda	$	654	41.5	%	$	997	54.1	%	$	962	44.2	%	$	697	46.3	%	$	761	43.8	%	$	2,613	46.7	%	$	2,975	48.7	%
United States	448		28.4	%	389		21.1	%	512		23.5	%	386		25.6	%	488		28.1	%	1,349		24.1	%	1,412		23.1	%
Europe and other	474		30.1	%	458		24.8	%	702		32.3	%	423		28.1	%	488		28.1	%	1,634		29.2	%	1,725		28.2	%
Total	$	1,576	100.0	%	$	1,844	100.0	%	$	2,176	100.0	%	$	1,506	100.0	%	$	1,737	100.0	%	$	5,596	100.0	%	$	6,112	100.0	%


			16

Arch Capital Group Ltd. and Subsidiaries

Segment Information — Mortgage Segment


(U.S. Dollars in millions)	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Gross premiums written	$	316		$	324		$	316		$	326		$	330		$	956		$	979
Premiums ceded	(53)			(52)			(50)			(59)			(56)			(155)			(186)
Net premiums written	263			272			266			267			274			801			793
Change in unearned premiums	7			13			18			23			27			38			89
Net premiums earned	270			285			284			290			301			839			882
Other underwriting income (1)	3			5			11			5			3			19			17
Losses and loss adjustment expenses	(18)			(19)			(15)			2			2			(52)			2
Acquisition expenses	(7)			(2)			(8)			(6)			(2)			(17)			(7)
Other operating expenses	(47)			(49)			(51)			(41)			(44)			(147)			(144)
Underwriting income	$	201		$	220		$	221		$	250		$	260		$	642		$	750

Underwriting Ratios
Loss ratio	6.9		%	6.5		%	5.3		%	(0.8)		%	(0.5)		%	6.2		%	(0.2)		%
Acquisition expense ratio	2.4		%	0.9		%	2.9		%	1.9		%	0.7		%	2.0		%	0.8		%
Other operating expense ratio (2)	16.2		%	15.4		%	14.1		%	12.6		%	13.3		%	15.2		%	14.3		%
Combined ratio	25.5		%	22.8		%	22.3		%	13.7		%	13.5		%	23.4		%	14.9		%

Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact	(15.4)		%	(15.7)		%	(19.2)		%	(19.4)		%	(18.1)		%	(16.8)		%	(20.4)		%
Acquisition expense ratio impact	(0.7)		%	(1.3)		%	(0.7)		%	(0.9)		%	(1.1)		%	(0.9)		%	(1.3)		%
Total impact	(16.1)		%	(17.0)		%	(19.9)		%	(20.3)		%	(19.2)		%	(17.7)		%	(21.7)		%

Combined ratio excluding prior year development (3)	41.6		%	39.8		%	42.2		%	34.0		%	32.7		%	41.1		%	36.6		%

Net premiums written to gross premiums written	83.2		%	84.0		%	84.2		%	81.9		%	83.0		%	83.8		%	81.0		%

(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																				Nine Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
	2026				2026				2026				2025				2025				2026				2025
Net Premiums Written by Underwriting Unit
U.S. primary mortgage insurance	$	197	74.9	%	$	202	74.3	%	$	204	76.7	%	$	195	73.0	%	$	197	71.9	%	$	603	75.3	%	$	584	73.6	%
U.S. credit risk transfer (CRT) and other	35		13.3	%	35		12.9	%	37		13.9	%	51		19.1	%	55		20.1	%	107		13.4	%	156		19.7	%
International mortgage insurance/reinsurance	31		11.8	%	35		12.9	%	25		9.4	%	21		7.9	%	22		8.0	%	91		11.4	%	53		6.7	%
Total	$	263	100.0	%	$	272	100.0	%	$	266	100.0	%	$	267	100.0	%	$	274	100.0	%	$	801	100.0	%	$	793	100.0	%






Net Premiums Earned by Underwriting Unit
U.S. primary mortgage insurance	$	201	74.4	%	$	206	72.3	%	$	209	73.6	%	$	201	69.3	%	$	204	67.8	%	$	616	73.4	%	$	601	68.1	%
U.S. credit risk transfer (CRT) and other	35		13.0	%	35		12.3	%	37		13.0	%	51		17.6	%	55		18.3	%	107		12.8	%	156		17.7	%
International mortgage insurance/reinsurance	34		12.6	%	44		15.4	%	38		13.4	%	38		13.1	%	42		14.0	%	116		13.8	%	125		14.2	%
Total	$	270	100.0	%	$	285	100.0	%	$	284	100.0	%	$	290	100.0	%	$	301	100.0	%	$	839	100.0	%	$	882	100.0	%

Net Premiums Written by Underwriting Location
United States	$	197	74.9	%	$	202	74.3	%	$	204	76.7	%	$	196	73.4	%	$	197	71.9	%	$	603	75.3	%	$	584	73.6	%
Other	66		25.1	%	70		25.7	%	62		23.3	%	71		26.6	%	77		28.1	%	198		24.7	%	209		26.4	%
Total	$	263	100.0	%	$	272	100.0	%	$	266	100.0	%	$	267	100.0	%	$	274	100.0	%	$	801	100.0	%	$	793	100.0	%


(U.S. Dollars in millions)
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Insurance In Force (IIF) (1)
U.S. primary mortgage insurance	$	285,488	59.8	%	$	286,399	59.8	%	$	286,523	59.7	%	$	286,318	59.1	%	$	286,785	57.9	%
U.S. credit risk transfer (CRT) and other	125,322		26.3	%	128,228		26.8	%	128,338		26.7	%	132,205		27.3	%	141,889		28.7	%
International mortgage insurance/reinsurance	66,417		13.9	%	64,254		13.4	%	65,223		13.6	%	66,084		13.6	%	66,277		13.4	%
Total	$	477,227	100.0	%	$	478,881	100.0	%	$	480,084	100.0	%	$	484,607	100.0	%	$	494,951	100.0	%

Risk In Force (RIF) (2)
U.S. primary mortgage insurance	$	73,611	83.4	%	$	73,978	84.3	%	$	74,281	84.8	%	$	74,679	85.0	%	$	74,952	84.9	%
U.S. credit risk transfer and other	5,038		5.7	%	5,194		5.9	%	5,214		6.0	%	5,358		6.1	%	5,688		6.4	%
International mortgage insurance/reinsurance	9,648		10.9	%	8,599		9.8	%	8,120		9.3	%	7,864		8.9	%	7,633		8.6	%
Total	$	88,297	100.0	%	$	87,771	100.0	%	$	87,615	100.0	%	$	87,901	100.0	%	$	88,273	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)
	September 30, 2026					June 30, 2026					March 31, 2026					December 31, 2025					September 30, 2025












Total RIF by credit quality:
>=740	$	48,273		65.6	%	$	48,123		65.1	%	$	47,842		64.4	%	$	47,757		63.9	%	$	47,575		63.5	%
680-739	21,911			29.8	%	22,351			30.2	%	22,861			30.8	%	23,271			31.2	%	23,638			31.5	%
620-679	3,139			4.3	%	3,208			4.3	%	3,274			4.4	%	3,340			4.5	%	3,419			4.6	%
<620	288			0.4	%	296			0.4	%	304			0.4	%	311			0.4	%	320			0.4	%
Total	$	73,611		100.0	%	$	73,978		100.0	%	$	74,281		100.0	%	$	74,679		100.0	%	$	74,952		100.0	%
Weighted average credit score	751					751					750					749					749
Total RIF by Loan-To-Value (LTV):
95.01% and above	$	7,474		10.2	%	$	7,417		10.0	%	$	7,436		10.0	%	$	7,314		9.8	%	$	7,362		9.8	%
90.01% to 95.00%	43,916			59.7	%	43,944			59.4	%	44,147			59.4	%	44,494			59.6	%	44,720			59.7	%
85.01% to 90.00%	19,194			26.1	%	19,727			26.7	%	19,951			26.9	%	20,195			27.0	%	20,251			27.0	%
85.00% and below	3,027			4.1	%	2,890			3.9	%	2,747			3.7	%	2,676			3.6	%	2,619			3.5	%
Total	$	73,611		100.0	%	$	73,978		100.0	%	$	74,281		100.0	%	$	74,679		100.0	%	$	74,952		100.0	%
Weighted average LTV	93.2		%			93.2		%			93.2		%			93.2		%			93.2		%
Total RIF by State:
California	$	5,958		8.1	%	$	5,945		8.0	%	$	5,922		8.0	%	$	5,901		7.9	%	$	5,892		7.9	%
Texas	5,382			7.3	%	5,385			7.3	%	5,376			7.2	%	5,382			7.2	%	5,393			7.2	%
North Carolina	3,241			4.4	%	3,266			4.4	%	3,285			4.4	%	3,343			4.5	%	3,358			4.5	%
Illinois	3,090			4.2	%	3,067			4.1	%	3,037			4.1	%	3,042			4.1	%	3,046			4.1	%
Minnesota	3,080			4.2	%	3,099			4.2	%	3,100			4.2	%	3,129			4.2	%	3,137			4.2	%
Georgia	2,865			3.9	%	2,927			4.0	%	2,966			4.0	%	3,005			4.0	%	3,043			4.1	%
Michigan	2,764			3.8	%	2,766			3.7	%	2,785			3.7	%	2,816			3.8	%	2,822			3.8	%
Florida	2,707			3.7	%	2,678			3.6	%	2,659			3.6	%	2,672			3.6	%	2,690			3.6	%
Ohio	2,655			3.6	%	2,648			3.6	%	2,670			3.6	%	2,666			3.6	%	2,697			3.6	%
Massachusetts	2,579			3.5	%	2,635			3.6	%	2,704			3.6	%	2,780			3.7	%	2,829			3.8	%
Other	39,290			53.4	%	39,562			53.5	%	39,777			53.5	%	39,943			53.5	%	40,045			53.4	%
Total	$	73,611		100.0	%	$	73,978		100.0	%	$	74,281		100.0	%	$	74,679		100.0	%	$	74,952		100.0	%
Weighted average coverage (end of period RIF divided by IIF)	25.8		%			25.8		%			25.9		%			26.1		%			26.1		%
U.S. mortgage insurance total RIF, net of reinsurance (1)	$	61,548				$	61,982				$	62,366				$	60,259				$	60,662
Analysts’ persistency (2)	79.2		%			79.9		%			80.7		%			81.8		%			82.3		%
Risk-to-capital ratio — Arch MI U.S. (3)	8.4:1					8.8:1					8.4:1					8.2:1					7.9:1
PMIER sufficiency ratio — Arch MI U.S. (4)	169		%			165		%			175		%			179		%			176		%


(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 September 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 and the impact was phased in as of September 30, 2026.


			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
	September 30, 2026					June 30, 2026					March 31, 2026					December 31, 2025					September 30, 2025
Total new insurance written (NIW) (1)	$	13,593				$	15,624				$	14,812				$	14,296				$	12,965

Total NIW by credit quality:
>=740	$	10,992		80.9	%	$	12,637		80.9	%	$	11,720		79.1	%	$	11,239		78.6	%	$	9,850		76.0	%
680-739	2,294			16.9	%	2,619			16.8	%	2,698			18.2	%	2,759			19.3	%	2,753			21.2	%
620-679	299			2.2	%	357			2.3	%	371			2.5	%	293			2.0	%	359			2.8	%
<620	8			0.1	%	11			0.1	%	23			0.2	%	5			0.0	%	3			0.0	%
Total	$	13,593		100.0	%	$	15,624		100.0	%	$	14,812		100.0	%	$	14,296		100.0	%	$	12,965		100.0	%

Total NIW by LTV:
95.01% and above	$	1,012		7.4	%	$	1,108		7.1	%	$	2,064		13.9	%	$	779		5.4	%	$	1,038		8.0	%
90.01% to 95.00%	5,937			43.7	%	6,560			42.0	%	5,804			39.2	%	5,894			41.2	%	5,668			43.7	%
85.01% to 90.00%	4,414			32.5	%	5,359			34.3	%	4,690			31.7	%	5,337			37.3	%	4,323			33.3	%
85.00% and below	2,230			16.4	%	2,597			16.6	%	2,254			15.2	%	2,286			16.0	%	1,936			14.9	%
Total	$	13,593		100.0	%	$	15,624		100.0	%	$	14,812		100.0	%	$	14,296		100.0	%	$	12,965		100.0	%

Total NIW monthly vs. single:
Monthly	$	12,894		94.9	%	$	14,941		95.6	%	$	14,273		96.4	%	$	13,653		95.5	%	$	12,267		94.6	%
Single	699			5.1	%	683			4.4	%	539			3.6	%	643			4.5	%	698			5.4	%
Total	$	13,593		100.0	%	$	15,624		100.0	%	$	14,812		100.0	%	$	14,296		100.0	%	$	12,965		100.0	%

Total NIW purchase vs. refinance:
Purchase	$	12,883		94.8	%	$	13,854		88.7	%	$	11,754		79.4	%	$	11,640		81.4	%	$	12,319		95.0	%
Refinance	710			5.2	%	1,770			11.3	%	3,058			20.6	%	2,656			18.6	%	646			5.0	%
Total	$	13,593		100.0	%	$	15,624		100.0	%	$	14,812		100.0	%	$	14,296		100.0	%	$	12,965		100.0	%

Ending number of policies in force (PIF) (2)	1,026,816					1,039,751					1,049,661					1,058,907					1,067,147

Rollforward of insured loans in default:
Beginning delinquent number of loans	21,519					21,606					22,985					21,821					20,762
Plus: new notices	12,526					11,122					11,938					12,825					12,168
Less: cures	(10,988)					(10,824)					(12,969)					(11,337)					(10,715)
Less: paid claims	(449)					(385)					(348)					(324)					(394)


Ending delinquent number of loans (2)	22,608					21,519					21,606					22,985					21,821

Ending percentage of loans in default (2)	2.20		%			2.07		%			2.06		%			2.17		%			2.04		%

Losses:
Number of claims paid	449					385					348					324					394
Total paid claims (in thousands)	$	18,763				$	19,091				$	15,557				$	15,917				$	12,934
Average paid per claim (in thousands)	$	41.8				$	49.6				$	44.7				$	49.1				$	32.8
Severity (3)	80.0		%			78.8		%			77.9		%			81.6		%			73.2		%

Average case reserve per default (in thousands)	$	16.4				$	16.9				$	16.6				$	15.3				$	16.1

(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)

	September 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	18.2	%	$	17,686	6.2	%	$	4,502	6.1	%	4.75	%	24.9	%	$	19,384	6.8	%	$	4,923	6.6	%	5.08	%
2017	3.1	%	2,664		0.9	%	677		0.9	%	5.27	%	3.9	%	4,250		1.5	%	1,127		1.5	%	3.87	%
2018	5.4	%	4,671		1.6	%	1,217		1.7	%	4.93	%	6.1	%	5,673		2.0	%	1,479		2.0	%	4.48	%
2019	6.0	%	8,262		2.9	%	2,182		3.0	%	3.33	%	7.3	%	10,553		3.7	%	2,770		3.7	%	3.08	%
2020	11.3	%	23,303		8.2	%	6,483		8.8	%	2.20	%	12.3	%	30,968		10.8	%	8,487		11.4	%	1.85	%
2021	16.9	%	42,375		14.8	%	11,737		15.9	%	2.07	%	17.4	%	50,141		17.5	%	13,767		18.4	%	1.88	%
2022	17.6	%	43,666		15.3	%	11,834		16.1	%	2.15	%	14.5	%	49,492		17.3	%	13,236		17.7	%	1.87	%
2023	11.0	%	26,464		9.3	%	6,841		9.3	%	2.41	%	7.9	%	31,049		10.8	%	8,006		10.7	%	1.93	%
2024	7.5	%	33,873		11.9	%	8,511		11.6	%	1.73	%	5.0	%	39,306		13.7	%	9,840		13.2	%	1.17	%
2025	2.6	%	40,587		14.2	%	9,856		13.4	%	0.62	%	0.7	%	45,502		15.9	%	11,044		14.8	%	0.20	%
2026	0.4	%	41,937		14.7	%	9,771		13.3	%	0.11	%
Total	100.0	%	$	285,488	100.0	%	$	73,611	100.0	%	2.20	%	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 $346.3 million at September 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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Gross premiums written	$	5,391		$	6,126		$	6,425		$	4,809		$	5,410		$	17,942		$	18,069
Premiums ceded	(1,546)			(2,077)			(2,077)			(1,160)			(1,446)			(5,700)			(5,242)
Net premiums written	3,845			4,049			4,348			3,649			3,964			12,242			12,827
Change in unearned premiums	169			(64)			(362)			606			321			(257)			(17)
Net premiums earned	4,014			3,985			3,986			4,255			4,285			11,985			12,810
Other underwriting income (1)	61			57			59			52			50			177			165
Losses and loss adjustment expenses	(2,206)			(2,196)			(2,089)			(2,280)			(2,200)			(6,491)			(7,090)
Acquisition expenses	(712)			(718)			(730)			(779)			(786)			(2,160)			(2,374)
Other operating expenses	(455)			(471)			(498)			(421)			(478)			(1,424)			(1,405)
Underwriting income (loss) (2)	$	702		$	657		$	728		$	827		$	871		$	2,087		$	2,106

Underwriting Ratios
Loss ratio	55.0		%	55.1		%	52.4		%	53.6		%	51.4		%	54.2		%	55.4		%
Acquisition expense ratio	17.7		%	18.0		%	18.3		%	18.3		%	18.4		%	18.0		%	18.5		%
Other operating expense ratio (3)	9.8		%	10.4		%	11.0		%	8.7		%	10.0		%	10.4		%	9.7		%
Combined ratio	82.5		%	83.5		%	81.7		%	80.6		%	79.8		%	82.6		%	83.6		%

Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums	5.8		%	5.1		%	4.4		%	3.9		%	1.7		%	5.1		%	6.0		%
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact	(4.7)		%	(4.2)		%	(5.5)		%	(3.0)		%	(2.8)		%	(4.8)		%	(3.7)		%
Acquisition expense ratio impact	0.2		%	0.1		%	0.5		%	0.2		%	0.4		%	0.3		%	0.5		%
Total impact	(4.5)		%	(4.1)		%	(5.0)		%	(2.8)		%	(2.4)		%	(4.5)		%	(3.2)		%

Combined ratio excluding catastrophic activity and prior year development (2)	81.2		%	82.5		%	82.3		%	79.5		%	80.5		%	82.0		%	80.8		%





Components of losses and loss adjustment expenses incurred
Paid losses and loss adjustment expenses	$	1,765		$	1,697		$	1,549		$	1,951		$	1,569		$	5,011		$	5,074
Change in unpaid losses and loss adjustment expenses	441			499			540			329			631			1,480			2,016
Total losses and loss adjustment expenses	$	2,206		$	2,196		$	2,089		$	2,280		$	2,200		$	6,491		$	7,090

Net premiums written to gross premiums written	71.3		%	66.1		%	67.7		%	75.9		%	73.3		%	68.2		%	71.0		%

(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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025





Estimated net (favorable) adverse development in prior year loss reserves, net of related adjustments
Net impact on underwriting results:
Insurance	$	(9)		$	(21)		$	(8)		$	(1)		$	(2)		$	(38)		$	(14)
Reinsurance	(126)			(95)			(136)			(58)			(44)			(357)			(205)
Mortgage	(44)			(49)			(56)			(59)			(57)			(149)			(190)
Total	$	(179)		$	(165)		$	(200)		$	(118)		$	(103)		$	(544)		$	(409)
Impact on losses and loss adjustment expenses:
Insurance	$	(14)		$	(27)		$	(14)		$	(4)		$	(14)		$	(55)		$	(39)
Reinsurance	(133)			(97)			(152)			(69)			(53)			(382)			(253)
Mortgage	(42)			(45)			(54)			(56)			(54)			(141)			(179)
Total	$	(189)		$	(169)		$	(220)		$	(129)		$	(121)		$	(578)		$	(471)
Impact on acquisition expenses:
Insurance	$	5		$	6		$	6		$	3		$	12		$	17		$	25
Reinsurance	7			2			16			11			9			25			48
Mortgage	(2)			(4)			(2)			(3)			(3)			(8)			(11)
Total	$	10		$	4		$	20		$	11		$	18		$	34		$	62
Impact on combined ratio:
Insurance	(0.5)		%	(1.1)		%	(0.4)		%	(0.1)		%	(0.1)		%	(0.7)		%	(0.2)		%
Reinsurance	(7.0)		%	(5.2)		%	(7.4)		%	(2.9)		%	(2.2)		%	(6.5)		%	(3.3)		%
Mortgage	(16.1)		%	(17.0)		%	(19.9)		%	(20.3)		%	(19.2)		%	(17.7)		%	(21.7)		%
Total	(4.5)		%	(4.1)		%	(5.0)		%	(2.8)		%	(2.4)		%	(4.5)		%	(3.2)		%
Impact on loss ratio:
Insurance	(0.7)		%	(1.4)		%	(0.7)		%	(0.2)		%	(0.7)		%	(1.0)		%	(0.7)		%
Reinsurance	(7.4)		%	(5.3)		%	(8.3)		%	(3.5)		%	(2.6)		%	(7.0)		%	(4.1)		%
Mortgage	(15.4)		%	(15.7)		%	(19.2)		%	(19.4)		%	(18.1)		%	(16.8)		%	(20.4)		%
Total	(4.7)		%	(4.2)		%	(5.5)		%	(3.0)		%	(2.8)		%	(4.8)		%	(3.7)		%
Impact on acquisition expense ratio:
Insurance	0.2		%	0.3		%	0.3		%	0.1		%	0.6		%	0.3		%	0.5		%
Reinsurance	0.4		%	0.1		%	0.9		%	0.6		%	0.4		%	0.5		%	0.8		%
Mortgage	(0.7)		%	(1.3)		%	(0.7)		%	(0.9)		%	(1.1)		%	(0.9)		%	(1.3)		%
Total	0.2		%	0.1		%	0.5		%	0.2		%	0.4		%	0.3		%	0.5		%
Estimated net losses incurred from current accident year catastrophic events (1)
Insurance	$	110		$	151		$	79		$	64		$	43		$	340		$	278
Reinsurance	124			50			95			100			29			269			495
Total	$	234		$	201		$	174		$	164		$	72		$	609		$	773
Impact on combined ratio:
Insurance	5.7		%	8.0		%	4.2		%	3.3		%	2.2		%	6.0		%	4.8		%
Reinsurance	6.9		%	2.8		%	5.2		%	5.0		%	1.5		%	4.9		%	8.1		%
Total	5.8		%	5.1		%	4.4		%	3.9		%	1.7		%	5.1		%	6.0		%

(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)	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
Investable assets:
Fixed maturities available for sale, at fair value	$	32,119	65.3	%	$	33,155	67.0	%	$	32,399	68.1	%	$	32,426	68.5	%	$	31,908	68.3	%
Fixed maturities—fair value option (1)	1,164		2.4	%	1,175		2.4	%	1,129		2.4	%	1,110		2.3	%	1,050		2.2	%

Total fixed maturities	33,283		67.6	%	34,330		69.3	%	33,528		70.5	%	33,536		70.8	%	32,958		70.5	%

Equity securities, at fair value	2,396		4.9	%	2,280		4.6	%	1,766		3.7	%	1,864		3.9	%	1,805		3.9	%
Equity securities—fair value option (1)	4		0.0	%	5		0.0	%	4		0.0	%	5		0.0	%	5		0.0	%

Total equity securities	2,400		4.9	%	2,285		4.6	%	1,770		3.7	%	1,869		3.9	%	1,810		3.9	%

Other investments—fair value option (1)	2,136		4.3	%	2,144		4.3	%	2,129		4.5	%	1,957		4.1	%	1,911		4.1	%



Investments accounted for using the equity method (2)	7,126		14.5	%	6,852		13.8	%	6,652		14.0	%	6,453		13.6	%	6,232		13.3	%

Short-term investments available for sale, at fair value	3,253		6.6	%	3,298		6.7	%	2,638		5.5	%	2,625		5.5	%	2,351		5.0	%
Short-term investments—fair value option (1)	60		0.1	%	57		0.1	%	69		0.1	%	64		0.1	%	61		0.1	%

Total short-term investments	3,313		6.7	%	3,355		6.8	%	2,707		5.7	%	2,689		5.7	%	2,412		5.2	%

Cash	1,152		2.3	%	1,109		2.2	%	914		1.9	%	993		2.1	%	1,063		2.3	%


Securities transactions entered into but not settled at the balance sheet date	(202)		(0.4)	%	(572)		(1.2)	%	(155)		(0.3)	%	(128)		(0.3)	%	360		0.8	%
Total investable assets held by the Company	$	49,208	100.0	%	$	49,503	100.0	%	$	47,545	100.0	%	$	47,369	100.0	%	$	46,746	100.0	%


Average effective duration of fixed maturities (in years)	3.25				3.50				3.43				3.34				3.24
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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Composition of pre-tax net investment income:
Fixed maturities	$	409		$	386		$	384		$	384		$	379		$	1,179		$	1,081
Short-term investments	27			26			24			27			25			77			75
Equity securities (dividends)	10			9			8			10			10			27			31
Other (1)	30			21			21			27			19			72			82
Gross investment income	476			442			437			448			433			1,355			1,269
Investment expenses	(25)			(25)			(29)			(14)			(25)			(79)			(78)
Pre-tax net investment income	$	451		$	417		$	408		$	434		$	408		$	1,276		$	1,191
Per share	$	1.32		$	1.20		$	1.13		$	1.18		$	1.08		$	3.65		$	3.14

Pre-tax equity in net income of investments accounted for using the equity method	224			196			160			155			134			580			349
Per share	$	0.66		$	0.56		$	0.44		$	0.42		$	0.36		$	1.66		$	0.92


Investment income yield, at amortized cost (2):
Pre-tax	4.09		%	3.91		%	3.99		%	4.22		%	4.07		%	4.00		%	4.16		%
After-tax	3.34		%	3.19		%	3.26		%	3.45		%	3.32		%	3.27		%	3.37		%

Total return on investments (3)	(0.42)		%	1.62		%	0.10		%	1.36		%	1.80		%	1.29		%	7.07		%

(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 September 30, 2026
Corporates	$	15,447	$	51	$	(570)	$	(519)	$	(13)	$	15,979	96.7	%	46.4	%
U.S. government and government agencies	7,234		4		(192)		(188)		—		7,422		97.5	%	21.7	%
Asset-backed securities	3,735		3		(69)		(66)		(5)		3,806		98.1	%	11.2	%
Non-U.S. government securities	2,749		19		(125)		(106)		(1)		2,856		96.3	%	8.3	%
Residential mortgage-backed securities	2,518		1		(107)		(106)		—		2,624		96.0	%	7.6	%
Commercial mortgage-backed securities	1,505		1		(21)		(20)		—		1,525		98.7	%	4.5	%
Municipal bonds	95		—		(5)		(5)		—		100		95.0	%	0.3	%
Total	$	33,283	$	79	$	(1,089)	$	(1,010)	$	(19)	$	34,312	97.0	%	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)	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
Credit quality distribution of total fixed maturities (1):
U.S. government and government agencies (2)	$	9,037	27.2	%	$	10,011	29.2	%	$	9,665	28.8	%	$	9,561	28.5	%	$	8,409	25.5	%
AAA	5,314		16.0	%	5,580		16.3	%	5,769		17.2	%	5,667		16.9	%	5,425		16.5	%
AA	2,718		8.2	%	2,638		7.7	%	2,554		7.6	%	2,564		7.6	%	2,449		7.4	%
A	6,544		19.7	%	6,526		19.0	%	6,405		19.1	%	6,448		19.2	%	6,904		20.9	%
BBB	6,763		20.3	%	6,698		19.5	%	6,526		19.5	%	6,533		19.5	%	7,167		21.7	%
BB	1,399		4.2	%	1,391		4.1	%	1,340		4.0	%	1,330		4.0	%	1,175		3.6	%
B	834		2.5	%	818		2.4	%	806		2.4	%	734		2.2	%	685		2.1	%
Lower than B	38		0.1	%	42		0.1	%	35		0.1	%	35		0.1	%	29		0.1	%
Not rated	636		1.9	%	626		1.8	%	428		1.3	%	664		2.0	%	715		2.2	%
Total fixed maturities, at fair value	$	33,283	100.0	%	$	34,330	100.0	%	$	33,528	100.0	%	$	33,536	100.0	%	$	32,958	100.0	%

Maturity profile of total fixed maturities:
Due in one year or less	$	992	3.0	%	$	740	2.2	%	$	582	1.7	%	$	412	1.2	%	$	570	1.7	%
Due after one year through five years	16,338		49.1	%	17,498		51.0	%	17,540		52.3	%	17,680		52.7	%	17,379		52.7	%
Due after five years through ten years	7,449		22.4	%	7,522		21.9	%	6,659		19.9	%	7,149		21.3	%	7,047		21.4	%
Due after 10 years	746		2.2	%	701		2.0	%	727		2.2	%	804		2.4	%	798		2.4	%
	25,525		76.7	%	26,461		77.1	%	25,508		76.1	%	26,045		77.7	%	25,794		78.3	%
Residential mortgage-backed securities	2,518		7.6	%	2,643		7.7	%	2,892		8.6	%	2,705		8.1	%	2,766		8.4	%
Commercial mortgage-backed securities	1,505		4.5	%	1,549		4.5	%	1,391		4.1	%	1,212		3.6	%	1,249		3.8	%
Asset-backed securities	3,735		11.2	%	3,677		10.7	%	3,737		11.1	%	3,574		10.7	%	3,149		9.6	%
Total fixed maturities, at fair value	$	33,283	100.0	%	$	34,330	100.0	%	$	33,528	100.0	%	$	33,536	100.0	%	$	32,958	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)	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
Sector:
Industrials	$	8,362	54.1	%	$	8,439	54.8	%	$	8,286	55.5	%	$	7,840	51.7	%	$	8,262	51.5	%
Financials	5,867		38.0	%	5,623		36.5	%	5,450		36.5	%	6,066		40.0	%	6,251		39.0	%
Utilities	880		5.7	%	1,054		6.8	%	942		6.3	%	949		6.3	%	1,225		7.6	%

All other (1)	338		2.2	%	283		1.8	%	251		1.7	%	305		2.0	%	306		1.9	%
Total	$	15,447	100.0	%	$	15,399	100.0	%	$	14,929	100.0	%	$	15,160	100.0	%	$	16,044	100.0	%

Credit quality distribution (2):
AAA	$	174	1.1	%	$	185	1.2	%	$	176	1.2	%	$	195	1.3	%	$	195	1.2	%
AA	1,252		8.1	%	1,220		7.9	%	1,093		7.3	%	968		6.4	%	807		5.0	%
A	5,234		33.9	%	5,286		34.3	%	5,173		34.7	%	5,315		35.1	%	5,882		36.7	%
BBB	6,290		40.7	%	6,256		40.6	%	6,111		40.9	%	6,210		41.0	%	6,891		43.0	%
BB	1,326		8.6	%	1,315		8.5	%	1,266		8.5	%	1,262		8.3	%	1,128		7.0	%
B	829		5.4	%	815		5.3	%	800		5.4	%	728		4.8	%	676		4.2	%
Lower than B	38		0.2	%	42		0.3	%	35		0.2	%	35		0.2	%	29		0.2	%
Not rated	304		2.0	%	280		1.8	%	275		1.8	%	447		2.9	%	436		2.7	%
Total	$	15,447	100.0	%	$	15,399	100.0	%	$	14,929	100.0	%	$	15,160	100.0	%	$	16,044	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 September 30, 2026:


(U.S. Dollars in millions)	Fair Value		% of Asset Class		% of Investable Assets		Credit Quality (1)
Issuer:
Morgan Stanley	$	444	2.9	%	0.9	%	A/A1
Citigroup Inc.	302		2.0	%	0.6	%	A-/A2
The Goldman Sachs Group, Inc.	274		1.8	%	0.6	%	BBB+/A2
Bank of America Corporation	237		1.5	%	0.5	%	A-/A1
Amazon.com, Inc.	234		1.5	%	0.5	%	AA/A1
JPMorgan Chase & Co.	231		1.5	%	0.5	%	A/A1
The Toronto-Dominion Bank	194		1.3	%	0.4	%	A-/A2
UBS Group AG	176		1.1	%	0.4	%	A/A1
Alphabet Inc.	158		1.0	%	0.3	%	AA+/Aa2
Wells Fargo & Company	157		1.0	%	0.3	%	A-/A1
Total	$	2,407	15.6	%	4.9	%

(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 September 30, 2026
Residential mortgage-backed securities	$	1,798	$	695	$	—	$	—	$	—	$	25	$	2,518
Commercial mortgage-backed securities	6		975		109		38		259		118		1,505
Asset-backed securities	—		1,843		354		1,065		212		261		3,735
Total	$	1,804	$	3,513	$	463	$	1,103	$	471	$	404	$	7,758

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.

Tangible book value per common share represents common shareholders’ equity available to Arch less goodwill and intangible assets. The Company believes that tangible book value per common share is useful to investors because it provides a more accurate measure of the realizable value of shareholder returns by excluding the impact of goodwill and intangible assets.

Adjusted tangible book value per common share represents common shareholders’ equity available to Arch less goodwill and intangible assets and accumulated other comprehensive income (loss) (“AOCI”), net of deferred income tax related to AOCI, as presented on the Company’s balance sheet. The Company believes that adjusted tangible book value per common share is also useful to investors because it provides an indication of its effective and prudent use of capital, which results in the creation of shareholder value over time.


			30

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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Net income available to Arch common shareholders	$	1,025		$	1,047		$	1,037		$	1,228		$	1,340		$	3,109		$	3,131
Net realized (gains) losses (1)	99			17			87			(22)			(210)			203			(442)

Equity in net (income) of investments accounted for using the equity method	(224)			(196)			(160)			(155)			(134)			(580)			(349)
Net foreign exchange (gains) losses	(18)			(10)			(21)			6			7			(49)			122
Transaction costs and other	17			32			18			26			21			67			49

Income tax expense (benefit) (2)	11			3			(60)			9			18			(46)			97
After-tax operating income available to Arch common shareholders	$	910		$	893		$	901		$	1,092		$	1,042		$	2,704		$	2,608

Diluted per common share results:
Net income available to Arch common shareholders	$	3.00		$	3.00		$	2.88		$	3.35		$	3.56		$	8.89		$	8.26
Net realized (gains) losses (1)	0.29			0.05			0.24			(0.06)			(0.56)			0.58			(1.17)

Equity in net (income) of investments accounted for using the equity method	(0.66)			(0.56)			(0.44)			(0.42)			(0.36)			(1.66)			(0.93)
Net foreign exchange (gains) losses	(0.04)			(0.03)			(0.06)			0.02			0.02			(0.14)			0.32
Transaction costs and other	0.05			0.09			0.05			0.07			0.06			0.19			0.14

Income tax expense (benefit) (2)	0.03			0.01			(0.17)			0.02			0.05			(0.13)			0.26
After-tax operating income available to Arch common shareholders	$	2.67		$	2.56		$	2.50		$	2.98		$	2.77		$	7.73		$	6.88

Weighted average common shares and common share equivalents outstanding - diluted	341.4			348.8			359.7			366.6			376.1			349.7			379.1

Beginning common shareholders’ equity	$	23,200		$	23,358		$	23,376		$	22,889		$	22,211		$	23,376		$	19,990
Ending common shareholders’ equity	22,162			23,200			23,358			23,376			22,889			22,162			22,889
Average common shareholders’ equity	$	22,681		$	23,279		$	23,367		$	23,133		$	22,550		$	22,769		$	21,440

Annualized net income return on average common equity	18.1		%	18.0		%	17.8		%	21.2		%	23.8		%	18.2		%	19.5		%
Annualized operating return on average common equity	16.0		%	15.3		%	15.4		%	18.9		%	18.5		%	15.8		%	16.2		%


			31

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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Arch Operating Income Components:
Income (loss) before income taxes and income (loss) from operating affiliates	$	1,186		$	1,175		$	1,109		$	1,387		$	1,503		$	3,470		$	3,592
Net realized (gains) losses	99			17			87			(22)			(210)			203			(442)

Equity in net (income) of investments accounted for using the equity method	(224)			(196)			(160)			(155)			(134)			(580)			(349)
Net foreign exchange (gains) losses	(18)			(10)			(21)			6			7			(49)			122
Transaction costs and other	17			32			18			26			21			67			49
Income (loss) from operating affiliates	33			46			36			61			62			115			119


Pre-tax operating income available to Arch (b)	1,093			1,064			1,069			1,303			1,249			3,226			3,091
Income tax (expense) benefit (a)	(173)			(161)			(158)			(201)			(197)			(492)			(453)
After-tax operating income available to Arch	920			903			911			1,102			1,052			2,734			2,638
Preferred dividends	(10)			(10)			(10)			(10)			(10)			(30)			(30)
After-tax operating income available to Arch common shareholders	$	910		$	893		$	901		$	1,092		$	1,042		$	2,704		$	2,608

Effective tax rate on pre-tax operating income (loss) available to Arch (a)/(b)	15.8		%	15.1		%	14.8		%	15.4		%	15.8		%	15.3		%	14.7		%


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Arch Capital Group Ltd. and Subsidiaries

Capital Structure

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


(U.S. Dollars and shares in millions, except per share data)	September 30,			June 30,			March 31,			December 31,			September 30,
	2026			2026			2026			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			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			1,400			—			—			—
Arch-U.S. 5.144% senior notes, due November 1, 2043 (1)	281			281			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			251			450			450			450
Deferred debt costs on senior notes	(46)			(46)			(21)			(21)			(22)
Revolving credit agreement borrowings, due August 23, 2028	—			—			—			—			—
Total debt	$	4,286		$	4,286		$	2,729		$	2,729		$	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	22,162			23,200			23,358			23,376			22,889
Total shareholders’ equity available to Arch	$	22,992		$	24,030		$	24,188		$	24,206		$	23,719

Total capital available to Arch	$	27,278		$	28,316		$	26,917		$	26,935		$	26,447





Leverage ratios:
Senior notes/total capital available to Arch	15.7		%	15.1		%	10.1		%	10.1		%	10.3		%
Revolving credit agreement borrowings/total capital available to Arch	—		%	—		%	—		%	—		%	—		%
Debt/total capital available to Arch	15.7		%	15.1		%	10.1		%	10.1		%	10.3		%
Preferred/total capital available to Arch	3.0		%	2.9		%	3.1		%	3.1		%	3.1		%
Debt and preferred/total capital available to Arch	18.8		%	18.1		%	13.2		%	13.2		%	13.5		%

(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.


			33

Arch Capital Group Ltd. and Subsidiaries

Book Value, Tangible Book Value and Share Repurchase Activity

The following table provides a reconciliation of book value per common share to tangible book value and adjusted tangible book value per common share:


(U.S. Dollars and shares in millions, except per share data)	September 30,		June 30,		March 31,		December 31,		September 30,
	2026		2026		2026		2025		2025
Total shareholders’ equity available to Arch	$	22,992	$	24,030	$	24,188	$	24,206	$	23,719
Less preferred shareholders’ equity	830		830		830		830		830
Common shareholders’ equity (a)	22,162		23,200		23,358		23,376		22,889
Less: goodwill and intangible assets	1,133		1,163		1,190		1,222		1,268
Common shareholders’ equity available to Arch less goodwill and intangible assets (b)	$	21,029	$	22,037	$	22,168	$	22,154	$	21,621
Less: Accumulated other comprehensive income (loss), net of deferred income tax	(1,076)		(413)		(333)		5		—
Common shareholders’ equity available to Arch less goodwill and intangible assets and AOCI (c)	$	22,105	$	22,450	$	22,501	$	22,149	$	21,621

Common shares outstanding, net of treasury shares (d)	326.4		341.0		352.9		359.0		367.3

Book value per common share (1) (a)/(d)	$	67.90	$	68.04	$	66.19	$	65.11	$	62.32
Tangible book value per common share (1) (2) (b)/(d)	$	64.43	$	64.62	$	62.82	$	61.71	$	58.86
Adjusted tangible book value per common share (1) (2) (c)/(d)	$	67.72	$	65.84	$	63.76	$	61.70	$	58.86

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

(2) 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.

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
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,
	2026		2026		2026		2025		2025		2026
Effect of share repurchases:
Aggregate cost of shares repurchased	$	1,433.0	$	1,165.8	$	783.0	$	797.9	$	732.3	$	11,164.8
Shares repurchased	14.8		12.4		8.3		8.9		8.2		490.5
Average price per share repurchased	$	96.62	$	94.38	$	94.01	$	90.04	$	88.82	$	22.76




Remaining share repurchase authorization (1)											$	725.1

(1) Repurchases under the share repurchase authorization may be effected from time to time in open market or privately negotiated transactions.


			34

Source: View Original Filing on SEC EDGAR

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