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Arch Capital (NASDAQ: ACGL) Q1 2026 profit jumps on underwriting strength

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(High)
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8-K

Rhea-AI Filing Summary

Arch Capital Group Ltd. reported much stronger results for the quarter ended March 31, 2026. Net income available to common shareholders rose to $1.04 billion, or $2.88 per diluted share, up from $564 million, or $1.48, a year earlier, driven by significantly better underwriting performance.

After-tax operating income increased to $901 million, or $2.50 per share, and the consolidated combined ratio improved to 81.7% from 90.1%, reflecting a lower loss ratio of 52.4%. The reinsurance segment delivered a 75.9% combined ratio, while mortgage posted a very low 22.3% combined ratio, both benefiting from favorable prior-year reserve development and lower catastrophe impacts.

Book value per common share reached $66.19 at March 31, 2026, a 1.7% increase from December 31, 2025, even after $783 million of share repurchases. Annualized net income return on average common equity improved to 17.8% and operating return on equity to 15.4%.

Positive

  • Sharp earnings growth: Net income available to common shareholders increased to $1.04 billion and diluted EPS to $2.88, up 83.9% and 94.6% year over year, respectively.
  • Stronger underwriting performance: Consolidated combined ratio improved to 81.7% from 90.1%, driven by a 9.4-point reduction in the loss ratio to 52.4%.
  • High returns on equity: Annualized net income return on average common equity rose to 17.8%, and operating return on equity to 15.4% for the quarter.
  • Segment profitability: Reinsurance generated $441 million of underwriting income with a 75.9% combined ratio, while mortgage achieved a 22.3% combined ratio and $221 million of underwriting income.
  • Capital returns with book value growth: The company repurchased $783 million of common shares yet still increased book value per share by 1.7% to $66.19 at March 31, 2026.

Negative

  • None.

Insights

Arch delivered sharply higher Q1 earnings on stronger underwriting and reserve releases.

Arch Capital posted net income of $1.04 billion versus $564 million a year earlier, with after-tax operating income up to $901 million. The combined ratio improved to 81.7%, helped by a lower loss ratio and sizable favorable prior-year reserve development of $200 million.

The reinsurance segment led profitability, generating underwriting income of $441 million and a 75.9% combined ratio, as catastrophe load fell and reserve releases increased. The mortgage segment remained highly profitable, with a 22.3% combined ratio and strong favorable development tied to better-than-expected cure rates.

Arch also returned capital, repurchasing $783 million of shares while still growing book value per share to $66.19. Annualized net income ROE rose to 17.8% and operating ROE to 15.4% for Q1 2026, underscoring robust earnings power supported by disciplined underwriting and a sizable investment portfolio.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income available to common shareholders $1,037M Three months ended March 31, 2026
Diluted EPS $2.88 per share Net income per diluted share, Q1 2026
After-tax operating income $901M Available to Arch common shareholders, Q1 2026
Combined ratio 81.7% Consolidated underwriting performance, Q1 2026
Underwriting income $728M Consolidated underwriting income, Q1 2026
Book value per common share $66.19 As of March 31, 2026
Annualized net income ROE 17.8% Return on average common equity, Q1 2026
Share repurchases $783M Common shares repurchased during Q1 2026
combined ratio financial
"Combined ratio excluding catastrophic activity and prior year development(1) of 82.3%, compared to 81.0% for the 2025 first quarter."
The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.
after-tax operating income financial
"After-tax operating income available to Arch common shareholders(1) of $901 million, or $2.50 per share..."
annualized operating return on average common equity financial
"representing a 15.4% annualized operating return on average common equity(1), compared to 11.5% for the 2025 first quarter."
catastrophic activity financial
"Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments... of $174 million."
favorable development in prior year loss reserves financial
"Favorable development in prior year loss reserves, net of related adjustments, of $200 million."
total return on investments financial
"Total return on investments (2) 0.10% for the 2026 first quarter, compared to 2.02% for the 2025 first quarter."
Net premiums earned $3,986M -4.8% YoY
Net income available to common shareholders $1,037M +83.9% YoY
After-tax operating income $901M +53.5% YoY
Diluted EPS $2.88 +94.6% YoY
Combined ratio 81.7% -8.4 pts YoY
Annualized operating ROE 15.4% +3.9 pts YoY
Understanding 8-K Material Events →
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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
 
April 28, 2026
Date of Report (Date of earliest event reported) 
Arch Capital Group Ltd.
(Exact name of registrant as specified in its charter)
Bermuda 001-16209 98-0374481
(State or other
jurisdiction of
incorporation or
organization)		 (Commission File Number) (I.R.S. Employer
Identification No.)
 
Waterloo House, Ground Floor, 100 Pitts Bay Road, Pembroke HM 08, Bermuda
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code:
(441) 278-9250
 
N/A
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading Symbol (s)Name of each exchange on which registered
Common shares, $0.0011 par value per shareACGLNASDAQStock Market
Depositary shares, each representing a 1/1,000th interest in a 5.45% Series F preferred share
ACGLO
NASDAQStock Market
Depositary shares, each representing a 1/1,000th interest in a 4.55% Series G preferred shareACGLNNASDAQStock 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 April 28, 2026 Arch Capital Group Ltd. issued a press release reporting its earnings and the availability of its financial supplement for the quarter ended March 31, 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 April 28, 2026 announcing the earnings of Arch Capital Group Ltd. for the quarter ended March 31, 2026
99.2 
2026 First Quarter Financial Supplement
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
2

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


3

EXHIBIT 99.1
archlogorgbsolida38.jpg
PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
April 28, 2026
Pembroke HM 08 Bermuda


ARCH CAPITAL GROUP LTD. REPORTS 2026 FIRST QUARTER RESULTS

PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2026 first quarter results. The results included:
•Net income available to Arch common shareholders of $1.0 billion, or $2.88 per share, representing a 17.8% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $564 million, or $1.48 per share, for the 2025 first quarter.
•After-tax operating income available to Arch common shareholders(1) of $901 million, or $2.50 per share, representing a 15.4% annualized operating return on average common equity(1), compared to $587 million, or $1.54 per share, for the 2025 first quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $174 million.
•Favorable development in prior year loss reserves, net of related adjustments, of $200 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 82.3%, compared to 81.0% for the 2025 first quarter.
•Share repurchases of $783 million.
•Book value per common share of $66.19 at March 31, 2026, a 1.7% increase from December 31, 2025.
“We started the year on an excellent note, delivering an annualized operating return on average common equity of 15.4%, which reflects our disciplined approach to underwriting and capital allocation,” said Arch CEO Nicolas Papadopoulo. “Our underwriting and cycle management expertise, supported by a strong balance sheet, continue to differentiate Arch and position us to generate best-in-class returns through the cycle.”
All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results:
(U.S. Dollars in millions)Three Months Ended March 31,
20262025% Change
Gross premiums written$6,425 $6,463 (0.6)
Net premiums written4,348 4,515 (3.7)
Net premiums earned3,986 4,188 (4.8)
Underwriting income (1)
728 417 74.6 
Underwriting Ratios% Point Change
Loss ratio52.4 %61.8 %(9.4)
Underwriting expense ratio (2)
29.3 %28.3 %1.0 
Combined ratio81.7 %90.1 %(8.4)
Combined ratio excluding catastrophic activity and prior year development (1)
82.3 %81.0 %1.3 
(1)    See ‘Comments on Non-GAAP Financial Measures’ for further details.
(2)    The ‘Underwriting expense ratio’ includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.

1

The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see ‘Comments on Non-GAAP Financial Measures’ for further details):
(U.S. Dollars in millions, except per share data)Three Months Ended
March 31,
20262025
Net income available to Arch common shareholders$1,037 $564 
Net realized (gains) losses (1)87 (3)
Equity in net (income) of investments accounted for using the equity method(160)(53)
Net foreign exchange (gains) losses(21)27 
Transaction costs and other18 10 
Income tax expense (benefit) (2)(60)42 
After-tax operating income available to Arch common shareholders$901 $587 
Diluted per common share results:
Net income available to Arch common shareholders$2.88 $1.48 
Net realized (gains) losses (1)0.24 (0.01)
Equity in net (income) of investments accounted for using the equity method(0.44)(0.14)
Net foreign exchange (gains) losses(0.06)0.07 
Transaction costs and other0.05 0.03 
Income tax expense (benefit) (2)(0.17)0.11 
After-tax operating income available to Arch common shareholders$2.50 $1.54 
Weighted average common shares and common share equivalents outstanding — diluted359.7 381.9 
Beginning common shareholders’ equity$23,376 $19,990 
Ending common shareholders’ equity23,358 20,715 
Average common shareholders’ equity$23,367 $20,353 
Annualized net income return on average common equity17.8 %11.1 %
Annualized operating return on average common equity15.4 %11.5 %
(1)    Net realized gains or losses include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries.
(2)    Income tax expense (benefit) on net realized gains or losses, equity in net income of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.
2

Segment Information
The following section provides analysis on the Company’s 2026 first quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated March 31, 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 March 31,
(U.S. Dollars in millions)20262025% Change
Gross premiums written$2,697 $2,645 2.0 
Net premiums written1,906 1,933 (1.4)
Net premiums earned1,871 1,860 0.6 
Other underwriting income 11 3 266.7 
Underwriting income $66 $(2)3,400.0 
Underwriting Ratios% Point Change
Loss ratio60.2 %66.0 %(5.8)
Underwriting expense ratio36.3 %34.1 %2.2 
Combined ratio96.5 %100.1 %(3.6)
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums4.2 %9.5 %(5.3)
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact(0.7)%(0.9)%0.2 
Underwriting expense ratio impact0.3 %0.4 %(0.1)
Total impact(0.4)%(0.5)%0.1 
Combined ratio excluding catastrophic activity and prior year development92.7 %91.1 %1.6 

Gross premiums written by the insurance segment in the 2026 first quarter were 2.0% higher than in the 2025 first quarter, while net premiums written were 1.4% lower than in the 2025 first quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have increased by 1.1% compared to the same quarter one year ago. Net premiums earned in the 2026 first quarter were 0.6% higher than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.
The 2026 first quarter loss ratio reflected 4.2 points of current year catastrophic activity, compared to 9.5 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 0.7 points in the 2026 first quarter, compared to 0.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.
The underwriting expense ratio was 36.3% in the 2026 first quarter, compared to 34.1% in the 2025 first quarter. In the 2025 first quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 1.9 points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs. The 2026 first quarter also included higher compensation costs compared to the 2025 first quarter and transitional expenses associated with the MCE Acquisition.
3

Reinsurance Segment
Three Months Ended March 31,
(U.S. Dollars in millions)20262025% Change
Gross premiums written$3,414 $3,494 (2.3)
Net premiums written2,176 2,316 (6.0)
Net premiums earned1,831 2,028 (9.7)
Other underwriting income37 39 (5.1)
Underwriting income$441 $167 164.1 
Underwriting Ratios% Point Change
Loss ratio51.7 %66.9 %(15.2)
Underwriting expense ratio24.2 %24.9 %(0.7)
Combined ratio75.9 %91.8 %(15.9)
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums5.2 %18.3 %(13.1)
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact(8.3)%(5.9)%(2.4)
Underwriting expense ratio impact0.9 %1.4 %(0.5)
Total impact(7.4)%(4.5)%(2.9)
Combined ratio excluding catastrophic activity and prior year development78.1 %78.0 %0.1 
Gross premiums written by the reinsurance segment in the 2026 first quarter were 2.3% lower than in the 2025 first quarter, while net premiums written were 6.0% lower than in the 2025 first quarter. The lower level of net premiums written this quarter was primarily due to a reduction in property catastrophe business written at January 1, amplified by a lower level of reinstatement premiums relative to the 2025 first quarter, which included reinstatement premiums related to the California wildfires. Net premiums earned in the 2026 first quarter were 9.7% lower than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.
The 2026 first quarter loss ratio reflected 5.4 points of current year catastrophic activity, compared to 21.7 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 8.3 points in the 2026 first quarter, compared to 5.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.
The underwriting expense ratio was 24.2% in the 2026 first quarter, compared to 24.9% in the 2025 first quarter. The 2025 first quarter amount included a lower level of contingent commissions on ceded business, primarily due to the impact of the California wildfires.

4

Mortgage Segment
Three Months Ended March 31,
(U.S. Dollars in millions)20262025% Change
Gross premiums written$316 $326 (3.1)
Net premiums written266 266 — 
Net premiums earned284 300 (5.3)
Other underwriting income11 11 — 
Underwriting income$221 $252 (12.3)
Underwriting Ratios% Point Change
Loss ratio5.3 %1.1 %4.2 
Underwriting expense ratio17.0 %15.0 %2.0 
Combined ratio22.3 %16.1 %6.2 
Prior year development:
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact(19.2)%(20.4)%1.2 
Underwriting expense ratio impact(0.7)%(1.4)%0.7 
Total impact(19.9)%(21.8)%1.9 
Combined ratio excluding prior year development42.2 %37.9 %4.3 
Gross premiums written by the mortgage segment in the 2026 first quarter were 3.1% lower than in the 2025 first quarter, driven by lower U.S. monthly premium business. Net premiums written were flat compared to the 2025 first quarter, reflecting lower cessions on U.S. primary business.
Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 19.2 points, compared to 20.4 points in the 2025 first quarter. Such amounts were primarily related to better than expected cure rates. The 2026 first quarter loss ratio reflected a modestly higher level of delinquencies than in the 2025 first quarter.
The underwriting expense ratio was 17.0% in the 2026 first quarter, compared to 15.0% in the 2025 first quarter. The increase was primarily due to higher gross acquisition expenses and lower ceding and profit commissions on U.S. primary business. The 2026 first quarter ratio also reflected the impact of a lower level of net premiums earned.

5

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
March 31,December 31,March 31,
202620252025
Pre-tax net investment income$408 $434 $378 
Per share$1.13 $1.18 $0.99 
​
Equity in net income of investments accounted for using the equity method$160 $155 $53 
Per share$0.44 $0.42 $0.14 
Pre-tax investment income yield, at amortized cost (1)3.99 %4.22 %4.16 %
Total return on investments (2)0.10 %1.36 %2.02 %
(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 first quarter, compared to the 2025 first quarter, primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized losses were $87 million for the 2026 first quarter, compared to net realized gains of $3 million in the 2025 first quarter, and were primarily the result of financial market movements on the Company’s derivatives, equity securities and investments accounted for under the fair value option method.
Corporate expenses for the 2026 first quarter were $31 million, compared to $50 million for the 2025 first 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 first quarter primarily reflected the benefit of Bermuda qualified refundable tax credits.
Amortization of intangible assets was $30 million for the 2026 first quarter, compared to $49 million for the 2025 first quarter. Both periods reflected the amortization of intangible assets related to the MCE Acquisition.
On a pre-tax basis, net foreign exchange gains were $21 million for the 2026 first quarter, compared to net foreign exchange losses of $27 million for the 2025 first 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 8.6% for the 2026 first quarter, compared to 17.4% for the 2025 first quarter. The decrease in the effective tax rate was primarily driven by tax law changes in Bermuda and the United Kingdom. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 14.8% for the 2026 first quarter, compared to 11.7% for the 2025 first 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 first quarter was $36 million, or $0.10 per share, compared to $17 million, or $0.04 per share, for the 2025 first quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA.
6

Conference Call
The Company will hold a conference call for investors and analysts at 10 a.m. Eastern Time on April 29, 2026. A live webcast of this call will be available via the Investors section of the Company’s website at http://www.archgroup.com/investors. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company’s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year.
Please refer to the Company’s Financial Supplement dated March 31, 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 $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.
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.

7

Transaction costs and other include integration, advisory, financing, legal, severance, incentive compensation and all other costs directly related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance.
The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company’s business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company’s financial information to analyze the Company’s performance in a manner similar to how the Company’s management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company’s financial information to compare the Company’s performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.
The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of its underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on the following pages.
Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income, income from operating affiliates and other items are not allocated to each underwriting segment.
In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. Effective in the 2025 first quarter, the ‘Other operating expense ratio’ includes ‘Other underwriting income.’
Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by Arch’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented.

8

The following tables summarize the Company’s results by segment for the 2026 first quarter and 2025 first 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
March 31, 2026
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,697 $3,414 $316 $6,425 
Premiums ceded (1)(791)(1,238)(50)(2,077)
Net premiums written1,906 2,176 266 4,348 
Change in unearned premiums(35)(345)18 (362)
Net premiums earned1,871 1,831 284 3,986 
Other underwriting income (2)11 37 11 59 
Losses and loss adjustment expenses(1,126)(948)(15)(2,089)
Acquisition expenses(375)(347)(8)(730)
Other operating expenses(315)(132)(51)(498)
Underwriting income (loss)$66 $441 $221 728 
Net investment income408 
Net realized gains (losses)(87)
Equity in net income of investments accounted for using the equity method160 
Other income (loss)(5)
Corporate benefit (expenses) (3)(31)
Transaction costs and other (3)(18)
Amortization of intangible assets(30)
Interest expense(37)
Net foreign exchange gains (losses)21 
Income (loss) before income taxes and income (loss) from operating affiliates1,109 
Income tax benefit (expense)(98)
Income (loss) from operating affiliates36 
Net income (loss) available to Arch1,047 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$1,037 
Underwriting Ratios
Loss ratio60.2 %51.7 %5.3 %52.4 %
Acquisition expense ratio20.0 %19.0 %2.9 %18.3 %
Other operating expense ratio (4)16.3 %5.2 %14.1 %11.0 %
Combined ratio96.5 %75.9 %22.3 %81.7 %
Net premiums written to gross premiums written70.7 %63.7 %84.2 %67.7 %

(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.’
9

(U.S. Dollars in millions)Three Months Ended
March 31, 2025
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,645 $3,494 $326 $6,463 
Premiums ceded (1)(712)(1,178)(60)(1,948)
Net premiums written1,933 2,316 266 4,515 
Change in unearned premiums(73)(288)34 (327)
Net premiums earned1,860 2,028 300 4,188 
Other underwriting income (2)3 39 11 53 
Losses and loss adjustment expenses(1,228)(1,356)(3)(2,587)
Acquisition expenses(343)(417)(4)(764)
Other operating expenses(294)(127)(52)(473)
Underwriting income (loss)$(2)$167 $252 417 
Net investment income378 
Net realized gains (losses)3 
Equity in net income of investments accounted for using the equity method53 
Other income (loss)(2)
Corporate benefit (expenses) (3)(50)
Transaction costs and other (3)(10)
Amortization of intangible assets(49)
Interest expense(35)
Net foreign exchange gains (losses)(27)
Income (loss) before income taxes and income (loss) from operating affiliates678 
Income tax benefit (expense)(121)
Income (loss) from operating affiliates17 
Net income (loss) available to Arch574 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$564 
Underwriting Ratios
Loss ratio66.0 %66.9 %1.1 %61.8 %
Acquisition expense ratio18.5 %20.6 %1.3 %18.3 %
Other operating expense ratio (4)15.6 %4.3 %13.7 %10.0 %
Combined ratio100.1 %91.8 %16.1 %90.1 %
Net premiums written to gross premiums written73.1 %66.3 %81.6 %69.9 %
 
(1)    Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.
(2)    ‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(3)    Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
(4)    The ‘Other operating expense ratio’ includes ‘Other underwriting income.’
10

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;
11

•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) 278-9250Donald Watson: (914) 872-3616; dwatson@archgroup.com
Source: Arch Capital Group Ltd.
arch-corporate

12

EXHIBIT 99.2
arch-slantedxheaderxbluexg.gif
Arch Capital Group Ltd.
Waterloo House, Ground Floor
100 Pitts Bay Road
Pembroke HM 08 Bermuda


Financial Supplement
March 31, 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-slantedxcontactsxblue.gif
Arch Capital Group Ltd.Investor Relations
François Morin: (441) 278-9250Donald 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
11
 d.Reinsurance Segment Results
13
e.Mortgage Segment Results
15
f.Segment Consolidated Results
20
g.Selected Information on Losses and Loss Adjustment Expenses
21
  
IV.Investment Information
 a.Investable Asset Summary and Investment Portfolio Metrics
22
b.Composition of Net Investment Income, Yield and Total Return
23
 c.Composition of Fixed Maturities
24
d.Credit Quality Distribution and Maturity Profile
25
e.Analysis of Corporate Exposures
26
 f.Structured Securities
27
  
V.Other
 a.Comments on Non-GAAP Financial Measures
28
 b.Operating Income Reconciliation and Annualized Operating Return on Average Common Equity
29
c.Operating Income and Effective Tax Rate Calculations
30
 d.Capital Structure and Share Repurchase Activity
31

1
Arch Capital Group Ltd. and Subsidiaries
Basis of Presentation
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.
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.
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
March 31,
20262025Change
Underwriting results:
Gross premiums written$6,425 $6,463 (0.6)%
Net premiums written4,348 4,515 (3.7)%
Net premiums earned3,986 4,188 (4.8)%
Underwriting income (loss) (1)728 417 74.6 %
Loss ratio52.4 %61.8 %(9.4)
Acquisition expense ratio18.3 %18.3 %— 
Other operating expense ratio (2)11.0 %10.0 %1.0 
Combined ratio81.7 %90.1 %(8.4)
Pre-tax net investment income$408 $378 7.9 %
Per diluted share$1.13 $0.99 14.1 %
Net income available to Arch common shareholders$1,037 $564 83.9 %
Per diluted share$2.88 $1.48 94.6 %
After-tax operating income available to Arch common shareholders (1)$901 $587 53.5 %
Per diluted share$2.50 $1.54 62.3 %
Comprehensive income (loss) available to Arch$709 $886 (20.0)%
Net cash provided by operating activities$1,188 $1,458 (18.5)%
Weighted average common shares and common share equivalents outstanding — diluted359.7 381.9 (5.8)%
Financial measures:   
Change in book value per common share during period1.7 %3.8 %(2.1)
Annualized net income return on average common equity17.8 %11.1 %6.7 
Annualized operating return on average common equity (1)15.4 %11.5 %3.9 
Total return on investments (3)0.10 %2.02 %-192 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
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Revenues     
Net premiums earned$3,986 $4,255 $4,285 $4,337 $4,188 
Net investment income408 434 408 405 378 
Net realized gains (losses)(87)22 210 229 3 
Other underwriting income (1)59 52 50 62 53 
Equity in net income of investments accounted for using the equity method160 155 134 162 53 
Other income (loss)(5)16 22 18 (2)
Total revenues4,521 4,934 5,109 5,213 4,673 
Expenses
Losses and loss adjustment expenses(2,089)(2,280)(2,200)(2,303)(2,587)
Acquisition expenses(730)(779)(786)(824)(764)
Other operating expenses(498)(421)(478)(454)(473)
Corporate benefit (expenses)(49)24 (49)(47)(60)
Amortization of intangible assets(30)(47)(49)(48)(49)
Interest expense(37)(38)(37)(38)(35)
Net foreign exchange gains (losses)21 (6)(7)(88)(27)
Total expenses(3,412)(3,547)(3,606)(3,802)(3,995)
Income (loss) before income taxes and income (loss) from operating affiliates1,109 1,387 1,503 1,411 678 
Income tax (expense) benefit(98)(210)(215)(214)(121)
Income (loss) from operating affiliates36 61 62 40 17 
Net income (loss) attributable to Arch1,047 1,238 1,350 1,237 574 
Preferred dividends(10)(10)(10)(10)(10)
Net income (loss) available to Arch common shareholders$1,037 $1,228 $1,340 $1,227 $564 
Comprehensive income (loss) available to Arch$709 $1,243 $1,398 $1,597 $886 
Net income (loss) per common share and common share equivalent
Basic$2.94 $3.42 $3.63 $3.30 $1.51 
Diluted$2.88 $3.35 $3.56 $3.23 $1.48 
Weighted average common shares and common share equivalents outstanding
Basic353.2 359.4 369.0 372.2 372.9 
Diluted359.7 366.6 376.1 379.9 381.9 

(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)March 31,December 31,September 30,June 30,March 31,
20262025202520252025
Assets     
Investments:     
Fixed maturities available for sale, at fair value$32,399 $32,426 $31,908 $30,332 $28,798 
Short-term investments available for sale, at fair value2,638 2,625 2,351 2,788 2,477 
Equity securities, at fair value1,766 1,864 1,805 1,715 1,618 
Other investments3,331 3,136 3,027 2,892 2,888 
Investments accounted for using the equity method6,652 6,453 6,232 6,566 6,340 
Total investments46,786 46,504 45,323 44,293 42,121 
Cash914 993 1,063 983 1,187 
Accrued investment income302 338 307 329 267 
Investment in operating affiliates1,330 1,313 1,417 1,356 1,305 
Premiums receivable6,526 5,723 6,450 7,067 6,607 
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses9,732 9,526 9,070 9,044 8,969 
Contractholder receivables2,253 2,270 2,287 2,280 2,212 
Ceded unearned premiums3,183 2,659 3,079 3,229 2,895 
Deferred acquisition costs1,774 1,717 1,786 1,814 1,785 
Receivable for securities sold643 180 695 390 324 
Goodwill and intangible assets1,190 1,222 1,268 1,319 1,308 
Other assets6,813 6,796 6,440 6,684 6,196 
Total assets$81,446 $79,241 $79,185 $78,788 $75,176 
Liabilities     
Reserve for losses and loss adjustment expenses$34,105 $33,547 $32,822 $32,089 $30,946 
Unearned premiums10,939 10,100 11,124 11,625 11,090 
Reinsurance balances payable2,737 2,320 2,638 2,841 2,661 
Contractholder payables2,260 2,277 2,293 2,286 2,218 
Collateral held for insured obligations260 237 239 225 245 
Senior notes2,729 2,729 2,728 2,728 2,728 
Payable for securities purchased798 308 335 728 578 
Other liabilities3,430 3,517 3,287 3,225 3,165 
Total liabilities57,258 55,035 55,466 55,747 53,631 
Shareholders’ equity     
Non-cumulative preferred shares830 830 830 830 830 
Common shares1 1 1 1 1 
Additional paid-in capital2,831 2,735 2,682 2,660 2,588 
Retained earnings28,082 27,045 25,817 24,477 23,250 
Accumulated other comprehensive income (loss), net of deferred income tax(333)5 — (48)(408)
Common shares held in treasury, at cost(7,223)(6,410)(5,611)(4,879)(4,716)
Total shareholders’ equity24,188 24,206 23,719 23,041 21,545 
Total liabilities and shareholders’ equity$81,446 $79,241 $79,185 $78,788 $75,176 
Common shares and common share equivalents outstanding, net of treasury shares352.9 359.0 367.3 375.4 375.6 
Book value per common share (1)$66.19 $65.11 $62.32 $59.17 $55.15 
(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
March 31,December 31,September 30,June 30,March 31,
20262025202520252025
Non-cumulative preferred shares     
Balance at beginning and end of period$830 $830 $830 $830 $830 
Common shares
Balance at beginning and end of period1 1 1 1 1 
Additional paid-in capital
Balance at beginning of period2,735 2,682 2,660 2,588 2,510 
Amortization of share-based compensation82 24 25 25 74 
All other14 29 (3)47 4 
Balance at end of period2,831 2,735 2,682 2,660 2,588 
Retained earnings
Balance at beginning of period27,045 25,817 24,477 23,250 22,686 
Net income1,047 1,238 1,350 1,237 574 
Preferred share dividends(10)(10)(10)(10)(10)
Balance at end of period28,082 27,045 25,817 24,477 23,250 
Accumulated other comprehensive income (loss), net of deferred income tax
Balance at beginning of period5 — (48)(408)(720)
Change in unrealized appreciation (decline) in value of available-for-sale investments(338)12 47 296 286 
Change in foreign currency translation adjustments— (7)1 64 26 
Balance at end of period(333)5 — (48)(408)
Common shares held in treasury, at cost
Balance at beginning of period(6,410)(5,611)(4,879)(4,716)(4,487)
Shares repurchased for treasury(813)(799)(732)(163)(229)
Balance at end of period(7,223)(6,410)(5,611)(4,879)(4,716)
Total shareholders’ equity$24,188 $24,206 $23,719 $23,041 $21,545 

6
Arch Capital Group Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
(U.S. Dollars in millions)Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20262025202520252025
Operating Activities     
Net income (loss)$1,047 $1,238 $1,350 $1,237 $574 
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized (gains) losses91 (7)(202)(225)(6)
Equity in net (income) of investments accounted for using the equity method and other income or loss(137)(194)(158)(95)(12)
Amortization of intangible assets30 47 49 48 49 
Share-based compensation82 24 25 25 74 
Changes in:
Reserve for losses and loss adjustment expenses, net540 330 634 560 826 
Unearned premiums, net362 (606)(321)11 327 
Premiums receivable(820)731 601 (352)(942)
Deferred acquisition costs(48)53 14 33 (14)
Reinsurance balances payable419 (319)(207)159 504 
Deferred income tax assets, net20 19 46 80 29 
Other items, net(398)88 355 (357)49 
Net cash provided by operating activities1,188 1,404 2,186 1,124 1,458 
Investing Activities     
Purchases of fixed maturity investments(9,288)(8,293)(10,619)(8,150)(9,418)
Purchases of equity securities(185)(184)(277)(179)(808)
Purchases of other investments(499)(493)(513)(535)(697)
Proceeds from sales of fixed maturity investments7,984 7,055 8,435 6,522 7,301 
Proceeds from sales of equity securities202 183 281 223 820 
Proceeds from sales, redemptions and maturities of other investments240 759 336 431 660 
Proceeds from redemptions and maturities of fixed maturity investments957 693 475 568 758 
Net settlements of derivative instruments(26)35 35 147 93 
Net (purchases) sales of short-term investments(11)(272)478 (242)294 
Purchases of fixed assets(8)(11)(12)(12)(9)
Other(5)111 (2)(1)(2)
Net cash provided by (used for) investing activities(639)(417)(1,383)(1,228)(1,008)
Financing Activities     
Purchases of common shares under share repurchase program(783)(798)(732)(163)(196)
Proceeds from common shares issued, net(17)30 1 47 (28)
Common dividends paid(5)— — (2)(5)
Preferred dividends paid(10)(10)(10)(10)(10)
Other(12)— (2)— (2)
Net cash provided by (used for) financing activities(827)(778)(743)(128)(241)
Effects of exchange rate changes on foreign currency cash and restricted cash(8)4 (14)55 16 
Increase (decrease) in cash and restricted cash(286)213 46 (177)225 
Cash and restricted cash, beginning of period2,067 1,854 1,808 1,985 1,760 
Cash and restricted cash, end of period$1,781 $2,067 $1,854 $1,808 $1,985 
Income taxes paid (received)$22 $143 $166 $131 $18 
Interest paid$— $63 $— $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
March 31, 2026
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,697 $3,414 $316 $6,425 
Premiums ceded (1)(791)(1,238)(50)(2,077)
Net premiums written1,906 2,176 266 4,348 
Change in unearned premiums(35)(345)18 (362)
Net premiums earned1,871 1,831 284 3,986 
Other underwriting income (2)11 37 11 59 
Losses and loss adjustment expenses(1,126)(948)(15)(2,089)
Acquisition expenses(375)(347)(8)(730)
Other operating expenses(315)(132)(51)(498)
Underwriting income (loss)$66 $441 $221 728 
Net investment income408 
Net realized gains (losses)(87)
Equity in net income of investments accounted for using the equity method160 
Other income (loss)(5)
Corporate benefit (expenses) (3)(31)
Transaction costs and other (3)(18)
Amortization of intangible assets(30)
Interest expense(37)
Net foreign exchange gains (losses)21 
Income (loss) before income taxes and income (loss) from operating affiliates1,109 
Income tax (expense) benefit(98)
Income (loss) from operating affiliates36 
Net income (loss) available to Arch1,047 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$1,037 
Underwriting Ratios
Loss ratio60.2 %51.7 %5.3 %52.4 %
Acquisition expense ratio20.0 %19.0 %2.9 %18.3 %
Other operating expense ratio (4)16.3 %5.2 %14.1 %11.0 %
Combined ratio96.5 %75.9 %22.3 %81.7 %
Net premiums written to gross premiums written70.7 %63.7 %84.2 %67.7 %
Total investable assets$47,545 
Total assets81,446 
Total liabilities57,258 

(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.’
9
Arch Capital Group Ltd. and Subsidiaries
Segment Information
(U.S. Dollars in millions)Three Months Ended
March 31, 2025
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,645 $3,494 $326 $6,463 
Premiums ceded (1)(712)(1,178)(60)(1,948)
Net premiums written1,933 2,316 266 4,515 
Change in unearned premiums(73)(288)34 (327)
Net premiums earned1,860 2,028 300 4,188 
Other underwriting income (2)3 39 11 53 
Losses and loss adjustment expenses(1,228)(1,356)(3)(2,587)
Acquisition expenses(343)(417)(4)(764)
Other operating expenses(294)(127)(52)(473)
Underwriting income (loss)$(2)$167 $252 417 
Net investment income378 
Net realized gains (losses)3 
Equity in net income of investments accounted for using the equity method53 
Other income (loss)(2)
Corporate benefit (expenses) (3)(50)
Transaction costs and other (3)(10)
Amortization of intangible assets(49)
Interest expense(35)
Net foreign exchange gains (losses)(27)
Income (loss) before income taxes and income (loss) from operating affiliates678 
Income tax (expense) benefit(121)
Income (loss) from operating affiliates17 
Net income (loss) available to Arch574 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$564 
Underwriting Ratios
Loss ratio66.0 %66.9 %1.1 %61.8 %
Acquisition expense ratio18.5 %20.6 %1.3 %18.3 %
Other operating expense ratio (4)15.6 %4.3 %13.7 %10.0 %
Combined ratio100.1 %91.8 %16.1 %90.1 %
Net premiums written to gross premiums written73.1 %66.3 %81.6 %69.9 %
Total investable assets$43,054 
Total assets75,176 
Total liabilities53,631 
(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.’
10
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Insurance Segment
(U.S. Dollars in millions)Three Months Ended
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Gross premiums written$2,697 $2,542 $2,567 $2,681 $2,645 
Premiums ceded(791)(666)(614)(645)(712)
Net premiums written1,906 1,876 1,953 2,036 1,933 
Change in unearned premiums(35)97 16 (67)(73)
Net premiums earned1,871 1,973 1,969 1,969 1,860 
Other underwriting income (1)11 11 9 13 3 
Losses and loss adjustment expenses(1,126)(1,196)(1,162)(1,178)(1,228)
Acquisition expenses(375)(380)(386)(387)(343)
Other operating expenses(315)(289)(301)(288)(294)
Underwriting income (loss)$66 $119 $129 $129 $(2)
Underwriting Ratios
Loss ratio60.2 %60.6 %59.0 %59.8 %66.0 %
Acquisition expense ratio20.0 %19.3 %19.6 %19.6 %18.5 %
Other operating expense ratio (2)16.3 %14.1 %14.8 %14.0 %15.6 %
Combined ratio96.5 %94.0 %93.4 %93.4 %100.1 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums4.2 %3.3 %2.2 %2.9 %9.5 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact(0.7)%(0.2)%(0.7)%(0.4)%(0.9)%
Acquisition expense ratio impact0.3 %0.1 %0.6 %0.3 %0.4 %
Total impact(0.4)%(0.1)%(0.1)%(0.1)%(0.5)%
Combined ratio excluding catastrophic activity and prior year development (3)92.7 %90.8 %91.3 %90.6 %91.1 %
Net premiums written to gross premiums written70.7 %73.8 %76.1 %75.9 %73.1 %
 
(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.

11
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Insurance Segment
(U.S. Dollars in millions)Three Months Ended
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Net Premiums Written by Line of Business
North America
Property and short-tail specialty$322 16.9 %$273 14.6 %$339 17.4 %$369 18.1 %$348 18.0 %
Other liability - occurrence315 16.5 %309 16.5 %297 15.2 %366 18.0 %330 17.1 %
Other liability - claims made175 9.2 %229 12.2 %209 10.7 %206 10.1 %149 7.7 %
Commercial multi-peril173 9.1 %184 9.8 %194 9.9 %205 10.1 %198 10.2 %
Workers compensation157 8.2 %142 7.6 %151 7.7 %130 6.4 %153 7.9 %
Commercial automobile149 7.8 %126 6.7 %150 7.7 %165 8.1 %161 8.3 %
Other74 3.9 %90 4.8 %86 4.4 %89 4.4 %76 3.9 %
Total North America $1,365 71.6 %$1,353 72.1 %$1,426 73.0 %$1,530 75.1 %$1,415 73.2 %
International
Property and short-tail specialty$282 14.8 %$251 13.4 %$284 14.5 %$296 14.5 %$271 14.0 %
Casualty and other259 13.6 %272 14.5 %243 12.4 %210 10.3 %247 12.8 %
Total International $541 28.4 %$523 27.9 %$527 27.0 %$506 24.9 %$518 26.8 %
Total$1,906 100.0 %$1,876 100.0 %$1,953 100.0 %$2,036 100.0 %$1,933 100.0 %
Net Premiums Earned by Line of Business
North America
Property and short-tail specialty$315 16.8 %$338 17.1 %$339 17.2 %$363 18.4 %$333 17.9 %
Other liability - occurrence300 16.0 %325 16.5 %329 16.7 %338 17.2 %329 17.7 %
Other liability - claims made200 10.7 %203 10.3 %205 10.4 %186 9.4 %192 10.3 %
Commercial multi-peril195 10.4 %193 9.8 %195 9.9 %203 10.3 %201 10.8 %
Workers compensation135 7.2 %153 7.8 %160 8.1 %147 7.5 %131 7.0 %
Commercial automobile146 7.8 %146 7.4 %143 7.3 %147 7.5 %145 7.8 %
Other69 3.7 %78 4.0 %70 3.6 %71 3.6 %72 3.9 %
Total North America$1,360 72.7 %$1,436 72.8 %$1,441 73.2 %$1,455 73.9 %$1,403 75.4 %
International
Property and short-tail specialty$279 14.9 %$283 14.3 %$292 14.8 %$278 14.1 %$246 13.2 %
Casualty and other232 12.4 %254 12.9 %236 12.0 %236 12.0 %211 11.3 %
Total International$511 27.3 %$537 27.2 %$528 26.8 %$514 26.1 %$457 24.6 %
Total$1,871 100.0 %$1,973 100.0 %$1,969 100.0 %$1,969 100.0 %$1,860 100.0 %
12
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Reinsurance Segment
(U.S. Dollars in millions)Three Months Ended
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Gross premiums written$3,414 $1,944 $2,515 $3,196 $3,494 
Premiums ceded(1,238)(438)(778)(1,137)(1,178)
Net premiums written2,176 1,506 1,737 2,059 2,316 
Change in unearned premiums(345)486 278 28 (288)
Net premiums earned1,831 1,992 2,015 2,087 2,028 
Other underwriting income (1)37 36 38 46 39 
Losses and loss adjustment expenses(948)(1,086)(1,040)(1,128)(1,356)
Acquisition expenses(347)(393)(398)(436)(417)
Other operating expenses(132)(91)(133)(118)(127)
Underwriting income (loss)$441 $458 $482 $451 $167 
Underwriting Ratios
Loss ratio51.7 %54.5 %51.6 %54.1 %66.9 %
Acquisition expense ratio19.0 %19.7 %19.8 %20.9 %20.6 %
Other operating expense ratio (2)5.2 %2.8 %4.7 %3.5 %4.3 %
Combined ratio75.9 %77.0 %76.1 %78.5 %91.8 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums5.2 %5.0 %1.5 %4.6 %18.3 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact(8.3)%(3.5)%(2.6)%(3.9)%(5.9)%
Acquisition expense ratio impact0.9 %0.6 %0.4 %0.6 %1.4 %
Total impact(7.4)%(2.9)%(2.2)%(3.3)%(4.5)%
Combined ratio excluding catastrophic activity and prior year development (3)78.1 %74.9 %76.8 %77.2 %78.0 %
Net premiums written to gross premiums written63.7 %77.5 %69.1 %64.4 %66.3 %
 
(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 — Reinsurance Segment
(U.S. Dollars in millions)Three Months Ended
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Net Premiums Written by Line of Business
Specialty$687 31.6 %$587 39.0 %$633 36.4 %$729 35.4 %$594 25.6 %
Property excluding property catastrophe548 25.2 %475 31.5 %557 32.1 %430 20.9 %581 25.1 %
Casualty478 22.0 %301 20.0 %399 23.0 %308 15.0 %499 21.5 %
Property catastrophe307 14.1 %48 3.2 %64 3.7 %484 23.5 %477 20.6 %
Marine and aviation78 3.6 %52 3.5 %60 3.5 %68 3.3 %121 5.2 %
Other78 3.6 %43 2.9 %24 1.4 %40 1.9 %44 1.9 %
Total$2,176 100.0 %$1,506 100.0 %$1,737 100.0 %$2,059 100.0 %$2,316 100.0 %
Net Premiums Earned by Line of Business
Specialty$586 32.0 %$700 35.1 %$719 35.7 %$760 36.4 %$727 35.8 %
Property excluding property catastrophe519 28.3 %536 26.9 %581 28.8 %587 28.1 %548 27.0 %
Casualty353 19.3 %392 19.7 %360 17.9 %355 17.0 %325 16.0 %
Property catastrophe226 12.3 %246 12.3 %253 12.6 %260 12.5 %306 15.1 %
Marine and aviation70 3.8 %78 3.9 %77 3.8 %82 3.9 %80 3.9 %
Other77 4.2 %40 2.0 %25 1.2 %43 2.1 %42 2.1 %
Total$1,831 100.0 %$1,992 100.0 %$2,015 100.0 %$2,087 100.0 %$2,028 100.0 %
Net Premiums Written by Underwriting Location
Bermuda$962 44.2 %$697 46.3 %$761 43.8 %$1,060 51.5 %$1,154 49.8 %
United States512 23.5 %386 25.6 %488 28.1 %447 21.7 %477 20.6 %
Europe and other702 32.3 %423 28.1 %488 28.1 %552 26.8 %685 29.6 %
Total$2,176 100.0 %$1,506 100.0 %$1,737 100.0 %$2,059 100.0 %$2,316 100.0 %
                    
14
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Mortgage Segment
(U.S. Dollars in millions)Three Months Ended
 March 31,December 31,September 30,June 30,March 31,
20262025202520252025
Gross premiums written$316 $326 $330 $323 $326 
Premiums ceded(50)(59)(56)(70)(60)
Net premiums written266 267 274 253 266 
Change in unearned premiums18 23 27 28 34 
Net premiums earned284 290 301 281 300 
Other underwriting income (1)11 5 3 3 11 
Losses and loss adjustment expenses(15)2 2 3 (3)
Acquisition expenses(8)(6)(2)(1)(4)
Other operating expenses(51)(41)(44)(48)(52)
Underwriting income$221 $250 $260 $238 $252 
Underwriting Ratios
Loss ratio5.3 %(0.8)%(0.5)%(1.2)%1.1 %
Acquisition expense ratio2.9 %1.9 %0.7 %0.4 %1.3 %
Other operating expense ratio (2)14.1 %12.6 %13.3 %16.0 %13.7 %
Combined ratio22.3 %13.7 %13.5 %15.2 %16.1 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact(19.2)%(19.4)%(18.1)%(22.8)%(20.4)%
Acquisition expense ratio impact(0.7)%(0.9)%(1.1)%(1.3)%(1.4)%
Total impact(19.9)%(20.3)%(19.2)%(24.1)%(21.8)%
Combined ratio excluding prior year development (3)42.2 %34.0 %32.7 %39.3 %37.9 %
Net premiums written to gross premiums written84.2 %81.9 %83.0 %78.3 %81.6 %

(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 — Mortgage Segment
(U.S. Dollars in millions)Three Months Ended
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Net Premiums Written by Underwriting Unit
U.S. primary mortgage insurance$204 76.7 %$195 73.0 %$197 71.9 %$184 72.7 %$203 76.3 %
U.S. credit risk transfer (CRT) and other37 13.9 %51 19.1 %55 20.1 %51 20.2 %50 18.8 %
International mortgage insurance/reinsurance25 9.4 %21 7.9 %22 8.0 %18 7.1 %13 4.9 %
Total$266 100.0 %$267 100.0 %$274 100.0 %$253 100.0 %$266 100.0 %
Net Premiums Earned by Underwriting Unit
U.S. primary mortgage insurance$209 73.6 %$201 69.3 %$204 67.8 %$188 66.9 %$209 69.7 %
U.S. credit risk transfer (CRT) and other37 13.0 %51 17.6 %55 18.3 %51 18.1 %50 16.7 %
International mortgage insurance/reinsurance38 13.4 %38 13.1 %42 14.0 %42 14.9 %41 13.7 %
Total$284 100.0 %$290 100.0 %$301 100.0 %$281 100.0 %$300 100.0 %
Net Premiums Written by Underwriting Location
United States$204 76.7 %$196 73.4 %$197 71.9 %$184 72.7 %$203 76.3 %
Other62 23.3 %71 26.6 %77 28.1 %69 27.3 %63 23.7 %
Total$266 100.0 %$267 100.0 %$274 100.0 %$253 100.0 %$266 100.0 %
(U.S. Dollars in millions)
March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Insurance In Force (IIF) (1)
U.S. primary mortgage insurance$286,523 59.7 %$286,318 59.1 %$286,785 57.9 %$286,410 57.7 %$287,768 58.2 %
U.S. credit risk transfer (CRT) and other128,338 26.7 %132,205 27.3 %141,889 28.7 %145,883 29.4 %144,517 29.2 %
International mortgage insurance/reinsurance65,223 13.6 %66,084 13.6 %66,277 13.4 %64,374 13.0 %62,487 12.6 %
Total$480,084 100.0 %$484,607 100.0 %$494,951 100.0 %$496,667 100.0 %$494,772 100.0 %
Risk In Force (RIF) (2)
U.S. primary mortgage insurance$74,281 84.8 %$74,679 85.0 %$74,952 84.9 %$74,948 85.1 %$75,300 85.5 %
U.S. credit risk transfer and other5,214 6.0 %5,358 6.1 %5,688 6.4 %5,892 6.7 %5,842 6.6 %
International mortgage insurance/reinsurance8,120 9.3 %7,864 8.9 %7,633 8.6 %7,221 8.2 %6,896 7.8 %
Total$87,615 100.0 %$87,901 100.0 %$88,273 100.0 %$88,061 100.0 %$88,038 100.0 %
(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.
16
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)
March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Total RIF by credit quality:
>=740$47,842 64.4 %$47,757 63.9 %$47,575 63.5 %$47,261 63.1 %$47,130 62.6 %
680-73922,861 30.8 %23,271 31.2 %23,638 31.5 %23,880 31.9 %24,274 32.2 %
620-6793,274 4.4 %3,340 4.5 %3,419 4.6 %3,479 4.6 %3,558 4.7 %
<620304 0.4 %311 0.4 %320 0.4 %328 0.4 %338 0.4 %
Total$74,281 100.0 %$74,679 100.0 %$74,952 100.0 %$74,948 100.0 %$75,300 100.0 %
Weighted average credit score750 749 749 749 748 
Total RIF by Loan-To-Value (LTV):
95.01% and above$7,436 10.0 %$7,314 9.8 %$7,362 9.8 %$7,361 9.8 %$7,383 9.8 %
90.01% to 95.00%44,147 59.4 %44,494 59.6 %44,720 59.7 %44,711 59.7 %44,901 59.6 %
85.01% to 90.00%19,951 26.9 %20,195 27.0 %20,251 27.0 %20,293 27.1 %20,420 27.1 %
85.00% and below2,747 3.7 %2,676 3.6 %2,619 3.5 %2,583 3.4 %2,596 3.4 %
Total$74,281 100.0 %$74,679 100.0 %$74,952 100.0 %$74,948 100.0 %$75,300 100.0 %
Weighted average LTV93.2 %93.2 %93.2 %93.2 %93.2 %
Total RIF by State:
California$5,922 8.0 %$5,901 7.9 %$5,892 7.9 %$5,894 7.9 %$5,909 7.8 %
Texas5,376 7.2 %5,382 7.2 %5,393 7.2 %5,432 7.2 %5,506 7.3 %
North Carolina3,285 4.4 %3,343 4.5 %3,358 4.5 %3,347 4.5 %3,340 4.4 %
Minnesota3,100 4.2 %3,129 4.2 %3,137 4.2 %3,147 4.2 %3,085 4.1 %
Illinois3,037 4.1 %3,042 4.1 %3,046 4.1 %3,033 4.0 %3,025 4.0 %
Georgia2,966 4.0 %3,005 4.0 %3,043 4.1 %3,063 4.1 %3,104 4.1 %
Michigan2,785 3.7 %2,816 3.8 %2,822 3.8 %2,816 3.8 %2,838 3.8 %
Massachusetts2,704 3.6 %2,780 3.7 %2,829 3.8 %2,841 3.8 %2,853 3.8 %
Ohio2,670 3.6 %2,666 3.6 %2,697 3.6 %2,702 3.6 %2,701 3.6 %
Florida2,659 3.6 %2,672 3.6 %2,690 3.6 %2,714 3.6 %2,758 3.7 %
Other39,777 53.5 %39,943 53.5 %40,045 53.4 %39,959 53.3 %40,181 53.4 %
Total$74,281 100.0 %$74,679 100.0 %$74,952 100.0 %$74,948 100.0 %$75,300 100.0 %
Weighted average coverage (end of period RIF divided by IIF)25.9 %26.1 %26.1 %26.2 %26.2 %
U.S. mortgage insurance total RIF, net of reinsurance (1)$62,366 $60,259 $60,662 $60,436 $60,226 
Analysts’ persistency (2)80.7 %81.8 %82.3 %81.9 %81.9 %
Risk-to-capital ratio — Arch MI U.S. (3)8.4:1 8.2:1 7.9:1 8.3:1 7.8:1
PMIER sufficiency ratio — Arch MI U.S. (4)175 %179 %176 %168 %186 %
(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 March 31, 2026).
(4) On August 21, 2024, Fannie Mae and Freddie Mac (collectively the GSEs) each updated their Private Mortgage Insurer Eligibility Requirements (PMIERs) to incorporate new deductions to available assets for investment risk. This update became effective on March 31, 2025; but the impact will be phased in through September 30, 2026. If the GSEs had fully implemented this update to PMIERs as of March 31, 2026, the changes would have reduced the available assets by 2% and resulted in a pro-forma PMIERs Sufficiency Ratio of 173%.
17
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
March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Total new insurance written (NIW) (1)$14,812 $14,296 $12,965 $12,254 $9,190 
Total NIW by credit quality:
>=740$11,720 79.1 %$11,239 78.6 %$9,850 76.0 %$9,411 76.8 %$6,835 74.4 %
680-7392,698 18.2 %2,759 19.3 %2,753 21.2 %2,527 20.6 %2,103 22.9 %
620-679371 2.5 %293 2.0 %359 2.8 %313 2.6 %249 2.7 %
<62023 0.2 %5 0.0 %3 0.0 %3 0.0 %3 0.0 %
  Total$14,812 100.0 %$14,296 100.0 %$12,965 100.0 %$12,254 100.0 %$9,190 100.0 %
Total NIW by LTV:
95.01% and above$2,064 13.9 %$779 5.4 %$1,038 8.0 %$814 6.6 %$756 8.2 %
90.01% to 95.00%5,804 39.2 %5,894 41.2 %5,668 43.7 %5,632 46.0 %4,374 47.6 %
85.01% to 90.00%4,690 31.7 %5,337 37.3 %4,323 33.3 %3,945 32.2 %2,920 31.8 %
85.00% and below2,254 15.2 %2,286 16.0 %1,936 14.9 %1,863 15.2 %1,140 12.4 %
  Total$14,812 100.0 %$14,296 100.0 %$12,965 100.0 %$12,254 100.0 %$9,190 100.0 %
Total NIW monthly vs. single:
Monthly$14,273 96.4 %$13,653 95.5 %$12,267 94.6 %$11,779 96.1 %$8,497 92.5 %
Single539 3.6 %643 4.5 %698 5.4 %475 3.9 %693 7.5 %
  Total$14,812 100.0 %$14,296 100.0 %$12,965 100.0 %$12,254 100.0 %$9,190 100.0 %
Total NIW purchase vs. refinance:
Purchase$11,754 79.4 %$11,640 81.4 %$12,319 95.0 %$11,633 94.9 %$8,795 95.7 %
Refinance3,058 20.6 %2,656 18.6 %646 5.0 %621 5.1 %395 4.3 %
  Total$14,812 100.0 %$14,296 100.0 %$12,965 100.0 %$12,254 100.0 %$9,190 100.0 %
Ending number of policies in force (PIF) (2)1,049,661 1,058,907 1,067,147 1,073,477 1,085,927 
Rollforward of insured loans in default:
Beginning delinquent number of loans22,985 21,821 20,762 21,299 22,982 
Plus: new notices11,938 12,825 12,168 10,856 11,529 
Less: cures(12,969)(11,337)(10,715)(11,085)(12,920)
Less: paid claims(348)(324)(394)(308)(292)
Ending delinquent number of loans (2)21,606 22,985 21,821 20,762 21,299 
Ending percentage of loans in default (2)2.06 %2.17 %2.04 %1.93 %1.96 %
Losses:
Number of claims paid348 324 394 308 292 
Total paid claims (in thousands)$15,557 $15,917 $12,934 $12,703 $11,950 
Average paid per claim (in thousands)$44.7 $49.1 $32.8 $41.2 $40.9 
Severity (3)77.9 %81.6 %73.2 %75.3 %76.8 %
Average case reserve per default (in thousands)$16.6 $15.3 $16.1 $16.8 $16.7 
(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.
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)
March 31, 2026December 31, 2025
Loss Reserves, Net (1)Primary IIF (2)Primary RIF (3)Delinquency RateLoss Reserves, Net (1)Primary IIF (2)Primary RIF (3)Delinquency Rate
% of TotalTotal% of TotalTotal% of Total% of TotalTotal% of TotalTotal% of Total
Policy year:
2016 and prior20.7 %$18,794 6.6 %$4,776 6.4 %4.71 %24.9 %$19,384 6.8 %$4,923 6.6 %5.08 %
20173.6 %3,825 1.3 %1,008 1.4 %3.93 %3.9 %4,250 1.5 %1,127 1.5 %3.87 %
20185.8 %5,306 1.9 %1,384 1.9 %4.45 %6.1 %5,673 2.0 %1,479 2.0 %4.48 %
20196.7 %9,901 3.5 %2,604 3.5 %2.89 %7.3 %10,553 3.7 %2,770 3.7 %3.08 %
202011.8 %29,042 10.1 %7,980 10.7 %1.76 %12.3 %30,968 10.8 %8,487 11.4 %1.85 %
202116.9 %47,723 16.7 %13,152 17.7 %1.81 %17.4 %50,141 17.5 %13,767 18.4 %1.88 %
202216.7 %47,648 16.6 %12,821 17.3 %1.87 %14.5 %49,492 17.3 %13,236 17.7 %1.87 %
202310.1 %29,282 10.2 %7,573 10.2 %1.95 %7.9 %31,049 10.8 %8,006 10.7 %1.93 %
20246.3 %36,987 12.9 %9,296 12.5 %1.33 %5.0 %39,306 13.7 %9,840 13.2 %1.17 %
20251.4 %43,389 15.1 %10,543 14.2 %0.33 %0.7 %45,502 15.9 %11,044 14.8 %0.20 %
20260.0 %14,626 5.1 %3,144 4.2 %0.03 %
Total100.0 %$286,523 100.0 %$74,281 100.0 %2.06 %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 $335.9 million at March 31, 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.


19
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Consolidated

(U.S. Dollars in millions)Three Months Ended
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Gross premiums written$6,425 $4,809 $5,410 $6,196 $6,463 
Premiums ceded(2,077)(1,160)(1,446)(1,848)(1,948)
Net premiums written4,348 3,649 3,964 4,348 4,515 
Change in unearned premiums(362)606 321 (11)(327)
Net premiums earned3,986 4,255 4,285 4,337 4,188 
Other underwriting income (1)59 52 50 62 53 
Losses and loss adjustment expenses(2,089)(2,280)(2,200)(2,303)(2,587)
Acquisition expenses(730)(779)(786)(824)(764)
Other operating expenses(498)(421)(478)(454)(473)
Underwriting income (loss) (2)$728 $827 $871 $818 $417 
Underwriting Ratios
Loss ratio52.4 %53.6 %51.4 %53.1 %61.8 %
Acquisition expense ratio18.3 %18.3 %18.4 %19.0 %18.3 %
Other operating expense ratio (3)11.0 %8.7 %10.0 %9.1 %10.0 %
Combined ratio81.7 %80.6 %79.8 %81.2 %90.1 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums4.4 %3.9 %1.7 %3.5 %13.1 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments:
Loss ratio impact(5.5)%(3.0)%(2.8)%(3.5)%(4.7)%
Acquisition expense ratio impact0.5 %0.2 %0.4 %0.3 %0.7 %
Total impact(5.0)%(2.8)%(2.4)%(3.2)%(4.0)%
Combined ratio excluding catastrophic activity and prior year development (2)82.3 %79.5 %80.5 %80.9 %81.0 %
Components of losses and loss adjustment expenses incurred
Paid losses and loss adjustment expenses$1,549 $1,951 $1,569 $1,744 $1,761 
Change in unpaid losses and loss adjustment expenses540 329 631 559 826 
Total losses and loss adjustment expenses$2,089 $2,280 $2,200 $2,303 $2,587 
Net premiums written to gross premiums written67.7 %75.9 %73.3 %70.2 %69.9 %
 
(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.’



20
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Selected Information on Losses and Loss Adjustment Expenses

(U.S. Dollars in millions)Three Months Ended
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Estimated net (favorable) adverse development in prior year loss reserves, net of related adjustments
Net impact on underwriting results:
Insurance$(8)$(1)$(2)$(2)$(10)
Reinsurance(136)(58)(44)(69)(92)
Mortgage(56)(59)(57)(68)(65)
Total $(200)$(118)$(103)$(139)$(167)
Impact on losses and loss adjustment expenses:
Insurance$(14)$(4)$(14)$(8)$(17)
Reinsurance(152)(69)(53)(81)(119)
Mortgage(54)(56)(54)(64)(61)
Total$(220)$(129)$(121)$(153)$(197)
Impact on acquisition expenses:
Insurance$6 $3 $12 $6 $7 
Reinsurance16 11 9 12 27 
Mortgage(2)(3)(3)(4)(4)
Total$20 $11 $18 $14 $30 
Impact on combined ratio:
Insurance(0.4)%(0.1)%(0.1)%(0.1)%(0.5)%
Reinsurance(7.4)%(2.9)%(2.2)%(3.3)%(4.5)%
Mortgage(19.9)%(20.3)%(19.2)%(24.1)%(21.8)%
Total (5.0)%(2.8)%(2.4)%(3.2)%(4.0)%
Impact on loss ratio:
Insurance(0.7)%(0.2)%(0.7)%(0.4)%(0.9)%
Reinsurance(8.3)%(3.5)%(2.6)%(3.9)%(5.9)%
Mortgage(19.2)%(19.4)%(18.1)%(22.8)%(20.4)%
Total(5.5)%(3.0)%(2.8)%(3.5)%(4.7)%
Impact on acquisition expense ratio:
Insurance0.3 %0.1 %0.6 %0.3 %0.4 %
Reinsurance0.9 %0.6 %0.4 %0.6 %1.4 %
Mortgage(0.7)%(0.9)%(1.1)%(1.3)%(1.4)%
Total 0.5 %0.2 %0.4 %0.3 %0.7 %
Estimated net losses incurred from current accident year catastrophic events (1)
Insurance$79 $64 $43 $58 $177 
Reinsurance95 100 29 96 370 
Total$174 $164 $72 $154 $547 
Impact on combined ratio:
Insurance4.2 %3.3 %2.2 %2.9 %9.5 %
Reinsurance5.2 %5.0 %1.5 %4.6 %18.3 %
Total4.4 %3.9 %1.7 %3.5 %13.1 %
(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.
21
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)March 31,December 31,September 30,June 30,March 31,
20262025202520252025
Investable assets:
Fixed maturities available for sale, at fair value$32,399 68.1 %$32,426 68.5 %$31,908 68.3 %$30,332 67.5 %$28,798 66.9 %
Fixed maturities—fair value option (1)1,129 2.4 %1,110 2.3 %1,050 2.2 %1,009 2.2 %913 2.1 %
Total fixed maturities33,528 70.5 %33,536 70.8 %32,958 70.5 %31,341 69.7 %29,711 69.0 %
Equity securities, at fair value1,766 3.7 %1,864 3.9 %1,805 3.9 %1,715 3.8 %1,618 3.8 %
Equity securities—fair value option (1)4 0.0 %5 0.0 %5 0.0 %5 0.0 %5 0.0 %
Total equity securities1,770 3.7 %1,869 3.9 %1,810 3.9 %1,720 3.8 %1,623 3.8 %
Other investments—fair value option (1)2,129 4.5 %1,957 4.1 %1,911 4.1 %1,810 4.0 %1,866 4.3 %
Investments accounted for using the equity method (2)6,652 14.0 %6,453 13.6 %6,232 13.3 %6,566 14.6 %6,340 14.7 %
Short-term investments available for sale, at fair value2,638 5.5 %2,625 5.5 %2,351 5.0 %2,788 6.2 %2,477 5.8 %
Short-term investments—fair value option (1)69 0.1 %64 0.1 %61 0.1 %68 0.2 %104 0.2 %
Total short-term investments2,707 5.7 %2,689 5.7 %2,412 5.2 %2,856 6.4 %2,581 6.0 %
Cash914 1.9 %993 2.1 %1,063 2.3 %983 2.2 %1,187 2.8 %
Securities transactions entered into but not settled at the balance sheet date(155)(0.3)%(128)(0.3)%360 0.8 %(338)(0.8)%(254)(0.6)%
Total investable assets held by the Company$47,545 100.0 %$47,369 100.0 %$46,746 100.0 %$44,938 100.0 %$43,054 100.0 %
Average effective duration of fixed maturities (in years)3.43 3.34 3.24 3.48 3.32 
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”).
22
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
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Composition of pre-tax net investment income:     
Fixed maturities$384 $384 $379 $360 $342 
Short-term investments24 27 25 24 26 
Equity securities (dividends)8 10 10 10 11 
Other (1)21 27 19 35 28 
Gross investment income437 448 433 429 407 
Investment expenses(29)(14)(25)(24)(29)
Pre-tax net investment income$408 $434 $408 $405 $378 
Per share$1.13 $1.18 $1.08 $1.07 $0.99 
Pre-tax equity in net income of investments accounted for using the equity method160 155 134 162 53 
Per share$0.44 $0.42 $0.36 $0.43 $0.14 
Investment income yield, at amortized cost (2):
Pre-tax3.99 %4.22 %4.07 %4.25 %4.16 %
After-tax3.26 %3.45 %3.32 %3.43 %3.35 %
Total return on investments (3)0.10 %1.36 %1.80 %3.09 %2.02 %
(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.

23
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 March 31, 2026
Corporates$14,929 $122 $(218)$(96)$(6)$15,031 99.3 %44.5 %
U.S. government and government agencies7,427 10 (55)(45)— 7,472 99.4 %22.2 %
Asset-backed securities3,737 7 (30)(23)(5)3,765 99.3 %11.1 %
Non-U.S. government securities2,997 27 (102)(75)(1)3,073 97.5 %8.9 %
Residential mortgage-backed securities 2,892 19 (31)(12)— 2,904 99.6 %8.6 %
Commercial mortgage-backed securities1,391 5 (7)(2)(1)1,394 99.8 %4.1 %
Municipal bonds155 — (4)(4)— 159 97.5 %0.5 %
Total$33,528 $190 $(447)$(257)$(13)$33,798 99.2 %100.0 %
At December 31, 2025
Corporates$15,160 $265 $(142)$123 $(10)$15,047 100.8 %45.2 %
U.S. government and government agencies7,450 23 (21)2 — 7,448 100.0 %22.2 %
Asset-backed securities3,574 20 (15)5 (8)3,577 99.9 %10.7 %
Non-U.S. government securities3,273 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 securities1,212 11 (5)6 (1)1,207 100.4 %3.6 %
Municipal bonds162 — (4)(4)— 166 97.6 %0.5 %
Total$33,536 $406 $(289)$117 $(20)$33,439 100.3 %100.0 %



24
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)March 31,December 31,September 30,June 30,March 31,
20262025202520252025
Credit quality distribution of total fixed maturities (1):
U.S. government and government agencies (2)$9,665 28.8 %$9,561 28.5 %$8,409 25.5 %$8,355 26.7 %$7,827 26.3 %
AAA5,769 17.2 %5,667 16.9 %5,425 16.5 %4,745 15.1 %4,698 15.8 %
AA2,554 7.6 %2,564 7.6 %2,449 7.4 %2,491 7.9 %2,287 7.7 %
A6,405 19.1 %6,448 19.2 %6,904 20.9 %6,645 21.2 %5,931 20.0 %
BBB6,526 19.5 %6,533 19.5 %7,167 21.7 %6,673 21.3 %6,625 22.3 %
BB1,340 4.0 %1,330 4.0 %1,175 3.6 %1,110 3.5 %1,051 3.5 %
B806 2.4 %734 2.2 %685 2.1 %657 2.1 %605 2.0 %
Lower than B35 0.1 %35 0.1 %29 0.1 %30 0.1 %26 0.1 %
Not rated428 1.3 %664 2.0 %715 2.2 %635 2.0 %661 2.2 %
Total fixed maturities, at fair value$33,528 100.0 %$33,536 100.0 %$32,958 100.0 %$31,341 100.0 %$29,711 100.0 %
Maturity profile of total fixed maturities:
Due in one year or less$582 1.7 %$412 1.2 %$570 1.7 %$518 1.7 %$533 1.8 %
Due after one year through five years17,540 52.3 %17,680 52.7 %17,379 52.7 %17,632 56.3 %16,570 55.8 %
Due after five years through ten years6,659 19.9 %7,149 21.3 %7,047 21.4 %6,350 20.3 %6,179 20.8 %
Due after 10 years727 2.2 %804 2.4 %798 2.4 %847 2.7 %656 2.2 %
25,508 76.1 %26,045 77.7 %25,794 78.3 %25,347 80.9 %23,938 80.6 %
Residential mortgage-backed securities2,892 8.6 %2,705 8.1 %2,766 8.4 %2,386 7.6 %1,755 5.9 %
Commercial mortgage-backed securities1,391 4.1 %1,212 3.6 %1,249 3.8 %838 2.7 %931 3.1 %
Asset-backed securities3,737 11.1 %3,574 10.7 %3,149 9.6 %2,770 8.8 %3,087 10.4 %
Total fixed maturities, at fair value$33,528 100.0 %$33,536 100.0 %$32,958 100.0 %$31,341 100.0 %$29,711 100.0 %

(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.


25
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)March 31,December 31,September 30,June 30,March 31,
20262025202520252025
Sector:
Industrials$8,286 55.5 %$7,840 51.7 %$8,262 51.5 %$7,974 51.7 %$7,157 49.1 %
Financials5,450 36.5 %6,066 40.0 %6,251 39.0 %5,939 38.5 %5,881 40.3 %
Utilities942 6.3 %949 6.3 %1,225 7.6 %1,201 7.8 %1,039 7.1 %
All other (1)251 1.7 %305 2.0 %306 1.9 %303 2.0 %512 3.5 %
Total$14,929 100.0 %$15,160 100.0 %$16,044 100.0 %$15,417 100.0 %$14,589 100.0 %
Credit quality distribution (2):
AAA$176 1.2 %$195 1.3 %$195 1.2 %$180 1.2 %$194 1.3 %
AA1,093 7.3 %968 6.4 %807 5.0 %953 6.2 %915 6.3 %
A5,173 34.7 %5,315 35.1 %5,882 36.7 %5,712 37.1 %5,092 34.9 %
BBB6,111 40.9 %6,210 41.0 %6,891 43.0 %6,392 41.5 %6,308 43.2 %
BB1,266 8.5 %1,262 8.3 %1,128 7.0 %1,054 6.8 %1,001 6.9 %
B800 5.4 %728 4.8 %676 4.2 %652 4.2 %604 4.1 %
Lower than B35 0.2 %35 0.2 %29 0.2 %30 0.2 %26 0.2 %
Not rated275 1.8 %447 2.9 %436 2.7 %444 2.9 %449 3.1 %
Total$14,929 100.0 %$15,160 100.0 %$16,044 100.0 %$15,417 100.0 %$14,589 100.0 %

(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 March 31, 2026:
(U.S. Dollars in millions)Fair
Value		% of Asset Class% of Investable AssetsCredit Quality (1)
Issuer:
Morgan Stanley$356 2.4 %0.7 %A/A1
JPMorgan Chase & Co.328 2.2 %0.7 %A/A1
Bank of America Corporation322 2.2 %0.7 %A-/A1
The Goldman Sachs Group, Inc.277 1.9 %0.6 %BBB+/A2
Amazon.com, Inc.240 1.6 %0.5 %AA/A1
Citigroup Inc.208 1.4 %0.4 %A-/A2
Wells Fargo & Company192 1.3 %0.4 %BBB+/A1
UBS Group AG181 1.2 %0.4 %A-/A1
The Toronto-Dominion Bank179 1.2 %0.4 %A-/A2
Hyundai Motor Company156 1.0 %0.3 %A-/A3
Total$2,439 16.3 %5.1 %
 
(1)    Average credit ratings assigned by S&P and Moody’s, respectively.

26
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)AgenciesAAAAAABBBNon-Investment GradeTotal
At March 31, 2026      
Residential mortgage-backed securities$2,232 $656 $— $— $— $4 $2,892 
Commercial mortgage-backed securities6 886 139 45 223 92 1,391 
Asset-backed securities— 2,117 295 1,007 190 128 3,737 
Total$2,238 $3,659 $434 $1,052 $413 $224 $8,020 
At December 31, 2025
Residential mortgage-backed securities$2,105 $598 $2 $— $— $— $2,705 
Commercial mortgage-backed securities6 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 
27
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.
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 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 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 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 10.
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.
28
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
 March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Net income available to Arch common shareholders$1,037 $1,228 $1,340 $1,227 $564 
Net realized (gains) losses (1)87 (22)(210)(229)(3)
Equity in net (income) of investments accounted for using the equity method(160)(155)(134)(162)(53)
Net foreign exchange (gains) losses(21)6 7 88 27 
Transaction costs and other18 26 21 18 10 
Income tax expense (benefit) (2)(60)9 18 37 42 
After-tax operating income available to Arch common shareholders$901 $1,092 $1,042 $979 $587 
Diluted per common share results:
Net income available to Arch common shareholders$2.88 $3.35 $3.56 $3.23 $1.48 
Net realized (gains) losses (1)0.24 (0.06)(0.56)(0.60)(0.01)
Equity in net (income) of investments accounted for using the equity method(0.44)(0.42)(0.36)(0.43)(0.14)
Net foreign exchange (gains) losses(0.06)0.02 0.02 0.23 0.07 
Transaction costs and other0.05 0.07 0.06 0.05 0.03 
Income tax expense (benefit) (2)(0.17)0.02 0.05 0.10 0.11 
After-tax operating income available to Arch common shareholders$2.50 $2.98 $2.77 $2.58 $1.54 
Weighted average common shares and common share equivalents outstanding - diluted359.7 366.6 376.1 379.9 381.9 
Beginning common shareholders’ equity$23,376 $22,889 $22,211 $20,715 $19,990 
Ending common shareholders’ equity23,358 23,376 22,889 22,211 20,715 
Average common shareholders’ equity$23,367 $23,133 $22,550 $21,463 $20,353 
Annualized net income return on average common equity17.8 %21.2 %23.8 %22.9 %11.1 %
Annualized operating return on average common equity15.4 %18.9 %18.5 %18.2 %11.5 %

(1)    Net realized gains or losses include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries.
(2)    Income tax expense (benefit) on net realized gains or losses, equity in net income of investments accounted for using the equity 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.

29
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
March 31,December 31,September 30,June 30,March 31,
 20262025202520252025
Arch Operating Income Components:
Income (loss) before income taxes and income (loss) from operating affiliates$1,109 $1,387 $1,503 $1,411 $678 
Net realized (gains) losses87 (22)(210)(229)(3)
Equity in net (income) of investments accounted for using the equity method(160)(155)(134)(162)(53)
Net foreign exchange (gains) losses(21)6 7 88 27 
Transaction costs and other18 26 21 18 10 
Income (loss) from operating affiliates
36 61 62 40 17 
Pre-tax operating income available to Arch (b)1,069 1,303 1,249 1,166 676 
Income tax (expense) benefit (a)(158)(201)(197)(177)(79)
After-tax operating income available to Arch911 1,102 1,052 989 597 
Preferred dividends(10)(10)(10)(10)(10)
After-tax operating income available to Arch common shareholders$901 $1,092 $1,042 $979 $587 
Effective tax rate on pre-tax operating income (loss) available to Arch (a)/(b)14.8 %15.4 %15.8 %15.2 %11.7 %

30
Arch Capital Group Ltd. and Subsidiaries
Capital Structure and Share Repurchase Activity
The following table provides an analysis of the Company’s capital structure:
(U.S. Dollars and shares in millions, except per share data)March 31,December 31,September 30,June 30,March 31,
20262025202520252025
Debt:
Arch senior notes, due May 1, 2034 ($300 principal, 7.35%)$300 $300 $300 $300 $300 
Arch-U.S. senior notes, due November 1, 2043 ($500 principal, 5.144%) (1)500 500 500 500 500 
Arch Finance senior notes, due December 15, 2026 ($500 principal, 4.011%) (2)500 500 500 500 500 
Arch Finance senior notes, due December 15, 2046 ($450 principal, 5.031%) (2)450 450 450 450 450 
Arch senior notes, due June 30, 2050 ($1,000 principal, 3.635%)1,000 1,000 1,000 1,000 1,000 
Deferred debt costs on senior notes(21)(21)(22)(22)(22)
Revolving credit agreement borrowings, due August 23, 2028— — — — — 
Total debt$2,729 $2,729 $2,728 $2,728 $2,728 
Shareholders’ equity available to Arch:
Series F non-cumulative preferred shares (5.45%)330 330 330 330 330 
Series G non-cumulative preferred shares (4.55%)500 500 500 500 500 
Common shareholders’ equity (a)23,358 23,376 22,889 22,211 20,715 
Total shareholders’ equity available to Arch$24,188 $24,206 $23,719 $23,041 $21,545 
Total capital available to Arch$26,917 $26,935 $26,447 $25,769 $24,273 
Common shares outstanding, net of treasury shares (b)352.9 359.0 367.3 375.4 375.6 
Book value per common share (3) (a)/(b)$66.19 $65.11 $62.32 $59.17 $55.15 
Leverage ratios:
Senior notes/total capital available to Arch10.1 %10.1 %10.3 %10.6 %11.2 %
Revolving credit agreement borrowings/total capital available to Arch— %— %— %— %— %
Debt/total capital available to Arch10.1 %10.1 %10.3 %10.6 %11.2 %
Preferred/total capital available to Arch3.1 %3.1 %3.1 %3.2 %3.4 %
Debt and preferred/total capital available to Arch13.2 %13.2 %13.5 %13.8 %14.7 %

(1)    Issued by Arch Capital Group (U.S.) Inc. (“Arch-U.S.”), a wholly owned subsidiary of Arch, and fully and unconditionally guaranteed by Arch.
(2)    Issued by Arch Capital Finance LLC (“Arch Finance”), a wholly owned subsidiary of Arch U.S. MI Holdings Inc., and fully and unconditionally guaranteed by Arch.
(3)    Excludes the effects of stock options, restricted and performance stock units outstanding.

The following table provides the impact of share repurchases under the Company’s share repurchase program:
(U.S. Dollars and shares in millions, except per share data)Three Months EndedCumulative
 March 31,December 31,September 30,June 30,March 31,March 31,
 202620252025202520252026
Effect of share repurchases:
Aggregate cost of shares repurchased$783.0 $797.9 $732.3 $163.2 $196.4 $8,566.0 
Shares repurchased8.3 8.9 8.2 1.9 2.2 463.3 
Average price per share repurchased$94.01 $90.04 $88.82 $87.94 $88.89 $18.49 
Remaining share repurchase authorization (1)$324.0 
(1)    Repurchases under the share repurchase authorization may be effected from time to time in open market or privately negotiated transactions. On April 19, 2026, the Company increased its authorization for its existing share repurchase program by $3.0 billion.
31

Source: View Original Filing on SEC EDGAR

FAQ

How did Arch Capital Group (ACGL) perform in Q1 2026?

Arch Capital Group delivered much higher profits in Q1 2026. Net income available to common shareholders was $1.04 billion, or $2.88 per diluted share, versus $564 million, or $1.48, in Q1 2025, reflecting stronger underwriting and investment results.

What was Arch Capital Group (ACGL)’s Q1 2026 combined ratio?

Arch Capital Group reported a consolidated combined ratio of 81.7% in Q1 2026, improved from 90.1% a year earlier. The loss ratio fell to 52.4%, and the acquisition and other operating expense ratios were 18.3% and 11.0%, indicating more profitable underwriting overall.

What were Arch Capital Group (ACGL)’s Q1 2026 operating earnings?

After-tax operating income available to Arch common shareholders was $901 million, or $2.50 per diluted share, in Q1 2026. This compares with $587 million, or $1.54 per share, in Q1 2025, highlighting a 53.5% increase in operating profit year over year.

How did Arch Capital Group’s segments perform in Q1 2026?

In Q1 2026, insurance produced underwriting income of $66 million with a 96.5% combined ratio, reinsurance earned $441 million with a 75.9% combined ratio, and mortgage generated $221 million with a 22.3% combined ratio, all contributing strongly to consolidated results.

What was Arch Capital Group (ACGL)’s book value per share at March 31, 2026?

Book value per Arch Capital common share was $66.19 at March 31, 2026, up from $65.11 at December 31, 2025. This 1.7% increase occurred even after the company repurchased $783 million of its common shares during the quarter.

How did catastrophes and reserve development affect Arch Capital in Q1 2026?

Arch recorded $174 million of pre-tax current accident year catastrophic losses in insurance and reinsurance, but also recognized $200 million of favorable prior-year reserve development. These reserve releases and lower catastrophe load helped reduce the overall loss ratio and combined ratio.

What returns on equity did Arch Capital (ACGL) generate in Q1 2026?

Arch’s annualized net income return on average common equity was 17.8% in Q1 2026, up from 11.1% a year earlier. Annualized operating return on average common equity reached 15.4%, compared with 11.5% in Q1 2025, showing improved profitability on shareholder capital.

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