Arch Capital Group Ltd. (NASDAQ:ACGL, "Arch, " "our" or "the Company")) announces its 2026 second quarter results. The results included:

Net income available to Arch common shareholders of $1.0 billion, or $3.00 per share, representing an 18.0% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $1.2 billion, or $3.23 per share, for the 2025 second quarter.
After-tax operating income available to Arch common shareholders⁽¹⁾of $893 million, or $2.56 per share, representing a 15.3% annualized operating return on average common equity⁽¹⁾, compared to $979 million, or $2.58 per share, for the 2025 second quarter.
Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $201 million.
Favorable development in prior year loss reserves, net of related adjustments, of $165 million.
Combined ratio excluding catastrophic activity and prior year development⁽¹⁾ of 82.5%, compared to 80.9% for the 2025 second quarter.
Share repurchases of $1.2 billion.
Book value per common share of $68.04 at June 30, 2026, a 2.8% increase from March 31, 2026.

"We delivered a strong quarter, driven by solid underwriting performance across our three segments, reflecting the continued strength of our diversified platform and disciplined execution across the enterprise," said Arch CEO Nicolas Papadopoulo. "Our leadership positions in Specialty Insurance, including our Mortgage and Reinsurance operations, provide us with a meaningful competitive advantage. Clients not only come to us for capacity, but also for our underwriting expertise, claims capabilities, creative solutions and valuable perspectives that help them better manage risk."

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

(U.S. Dollars in millions)	Three Months Ended June 30,
	2026		2025		% Change
Gross premiums written	$	6,126	$	6,196	(1.1)
Net premiums written		4,049		4,348	(6.9)
Net premiums earned		3,985		4,337	(8.1)
Underwriting income ⁽¹⁾		657		818	(19.7)
Underwriting Ratios					% Point Change
Loss ratio		55.1%		53.1%	2.0
Underwriting expense ratio⁽²⁾		28.4%		28.1%	0.3
Combined ratio		83.5%		81.2%	2.3

Combined ratio excluding catastrophic activity and prior year development ⁽¹⁾		82.5%		80.9%	1.6

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

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

(U.S. Dollars in millions, except per share data)	Three Months Ended
	June 30,
	2026		2025
Net income available to Arch common shareholders	$	1,047	$	1,227
Net realized (gains) losses (1)		17		(229)
Equity in net (income) of investments accounted for using the equity method		(196)		(162)
Net foreign exchange (gains) losses		(10)		88
Transaction costs and other		32		18
Income tax expense (benefit) (2)		3		37
After-tax operating income available to Arch common shareholders	$	893	$	979

Diluted per common share results:
Net income available to Arch common shareholders	$	3.00	$	3.23
Net realized (gains) losses (1)		0.05		(0.60)
Equity in net (income) of investments accounted for using the equity method		(0.56)		(0.43)
Net foreign exchange (gains) losses		(0.03)		0.23
Transaction costs and other		0.09		0.05
Income tax expense (benefit) (2)		0.01		0.10
After-tax operating income available to Arch common shareholders	$	2.56	$	2.58

Weighted average common shares and common share equivalents outstanding — diluted		348.8		379.9

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

Annualized net income return on average common equity		18.0%		22.9%
Annualized operating return on average common equity		15.3%		18.2%

(1)		Net realized gains or losses include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries.
(2)		Income tax expense (benefit) on net realized gains or losses, equity in net income of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.

Segment Information

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

Insurance Segment

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

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

Underwriting income	$	27	$	129	(79.1)

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

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

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

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

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

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

Reinsurance Segment

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

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

Underwriting income	$	410	$	451	(9.1)

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

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

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

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

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

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

Mortgage Segment

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

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

Underwriting income	$	220	$	238	(7.6)

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

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

Combined ratio excluding prior year development		39.8%		39.3%	0.5

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

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

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

Corporate

The Company’s results include net investment income, net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.

Investment returns were as follows:

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

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

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

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

(1)		Presented on an annualized basis and excluding the impact of investments for which returns are not included within investment income, such as investments accounted for using the equity method and certain equities.
(2)		See ‘Comments on Non-GAAP Financial Measures’ for further details.

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

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

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

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

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

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

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

Conference Call

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

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

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

Comments on Non-GAAP Financial Measures

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

This presentation includes the use of "after-tax operating income or loss available to Arch common shareholders," which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on page 2 of this release.

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

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

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

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

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

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

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

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

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

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

Net investment income								417
Net realized gains (losses)								(17)
Equity in net income of investments accounted for using the equity method								196
Other income (loss)								30
Corporate benefit (expenses) (3)								(12)
Transaction costs and other (3)								(32)
Amortization of intangible assets								(30)
Interest expense								(44)
Net foreign exchange gains (losses)								10
Income (loss) before income taxes and income (loss) from operating affiliates								1,175
Income tax benefit (expense)								(164)
Income (loss) from operating affiliates								46
Net income (loss) available to Arch								1,057
Preferred dividends								(10)
Net income (loss) available to Arch common shareholders							$	1,047

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

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

(1)		Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.
(2)		‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(3)		Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
(4)		The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

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

Net investment income								405
Net realized gains (losses)								229
Equity in net income of investments accounted for using the equity method								162
Other income (loss)								18
Corporate benefit (expenses) (3)								(29)
Transaction costs and other (3)								(18)
Amortization of intangible assets								(48)
Interest expense								(38)
Net foreign exchange gains (losses)								(88)
Income (loss) before income taxes and income (loss) from operating affiliates								1,411
Income tax benefit (expense)								(214)
Income (loss) from operating affiliates								40
Net income (loss) available to Arch								1,237
Preferred dividends								(10)
Net income (loss) available to Arch common shareholders							$	1,227

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

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

(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.’

Cautionary Note Regarding Forward-Looking Statements

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

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

the Company’s ability to successfully implement its business strategy during "soft" as well as "hard" markets;
acceptance of the Company’s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds;
the Company’s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations;
the Company’s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein;
general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs, geopolitical instability and conflict and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which the Company operates;
competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors;
developments in the world’s financial and capital markets and the Company’s access to such markets;
the Company’s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business;
the loss and addition of key personnel;
material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements;
accuracy of those estimates and judgments utilized in the preparation of the Company’s financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred tax assets, contingencies and litigation, and any determination to use the deposit method of accounting;
greater than expected loss ratios on business written by the Company and adverse development on claim and/or claim expense liabilities related to business written by its insurance and reinsurance subsidiaries;
the adequacy of the Company’s loss reserves;
severity and/or frequency of losses;
greater frequency or severity of unpredictable natural and man-made catastrophic events;
claims for natural catastrophic events or severe economic events in the Company’s insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in the Company’s results of operations;
availability to the Company of reinsurance to manage our net exposures and the cost of such reinsurance;
the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to the Company;
the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by the Company;
the Company’s investment performance, including legislative or regulatory developments that may adversely affect the fair value of the Company’s investments;
changes in general economic conditions, resulting in downgrades of U.S. securities or sovereign debt by credit rating agencies, which could affect the Company’s business, financial condition and results of operations;
an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation;
the effect of climate change on the Company’s business;
the effect of contagious diseases or a pandemic on the Company’s business;
acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events caused by humans;
the volatility of the Company’s shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching portions of the Company’s projected liabilities in foreign currencies with investments in the same currencies;
changes in accounting principles or policies or in the Company’s application of such accounting principles or policies;
changes in the political environment of certain countries in which the Company operate or underwrite business;
statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to the Company, its subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development ("OECD") Pillar I and Pillar II initiative and the enactment of the Bermuda corporate income tax; and
the other matters set forth under Item 1A "Risk Factors", Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors.

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

Source: Arch Capital Group Ltd.

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Arch Capital Group Ltd.

François Morin: (441) 278-9250

Investor Relations

Donald Watson: (914) 872-3616; dwatson@archgroup.com