Arch Capital : 2025 Arch Capital Group Overview

Arch Capital Group Ltd.

ACGL

BMG0450A1053

Property & Casualty Insurance

Company Profile

Latest news about Arch Capital Group Ltd.

Chart Arch Capital Group Ltd.

Market Closed - Nasdaq Other stock markets 01:30:00 11/07/2025 am IST			5-day change	1st Jan Change
88.56 ^USD	+0.73%		-0.71%	-4.10%

10/07	Wells Fargo Raises Price Target on Arch Capital Group to $110 From $108, Maintains Overweight Rating	MT
09/07	Keefe Bruyette & Woods Downgrades Arch Capital Group to Market Perform From Outperform, Adjusts PT to $101 From $113	MT

Published on 28/02/2025 at 20:01, updated on 28/02/2025 at 20:02

Arch Capital Group Ltd. Overview

February 2025

Long-Term Value Creation

Book Value Per Common Share + Common Dividends

† Annualized growth rate from Dec. 31, 2001, to Dec. 31, 2024. Excludes the effects of stock options, restricted and performance stock units outstanding.

A Leading Global Specialty Insurer

Gross Premiums

Written

$21.5B

Combined

Ratio

82.5%

20+

Year ended Dec. 31, 2024

Years of Success	A GLOBAL
PRESENCE

	~7,000

Total

Capitalization

$23.5B

Debt and Preferred/ Total Capitalization

15.1%

Employees

Worldwide

As of Dec. 31, 2024

Financial Strength Ratings*

A+ A+

Standard & Poor's

A.M. Best

*Arch Reinsurance Ltd. ratings as of 2.14.2025. See our website for complete rating information.

Member of the

S&P 500®

Stock Market Index

Arch Delivers Superior Results with Lower Volatility

Arch's playbook is built on the DNA of a specialty insurance powerhouse. Our operating principles are:

FOCUS ON SPECIALTY

INSURANCE BUSINESS

We focus on commercial lines where our underwriting expertise enhances risk selection and returns.
Examples of specialty lines include:
- Insurance: Professional and Excess and Surplus (E&S) are more difficult and require deeper expertise to generate adequate, through-the-cycle returns.
- Reinsurance: Sophisticated modeling and portfolio construction can mitigate volatile property catastrophe returns.
- Mortgage: Innovative pricing and risk models drive performance.

MANAGE

THE CYCLE

Our executive and underwriting teams are compensated on long-term profitability, not just generating new premium.
We allocate capital to the lines of business with the best relative opportunity for risk-adjusted returns.
Simple in concept, difficult to execute. Successful insurers write more business when opportunities are good and less when conditions deteriorate.

EFFECTIVELY

ALLOCATE CAPITAL

When excess capital exists, we deploy according to the below priorities:
1. Reinvest into our business.
2. Reduce financial leverage.
3. Return excess capital to shareholders via buybacks and dividends.

Specialty Business Written Across Three Platforms

2024 Net Premiums Written (NPW) by Segment

INSURANCE, 44%

INSURANCE

REINSURANCE

REINSURANCE, 49%

MORTGAGE, 7%

MORTGAGE

14%

Casualty and other (International)

Other (North

America)

Commercial multi-peril

Commercial automobile

Workers compensation

$6.9B

12%

Other liability

- claims made

15%

Property and short-tail specialty (International)

18%

Property and short-tail specialty (North America)

15%

Other liability - occurrence

37%

Specialty

$7.7B

Other

Marine &

Aviation

12%	16%
Property	Casualty
Catastrophe

29%

Property

7.2%

International Mortgage

Insurance/Reinsurance

73.7%

U.S. Primary MI

$1.1B

19.1%

U.S. CRT & Other

Property and Casualty Net Premiums Written Growth By Line

INSURANCE ($M)

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

2022	2023	2024
	Property & short-tail specialty (North America)		Other liability - occurrence

	Other liability - claims made		Commercial multi-peril

	Workers compensation		Commercial automobile

	Other (North America)		Property & short-tail specialty (International)


	Casualty & other (International)

REINSURANCE ($M)

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

2022	2023	2024
	Casualty		Property excl. property catastrophe


	Property catastrophe		Specialty


	Marine, aviation and space		Other

Combined Ratio

2022	2023	2024

95.0%	91.7%	94.8%

Excluding Catastrophic Activity and Prior Year Development*

89.9%	89.6%	90.5%

Combined Ratio

2022	2023	2024

92.2%	81.4%	83.2%

Excluding Catastrophic Activity and Prior Year Development*

83.6%	77.4%	74.8%

* We use non-GAAP financial measures in this document. See Additional Information for a reconciliation to the most comparable GAAP financial measures. ©2025 Arch Capital Group Ltd. All rights reserved.

Global Mortgage Insurance In Force and Underwriting Income

$400

$300

$200

$100

38%

42%

43%

42%

$1.1B

58%

57%

58%

62%


2022	2023		2024
		U.S. Primary Mortgage Insurance		International Mortgage Insurance/Reinsurance and U.S. Credit Risk Transfer (CRT) and other

Combined Ratio

2022	2023	2024


(7.7%)	9.3%	12.6%

Excluding Prior Year Development*

40.9%

40.6%

37.5%

Conservative Investment Strategy

Duration of Fixed Maturity Portfolio: 3.3 years at Dec. 31, 2024

Invested Assets by Type ($B)

Dec. 31, 2024

19.2%	16.2%
Equity method
U.S. government
funds & other

4.1%

Equity securities

$41.4B

9.3%

Cash & short-term

6.2%		32.2%
	Corporates
Non-U.S.
government
7.0%
Asset backed securities	2.6%	2.6%
0.6%
CMBS2	MBS2
Municipal

Fixed Maturity by Rating ($B)

Dec. 31, 2024

0.1%

	1.6%	Lower	2.6%
	than B	Not rated
3.5%	B

		26.9%
BB
			U.S.
			government &
			government
			agencies3

23.2%

BBB

$27.9B

15.5%

AAA

18.4%

8.2%

CMBS = Commercial mortgage backed securities.
MBS = Mortgage backed securities.
Includes U.S. government - sponsored agency MBS and agency CMBS.

Business Growth Drives Investment Income and Invested Assets

Net Investment Income and Equity Method Income ($M)

$2,500

$2,000

$1,500

$1,000

$500

Invested Assets ($M)

$45,000

$40,000

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$-				$-

2022	2023	2024	2022	2023	2024

Net Investment Income

Equity in Net Income of Invested Funds (equity method)

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Arch Capital Group Ltd. published this content on February 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 28, 2025 at 14:31:36.070.

Wells Fargo Raises Price Target on Arch Capital Group to $110 From $108, Maintains Overweight Rating	10/07	MT
Keefe Bruyette & Woods Downgrades Arch Capital Group to Market Perform From Outperform, Adjusts PT to $101 From $113	09/07	MT
Jefferies Adjusts Price Target on Arch Capital to $97 From $100, Maintains Hold Rating	08/07	MT
Arch Capital Group Ltd.(NasdaqGS:ACGL) dropped from Russell 1000 Dynamic Index	01/07	CI
Arch Capital Group Shares Fall After Downgrade From Jefferies	11/06	MT
Markets Hold Breath Over China Talks	10/06
Jefferies Downgrades Arch Capital Group to Hold From Buy, Cuts Price Target to $100 From $106	10/06	MT
Analyst recommendations: Amazon, Crowdstrike, Warner Bros Discovery, Yum! Brands…	10/06
Arch Mortgage Insurance Company Integration with Wilqo Brings Seamless Customer Experience	02/06	CI
Morgan Stanley Adjusts Arch Capital Group Price Target to $110 From $105, Maintains Overweight Rating	19/05	MT
Declaration of Voting Results by Arch Capital Group	09/05	CI
BMO Capital Adjusts Price Target on Arch Capital Group to $95 From $97	06/05	MT
Keefe Bruyette & Woods Adjusts Arch Capital Group Price Target to $113 From $104	05/05	MT
Wells Fargo Adjusts Arch Capital Price Target to $108 From $106	01/05	MT
Arch Capital Group Ltd., Q1 2025 Earnings Call, Apr 30, 2025	30/04
Arch Capital's first-quarter profit halves on California wildfire losses	30/04	RE
Arch Capital Q1 Operating Income Declines, Revenue Rises	30/04	MT
Earnings Flash (ACGL) Arch Capital Group Reports Q1 Adjusted EPS $1.54	30/04	MT
Tranche Update on Arch Capital Group Ltd.'s Equity Buyback Plan announced on December 20, 2024.	30/04	CI
Arch Capital Group Ltd. Reports Earnings Results for the First Quarter Ended March 31, 2025	30/04	CI
Jefferies Adjusts Price Target on Arch Capital Group to $106 From $105, Keeps Buy Rating	11/04	MT
Friends Fiduciary Corporation Files an Exempt Solicitation Statement with Securities and Exchange Commission	10/04	CI
Barclays Adjusts Price Target on Arch Capital Group to $93 From $100, Maintains Equalweight Rating	10/04	MT
Morgan Stanley Adjusts Price Target on Arch Capital Group to $105 From $110, Keeps Overweight Rating	09/04	MT
UBS Lowers Price Target on Arch Capital Group to $124 From $127, Keeps Buy Rating	09/04	MT

Duration

Period

ACGL: Dynamic Chart

Insurance In Force ($B)

2024 Underwriting Income ($B)

Arch Capital Group Ltd. is an insurance group structured around 3 areas of business activity: - reinsurance (49.5% of gross written premiums): in particular, property, marine, aviation and property catastrophe reinsurance. The group also provides life reinsurance services; - insurance (43%): construction and national project insurance, excess civil liability insurance, property insurance, multi-risk insurance, credit insurance, professional civil liability insurance, workers compensation insurance, employer's liability insurance, fire insurance, home insurance, energy insurance, marine insurance, aviation insurance, travel insurance, personal accident insurance, health insurance, etc.; - mortgage insurance (7.5%).

Employees

7,200

Sector

Property & Casualty Insurance

Calendar

29/07 - Q2 2025 Earnings Release

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