0000947484false00009474842024-10-302024-10-300000947484us-gaap:CommonStockMember2024-10-302024-10-300000947484acgl:SeriesFDepositaryShareEquivalentMember2024-10-302024-10-300000947484acgl:SeriesGDepositaryShareEquivalentMember2024-10-302024-10-30


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
October 30, 2024
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 October 30, 2024 Arch Capital Group Ltd. issued a press release reporting its earnings and the availability of its financial supplement for the quarter ended September 30, 2024. 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 
99.2 
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: October 30, 2024By:/s/ François Morin
  Name:François Morin
  Title:Executive Vice President, Chief Financial Officer and Treasurer


3

EXHIBIT 99.1
archlogorgbsolida38a.jpg
PRESS RELEASEArch Capital Group Ltd.
NASDAQ Symbol: ACGLWaterloo House, Ground Floor
For Immediate Release100 Pitts Bay Road
October 30, 2024
Pembroke HM 08 Bermuda


ARCH CAPITAL GROUP LTD. REPORTS 2024 THIRD QUARTER RESULTS

PEMBROKE, BERMUDA--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2024 third quarter results. The results included:
•Net income available to Arch common shareholders of $978 million, or $2.56 per share, representing a 19.0% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $713 million, or $1.88 per share, for the 2023 third quarter.
•After-tax operating income available to Arch common shareholders(1) of $762 million, or $1.99 per share, representing a 14.8% annualized operating return on average common equity(1), compared to $876 million, or $2.31 per share, for the 2023 third quarter.
•Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $450 million, due in part to Hurricane Helene and a series of other global events.
•Favorable development in prior year loss reserves, net of related adjustments, of $119 million.
•Combined ratio excluding catastrophic activity and prior year development(1) of 78.3%, compared to 77.0% for the 2023 third quarter.
•Book value per common share of $57.00 at September 30, 2024, an 8.1% increase from June 30, 2024.
Nicolas Papadopoulo, Chief Executive Officer of ACGL commented: “Our third quarter results demonstrate the value of our diversified platform with excellent bottom-line contributions from all our units. Arch’s culture of adapting to evolving market conditions while maintaining underwriting discipline remains a key element of our long-term success.”
All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results:
(U.S. Dollars in millions)Three Months Ended September 30,
20242023% Change
Gross premiums written$5,440 $4,527 20.2 
Net premiums written4,047 3,355 20.6 
Net premiums earned3,970 3,248 22.2 
Underwriting income538 721 (25.4)
Underwriting Ratios% Point Change
Loss ratio60.5 %50.7 %9.8 
Underwriting expense ratio26.1 %27.2 %(1.1)
Combined ratio86.6 %77.9 %8.7 
Combined ratio excluding catastrophic activity and prior year development (1)
78.3 %77.0 %1.3 
(1)    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
September 30,
20242023
Net income available to Arch common shareholders$978 $713 
Net realized (gains) losses (1)(169)248 
Equity in net (income) loss of investment funds accounted for using the equity method(171)(59)
Net foreign exchange (gains) losses63 (22)
Transaction costs and other30 1 
Income tax expense (benefit) (2)31 (5)
After-tax operating income available to Arch common shareholders$762 $876 
Diluted per common share results:
Net income available to Arch common shareholders$2.56 $1.88 
Net realized (gains) losses (1)(0.44)0.65 
Equity in net (income) loss of investment funds accounted for using the equity method(0.45)(0.16)
Net foreign exchange (gains) losses0.16 (0.05)
Transaction costs and other0.08 0.00 
Income tax expense (benefit) (2)0.08 (0.01)
After-tax operating income available to Arch common shareholders$1.99 $2.31 
Weighted average common shares and common share equivalents outstanding — diluted382.3 379.4 
Beginning common shareholders’ equity$19,835 $13,811 
Ending common shareholders’ equity21,444 14,409 
Average common shareholders’ equity$20,640 $14,110 
Annualized net income return on average common equity19.0 %20.2 %
Annualized operating return on average common equity14.8 %24.8 %
(1)    Net realized gains or losses include 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 (loss) of investment funds 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 2024 third quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated September 30, 2024. The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see ‘Comments on Non-GAAP Financial Measures’ for further details).
Insurance Segment
Three Months Ended September 30,
(U.S. Dollars in millions)20242023% Change
Gross premiums written$2,341 $2,043 14.6 
Net premiums written1,820 1,522 19.6 
Net premiums earned1,765 1,412 25.0 
Underwriting income$120 $129 (7.0)
Underwriting Ratios% Point Change
Loss ratio61.6 %57.5 %4.1 
Underwriting expense ratio31.5 %33.4 %(1.9)
Combined ratio93.1 %90.9 %2.2 
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums4.9 %2.6 %2.3 
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(0.7)%(0.8)%0.1 
Combined ratio excluding catastrophic activity and prior year development88.9 %89.1 %(0.2)
On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (“MCE Acquisition”). As such, the insurance segment’s 2024 third quarter results include two months of activity related to the acquired business.
Gross premiums written by the insurance segment in the 2024 third quarter were 14.6% higher than in the 2023 third quarter (4.4% excluding the MCE Acquisition), while net premiums written were 19.6% higher than in the 2023 third quarter (5.8% excluding the MCE Acquisition). Growth in net premiums written included the impact of the MCE Acquisition and also reflected an increase in other liability—occurrence due, in part, to new business opportunities and rate changes. Net premiums earned in the 2024 third quarter were 25.0% higher than in the 2023 third quarter (8.8% excluding the MCE Acquisition), and reflect changes in net premiums written over the previous five quarters.
The 2024 third quarter loss ratio reflected 4.9 points of current year catastrophic activity, primarily related to Hurricane Helene, compared to 2.6 points of catastrophic activity in the 2023 third quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 0.9 points in the 2024 third quarter, compared to 0.7 points in the 2023 third quarter.
The underwriting expense ratio was 31.5% in the 2024 third quarter, compared to 33.4% in the 2023 third quarter. The impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 2.5 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 value of policies in force at closing are considered within the value of business acquired which is amortized through amortization of intangibles. The underwriting expense ratio also benefited from an initial lower level of operating expenses in the acquired business.
3

Reinsurance Segment
Three Months Ended September 30,
(U.S. Dollars in millions)20242023% Change
Gross premiums written$2,763 $2,138 29.2 
Net premiums written1,945 1,562 24.5 
Net premiums earned1,892 1,543 22.6 
Other underwriting income2 2 — 
Underwriting income$149 $310 (51.9)
Underwriting Ratios% Point Change
Loss ratio69.6 %56.4 %13.2 
Underwriting expense ratio22.7 %23.6 %(0.9)
Combined ratio92.3 %80.0 %12.3 
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums19.3 %9.3 %10.0 
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(1.9)%(2.8)%0.9 
Combined ratio excluding catastrophic activity and prior year development74.9 %73.5 %1.4 
Gross premiums written by the reinsurance segment in the 2024 third quarter were 29.2% higher than in the 2023 third quarter, while net premiums written were 24.5% higher than in the 2023 third quarter. The growth in net premiums written reflected increases in most lines of business, due in part to rate increases, new business opportunities and growth in existing accounts. Net premiums earned in the 2024 third quarter were 22.6% higher than in the 2023 third quarter, and reflect changes in net premiums written over the previous five quarters.
The 2024 third quarter loss ratio reflected 21.3 points of current year catastrophic activity, related to Hurricane Helene and a series of other global events, compared to 9.7 points of catastrophic activity in the 2023 third quarter. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 2.2 points in the 2024 third quarter, compared to 2.8 points in the 2023 third quarter. The balance of the change in the loss ratio resulted, in part, from the impact of rate increases, higher level of attritional losses and changes in the mix of business.
The underwriting expense ratio was 22.7% in the 2024 third quarter, compared to 23.6% in the 2023 third quarter. The decrease primarily reflected growth in net premiums earned.
4

Mortgage Segment
Three Months Ended September 30,
(U.S. Dollars in millions)20242023% Change
Gross premiums written$339 $347 (2.3)
Net premiums written282 271 4.1 
Net premiums earned313 293 6.8 
Other underwriting income3 3 — 
Underwriting income$269 $282 (4.6)
Underwriting Ratios% Point Change
Loss ratio(0.4)%(12.1)%11.7 
Underwriting expense ratio15.2 %16.8 %(1.6)
Combined ratio14.8 %4.7 %10.1 
Prior year development:
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(22.8)%(33.5)%10.7 
Combined ratio excluding prior year development37.6 %38.2 %(0.6)
Gross premiums written by the mortgage segment in the 2024 third quarter were 2.3% lower than in the 2023 third quarter, while net premiums written were 4.1% higher. The increase in net premiums written and earned in the 2024 third quarter primarily reflected a lower level of Bellemeade premiums ceded, due in part to the termination of certain Bellemeade agreements in the 2023 fourth quarter.
Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 20.5 points, compared to 31.4 points in the 2023 third quarter. Such amounts were primarily related to better than expected cure rates. The 2024 third quarter loss ratio, excluding net favorable development, was slightly higher than in the 2023 third quarter, primarily due to higher new delinquencies in the period.
The underwriting expense ratio was 15.2% in the 2024 third quarter, compared to 16.8% in the 2023 third quarter. The decrease was primarily due to higher level of ceding and profit commissions on U.S. primary business, along with a higher level of net premiums earned.

5

Corporate
The Company’s results include net investment income, net realized gains or losses (which includes 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 investment funds accounted for using the equity method, other income (loss), corporate expenses, transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.
Investment returns were as follows:
(U.S. Dollars in millions, except per share data)Three Months Ended
September 30,June 30,September 30,
202420242023
Pre-tax net investment income$399 $364 $269 
Per share$1.04 $0.95 $0.71 
Equity in net income (loss) of investment funds accounted for using the equity method$171 $167 $59 
Per share$0.45 $0.44 $0.16 
Pre-tax investment income yield, at amortized cost (1)4.40 %4.39 %3.68 %
Total return on investments (2)3.97 %1.33 %(0.40)%
(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.
The growth in net investment income in the 2024 third quarter primarily reflected the effects of sustained higher interest rates available in the market, along with growth in invested assets due in part to strong operating cash flows and inflows related to the MCE Acquisition. Net realized gains were $169 million for the 2024 third quarter, compared to net realized losses of $248 million in the 2023 third quarter, and reflected sales of investments as well as the impact of financial market movements on the Company’s derivatives, equity securities and investments accounted for under the fair value option method.
Amortization of intangible assets for the 2024 third quarter was $88 million, compared to $24 million for the 2023 third quarter. The higher level of expense for the 2024 third quarter reflects the amortization of intangible assets included in the MCE Acquisition, including intangible assets related to value of business acquired and distribution relationships.
Transaction costs and other were $30 million for the 2024 third quarter. Transaction costs and other primarily included integration, advisory, financing, legal and other transaction costs related to the MCE Acquisition.
On a pre-tax basis, net foreign exchange losses for the 2024 third quarter were $63 million, compared to net foreign exchange gains of $22 million for the 2023 third quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders’ equity and are not included in the consolidated statements of income.
The Company’s effective tax rate on income before income taxes (based on the Company’s estimated annual effective tax rate) was 9.0% for the 2024 third quarter, compared to 9.1% for the 2023 third quarter. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 8.0% for the 2024 third quarter, consistent with 8.0% for the 2023 third quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction.
Income from operating affiliates for the 2024 third quarter was $36 million, or $0.09 per share, compared to $54 million, or $0.14 per share, for the 2023 third 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 11:00 a.m. Eastern Time on October 31, 2024. 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 and will be archived on the site for one year.
Please refer to the Company’s Financial Supplement dated September 30, 2024, 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 $25.0 billion in capital at September 30, 2024. 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 includes 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 investment funds 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 investment funds 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 investment funds 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 investment funds 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.
7

In the 2023 fourth quarter, the Company established a net deferred tax benefit of $1.18 billion consistent with the transition provisions specified in the Bermuda Corporate Income Tax Act of 2023. Due to the non-recurring nature of this one-time item, the Company believes that excluding this item from after-tax operating income or loss available to common shareholders provides the user with a better evaluation of the Company’s ongoing 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.
Total return on investments includes investment income, equity in net income or loss of investment funds 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 2024 third quarter and 2023 third quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders:
(U.S. Dollars in millions)Three Months Ended
September 30, 2024
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,341 $2,763 $339 $5,440 
Premiums ceded (1)(521)(818)(57)(1,393)
Net premiums written1,820 1,945 282 4,047 
Change in unearned premiums(55)(53)31 (77)
Net premiums earned1,765 1,892 313 3,970 
Other underwriting income (loss)— 2 3 5 
Losses and loss adjustment expenses(1,087)(1,317)1 (2,403)
Acquisition expenses(308)(374)1 (681)
Other operating expenses(250)(54)(49)(353)
Underwriting income (loss)$120 $149 $269 538 
Net investment income399 
Net realized gains (losses)169 
Equity in net income (loss) of investment funds accounted for using the equity method171 
Other income (loss)8 
Corporate expenses (2)(19)
Transaction costs and other (2)(30)
Amortization of intangible assets(88)
Interest expense(35)
Net foreign exchange gains (losses)(63)
Income (loss) before income taxes and income (loss) from operating affiliates1,050 
Income tax benefit (expense)(98)
Income (loss) from operating affiliates36 
Net income (loss) available to Arch988 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$978 
Underwriting Ratios
Loss ratio61.6 %69.6 %(0.4)%60.5 %
Acquisition expense ratio17.4 %19.8 %(0.4)%17.2 %
Other operating expense ratio14.1 %2.9 %15.6 %8.9 %
Combined ratio93.1 %92.3 %14.8 %86.6 %
Net premiums written to gross premiums written77.7 %70.4 %83.2 %74.4 %

(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)    Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
9

(U.S. Dollars in millions)Three Months Ended
September 30, 2023
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,043 $2,138 $347 $4,527 
Premiums ceded (1)(521)(576)(76)(1,172)
Net premiums written1,522 1,562 271 3,355 
Change in unearned premiums(110)(19)22 (107)
Net premiums earned1,412 1,543 293 3,248 
Other underwriting income (loss)— 2 3 5 
Losses and loss adjustment expenses(812)(870)35 (1,647)
Acquisition expenses(269)(304)(2)(575)
Other operating expenses(202)(61)(47)(310)
Underwriting income (loss)$129 $310 $282 721 
Net investment income269 
Net realized gains (losses)(248)
Equity in net income (loss) of investment funds accounted for using the equity method59 
Other income (loss)(4)
Corporate expenses (2)(20)
Transaction costs and other (2)— 
Amortization of intangible assets(24)
Interest expense(34)
Net foreign exchange gains (losses)22 
Income (loss) before income taxes and income (loss) from operating affiliates741 
Income tax benefit (expense)(72)
Income (loss) from operating affiliates54 
Net income (loss) available to Arch723 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$713 
Underwriting Ratios
Loss ratio57.5 %56.4 %(12.1)%50.7 %
Acquisition expense ratio19.1 %19.7 %0.6 %17.7 %
Other operating expense ratio14.3 %3.9 %16.2 %9.5 %
Combined ratio90.9 %80.0 %4.7 %77.9 %
Net premiums written to gross premiums written74.5 %73.1 %78.1 %74.1 %
 
(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)    Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.

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 and the depth and duration of a recession, including those resulting from COVID-19) 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 resulting from natural or man-made 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;
•the effect of climate change on the Company’s business;
•the effect of contagious diseases (including COVID-19) on the Company’s business;
•acts of terrorism, geopolitical political unrest and other regional and global hostilities or other unforecasted and unpredictable events;
•availability to the Company of reinsurance to manage its gross and 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;
11

•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, including new or continued sovereign debt concerns or downgrades of U.S. securities by credit rating agencies, which could affect the Company’s business, financial condition and results of operations;
•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 operates, underwrites business or invests;
•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;
•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, 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-slantedxheaderxbluexga.gif
Arch Capital Group Ltd.
Waterloo House, Ground Floor
100 Pitts Bay Road
Pembroke HM 08 Bermuda


Financial Supplement
September 30, 2024
 
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-slantedxcontactsxbluea.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
  
II.Consolidated Financial Statements
 a.Consolidated Statements of Income
 b.Consolidated Balance Sheets
 c.Consolidated Statements of Changes in Shareholders’ Equity
 d.Consolidated Statements of Cash Flows
  
III.Segment Information
 a.Overview
 b.Consolidated Results
 c.Insurance Segment Results
 d.Reinsurance Segment Results
e.Mortgage Segment Results
f.Segment Consolidated Results
g.Selected Information on Losses and Loss Adjustment Expenses
  
IV.Investment Information
 a.Investable Asset Summary and Investment Portfolio Metrics
b.Composition of Net Investment Income, Yield and Total Return
 c.Composition of Fixed Maturities
d.Credit Quality Distribution and Maturity Profile
e.Analysis of Corporate Exposures
 f.Structured Securities
  
V.Other
 a.Comments on Non-GAAP Financial Measures
 b.Operating Income Reconciliation and Annualized Operating Return on Average Common Equity
c.Operating Income and Effective Tax Rate Calculations
 d.Capital Structure and Share Repurchase Activity

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, 2023 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, including pandemics such as COVID-19; 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 factors identified in the Company’s filings with the U.S. Securities and Exchange Commission.
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 EndedNine Months Ended
September 30,September 30,
20242023Change20242023Change
Underwriting results:
Gross premiums written$5,440 $4,527 20.2 %$16,755 $14,152 18.4 %
Net premiums written4,047 3,355 20.6 %11,913 10,207 16.7 %
Net premiums earned3,970 3,248 22.2 %10,957 9,096 20.5 %
Underwriting income (loss) (1)538 721 (25.4)%2,036 1,897 7.3 %
Loss ratio60.5 %50.7 %9.8 54.4 %50.7 %3.7 
Acquisition expense ratio17.2 %17.7 %(0.5)17.5 %18.3 %(0.8)
Other operating expense ratio8.9 %9.5 %(0.6)9.7 %10.4 %(0.7)
Combined ratio86.6 %77.9 %8.7 81.6 %79.4 %2.2 
Net investment income$399 $269 48.3 %$1,090 $710 53.5 %
Per diluted share$1.04 $0.71 46.5 %$2.86 $1.88 52.1 %
Net income available to Arch common shareholders$978 $713 37.2 %$3,347 $2,079 61.0 %
Per diluted share$2.56 $1.88 36.2 %$8.78 $5.50 59.6 %
After-tax operating income available to Arch common shareholders (1)$762 $876 (13.0)%$2,676 $2,256 18.6 %
Per diluted share$1.99 $2.31 (13.9)%$7.02 $5.96 17.8 %
Comprehensive income (loss) available to Arch$1,598 $589 171.3 %$3,853 $2,302 67.4 %
Net cash provided by operating activities$2,018 $1,970 2.4 %$5,100 $4,084 24.9 %
Weighted average common shares and common share equivalents outstanding — diluted382.3 379.4 0.8 %381.3 378.3 0.8 %
Financial measures:     
Change in book value per common share during period8.1 %4.3 %3.8 21.4 %18.4 %3.0 
Annualized net income return on average common equity19.0 %20.2 %(1.2)22.9 %20.9 %2.0 
Annualized operating return on average common equity (1)14.8 %24.8 %(10.0)18.3 %22.7 %(4.4)
Total return on investments (2)3.97 %(0.40)%437 bps6.20 %2.68 %352 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)Total return on investments includes investment income, equity in net income (loss) of investment funds 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 EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Revenues       
Net premiums earned$3,970 $3,565 $3,422 $3,344 $3,248 $10,957 $9,096 
Net investment income399 364 327 313 269 1,090 710 
Net realized gains (losses)169 122 67 189 (248)358 (354)
Other underwriting income5 3 12 10 5 20 21 
Equity in net income (loss) of investment funds accounted for using the equity method171 167 99 102 59 437 176 
Other income (loss)8 8 14 17 (4)30 10 
Total revenues4,722 4,229 3,941 3,975 3,329 12,892 9,659 
Expenses
Losses and loss adjustment expenses(2,403)(1,827)(1,728)(1,637)(1,647)(5,958)(4,609)
Acquisition expenses(681)(633)(607)(643)(575)(1,921)(1,669)
Other operating expenses(353)(346)(363)(359)(310)(1,062)(942)
Corporate expenses(49)(41)(53)(31)(20)(143)(71)
Amortization of intangible assets(88)(27)(21)(24)(24)(136)(71)
Interest expense(35)(35)(34)(34)(34)(104)(99)
Net foreign exchange gains (losses)(63)1 31 (59)22 (31)(1)
Total expenses(3,672)(2,908)(2,775)(2,787)(2,588)(9,355)(7,462)
Income (loss) before income taxes and income (loss) from operating affiliates1,050 1,321 1,166 1,188 741 3,537 2,197 
Income tax (expense) benefit(98)(97)(101)1,076 (72)(296)(203)
Income (loss) from operating affiliates36 45 55 69 54 136 115 
Net income (loss)988 1,269 1,120 2,333 723 3,377 2,109 
Net (income) loss attributable to noncontrolling interests— — — 1 — — — 
Net income (loss) attributable to Arch988 1,269 1,120 2,334 723 3,377 2,109 
Preferred dividends(10)(10)(10)(10)(10)(30)(30)
Net income (loss) available to Arch common shareholders$978 $1,259 $1,110 $2,324 $713 $3,347 $2,079 
Comprehensive income (loss) available to Arch$1,598 $1,280 $975 $3,111 $589 $3,853 $2,302 
Net income (loss) per common share and common share equivalent
Basic$2.62 $3.38 $2.99 $6.29 $1.93 $8.99 $5.64 
Diluted$2.56 $3.30 $2.92 $6.12 $1.88 $8.78 $5.50 
Weighted average common shares and common share equivalents outstanding
Basic373.2 372.7 370.9 369.6 369.2 372.3 368.4 
Diluted382.3 381.6 380.5 379.8 379.4 381.3 378.3 



4
Arch Capital Group Ltd. and Subsidiaries
Consolidated Balance Sheets

(U.S. Dollars and shares in millions, except per share data)September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Assets     
Investments:     
Fixed maturities available for sale, at fair value$28,434 $25,202 $23,628 $23,553 $22,485 
Short-term investments available for sale, at fair value3,341 2,297 2,142 2,063 1,682 
Equity securities, at fair value1,623 1,397 1,720 1,186 894 
Other investments3,261 3,206 2,886 2,488 2,068 
Investments accounted for using the equity method5,244 4,983 4,842 4,566 4,251 
Total investments41,903 37,085 35,218 33,856 31,380 
Cash1,025 1,020 993 917 859 
Accrued investment income292 287 236 236 217 
Investment in operating affiliates1,236 1,143 1,174 1,119 1,000 
Premiums receivable6,364 6,268 5,765 4,644 4,937 
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses7,948 7,473 7,509 7,064 6,821 
Contractholder receivables2,078 2,016 1,907 1,814 1,805 
Ceded unearned premiums2,935 2,981 2,717 2,170 2,444 
Deferred acquisition costs1,744 1,635 1,625 1,531 1,483 
Receivable for securities sold790 116 166 63 59 
Goodwill and intangible assets1,486 725 778 731 739 
Other assets5,855 4,716 4,680 4,761 3,483 
Total assets$73,656 $65,465 $62,768 $58,906 $55,227 
Liabilities     
Reserve for losses and loss adjustment expenses$28,679 $24,466 $23,705 $22,752 $21,836 
Unearned premiums11,238 10,452 9,971 8,808 9,074 
Reinsurance balances payable2,586 2,591 2,497 2,000 2,215 
Contractholder payables2,082 2,020 1,910 1,817 1,807 
Collateral held for insured obligations268 263 263 259 274 
Senior notes2,727 2,727 2,727 2,726 2,726 
Payable for securities purchased967 410 433 247 417 
Other liabilities2,835 1,871 1,905 1,942 1,637 
Total liabilities51,382 44,800 43,411 40,551 39,986 
Redeemable noncontrolling interests— — 2 2 2 
Shareholders’ equity     
Non-cumulative preferred shares830 830 830 830 830 
Common shares1 1 1 1 1 
Additional paid-in capital2,465 2,443 2,401 2,327 2,297 
Retained earnings23,642 22,664 21,405 20,295 17,971 
Accumulated other comprehensive income (loss), net of deferred income tax(200)(810)(821)(676)(1,453)
Common shares held in treasury, at cost(4,464)(4,463)(4,461)(4,424)(4,407)
Total shareholders’ equity22,274 20,665 19,355 18,353 15,239 
Total liabilities, noncontrolling interests and shareholders’ equity$73,656 $65,465 $62,768 $58,906 $55,227 
Common shares and common share equivalents outstanding, net of treasury shares376.2 376.0 375.3 373.3 373.1 
Book value per common share (1)$57.00 $52.75 $49.36 $46.94 $38.62 
(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 EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2024202420242023202320242023
Non-cumulative preferred shares       
Balance at beginning and end of period$830 $830 $830 $830 $830 $830 $830 
Common shares
Balance at beginning and end of period1 1 1 1 1 1 1 
Additional paid-in capital
Balance at beginning of period2,443 2,401 2,327 2,297 2,278 2,327 2,211 
Amortization of share-based compensation16 16 68 20 15 100 73 
All other6 26 6 10 4 38 13 
Balance at end of period2,465 2,443 2,401 2,327 2,297 2,465 2,297 
Retained earnings
Balance at beginning of period22,664 21,405 20,295 17,971 17,258 20,295 15,892 
Net income988 1,269 1,120 2,333 723 3,377 2,109 
Amounts attributable to noncontrolling interests— — — 1 — — — 
Preferred share dividends(10)(10)(10)(10)(10)(30)(30)
Balance at end of period23,642 22,664 21,405 20,295 17,971 23,642 17,971 
Accumulated other comprehensive income (loss), net of deferred income tax
Balance at beginning of period(810)(821)(676)(1,453)(1,319)(676)(1,646)
Change in unrealized appreciation (decline) in value of available-for-sale investments585 27 (112)721 (94)500 226 
Change in foreign currency translation adjustments25 (16)(33)56 (40)(24)(33)
Balance at end of period(200)(810)(821)(676)(1,453)(200)(1,453)
Common shares held in treasury, at cost
Balance at beginning of period(4,463)(4,461)(4,424)(4,407)(4,407)(4,424)(4,378)
Shares repurchased for treasury(1)(2)(37)(17)— (40)(29)
Balance at end of period(4,464)(4,463)(4,461)(4,424)(4,407)(4,464)(4,407)
Total shareholders’ equity$22,274 $20,665 $19,355 $18,353 $15,239 $22,274 $15,239 

6
Arch Capital Group Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
(U.S. Dollars in millions)Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2024202420242023202320242023
Operating Activities       
Net income (loss)$988 $1,269 $1,120 $2,333 $723 $3,377 $2,109 
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized (gains) losses(165)(144)(52)(185)257 (361)367 
Equity in net (income) or loss of investment funds accounted for using the equity method and other income or loss(162)(62)(112)(111)(55)(336)(104)
Amortization of intangible assets88 27 21 24 24 136 71 
Share-based compensation16 16 68 20 15 100 73 
Changes in:
Reserve for losses and loss adjustment expenses, net1,078 709 660 534 584 2,447 1,604 
Unearned premiums, net77 216 663 (83)107 956 1,111 
Premiums receivable178 (523)(1,159)352 315 (1,504)(1,333)
Deferred acquisition costs(86)2 (82)(45)(38)(166)(190)
Reinsurance balances payable(27)95 521 (237)40 589 692 
Deferred income tax assets, net16 21 24 (1,201)(18)61 40 
Other items, net17 (108)(108)264 16 (199)(356)
Net cash provided by operating activities2,018 1,518 1,564 1,665 1,970 5,100 4,084 
Investing Activities       
Purchases of fixed maturity investments(7,436)(5,798)(8,325)(5,038)(4,184)(21,559)(13,024)
Purchases of equity securities(278)(145)(509)(280)(72)(932)(176)
Purchases of other investments(529)(875)(494)(1,059)(555)(1,898)(1,112)
Proceeds from sales of fixed maturity investments5,227 3,691 7,529 4,450 2,576 16,447 9,655 
Proceeds from sales of equity securities126 482 65 72 55 673 216 
Proceeds from sales, redemptions and maturities of other investments405 503 116 423 144 1,024 345 
Proceeds from redemptions and maturities of fixed maturity investments392 515 363 192 221 1,270 589 
Net settlements of derivative instruments115 7 5 119 (115)127 (69)
Net (purchases) sales of short-term investments(793)65 (90)(373)10 (818)(323)
Acquisitions, net of cash852 — — — — 852 — 
Purchases of fixed assets(12)(11)(15)(15)(11)(38)(37)
Other(32)57 (54)(23)(4)(29)— 
Net cash provided by (used for) investing activities(1,963)(1,509)(1,409)(1,532)(1,935)(4,881)(3,936)
Financing Activities       
Proceeds from common shares issued, net6 24 (32)(7)5 (2)5 
Change in third party investment in redeemable noncontrolling interests — — — — — — (22)
Other(3)— — — (2)(3)(5)
Preferred dividends paid(10)(10)(10)(10)(10)(30)(30)
Net cash provided by (used for) financing activities(7)14 (42)(17)(7)(35)(52)
Effects of exchange rate changes on foreign currency cash and restricted cash37 4 (11)27 (26)30 (14)
Increase (decrease) in cash and restricted cash85 27 102 143 2 214 82 
Cash and restricted cash, beginning of period1,627 1,600 1,498 1,355 1,353 1,498 1,273 
Cash and restricted cash, end of period$1,712 $1,627 $1,600 $1,498 $1,355 $1,712 $1,355 
Income taxes paid (received)$76 $151 $(6)$140 $54 $221 $127 
Interest paid$— $63 $— $64 $— $63 $63 
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; other specialty; property catastrophe; property excluding property catastrophe; and other.
Mortgage Segment
The Company’s mortgage segment includes: U.S. primary mortgage insurance business written predominantly through its eligible mortgage insurers by 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.”); U.S. credit-risk transfer (“CRT”) business and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance operations.
The Company’s results also include net investment income, net realized gains or losses (which includes 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 investment funds accounted for using the equity method, other income (loss), corporate expenses, transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income taxes items (which for the 2023 fourth quarter reflects the establishment of a net deferred tax asset related to the enactment of Bermuda’s new corporate income tax), income or loss from operating affiliates and items related to the Company’s non cumulative preferred shares.
8
Arch Capital Group Ltd. and Subsidiaries
Segment Information
(U.S. Dollars in millions)Three Months Ended
September 30, 2024
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,341 $2,763 $339 $5,440 
Premiums ceded (1)(521)(818)(57)(1,393)
Net premiums written1,820 1,945 282 4,047 
Change in unearned premiums(55)(53)31 (77)
Net premiums earned1,765 1,892 313 3,970 
Other underwriting income (loss)— 2 3 5 
Losses and loss adjustment expenses(1,087)(1,317)1 (2,403)
Acquisition expenses(308)(374)1 (681)
Other operating expenses(250)(54)(49)(353)
Underwriting income (loss)$120 $149 $269 538 
Net investment income399 
Net realized gains (losses)169 
Equity in net income (loss) of investment funds accounted for using the equity method171 
Other income (loss)8 
Corporate expenses (2)(19)
Transaction costs and other (2)(30)
Amortization of intangible assets(88)
Interest expense(35)
Net foreign exchange gains (losses)(63)
Income (loss) before income taxes and income (loss) from operating affiliates1,050 
Income tax (expense) benefit(98)
Income (loss) from operating affiliates36 
Net income (loss) available to Arch988 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$978 
Underwriting Ratios
Loss ratio61.6 %69.6 %(0.4)%60.5 %
Acquisition expense ratio17.4 %19.8 %(0.4)%17.2 %
Other operating expense ratio14.1 %2.9 %15.6 %8.9 %
Combined ratio93.1 %92.3 %14.8 %86.6 %
Net premiums written to gross premiums written77.7 %70.4 %83.2 %74.4 %
Total investable assets$42,751 
Total assets73,656 
Total liabilities51,382 

(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)    Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
9
Arch Capital Group Ltd. and Subsidiaries
Segment Information
(U.S. Dollars in millions)Three Months Ended
September 30, 2023
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,043 $2,138 $347 $4,527 
Premiums ceded (1)(521)(576)(76)(1,172)
Net premiums written1,522 1,562 271 3,355 
Change in unearned premiums(110)(19)22 (107)
Net premiums earned1,412 1,543 293 3,248 
Other underwriting income (loss)— 2 3 5 
Losses and loss adjustment expenses(812)(870)35 (1,647)
Acquisition expenses(269)(304)(2)(575)
Other operating expenses(202)(61)(47)(310)
Underwriting income (loss)$129 $310 $282 721 
Net investment income269 
Net realized gains (losses)(248)
Equity in net income (loss) of investment funds accounted for using the equity method59 
Other income (loss)(4)
Corporate expenses (2)(20)
Transaction costs and other (2)— 
Amortization of intangible assets(24)
Interest expense(34)
Net foreign exchange gains (losses)22 
Income (loss) before income taxes and income (loss) from operating affiliates741 
Income tax (expense) benefit(72)
Income (loss) from operating affiliates54 
Net income (loss) available to Arch723 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$713 
Underwriting Ratios
Loss ratio57.5 %56.4 %(12.1)%50.7 %
Acquisition expense ratio19.1 %19.7 %0.6 %17.7 %
Other operating expense ratio14.3 %3.9 %16.2 %9.5 %
Combined ratio90.9 %80.0 %4.7 %77.9 %
Net premiums written to gross premiums written74.5 %73.1 %78.1 %74.1 %
Total investable assets$31,881 
Total assets55,227 
Total liabilities39,986 
(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)    Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
10
Arch Capital Group Ltd. and Subsidiaries
Segment Information
(U.S. Dollars in millions)Nine Months Ended
September 30, 2024
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$6,569 $9,171 $1,020 $16,755 
Premiums ceded (1)(1,649)(3,013)(185)(4,842)
Net premiums written4,920 6,158 835 11,913 
Change in unearned premiums(226)(820)90 (956)
Net premiums earned4,694 5,338 925 10,957 
Other underwriting income (loss)— 5 15 20 
Losses and loss adjustment expenses(2,789)(3,206)37 (5,958)
Acquisition expenses(872)(1,050)1 (1,921)
Other operating expenses(718)(193)(151)(1,062)
Underwriting income (loss)$315 $894 $827 2,036 
Net investment income1,090 
Net realized gains (losses)358 
Equity in net income (loss) of investment funds accounted for using the equity method437 
Other income (loss)30 
Corporate expenses (2)(88)
Transaction costs and other (2)(55)
Amortization of intangible assets(136)
Interest expense(104)
Net foreign exchange gains (losses)(31)
Income (loss) before income taxes and income (loss) from operating affiliates3,537 
Income tax (expense) benefit(296)
Income (loss) from operating affiliates136 
Net income (loss) available to Arch3,377 
Preferred dividends(30)
Net income (loss) available to Arch common shareholders$3,347 
Underwriting Ratios
Loss ratio59.4 %60.1 %(4.0)%54.4 %
Acquisition expense ratio18.6 %19.7 %(0.1)%17.5 %
Other operating expense ratio15.3 %3.6 %16.3 %9.7 %
Combined ratio93.3 %83.4 %12.2 %81.6 %
Net premiums written to gross premiums written74.9 %67.1 %81.9 %71.1 %
 
(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)    Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
11
Arch Capital Group Ltd. and Subsidiaries
Segment Information
(U.S. Dollars in millions)Nine Months Ended
September 30, 2023
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$5,977 $7,142 $1,037 $14,152 
Premiums ceded (1)(1,564)(2,145)(240)(3,945)
Net premiums written4,413 4,997 797 10,207 
Change in unearned premiums(416)(781)86 (1,111)
Net premiums earned3,997 4,216 883 9,096 
Other underwriting income (loss)— 9 12 21 
Losses and loss adjustment expenses(2,276)(2,379)46 (4,609)
Acquisition expenses(778)(875)(16)(1,669)
Other operating expenses(592)(203)(147)(942)
Underwriting income (loss)$351 $768 $778 1,897 
Net investment income710 
Net realized gains (losses)(354)
Equity in net income (loss) of investment funds accounted for using the equity method176 
Other income (loss)10 
Corporate expenses (2)(69)
Transaction costs and other (2)(2)
Amortization of intangible assets(71)
Interest expense(99)
Net foreign exchange gains (losses)(1)
Income (loss) before income taxes and income (loss) from operating affiliates2,197 
Income tax (expense) benefit(203)
Income (loss) from operating affiliates115 
Net income (loss) available to Arch2,109 
Preferred dividends(30)
Net income (loss) available to Arch common shareholders$2,079 
Underwriting Ratios
Loss ratio57.0 %56.4 %(5.3)%50.7 %
Acquisition expense ratio19.5 %20.7 %1.8 %18.3 %
Other operating expense ratio14.8 %4.8 %16.7 %10.4 %
Combined ratio91.3 %81.9 %13.2 %79.4 %
Net premiums written to gross premiums written73.8 %70.0 %76.9 %72.1 %
 
(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)    Certain expenses have been excluded from ‘corporate expenses’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.

12
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Insurance Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Gross premiums written$2,341 $2,102 $2,126 $1,934 $2,043 $6,569 $5,977 
Premiums ceded(521)(544)(584)(485)(521)(1,649)(1,564)
Net premiums written1,820 1,558 1,542 1,449 1,522 4,920 4,413 
Change in unearned premiums(55)(80)(91)— (110)(226)(416)
Net premiums earned1,765 1,478 1,451 1,449 1,412 4,694 3,997 
Losses and loss adjustment expenses(1,087)(848)(854)(846)(812)(2,789)(2,276)
Acquisition expenses(308)(288)(276)(277)(269)(872)(778)
Other operating expenses(250)(233)(235)(227)(202)(718)(592)
Underwriting income (loss)$120 $109 $86 $99 $129 $315 $351 
Underwriting Ratios
Loss ratio61.6 %57.3 %58.9 %58.4 %57.5 %59.4 %57.0 %
Acquisition expense ratio17.4 %19.5 %19.0 %19.1 %19.1 %18.6 %19.5 %
Other operating expense ratio14.1 %15.8 %16.2 %15.6 %14.3 %15.3 %14.8 %
Combined ratio93.1 %92.6 %94.1 %93.1 %90.9 %93.3 %91.3 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums4.9 %2.0 %1.9 %3.8 %2.6 %3.0 %2.3 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(0.7)%(0.2)%(0.5)%(0.5)%(0.8)%(0.5)%(0.6)%
Combined ratio excluding catastrophic activity and prior year development (1)88.9 %90.8 %92.7 %89.8 %89.1 %90.8 %89.6 %
Net premiums written to gross premiums written77.7 %74.1 %72.5 %74.9 %74.5 %74.9 %73.8 %
 
(1)See ‘Comments on Non-GAAP Financial Measures’ for further discussion.

13
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Insurance Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Net Premiums Written by Line of Business
North America
Property and short-tail specialty$296 16.3 %$276 17.7 %$284 18.4 %$227 15.7 %$272 17.9 %$856 17.4 %$831 18.8 %
Other liability - occurrence253 13.9 %224 14.4 %183 11.9 %189 13.0 %141 9.3 %660 13.4 %487 11.0 %
Other liability - claims made228 12.5 %215 13.8 %200 13.0 %228 15.7 %240 15.8 %643 13.1 %623 14.1 %
Commercial multi-peril163 9.0 %62 4.0 %41 2.7 %49 3.4 %67 4.4 %266 5.4 %150 3.4 %
Workers compensation147 8.1 %112 7.2 %143 9.3 %139 9.6 %134 8.8 %402 8.2 %386 8.7 %
Commercial automobile134 7.4 %123 7.9 %112 7.3 %95 6.6 %111 7.3 %369 7.5 %296 6.7 %
Other81 4.5 %75 4.8 %69 4.5 %69 4.8 %81 5.3 %225 4.6 %226 5.1 %
Total North America $1,302 71.5 %$1,087 69.8 %$1,032 66.9 %$996 68.7 %$1,046 68.7 %$3,421 69.5 %$2,999 68.0 %
International
Property and short-tail specialty$277 15.2 %$260 16.7 %$268 17.4 %$245 16.9 %$263 17.3 %$805 16.4 %$797 18.1 %
Casualty and other241 13.2 %211 13.5 %242 15.7 %208 14.4 %213 14.0 %694 14.1 %617 14.0 %
Total International $518 28.5 %$471 30.2 %$510 33.1 %$453 31.3 %$476 31.3 %$1,499 30.5 %$1,414 32.0 %
Total$1,820 100.0 %$1,558 100.0 %$1,542 100.0 %$1,449 100.0 %$1,522 100.0 %$4,920 100.0 %$4,413 100.0 %
Net Premiums Earned by Line of Business
North America
Property and short-tail specialty$306 17.3 %$264 17.9 %$263 18.1 %$255 17.6 %$247 17.5 %$833 17.7 %$721 18.0 %
Other liability - occurrence265 15.0 %175 11.8 %175 12.1 %171 11.8 %152 10.8 %615 13.1 %447 11.2 %
Other liability - claims made213 12.1 %208 14.1 %212 14.6 %221 15.3 %225 15.9 %633 13.5 %645 16.1 %
Commercial multi-peril146 8.3 %57 3.9 %43 3.0 %49 3.4 %51 3.6 %246 5.2 %144 3.6 %
Workers compensation135 7.6 %132 8.9 %127 8.8 %132 9.1 %127 9.0 %394 8.4 %363 9.1 %
Commercial automobile122 6.9 %106 7.2 %101 7.0 %96 6.6 %97 6.9 %329 7.0 %247 6.2 %
Other79 4.5 %75 5.1 %81 5.6 %76 5.2 %71 5.0 %235 5.0 %214 5.4 %
Total North America$1,266 71.7 %$1,017 68.8 %$1,002 69.1 %$1,000 69.0 %$970 68.7 %$3,285 70.0 %$2,781 69.6 %
International
Property and short-tail specialty$276 15.6 %$248 16.8 %$238 16.4 %$245 16.9 %$237 16.8 %$762 16.2 %$640 16.0 %
Casualty and other223 12.6 %213 14.4 %211 14.5 %204 14.1 %205 14.5 %647 13.8 %576 14.4 %
Total International$499 28.3 %$461 31.2 %$449 30.9 %$449 31.0 %$442 31.3 %$1,409 30.0 %$1,216 30.4 %
Total$1,765 100.0 %$1,478 100.0 %$1,451 100.0 %$1,449 100.0 %$1,412 100.0 %$4,694 100.0 %$3,997 100.0 %
14
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Reinsurance Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Gross premiums written$2,763 $2,941 $3,467 $1,971 $2,138 $9,171 $7,142 
Premiums ceded(818)(994)(1,201)(414)(576)(3,013)(2,145)
Net premiums written1,945 1,947 2,266 1,557 1,562 6,158 4,997 
Change in unearned premiums(53)(167)(600)63 (19)(820)(781)
Net premiums earned1,892 1,780 1,666 1,620 1,543 5,338 4,216 
Other underwriting income (loss)2 1 2 8 2 5 9 
Losses and loss adjustment expenses(1,317)(1,006)(883)(848)(870)(3,206)(2,379)
Acquisition expenses(374)(345)(331)(365)(304)(1,050)(875)
Other operating expenses(54)(64)(75)(85)(61)(193)(203)
Underwriting income (loss)$149 $366 $379 $330 $310 $894 $768 
Underwriting Ratios
Loss ratio69.6 %56.5 %53.0 %52.3 %56.4 %60.1 %56.4 %
Acquisition expense ratio19.8 %19.4 %19.9 %22.5 %19.7 %19.7 %20.7 %
Other operating expense ratio2.9 %3.6 %4.5 %5.2 %3.9 %3.6 %4.8 %
Combined ratio92.3 %79.5 %77.4 %80.0 %80.0 %83.4 %81.9 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums19.3 %9.4 %1.8 %5.1 %9.3 %10.5 %6.8 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(1.9)%(1.8)%(2.5)%(1.3)%(2.8)%(2.0)%(2.7)%
Combined ratio excluding catastrophic activity and prior year development (1)74.9 %71.9 %78.1 %76.2 %73.5 %74.9 %77.8 %
Net premiums written to gross premiums written70.4 %66.2 %65.4 %79.0 %73.1 %67.1 %70.0 %
 
(1)See ‘Comments on Non-GAAP Financial Measures’ for further discussion.



15
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Reinsurance Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Net Premiums Written by Line of Business
Other specialty$769 39.5 %$539 27.7 %$840 37.1 %$787 50.5 %$527 33.7 %$2,148 34.9 %$1,625 32.5 %
Property excluding property catastrophe671 34.5 %585 30.0 %567 25.0 %414 26.6 %593 38.0 %1,823 29.6 %1,496 29.9 %
Casualty339 17.4 %261 13.4 %343 15.1 %215 13.8 %273 17.5 %943 15.3 %787 15.7 %
Marine and aviation69 3.5 %59 3.0 %129 5.7 %42 2.7 %54 3.5 %257 4.2 %208 4.2 %
Property catastrophe52 2.7 %472 24.2 %350 15.4 %63 4.0 %76 4.9 %874 14.2 %802 16.0 %
Other45 2.3 %31 1.6 %37 1.6 %36 2.3 %39 2.5 %113 1.8 %79 1.6 %
Total$1,945 100.0 %$1,947 100.0 %$2,266 100.0 %$1,557 100.0 %$1,562 100.0 %$6,158 100.0 %$4,997 100.0 %
Net Premiums Written by Underwriting Location
Bermuda$671 34.5 %$1,043 53.6 %$1,039 45.9 %$723 46.4 %$708 45.3 %$2,753 44.7 %$2,565 51.3 %
United States744 38.3 %429 22.0 %484 21.4 %466 29.9 %461 29.5 %1,657 26.9 %1,290 25.8 %
Europe and other530 27.2 %475 24.4 %743 32.8 %368 23.6 %393 25.2 %1,748 28.4 %1,142 22.9 %
Total$1,945 100.0 %$1,947 100.0 %$2,266 100.0 %$1,557 100.0 %$1,562 100.0 %$6,158 100.0 %$4,997 100.0 %
Net Premiums Earned by Line of Business
Other specialty$688 36.4 %$659 37.0 %$587 35.2 %$598 36.9 %$505 32.7 %$1,934 36.2 %$1,499 35.6 %
Property excluding property catastrophe540 28.5 %520 29.2 %486 29.2 %484 29.9 %449 29.1 %1,546 29.0 %1,161 27.5 %
Casualty282 14.9 %269 15.1 %247 14.8 %230 14.2 %264 17.1 %798 14.9 %775 18.4 %
Marine and aviation80 4.2 %60 3.4 %74 4.4 %56 3.5 %66 4.3 %214 4.0 %173 4.1 %
Property catastrophe256 13.5 %246 13.8 %234 14.0 %215 13.3 %219 14.2 %736 13.8 %527 12.5 %
Other46 2.4 %26 1.5 %38 2.3 %37 2.3 %40 2.6 %110 2.1 %81 1.9 %
Total$1,892 100.0 %$1,780 100.0 %$1,666 100.0 %$1,620 100.0 %$1,543 100.0 %$5,338 100.0 %$4,216 100.0 %
                    
16
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Mortgage Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2024202420242023202320242023
Gross premiums written$339 $340 $341 $350 $347 $1,020 $1,037 
Premiums ceded(57)(64)(64)(95)(76)(185)(240)
Net premiums written282 276 277 255 271 835 797 
Change in unearned premiums31 31 28 20 22 90 86 
Net premiums earned313 307 305 275 293 925 883 
Other underwriting income3 2 10 2 3 15 12 
Losses and loss adjustment expenses1 27 9 57 35 37 46 
Acquisition expenses1 — — (1)(2)1 (16)
Other operating expenses(49)(49)(53)(47)(47)(151)(147)
Underwriting income$269 $287 $271 $286 $282 $827 $778 
Underwriting Ratios
Loss ratio(0.4)%(8.6)%(3.0)%(20.6)%(12.1)%(4.0)%(5.3)%
Acquisition expense ratio(0.4)%0.1 %— %0.2 %0.6 %(0.1)%1.8 %
Other operating expense ratio15.6 %15.9 %17.5 %17.1 %16.2 %16.3 %16.7 %
Combined ratio14.8 %7.4 %14.5 %(3.3)%4.7 %12.2 %13.2 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(22.8)%(29.0)%(25.7)%(39.0)%(33.5)%(25.8)%(28.9)%
Combined ratio excluding prior year development (1)37.6 %36.4 %40.2 %35.7 %38.2 %38.0 %42.1 %
Net premiums written to gross premiums written83.2 %81.2 %81.2 %72.9 %78.1 %81.9 %76.9 %

(1)    See ‘Comments on Non-GAAP Financial Measures’ for further discussion.
17
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Mortgage Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Net Premiums Written by Underwriting Unit
U.S. primary mortgage insurance$209 74.1 %$201 72.8 %$202 72.9 %$175 68.6 %$190 70.1 %$612 73.3 %$562 70.5 %
U.S. credit risk transfer (CRT) and other54 19.1 %51 18.5 %56 20.2 %56 22.0 %57 21.0 %161 19.3 %164 20.6 %
International mortgage insurance/reinsurance19 6.7 %24 8.7 %19 6.9 %24 9.4 %24 8.9 %62 7.4 %71 8.9 %
Total$282 100.0 %$276 100.0 %$277 100.0 %$255 100.0 %$271 100.0 %$835 100.0 %$797 100.0 %
Net Premiums Written by Underwriting Location
United States$210 74.5 %$202 73.2 %$203 73.3 %$176 69.0 %$192 70.8 %$615 73.7 %$567 71.1 %
Other72 25.5 %74 26.8 %74 26.7 %79 31.0 %79 29.2 %220 26.3 %230 28.9 %
Total$282 100.0 %$276 100.0 %$277 100.0 %$255 100.0 %$271 100.0 %$835 100.0 %$797 100.0 %
Net Premiums Earned by Underwriting Unit
U.S. primary mortgage insurance$215 68.7 %$209 68.1 %$206 67.5 %$177 64.4 %$192 65.5 %$630 68.1 %$582 65.9 %
U.S. credit risk transfer (CRT) and other55 17.6 %51 16.6 %56 18.4 %55 20.0 %58 19.8 %162 17.5 %165 18.7 %
International mortgage insurance/reinsurance43 13.7 %47 15.3 %43 14.1 %43 15.6 %43 14.7 %133 14.4 %136 15.4 %
Total$313 100.0 %$307 100.0 %$305 100.0 %$275 100.0 %$293 100.0 %$925 100.0 %$883 100.0 %

(U.S. Dollars in millions)
September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Insurance In Force (IIF) (1)
U.S. primary mortgage insurance$292,313 57.2 %$292,512 57.0 %$288,385 56.9 %$290,764 57.1 %$292,903 57.4 %
U.S. credit risk transfer (CRT) and other148,417 29.0 %151,437 29.5 %148,623 29.3 %149,098 29.3 %152,453 29.9 %
International mortgage insurance/reinsurance70,380 13.8 %68,986 13.4 %69,811 13.8 %69,473 13.6 %65,107 12.8 %
Total$511,110 100.0 %$512,935 100.0 %$506,819 100.0 %$509,335 100.0 %$510,463 100.0 %
Risk In Force (RIF) (2)
U.S. primary mortgage insurance$76,448 84.6 %$76,351 84.6 %$75,194 84.7 %$75,527 84.6 %$75,850 84.9 %
U.S. credit risk transfer and other6,011 6.7 %6,206 6.9 %6,112 6.9 %6,156 6.9 %6,478 7.2 %
International mortgage insurance/reinsurance7,887 8.7 %7,666 8.5 %7,430 8.4 %7,562 8.5 %7,034 7.9 %
Total$90,346 100.0 %$90,223 100.0 %$88,736 100.0 %$89,245 100.0 %$89,362 100.0 %

(1) The aggregate dollar amount of each insured mortgage loan’s current principal balance. Such amounts are shown before external reinsurance.
(2) The aggregate dollar amount of each insured mortgage loan’s current principal balance multiplied by the insurance coverage percentage specified in the policy for insurance policies issued and after contract limits and/or loss ratio caps for risk-sharing or reinsurance transactions. Such amounts are shown before external reinsurance.
18
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Mortgage Segment
The following table provides supplemental disclosures for the Company’s U.S. primary mortgage insurance operations:
(U.S. Dollars in millions)
September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Total RIF by credit quality (FICO score):
>=740$47,414 62.0 %$47,190 61.8 %$46,693 62.1 %$46,796 62.0 %$46,990 62.0 %
680-73924,974 32.7 %25,053 32.8 %24,827 33.0 %24,990 33.1 %25,055 33.0 %
620-6793,701 4.8 %3,735 4.9 %3,439 4.6 %3,497 4.6 %3,554 4.7 %
<620359 0.5 %373 0.5 %235 0.3 %244 0.3 %251 0.3 %
Total$76,448 100.0 %$76,351 100.0 %$75,194 100.0 %$75,527 100.0 %$75,850 100.0 %
Weighted average FICO score748 747 748 748 748 
Total RIF by Loan-To-Value (LTV):
95.01% and above$7,415 9.7 %$7,384 9.7 %$7,005 9.3 %$7,067 9.4 %$7,113 9.4 %
90.01% to 95.00%45,509 59.5 %45,331 59.4 %44,742 59.5 %44,669 59.1 %44,675 58.9 %
85.01% to 90.00%20,746 27.1 %20,668 27.1 %20,352 27.1 %20,490 27.1 %20,565 27.1 %
85.00% and below2,778 3.6 %2,968 3.9 %3,095 4.1 %3,301 4.4 %3,497 4.6 %
Total$76,448 100.0 %$76,351 100.0 %$75,194 100.0 %$75,527 100.0 %$75,850 100.0 %
Weighted average LTV93.1 %93.1 %93.1 %93.0 %93.0 %
Total RIF by State:
California$6,052 7.9 %$6,110 8.0 %$6,105 8.1 %$6,162 8.2 %$6,235 8.2 %
Texas5,699 7.5 %5,803 7.6 %5,859 7.8 %5,972 7.9 %6,081 8.0 %
North Carolina3,353 4.4 %3,320 4.3 %3,245 4.3 %3,248 4.3 %3,258 4.3 %
Georgia3,145 4.1 %3,099 4.1 %3,043 4.0 %3,081 4.1 %3,116 4.1 %
Minnesota3,111 4.1 %3,110 4.1 %3,056 4.1 %3,069 4.1 %3,060 4.0 %
Illinois3,085 4.0 %3,086 4.0 %2,979 4.0 %2,986 4.0 %2,994 3.9 %
Massachusetts2,896 3.8 %2,891 3.8 %2,852 3.8 %2,858 3.8 %2,841 3.7 %
Florida2,880 3.8 %2,943 3.9 %2,929 3.9 %3,007 4.0 %3,086 4.1 %
Michigan2,876 3.8 %2,852 3.7 %2,796 3.7 %2,773 3.7 %2,722 3.6 %
Virginia2,581 3.4 %2,596 3.4 %2,562 3.4 %2,578 3.4 %2,605 3.4 %
Other40,770 53.3 %40,541 53.1 %39,768 52.9 %39,793 52.7 %39,852 52.5 %
Total$76,448 100.0 %$76,351 100.0 %$75,194 100.0 %$75,527 100.0 %$75,850 100.0 %
Weighted average coverage (end of period RIF divided by IIF)26.2 %26.1 %26.1 %26.0 %25.9 %
U.S. mortgage insurance total RIF, net of reinsurance (1)$60,421 $58,920 $57,882 $58,146 $56,946 
Analysts’ persistency (2)82.9 %83.3 %83.6 %83.6 %83.9 %
Risk-to-capital ratio -- Arch MI U.S. (3)7.3:1 7.4:1 7.0:1 7.3:1 6.6:1
PMIER sufficiency ratio -- Arch MI U.S. (4)205 %196 %223 %213 %245 %

(1) Total RIF for the U.S. mortgage insurance operations after external reinsurance.
(2) Represents the % of IIF at the beginning of a 12-mo. period that remained in force at the end of the period.
(3) Represents current (non-delinquent) RIF, net of reinsurance, divided by statutory capital (estimate for September 30, 2024).
(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 will become effective 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 September 30, 2024, the changes would have reduced Available Assets by 16% and resulted in a Pro-forma PMIERs Sufficiency Ratio of 173% compared with a reported PMIERs Sufficiency Ratio of 205%.
19
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Mortgage Segment
The following table provides supplemental disclosures for the Company’s U.S. primary mortgage insurance operations:
(U.S. Dollars in millions, except policy/loan/claim count)Three Months Ended
September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Total new insurance written (NIW) (1)$13,526 $13,799 $9,336 $9,351 $11,494 
Total NIW by credit quality (FICO score):
>=740$9,438 69.8 %$9,726 70.5 %$6,364 68.2 %$6,058 64.8 %$7,646 66.5 %
680-7393,584 26.5 %3,641 26.4 %2,660 28.5 %2,990 32.0 %3,520 30.6 %
620-679502 3.7 %430 3.1 %311 3.3 %301 3.2 %326 2.8 %
<6202 0.0 %2 0.0 %1 0.0 %2 0.0 %2 0.0 %
  Total$13,526 100.0 %$13,799 100.0 %$9,336 100.0 %$9,351 100.0 %$11,494 100.0 %
Total NIW by LTV:
95.01% and above$1,089 8.1 %$1,014 7.3 %$542 5.8 %$548 5.9 %$880 7.7 %
90.01% to 95.00%6,620 48.9 %7,234 52.4 %5,240 56.1 %5,095 54.5 %6,306 54.9 %
85.01% to 90.00%4,293 31.7 %4,047 29.3 %2,624 28.1 %2,746 29.4 %3,126 27.2 %
85.00% and below1,524 11.3 %1,504 10.9 %930 10.0 %962 10.3 %1,182 10.3 %
  Total$13,526 100.0 %$13,799 100.0 %$9,336 100.0 %$9,351 100.0 %$11,494 100.0 %
Total NIW monthly vs. single:
Monthly$12,581 93.0 %$12,764 92.5 %$8,916 95.5 %$8,827 94.4 %$10,712 93.2 %
Single945 7.0 %1,035 7.5 %420 4.5 %524 5.6 %782 6.8 %
  Total$13,526 100.0 %$13,799 100.0 %$9,336 100.0 %$9,351 100.0 %$11,494 100.0 %
Total NIW purchase vs. refinance:
Purchase$13,177 97.4 %$13,588 98.5 %$9,167 98.2 %$9,224 98.6 %$11,334 98.6 %
Refinance349 2.6 %211 1.5 %169 1.8 %127 1.4 %160 1.4 %
  Total$13,526 100.0 %$13,799 100.0 %$9,336 100.0 %$9,351 100.0 %$11,494 100.0 %
Ending number of policies in force (PIF) (2)1,114,251 1,123,698 1,104,746 1,117,480 1,129,351 
Rollforward of insured loans in default:
Beginning delinquent number of loans20,422 18,269 19,457 18,644 18,286 
Plus: new notices12,613 10,063 10,371 10,854 10,138 
Less: cures(10,819)(10,170)(11,253)(9,801)(9,545)
Less: paid claims(338)(265)(306)(240)(235)
Plus: acquired delinquent loans — 2,525 — — — 
Ending delinquent number of loans (2)21,878 20,422 18,269 19,457 18,644 
Ending percentage of loans in default (2)1.96 %1.82 %1.65 %1.74 %1.65 %
Losses:
Number of claims paid338 265 306 240 235 
Total paid claims (in thousands)$12,874 $7,557 $10,785 $7,401 $6,602 
Average paid per claim (in thousands)$38.1 $28.5 $35.2 $30.8 $28.1 
Severity (3)71.9 %56.6 %78.6 %77.8 %64.0 %
Average case reserve per default (in thousands)$15.9 $17.1 $18.2 $17.7 $21.2 
(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 paid claims divided by RIF of loans for which claims were paid.
20
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Mortgage Segment
The following table provides supplemental disclosures for the Company’s U.S. primary mortgage insurance operations:
(U.S. Dollars in millions)
September 30, 2024December 31, 2023
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:
2014 and prior37.1 %$15,482 5.3 %$3,938 5.2 %6.69 %31.0 %$13,301 4.6 %$3,387 4.5 %6.01 %
20151.2 %3,544 1.2 %913 1.2 %2.20 %2.0 %4,691 1.6 %1,244 1.6 %1.98 %
20163.5 %6,075 2.1 %1,614 2.1 %2.73 %4.8 %7,525 2.6 %2,025 2.7 %2.50 %
20174.9 %5,969 2.0 %1,599 2.1 %3.19 %7.0 %7,600 2.6 %2,023 2.7 %3.13 %
20187.2 %7,457 2.6 %1,939 2.5 %4.09 %9.0 %8,512 2.9 %2,207 2.9 %4.04 %
20197.9 %13,560 4.6 %3,552 4.6 %2.65 %9.1 %15,767 5.4 %4,074 5.4 %2.40 %
202010.7 %41,836 14.3 %11,307 14.8 %1.33 %12.1 %51,349 17.7 %13,357 17.7 %1.17 %
202114.0 %65,789 22.5 %17,379 22.7 %1.33 %14.8 %76,667 26.4 %19,812 26.2 %1.12 %
20229.5 %59,085 20.2 %15,577 20.4 %1.27 %8.8 %63,899 22.0 %16,755 22.2 %0.89 %
20233.5 %38,380 13.1 %9,875 12.9 %0.81 %1.3 %41,453 14.3 %10,643 14.1 %0.26 %
20240.4 %35,136 12.0 %8,755 11.5 %0.16 %
Total100.0 %$292,313 100.0 %$76,448 100.0 %1.96 %100.0 %$290,764 100.0 %$75,527 100.0 %1.74 %

(1)    Total reserves for losses and loss adjustment expenses, net of recoverables, was $331.3 million at September 30, 2024, compared to $323.6 million at December 31, 2023.
(2)    The aggregate dollar amount of each insured mortgage loan’s current principal balance.
(3)    The aggregate dollar amount of each insured mortgage loan’s current principal balance multiplied by the insurance coverage percentage specified in the policy for insurance policies issued and after contract limits and/or loss ratio caps for risk-sharing transactions.


21
Arch Capital Group Ltd. and Subsidiaries
Segment Information - Consolidated

(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Gross premiums written$5,440 $5,382 $5,933 $4,251 $4,527 $16,755 $14,152 
Premiums ceded(1,393)(1,601)(1,848)(990)(1,172)(4,842)(3,945)
Net premiums written4,047 3,781 4,085 3,261 3,355 11,913 10,207 
Change in unearned premiums(77)(216)(663)83 (107)(956)(1,111)
Net premiums earned3,970 3,565 3,422 3,344 3,248 10,957 9,096 
Other underwriting income (loss)5 3 12 10 5 20 21 
Losses and loss adjustment expenses(2,403)(1,827)(1,728)(1,637)(1,647)(5,958)(4,609)
Acquisition expenses(681)(633)(607)(643)(575)(1,921)(1,669)
Other operating expenses(353)(346)(363)(359)(310)(1,062)(942)
Underwriting income (loss) (1)$538 $762 $736 $715 $721 $2,036 $1,897 
Underwriting Ratios
Loss ratio60.5 %51.2 %50.5 %49.0 %50.7 %54.4 %50.7 %
Acquisition expense ratio17.2 %17.8 %17.7 %19.2 %17.7 %17.5 %18.3 %
Other operating expense ratio8.9 %9.7 %10.6 %10.7 %9.5 %9.7 %10.4 %
Combined ratio86.6 %78.7 %78.8 %78.9 %77.9 %81.6 %79.4 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums11.3 %5.5 %1.7 %4.1 %5.6 %6.4 %4.2 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(3.0)%(3.5)%(3.7)%(4.1)%(4.7)%(3.4)%(4.3)%
Combined ratio excluding catastrophic activity and prior year development (1)78.3 %76.7 %80.8 %78.9 %77.0 %78.6 %79.5 %
Components of losses and loss adjustment expenses incurred
Paid losses and loss adjustment expenses$1,329 $1,120 $1,070 $1,096 $1,058 $3,519 $2,997 
Change in unpaid losses and loss adjustment expenses1,074 707 658 541 589 2,439 1,612 
Total losses and loss adjustment expenses$2,403 $1,827 $1,728 $1,637 $1,647 $5,958 $4,609 
Net premiums written to gross premiums written74.4 %70.3 %68.9 %76.7 %74.1 %71.1 %72.1 %
 
(1)See ‘Comments on Non-GAAP Financial Measures’ for further discussion.


22
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Selected Information on Losses and Loss Adjustment Expenses

(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Estimated net (favorable) adverse development in prior year loss reserves, net of related adjustments
Net impact on underwriting results:
Insurance$(12)$(4)$(7)$(7)$(11)$(23)$(25)
Reinsurance(36)(31)(41)(21)(43)(108)(114)
Mortgage(71)(89)(78)(107)(98)(238)(255)
Total $(119)$(124)$(126)$(135)$(152)$(369)$(394)
Impact on losses and loss adjustment expenses:
Insurance$(16)$(5)$(10)$(8)$(10)$(31)$(34)
Reinsurance(41)(34)(40)(26)(44)(115)(126)
Mortgage(64)(82)(74)(101)(92)(220)(243)
Total$(121)$(121)$(124)$(135)$(146)$(366)$(403)
Impact on acquisition expenses:
Insurance$4 $1 $3 $1 $(1)$8 $9 
Reinsurance5 3 (1)5 1 7 12 
Mortgage(7)(7)(4)(6)(6)(18)(12)
Total$2 $(3)$(2)$— $(6)$(3)$9 
Impact on combined ratio:
Insurance(0.7)%(0.2)%(0.5)%(0.5)%(0.8)%(0.5)%(0.6)%
Reinsurance(1.9)%(1.8)%(2.5)%(1.3)%(2.8)%(2.0)%(2.7)%
Mortgage(22.8)%(29.0)%(25.7)%(39.0)%(33.5)%(25.8)%(28.9)%
Total (3.0)%(3.5)%(3.7)%(4.1)%(4.7)%(3.4)%(4.3)%
Impact on loss ratio:
Insurance(0.9)%(0.3)%(0.7)%(0.6)%(0.7)%(0.6)%(0.8)%
Reinsurance(2.2)%(1.9)%(2.4)%(1.6)%(2.8)%(2.2)%(3.0)%
Mortgage(20.5)%(26.9)%(24.4)%(36.6)%(31.4)%(23.9)%(27.5)%
Total(3.1)%(3.4)%(3.6)%(4.0)%(4.5)%(3.3)%(4.4)%
Impact on acquisition expense ratio:
Insurance0.2 %0.1 %0.2 %0.1 %(0.1)%0.1 %0.2 %
Reinsurance0.3 %0.1 %(0.1)%0.3 %0.0 %0.2 %0.3 %
Mortgage(2.3)%(2.1)%(1.3)%(2.4)%(2.1)%(1.9)%(1.4)%
Total 0.1 %(0.1)%(0.1)%(0.1)%(0.2)%(0.1)%0.1 %
Estimated net losses incurred from current accident year catastrophic events (1)
Insurance$86 $30 $27 $55 $37 $143 $92 
Reinsurance364 166 31 82 143 561 286 
Total$450 $196 $58 $137 $180 $704 $378 
Impact on combined ratio:
Insurance4.9 %2.0 %1.9 %3.8 %2.6 %3.0 %2.3 %
Reinsurance19.3 %9.4 %1.8 %5.1 %9.3 %10.5 %6.8 %
Total11.3 %5.5 %1.7 %4.1 %5.6 %6.4 %4.2 %
(1)Equals estimated losses from catastrophic events occurring in the current accident year (e.g. natural catastrophes, man-made events, pandemic events), net of reinsurance and reinstatement premiums. As regards the natural catastrophe estimates included within, amounts shown for the insurance segment are for named catastrophic events only, while amounts shown for the reinsurance segment include (i) named events with over $5 million of losses incurred by its Bermuda and Europe operations and (ii) all catastrophe losses incurred by its U.S. operations. Amounts not applicable for the mortgage segment.
23
Arch Capital Group Ltd. and Subsidiaries
Investment Information — Investable Asset Summary and Investment Portfolio Metrics
The following table summarizes the Company’s investable assets and portfolio metrics:
(U.S. Dollars in millions)September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Investable assets:
Fixed maturities available for sale, at fair value$28,434 66.5 %$25,202 66.7 %$23,628 65.7 %$23,553 68.1 %$22,485 70.5 %
Fixed maturities—fair value option (1)1,097 2.6 %973 2.6 %930 2.6 %683 2.0 %644 2.0 %
Total fixed maturities29,531 69.1 %26,175 69.2 %24,558 68.3 %24,236 70.1 %23,129 72.5 %
Equity securities, at fair value1,623 3.8 %1,397 3.7 %1,720 4.8 %1,186 3.4 %894 2.8 %
Equity securities—fair value option (1)7 0.0 %7 0.0 %7 0.0 %7 0.0 %7 0.0 %
Total equity securities1,630 3.8 %1,404 3.7 %1,727 4.8 %1,193 3.4 %901 2.8 %
Other investments—fair value option (1)2,096 4.9 %2,189 5.8 %1,914 5.3 %1,777 5.1 %1,404 4.4 %
Investments accounted for using the equity method (2)5,244 12.3 %4,983 13.2 %4,842 13.5 %4,566 13.2 %4,251 13.3 %
Short-term investments available for sale, at fair value3,341 7.8 %2,297 6.1 %2,142 6.0 %2,063 6.0 %1,682 5.3 %
Short-term investments—fair value option (1)61 0.1 %37 0.1 %35 0.1 %21 0.1 %13 0.0 %
Total short-term investments3,402 8.0 %2,334 6.2 %2,177 6.1 %2,084 6.0 %1,695 5.3 %
Cash1,025 2.4 %1,020 2.7 %993 2.8 %917 2.7 %859 2.7 %
Securities transactions entered into but not settled at the balance sheet date(177)(0.4)%(294)(0.8)%(267)(0.7)%(184)(0.5)%(358)(1.1)%
Total investable assets held by the Company$42,751 100.0 %$37,811 100.0 %$35,944 100.0 %$34,589 100.0 %$31,881 100.0 %
Average effective duration (in years)2.68 2.83 2.70 2.91 2.97  
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 investment funds accounted for using the equity method are recorded as “equity in net income (loss) of investment funds accounted for using the equity method” rather than as                 an unrealized gain or loss component of accumulated other comprehensive income.
(3)    Average credit ratings on the Company’s investment portfolio on securities with ratings assigned by Standard & Poor’s (“S&P”) and Moody’s Investors Service (“Moody’s”).
24
Arch Capital Group Ltd. and Subsidiaries
Investment Information — Composition of Net Investment Income, Yield and Total Return

The following table summarizes the Company’s net investment income, yield and total return:
(U.S. Dollars in millions, except per share data)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Composition of net investment income:       
Fixed maturities$340 $306 $280 $272 $243 $926 $645 
Short-term investments38 35 29 20 19 102 48 
Equity securities (dividends)9 10 8 7 5 27 15 
Other (1)35 35 33 33 22 103 60 
Gross investment income422 386 350 332 289 1,158 768 
Investment expenses(23)(22)(23)(19)(20)(68)(58)
Net investment income$399 $364 $327 $313 $269 $1,090 $710 
Per share$1.04 $0.95 $0.86 $0.82 $0.71 $2.86 $1.88 
Equity in net income (loss) of investment funds accounted for using the equity method171 167 99 102 59 437 176 
Per share$0.45 $0.44 $0.26 $0.27 $0.16 $1.15 $0.47 
Investment income yield, at amortized cost (2):
Pre-tax4.40 %4.39 %4.14 %4.11 %3.68 %4.29 %3.41 %
After-tax3.88 %3.87 %3.61 %3.59 %3.18 %3.77 %2.95 %
Total return on investments (3)3.97 %1.33 %0.80 %4.76 %(0.40)%6.20 %2.68 %
(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 investment funds accounted for using the equity method, net realized gains and losses (excluding changes in allowance for credit losses on non-investment related financial assets) and the change in unrealized gains or losses and is calculated on a pre-tax basis and before investment expenses. See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of the presentation of total return on investments.

25
Arch Capital Group Ltd. and Subsidiaries
Investment Information — Composition of Fixed Maturities
 
The following table summarizes the Company’s fixed maturities:
(U.S. Dollars in millions)
Fair
Value		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Unrealized
Gains (Losses)		Allowance
for Credit Losses		Amortized
Cost		Fair Value /
Amortized Cost		Fair Value
% of Total
At September 30, 2024
Corporates$15,081 $339 $(294)$45 $(12)$15,048 100.2 %51.1 %
U.S. government and government agencies5,867 53 (48)5 — 5,862 100.1 %19.9 %
Asset-backed securities2,989 27 (27)— (5)2,994 99.8 %10.1 %
Non-U.S. government securities2,861 75 (84)(9)(1)2,871 99.7 %9.7 %
Commercial mortgage-backed securities1,146 8 (17)(9)(1)1,156 99.1 %3.9 %
Residential mortgage-backed securities 1,313 14 (50)(36)— 1,349 97.3 %4.4 %
Municipal bonds274 2 (11)(9)— 283 96.8 %0.9 %
Total$29,531 $518 $(531)$(13)$(19)$29,563 99.9 %100.0 %
At December 31, 2023
Corporates$11,517 $157 $(464)$(307)$(20)$11,844 97.2 %47.5 %
U.S. government and government agencies5,827 63 (86)(23)— 5,850 99.6 %24.0 %
Asset-backed securities2,252 11 (55)(44)(5)2,301 97.9 %9.3 %
Non-U.S. government securities2,068 33 (100)(67)(1)2,136 96.8 %8.5 %
Commercial mortgage-backed securities1,213 3 (34)(31)(2)1,246 97.4 %5.0 %
Residential mortgage-backed securities 1,103 7 (66)(59)— 1,162 94.9 %4.6 %
Municipal bonds256 1 (20)(19)— 275 93.1 %1.1 %
Total$24,236 $275 $(825)$(550)$(28)$24,814 97.7 %100.0 %



26
Arch Capital Group Ltd. and Subsidiaries
Investment Information — Credit Quality Distribution and Maturity Profile

The following table summarizes the credit quality distribution and maturity profile of the Company’s fixed maturities:
(U.S. Dollars in millions)September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Credit quality distribution of total fixed maturities (1):
U.S. government and government agencies (2)$6,725 22.8 %$6,041 23.1 %$5,106 20.8 %$6,493 26.8 %$6,359 27.5 %
AAA4,876 16.5 %4,599 17.6 %4,495 18.3 %4,305 17.8 %4,164 18.0 %
AA2,552 8.6 %2,507 9.6 %2,405 9.8 %2,165 8.9 %2,061 8.9 %
A5,664 19.2 %4,854 18.5 %4,912 20.0 %4,629 19.1 %4,523 19.6 %
BBB7,361 24.9 %6,144 23.5 %5,672 23.1 %5,058 20.9 %4,390 19.0 %
BB1,097 3.7 %979 3.7 %920 3.7 %698 2.9 %773 3.3 %
B534 1.8 %521 2.0 %484 2.0 %389 1.6 %352 1.5 %
Lower than B37 0.1 %29 0.1 %30 0.1 %15 0.1 %16 0.1 %
Not rated685 2.3 %501 1.9 %534 2.2 %484 2.0 %491 2.1 %
Total fixed maturities, at fair value$29,531 100.0 %$26,175 100.0 %$24,558 100.0 %$24,236 100.0 %$23,129 100.0 %
Maturity profile of total fixed maturities:
Due in one year or less$506 1.7 %$672 2.6 %$580 2.4 %$516 2.1 %$706 3.1 %
Due after one year through five years16,255 55.0 %14,036 53.6 %13,582 55.3 %13,279 54.8 %13,272 57.4 %
Due after five years through ten years6,760 22.9 %5,852 22.4 %4,816 19.6 %5,420 22.4 %4,679 20.2 %
Due after 10 years562 1.9 %469 1.8 %440 1.8 %453 1.9 %61 0.3 %
24,083 81.6 %21,029 80.3 %19,418 79.1 %19,668 81.2 %18,718 80.9 %
Residential mortgage-backed securities1,313 4.4 %1,186 4.5 %1,179 4.8 %1,103 4.6 %965 4.2 %
Commercial mortgage-backed securities1,146 3.9 %1,160 4.4 %1,197 4.9 %1,213 5.0 %1,102 4.8 %
Asset-backed securities2,989 10.1 %2,800 10.7 %2,764 11.3 %2,252 9.3 %2,344 10.1 %
Total fixed maturities, at fair value$29,531 100.0 %$26,175 100.0 %$24,558 100.0 %$24,236 100.0 %$23,129 100.0 %

(1)     For individual fixed maturities, S&P ratings are used. In the absence of an S&P rating, ratings from Moody’s are used, followed by ratings from Fitch Ratings.
(2)     Includes U.S. government-sponsored agency mortgage backed securities and agency commercial mortgage backed securities.


27
Arch Capital Group Ltd. and Subsidiaries
Investment Information — Analysis of Corporate Exposures

The following table summarizes the Company’s corporate bonds by sector:
(U.S. Dollars in millions)September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Sector:
Industrials$8,145 54.0 %$6,886 53.0 %$6,691 53.1 %$5,525 48.0 %$4,918 46.0 %
Financials5,208 34.5 %4,573 35.2 %4,477 35.5 %4,523 39.3 %4,326 40.5 %
Utilities1,237 8.2 %1,135 8.7 %1,065 8.4 %1,039 9.0 %962 9.0 %
All other (1)491 3.3 %401 3.1 %375 3.0 %430 3.7 %478 4.5 %
Total$15,081 100.0 %$12,995 100.0 %$12,608 100.0 %$11,517 100.0 %$10,684 100.0 %
Credit quality distribution (2):
AAA$241 1.6 %$213 1.6 %$229 1.8 %$295 2.6 %$297 2.8 %
AA1,002 6.6 %1,061 8.2 %1,067 8.5 %1,038 9.0 %938 8.8 %
A4,771 31.6 %4,092 31.5 %4,217 33.4 %4,043 35.1 %3,936 36.8 %
BBB7,022 46.6 %5,819 44.8 %5,362 42.5 %4,744 41.2 %4,118 38.5 %
BB1,019 6.8 %909 7.0 %856 6.8 %634 5.5 %715 6.7 %
B529 3.5 %516 4.0 %481 3.8 %389 3.4 %351 3.3 %
Lower than B37 0.2 %29 0.2 %30 0.2 %15 0.1 %16 0.1 %
Not rated460 3.1 %356 2.7 %366 2.9 %359 3.1 %313 2.9 %
Total$15,081 100.0 %$12,995 100.0 %$12,608 100.0 %$11,517 100.0 %$10,684 100.0 %

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

The following table summarizes the Company’s top ten exposures to fixed income corporate issuers by fair value at September 30, 2024:
(U.S. Dollars in millions)Fair
Value		% of Asset Class% of Investable AssetsCredit Quality (1)
Issuer:
JPMorgan Chase & Co.$412 2.7 %1.0 %A-/A1
Morgan Stanley359 2.4 %0.8 %A-/A1
Bank of America Corporation332 2.2 %0.8 %A-/A1
The Goldman Sachs Group, Inc.263 1.7 %0.6 %A-/A2
Citigroup Inc.257 1.7 %0.6 %BBB+/A3
Blue Owl Capital Inc.246 1.6 %0.6 %BBB-/Baa3
Hyundai Motor Company211 1.4 %0.5 %A-/A3
Ford Motor Company210 1.4 %0.5 %BBB-/Ba1
Blackstone Inc.176 1.2 %0.4 %BBB-/Baa2
UBS Group AG157 1.0 %0.4 %A-/A3
Total$2,623 17.4 %6.1 %
 
(1)    Average credit ratings assigned by S&P and Moody’s, respectively.

28
Arch Capital Group Ltd. and Subsidiaries
Investment Information — Structured Securities

The following table provides the composition of the Company’s structured securities:
(U.S. Dollars in millions)AgenciesAAAAAABBBNon-Investment GradeTotal
At September 30, 2024      
Residential mortgage-backed securities$852 $399 $21 $1 $— $40 $1,313 
Commercial mortgage-backed securities7 640 190 75 141 93 1,146 
Asset-backed securities— 1,604 340 695 185 165 2,989 
Total$859 $2,643 $551 $771 $326 $298 $5,448 
At December 31, 2023
Residential mortgage-backed securities$658 $416 $29 $— $— $— $1,103 
Commercial mortgage-backed securities7 757 198 45 126 80 1,213 
Asset-backed securities— 1,302 231 440 170 109 2,252 
Total$665 $2,475 $458 $485 $296 $189 $4,568 
29
Arch Capital Group Ltd. and Subsidiaries
Comments on Non-GAAP Financial Measures
Throughout this financial supplement, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company’s financial information in evaluating the performance of the Company. This presentation includes the use of after-tax operating income available to Arch common shareholders, which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which includes 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 investment funds 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 investment funds 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 investment funds 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 investment funds 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.
In the 2023 fourth quarter, the Company established a net deferred tax benefit of $1.18 billion consistent with the transition provisions specified in the Bermuda Corporate Income Tax Act of 2023. Due to the non-recurring nature of this one-time item, the Company believes that excluding this item from after-tax operating income or loss available to common shareholders provides the user with a better evaluation of the Company’s ongoing 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 12.
In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments.
Total return on investments includes investment income, equity in net income or loss of investment funds 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.
30
Arch Capital Group Ltd. and Subsidiaries
Operating Income Reconciliation and Annualized Operating Return on Average Common Equity
The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income (loss) available to Arch common shareholders to after-tax operating income (loss) available to Arch common shareholders and related diluted per share results:
(U.S. Dollars and shares in millions, except per share data)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Net income available to Arch common shareholders$978 $1,259 $1,110 $2,324 $713 $3,347 $2,079 
Net realized (gains) losses (1)(169)(122)(67)(189)248 (358)354 
Equity in net (income) loss of investment funds accounted for using the equity method(171)(167)(99)(102)(59)(437)(176)
Net foreign exchange (gains) losses63 (1)(31)60 (22)31 2 
Transaction costs and other30 18 7 4 1 55 2 
Income tax expense (benefit) (2)31 (6)13 (1,152)(5)38 (5)
After-tax operating income available to Arch common shareholders$762 $981 $933 $945 $876 $2,676 $2,256 
Diluted per common share results:
Net income available to Arch common shareholders$2.56 $3.30 $2.92 $6.12 $1.88 $8.78 $5.50 
Net realized (gains) losses (1)(0.44)(0.32)(0.18)(0.50)0.65 (0.94)0.93 
Equity in net (income) loss of investment funds accounted for using the equity method(0.45)(0.44)(0.26)(0.27)(0.16)(1.15)(0.47)
Net foreign exchange (gains) losses0.16 0.00 (0.08)0.16 (0.05)0.09 0.01 
Transaction costs and other0.08 0.05 0.02 0.01 0.00 0.15 0.00 
Income tax expense (benefit) (2)0.08 (0.02)0.03 (3.03)(0.01)0.09 (0.01)
After-tax operating income available to Arch common shareholders$1.99 $2.57 $2.45 $2.49 $2.31 $7.02 $5.96 
Weighted average common shares and common share equivalents outstanding - diluted382.3 381.6 380.5 379.8 379.4 381.3 378.3 
Beginning common shareholders’ equity$19,835 $18,525 $17,523 $14,409 $13,811 $17,523 $12,080 
Ending common shareholders’ equity21,444 19,835 18,525 17,523 14,409 21,444 14,409 
Average common shareholders’ equity$20,640 $19,180 $18,024 $15,966 $14,110 $19,484 $13,245 
Annualized net income return on average common equity19.0 %26.3 %24.6 %58.2 %20.2 %22.9 %20.9 %
Annualized operating return on average common equity14.8 %20.5 %20.7 %23.7 %24.8 %18.3 %22.7 %

(1)    Net realized gains or losses include 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 (loss) of investment funds 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. The 2023 fourth quarter results were impacted by the establishment of a net deferred tax asset of $1.18 billion, or $3.10 per share, related to the enactment of Bermuda’s new corporate income tax.


31
Arch Capital Group Ltd. and Subsidiaries
Operating Income and Effective Tax Rate Calculations
The following table provides a reconciliation of income (loss) before income taxes to after-tax operating income (loss) available to Arch common shareholders and an analysis of the effective tax rate on pre-tax operating income (loss) available to Arch common shareholders:
(U.S. Dollars in millions)Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2024202420242023202320242023
Arch Operating Income Components:
Income (loss) before income taxes and income (loss) from operating affiliates$1,050 $1,321 $1,166 $1,188 $741 $3,537 $2,197 
Net realized (gains) losses(169)(122)(67)(189)248 (358)354 
Equity in net (income) loss of investment funds accounted for using the equity method(171)(167)(99)(102)(59)(437)(176)
Net foreign exchange (gains) losses63 — (31)60 (22)32 2 
Transaction costs and other30 18 7 4 1 55 2 
Income (loss) from operating affiliates
36 45 55 69 54 136 115 
Pre-tax operating income available to Arch (b)839 1,095 1,031 1,030 963 2,965 2,494 
Income tax (expense) benefit (a)(67)(104)(88)(75)(77)(259)(208)
After-tax operating income available to Arch772 991 943 955 886 2,706 2,286 
Preferred dividends(10)(10)(10)(10)(10)(30)(30)
After-tax operating income available to Arch common shareholders$762 $981 $933 $945 $876 $2,676 $2,256 
Effective tax rate on pre-tax operating income (loss) available to Arch (a)/(b)8.0 %9.5 %8.5 %7.3 %8.0 %8.7 %8.3 %

32
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)September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Debt:
Arch senior notes, due May 1, 2034 ($300 principal, 7.35%)$300 $300 $300 $300 $300 
Arch-U.S. senior notes, due Nov. 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(23)(23)(23)(24)(24)
Revolving credit agreement borrowings, due August 23, 2028— — — — — 
Total debt$2,727 $2,727 $2,727 $2,726 $2,726 
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)21,444 19,835 18,525 17,523 14,409 
Total shareholders’ equity available to Arch$22,274 $20,665 $19,355 $18,353 $15,239 
Total capital available to Arch$25,001 $23,392 $22,082 $21,079 $17,965 
Common shares outstanding, net of treasury shares (b)376.2 376.0 375.3 373.3 373.1 
Book value per common share (3) (a)/(b)$57.00 $52.75 $49.36 $46.94 $38.62 
Leverage ratios:
Senior notes/total capital available to Arch10.9 %11.7 %12.3 %12.9 %15.2 %
Revolving credit agreement borrowings/total capital available to Arch— %— %— %— %— %
Debt/total capital available to Arch10.9 %11.7 %12.3 %12.9 %15.2 %
Preferred/total capital available to Arch3.3 %3.5 %3.8 %3.9 %4.6 %
Debt and preferred/total capital available to Arch14.2 %15.2 %16.1 %16.9 %19.8 %

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

The following table provides the impact of share repurchases under the Company’s share repurchase program:
(U.S. Dollars and shares in millions, except per share data)Three Months EndedCumulative
 September 30,June 30,March 31,December 31,September 30,September 30,
 202420242024202320232024
Effect of share repurchases:
Aggregate cost of shares repurchased$— $— $— $— $— $5,872 
Shares repurchased— — — — — 433.6 
Average price per share repurchased$— $— $— $— $— $13.54 
Remaining share repurchase authorization (1)$1,000 
(1)    Repurchases under the share repurchase authorization may be effected from time to time in open market or privately negotiated transactions through December 31, 2024.
33
v3.24.3
Document and Entity Information Cover
Oct. 30, 2024
Document and Entity Information [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 30, 2024
Entity Registrant Name Arch Capital Group Ltd.
Entity Central Index Key 0000947484
Entity Incorporation, State or Country Code D0
Entity File Number 001-16209
Entity Tax Identification Number 98-0374481
Entity Address, Address Line One Waterloo House, Ground Floor
Entity Address, Address Line Two 100 Pitts Bay Road
Entity Address, City or Town Pembroke
Entity Address, Postal Zip Code HM 08
Entity Address, Country BM
City Area Code 441
Local Phone Number 278-9250
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Common shares  
Entity Listings [Line Items]  
Title of 12(b) Security Common shares, $0.0011 par value per share
Trading Symbol ACGL
Security Exchange Name NASDAQ
Series F Depositary Share Equivalent  
Entity Listings [Line Items]  
Title of 12(b) Security Depositary shares, each representing a 1/1,000th interest in a 5.45% Series F preferred share
Trading Symbol ACGLO
Security Exchange Name NASDAQ
Series G Depositary Share Equivalent  
Entity Listings [Line Items]  
Title of 12(b) Security Depositary shares, each representing a 1/1,000th interest in a 4.55% Series G preferred share
Trading Symbol ACGLN
Security Exchange Name NASDAQ
Arch Capital (NASDAQ:ACGLO)
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