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Arch Capital Group Ltd.
Waterloo House, Ground Floor
100 Pitts Bay Road
Pembroke HM 08 Bermuda


Financial Supplement
September 30, 2025
 
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.

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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, 2024 is derived from or agrees to audited financial information. Unless otherwise noted, all amounts are in millions, except for per share amounts and ratio information. Amounts presented have been rounded for presentation purposes and may not reconcile due to rounding differences.
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of Arch and its subsidiaries may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements.
Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or their negative or variations or similar terminology. Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and the Company’s ability to maintain and improve the Company’s ratings; investment performance; the loss and addition of key personnel; the adequacy of the Company’s loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events; the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; the Company’s ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses we have acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to the Company of reinsurance to manage gross and net exposures; the failure of others to meet their obligations to the Company; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; and other matters set forth under Item 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors.
All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company's forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
2
Arch Capital Group Ltd. and Subsidiaries
Financial Highlights
The following table presents financial highlights:
(U.S. Dollars and shares in millions, except per share data)Three Months EndedNine Months Ended
September 30,September 30,
20252024Change20252024Change
Underwriting results:
Gross premiums written$5,410 $5,440 (0.6)%$18,069 $16,755 7.8 %
Net premiums written3,964 4,047 (2.1)%12,827 11,913 7.7 %
Net premiums earned4,285 3,970 7.9 %12,810 10,957 16.9 %
Underwriting income (loss) (1)871 538 61.9 %2,106 2,036 3.4 %
Loss ratio51.4 %60.5 %(9.1)55.4 %54.4 %1.0 
Acquisition expense ratio18.4 %17.2 %1.2 18.5 %17.5 %1.0 
Other operating expense ratio (2)10.0 %8.9 %1.1 9.7 %9.7 %— 
Combined ratio79.8 %86.6 %(6.8)83.6 %81.6 %2.0 
Pre-tax net investment income$408 $399 2.3 %$1,191 $1,090 9.3 %
Per diluted share$1.08 $1.04 3.8 %$3.14 $2.86 9.8 %
Net income available to Arch common shareholders$1,340 $978 37.0 %$3,131 $3,347 (6.5)%
Per diluted share$3.56 $2.56 39.1 %$8.26 $8.78 (5.9)%
After-tax operating income available to Arch common shareholders (1)$1,042 $762 36.7 %$2,608 $2,676 (2.5)%
Per diluted share$2.77 $1.99 39.2 %$6.88 $7.02 (2.0)%
Comprehensive income (loss) available to Arch$1,398 $1,598 (12.5)%$3,881 $3,853 0.7 %
Net cash provided by operating activities$2,186 $2,018 8.3 %$4,768 $5,100 (6.5)%
Weighted average common shares and common share equivalents outstanding — diluted376.1 382.3 (1.6)%379.1 381.3 (0.6)%
Financial measures:     
Change in book value per common share during period5.3 %8.1 %(2.8)17.3 %21.4 %(4.1)
Annualized net income return on average common equity23.8 %19.0 %4.8 19.5 %22.9 %(3.4)
Annualized operating return on average common equity (1)18.5 %14.8 %3.7 16.2 %18.3 %(2.1)
Total return on investments (3)1.80 %3.97 %-217 bps7.07 %6.20 %87 bps
 
(1)See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of consolidated underwriting income or loss, after-tax operating income or loss available to Arch common shareholders and annualized operating return on average common equity.
(2)The ‘Other operating expense ratio’ for the 2025 periods include ‘Other underwriting income.’
(3)Total return on investments includes investment income, equity in net income of investments accounted for using the equity method, net realized gains and losses and the change in unrealized gains and losses and is calculated on a pre-tax basis and before investment expenses. See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of the presentation of total return on investments.
3
Arch Capital Group Ltd. and Subsidiaries
Consolidated Statements of Income
(U.S. Dollars and shares in millions, except per share data)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2025202520252024202420252024
Revenues       
Net premiums earned$4,285 $4,337 $4,188 $4,143 $3,970 $12,810 $10,957 
Net investment income408 405 378 405 399 1,191 1,090 
Net realized gains (losses)210 229 3 (161)169 442 358 
Other underwriting income (1)50 62 53 6 5 165 20 
Equity in net income of investments accounted for using the equity method134 162 53 143 171 349 437 
Other income (loss)22 18 (2)12 8 38 30 
Total revenues5,109 5,213 4,673 4,548 4,722 14,995 12,892 
Expenses
Losses and loss adjustment expenses(2,200)(2,303)(2,587)(2,384)(2,403)(7,090)(5,958)
Acquisition expenses(786)(824)(764)(730)(681)(2,374)(1,921)
Other operating expenses(478)(454)(473)(410)(353)(1,405)(1,062)
Corporate expenses(49)(47)(60)(57)(49)(156)(143)
Amortization of intangible assets(49)(48)(49)(99)(88)(146)(136)
Interest expense(37)(38)(35)(37)(35)(110)(104)
Net foreign exchange gains (losses)(7)(88)(27)106 (63)(122)(31)
Total expenses(3,606)(3,802)(3,995)(3,611)(3,672)(11,403)(9,355)
Income (loss) before income taxes and income (loss) from operating affiliates1,503 1,411 678 937 1,050 3,592 3,537 
Income tax (expense) benefit(215)(214)(121)(66)(98)(550)(296)
Income (loss) from operating affiliates62 40 17 64 36 119 136 
Net income (loss) attributable to Arch1,350 1,237 574 935 988 3,161 3,377 
Preferred dividends(10)(10)(10)(10)(10)(30)(30)
Net income (loss) available to Arch common shareholders$1,340 $1,227 $564 $925 $978 $3,131 $3,347 
Comprehensive income (loss) available to Arch$1,398 $1,597 $886 $415 $1,598 $3,881 $3,853 
Net income (loss) per common share and common share equivalent
Basic$3.63 $3.30 $1.51 $2.48 $2.62 $8.43 $8.99 
Diluted$3.56 $3.23 $1.48 $2.42 $2.56 $8.26 $8.78 
Weighted average common shares and common share equivalents outstanding
Basic369.0 372.2 372.9 373.3 373.2 371.4 372.3 
Diluted376.1 379.9 381.9 382.8 382.3 379.1 381.3 

(1)    ‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
4
Arch Capital Group Ltd. and Subsidiaries
Consolidated Balance Sheets

(U.S. Dollars and shares in millions, except per share data)September 30,June 30,March 31,December 31,September 30,
20252025202520242024
Assets     
Investments:     
Fixed maturities available for sale, at fair value$31,908 $30,332 $28,798 $27,035 $28,434 
Short-term investments available for sale, at fair value2,351 2,788 2,477 2,784 3,341 
Equity securities, at fair value1,805 1,715 1,618 1,675 1,623 
Other investments3,027 2,892 2,888 3,066 3,261 
Investments accounted for using the equity method6,232 6,566 6,340 5,980 5,244 
Total investments45,323 44,293 42,121 40,540 41,903 
Cash1,063 983 1,187 979 1,025 
Accrued investment income307 329 267 298 292 
Investment in operating affiliates1,417 1,356 1,305 1,240 1,236 
Premiums receivable6,450 7,067 6,607 5,634 6,364 
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses9,070 9,044 8,969 8,260 7,948 
Contractholder receivables2,287 2,280 2,212 2,161 2,078 
Ceded unearned premiums3,079 3,229 2,895 2,428 2,935 
Deferred acquisition costs1,786 1,814 1,785 1,734 1,744 
Receivable for securities sold695 390 324 50 790 
Goodwill and intangible assets1,268 1,319 1,308 1,351 1,486 
Other assets6,440 6,684 6,196 6,231 5,855 
Total assets$79,185 $78,788 $75,176 $70,906 $73,656 
Liabilities     
Reserve for losses and loss adjustment expenses$32,822 $32,089 $30,946 $29,369 $28,679 
Unearned premiums11,124 11,625 11,090 10,218 11,238 
Reinsurance balances payable2,638 2,841 2,661 2,137 2,586 
Contractholder payables2,293 2,286 2,218 2,165 2,082 
Collateral held for insured obligations239 225 245 249 268 
Senior notes2,728 2,728 2,728 2,728 2,727 
Payable for securities purchased335 728 578 181 967 
Other liabilities3,287 3,225 3,165 3,039 2,835 
Total liabilities55,466 55,747 53,631 50,086 51,382 
Shareholders’ equity     
Non-cumulative preferred shares830 830 830 830 830 
Common shares1 1 1 1 1 
Additional paid-in capital2,682 2,660 2,588 2,510 2,465 
Retained earnings25,817 24,477 23,250 22,686 23,642 
Accumulated other comprehensive income (loss), net of deferred income tax— (48)(408)(720)(200)
Common shares held in treasury, at cost(5,611)(4,879)(4,716)(4,487)(4,464)
Total shareholders’ equity23,719 23,041 21,545 20,820 22,274 
Total liabilities and shareholders’ equity$79,185 $78,788 $75,176 $70,906 $73,656 
Common shares and common share equivalents outstanding, net of treasury shares367.3 375.4 375.6 376.4 376.2 
Book value per common share (1)$62.32 $59.17 $55.15 $53.11 $57.00 
(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,
2025202520252024202420252024
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 period2,660 2,588 2,510 2,465 2,443 2,510 2,327 
Amortization of share-based compensation25 25 74 33 16 124 100 
All other(3)47 4 12 6 48 38 
Balance at end of period2,682 2,660 2,588 2,510 2,465 2,682 2,465 
Retained earnings
Balance at beginning of period24,477 23,250 22,686 23,642 22,664 22,686 20,295 
Net income1,350 1,237 574 935 988 3,161 3,377 
Common share dividends— — — (1,881)— — — 
Preferred share dividends(10)(10)(10)(10)(10)(30)(30)
Balance at end of period25,817 24,477 23,250 22,686 23,642 25,817 23,642 
Accumulated other comprehensive income (loss), net of deferred income tax
Balance at beginning of period(48)(408)(720)(200)(810)(720)(676)
Change in unrealized appreciation (decline) in value of available-for-sale investments47 296 286 (442)585 629 500 
Change in foreign currency translation adjustments1 64 26 (78)25 91 (24)
Balance at end of period— (48)(408)(720)(200)— (200)
Common shares held in treasury, at cost
Balance at beginning of period(4,879)(4,716)(4,487)(4,464)(4,463)(4,487)(4,424)
Shares repurchased for treasury(732)(163)(229)(23)(1)(1,124)(40)
Balance at end of period(5,611)(4,879)(4,716)(4,487)(4,464)(5,611)(4,464)
Total shareholders’ equity$23,719 $23,041 $21,545 $20,820 $22,274 $23,719 $22,274 

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,
2025202520252024202420252024
Operating Activities       
Net income (loss)$1,350 $1,237 $574 $935 $988 $3,161 $3,377 
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized (gains) losses(202)(225)(6)176 (165)(433)(361)
Equity in net (income) of investments accounted for using the equity method and other income or loss(158)(95)(12)(152)(162)(265)(336)
Amortization of intangible assets49 48 49 99 88 146 136 
Share-based compensation25 25 74 33 16 124 100 
Changes in:
Reserve for losses and loss adjustment expenses, net634 560 826 832 1,078 2,020 2,447 
Unearned premiums, net(321)11 327 (324)77 17 956 
Premiums receivable601 (352)(942)686 178 (693)(1,504)
Deferred acquisition costs14 33 (14)(46)(86)33 (166)
Reinsurance balances payable(207)159 504 (410)(27)456 589 
Deferred income tax assets, net46 80 29 (96)16 155 61 
Other items, net355 (357)49 (160)17 47 (199)
Net cash provided by operating activities2,186 1,124 1,458 1,573 2,018 4,768 5,100 
Investing Activities       
Purchases of fixed maturity investments(10,619)(8,150)(9,418)(9,731)(7,436)(28,187)(21,559)
Purchases of equity securities(277)(179)(808)(491)(278)(1,264)(932)
Purchases of other investments(513)(535)(697)(1,587)(529)(1,745)(1,898)
Proceeds from sales of fixed maturity investments8,435 6,522 7,301 9,798 5,227 22,258 16,447 
Proceeds from sales of equity securities281 223 820 428 126 1,324 673 
Proceeds from sales, redemptions and maturities of other investments336 431 660 834 405 1,427 1,024 
Proceeds from redemptions and maturities of fixed maturity investments475 568 758 766 392 1,801 1,270 
Net settlements of derivative instruments35 147 93 (132)115 275 127 
Net (purchases) sales of short-term investments478 (242)294 549 (793)530 (818)
Acquisitions, net of cash— — — — 852 — 852 
Purchases of fixed assets(12)(12)(9)(13)(12)(33)(38)
Other(2)(1)(2)(1)(32)(5)(29)
Net cash provided by (used for) investing activities(1,383)(1,228)(1,008)420 (1,963)(3,619)(4,881)
Financing Activities       
Purchases of common shares under share repurchase program(732)(163)(196)(24)— (1,091)— 
Proceeds from common shares issued, net1 47 (28)9 6 20 (2)
Common dividends paid— (2)(5)(1,866)— (7)— 
Preferred dividends paid(10)(10)(10)(10)(10)(30)(30)
Other(2)— (2)1 (3)(4)(3)
Net cash provided by (used for) financing activities(743)(128)(241)(1,890)(7)(1,112)(35)
Effects of exchange rate changes on foreign currency cash and restricted cash(14)55 16 (55)37 57 30 
Increase (decrease) in cash and restricted cash46 (177)225 48 85 94 214 
Cash and restricted cash, beginning of period1,808 1,985 1,760 1,712 1,627 1,760 1,498 
Cash and restricted cash, end of period$1,854 $1,808 $1,985 $1,760 $1,712 $1,854 $1,712 
Income taxes paid (received)$166 $131 $18 $157 $76 $315 $221 
Interest paid$— $64 $— $64 $— $64 $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; specialty; property catastrophe; property excluding property catastrophe; and other.
Mortgage Segment
The Company’s mortgage segment consists of U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), each a government sponsored entity (“GSE”) and also through non GSE approved entities (combined “Arch MI U.S.”); reinsurance and underwriting services related to U.S. credit-risk transfer (“CRT”) business which are predominately with the GSEs and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans primarily in Australia and Europe.
The Company’s results also include net investment income, net realized gains or losses (which 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 investments 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, 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, 2025
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$2,567 $2,515 $330 $5,410 
Premiums ceded (1)(614)(778)(56)(1,446)
Net premiums written1,953 1,737 274 3,964 
Change in unearned premiums16 278 27 321 
Net premiums earned1,969 2,015 301 4,285 
Other underwriting income (2)9 38 3 50 
Losses and loss adjustment expenses(1,162)(1,040)2 (2,200)
Acquisition expenses(386)(398)(2)(786)
Other operating expenses(301)(133)(44)(478)
Underwriting income (loss)$129 $482 $260 871 
Net investment income408 
Net realized gains (losses)210 
Equity in net income of investments accounted for using the equity method134 
Other income (loss)22 
Corporate expenses (3)(28)
Transaction costs and other (3)(21)
Amortization of intangible assets(49)
Interest expense(37)
Net foreign exchange gains (losses)(7)
Income (loss) before income taxes and income (loss) from operating affiliates1,503 
Income tax (expense) benefit(215)
Income (loss) from operating affiliates62 
Net income (loss) available to Arch1,350 
Preferred dividends(10)
Net income (loss) available to Arch common shareholders$1,340 
Underwriting Ratios
Loss ratio59.0 %51.6 %(0.5)%51.4 %
Acquisition expense ratio19.6 %19.8 %0.7 %18.4 %
Other operating expense ratio (4)14.8 %4.7 %13.3 %10.0 %
Combined ratio93.4 %76.1 %13.5 %79.8 %
Net premiums written to gross premiums written76.1 %69.1 %83.0 %73.3 %
Total investable assets$46,746 
Total assets79,185 
Total liabilities55,466 

(1)    Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.
(2)    ‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(3)    Certain expenses have been excluded from ‘Corporate expenses’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
(4)    The ‘Other operating expense ratio’ for the 2025 period includes ‘Other underwriting income.’
9
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— 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 of investments 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.
10
Arch Capital Group Ltd. and Subsidiaries
Segment Information
(U.S. Dollars in millions)Nine Months Ended
September 30, 2025
 InsuranceReinsuranceMortgageTotal
Gross premiums written (1)$7,893 $9,205 $979 $18,069 
Premiums ceded (1)(1,971)(3,093)(186)(5,242)
Net premiums written5,922 6,112 793 12,827 
Change in unearned premiums(124)18 89 (17)
Net premiums earned5,798 6,130 882 12,810 
Other underwriting income (2)25 123 17 165 
Losses and loss adjustment expenses(3,568)(3,524)2 (7,090)
Acquisition expenses(1,116)(1,251)(7)(2,374)
Other operating expenses(883)(378)(144)(1,405)
Underwriting income (loss)$256 $1,100 $750 2,106 
Net investment income1,191 
Net realized gains (losses)442 
Equity in net income of investments accounted for using the equity method349 
Other income (loss)38 
Corporate expenses (3)(107)
Transaction costs and other (3)(49)
Amortization of intangible assets(146)
Interest expense(110)
Net foreign exchange gains (losses)(122)
Income (loss) before income taxes and income (loss) from operating affiliates3,592 
Income tax (expense) benefit(550)
Income (loss) from operating affiliates119 
Net income (loss) available to Arch3,161 
Preferred dividends(30)
Net income (loss) available to Arch common shareholders$3,131 
Underwriting Ratios
Loss ratio61.5 %57.5 %(0.2)%55.4 %
Acquisition expense ratio19.3 %20.4 %0.8 %18.5 %
Other operating expense ratio (4)14.8 %4.2 %14.3 %9.7 %
Combined ratio95.6 %82.1 %14.9 %83.6 %
Net premiums written to gross premiums written75.0 %66.4 %81.0 %71.0 %
 
(1)    Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.
(2)    ‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(3)    Certain expenses have been excluded from ‘Corporate expenses’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
(4)    The ‘Other operating expense ratio’ for the 2025 period includes ‘Other underwriting income.’
11
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— 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 of investments 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.

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,
 2025202520252024202420252024
Gross premiums written$2,567 $2,681 $2,645 $2,484 $2,341 $7,893 $6,569 
Premiums ceded(614)(645)(712)(530)(521)(1,971)(1,649)
Net premiums written1,953 2,036 1,933 1,954 1,820 5,922 4,920 
Change in unearned premiums16 (67)(73)(21)(55)(124)(226)
Net premiums earned1,969 1,969 1,860 1,933 1,765 5,798 4,694 
Other underwriting income (1)9 13 3 — — 25 — 
Losses and loss adjustment expenses(1,162)(1,178)(1,228)(1,281)(1,087)(3,568)(2,789)
Acquisition expenses(386)(387)(343)(345)(308)(1,116)(872)
Other operating expenses(301)(288)(294)(277)(250)(883)(718)
Underwriting income (loss)$129 $129 $(2)$30 $120 $256 $315 
Underwriting Ratios
Loss ratio59.0 %59.8 %66.0 %66.3 %61.6 %61.5 %59.4 %
Acquisition expense ratio19.6 %19.6 %18.5 %17.9 %17.4 %19.3 %18.6 %
Other operating expense ratio (2)14.8 %14.0 %15.6 %14.3 %14.1 %14.8 %15.3 %
Combined ratio93.4 %93.4 %100.1 %98.5 %93.1 %95.6 %93.3 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums2.2 %2.9 %9.5 %8.3 %4.9 %4.8 %3.0 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(0.1)%(0.1)%(0.5)%(0.1)%(0.7)%(0.2)%(0.5)%
Combined ratio excluding catastrophic activity and prior year development (3)91.3 %90.6 %91.1 %90.3 %88.9 %91.0 %90.8 %
Net premiums written to gross premiums written76.1 %75.9 %73.1 %78.7 %77.7 %75.0 %74.9 %
 
(1)‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(2)The ‘Other operating expense ratio’ for the 2025 periods include ‘Other underwriting income.’
(3)See ‘Comments on Non-GAAP Financial Measures’ for further discussion.

13
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Insurance Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2025202520252024202420252024
Net Premiums Written by Line of Business
North America
Property and short-tail specialty$339 17.4 %$369 18.1 %$348 18.0 %$364 18.6 %$296 16.3 %$1,056 17.8 %$856 17.4 %
Other liability - occurrence297 15.2 %366 18.0 %330 17.1 %342 17.5 %253 13.9 %993 16.8 %660 13.4 %
Other liability - claims made209 10.7 %206 10.1 %149 7.7 %215 11.0 %228 12.5 %564 9.5 %643 13.1 %
Commercial multi-peril194 9.9 %205 10.1 %198 10.2 %195 10.0 %163 9.0 %597 10.1 %266 5.4 %
Workers compensation151 7.7 %130 6.4 %153 7.9 %153 7.8 %147 8.1 %434 7.3 %402 8.2 %
Commercial automobile150 7.7 %165 8.1 %161 8.3 %116 5.9 %134 7.4 %476 8.0 %369 7.5 %
Other86 4.4 %89 4.4 %76 3.9 %63 3.2 %81 4.5 %251 4.2 %225 4.6 %
Total North America $1,426 73.0 %$1,530 75.1 %$1,415 73.2 %$1,448 74.1 %$1,302 71.5 %$4,371 73.8 %$3,421 69.5 %
International
Property and short-tail specialty$287 14.7 %$299 14.7 %$274 14.2 %$263 13.5 %$287 15.8 %$860 14.5 %$830 16.9 %
Casualty and other240 12.3 %207 10.2 %244 12.6 %243 12.4 %231 12.7 %691 11.7 %669 13.6 %
Total International $527 27.0 %$506 24.9 %$518 26.8 %$506 25.9 %$518 28.5 %$1,551 26.2 %$1,499 30.5 %
Total$1,953 100.0 %$2,036 100.0 %$1,933 100.0 %$1,954 100.0 %$1,820 100.0 %$5,922 100.0 %$4,920 100.0 %
Net Premiums Earned by Line of Business
North America
Property and short-tail specialty$339 17.2 %$363 18.4 %$333 17.9 %$332 17.2 %$306 17.3 %$1,035 17.9 %$833 17.7 %
Other liability - occurrence329 16.7 %338 17.2 %329 17.7 %327 16.9 %265 15.0 %996 17.2 %615 13.1 %
Other liability - claims made205 10.4 %186 9.4 %192 10.3 %210 10.9 %213 12.1 %583 10.1 %633 13.5 %
Commercial multi-peril195 9.9 %203 10.3 %201 10.8 %189 9.8 %146 8.3 %599 10.3 %246 5.2 %
Workers compensation160 8.1 %147 7.5 %131 7.0 %155 8.0 %135 7.6 %438 7.6 %394 8.4 %
Commercial automobile143 7.3 %147 7.5 %145 7.8 %130 6.7 %122 6.9 %435 7.5 %329 7.0 %
Other70 3.6 %71 3.6 %72 3.9 %74 3.8 %79 4.5 %213 3.7 %235 5.0 %
Total North America$1,441 73.2 %$1,455 73.9 %$1,403 75.4 %$1,417 73.3 %$1,266 71.7 %$4,299 74.1 %$3,285 70.0 %
International
Property and short-tail specialty$296 15.0 %$282 14.3 %$243 13.1 %$294 15.2 %$283 16.0 %$821 14.2 %$779 16.6 %
Casualty and other232 11.8 %232 11.8 %214 11.5 %222 11.5 %216 12.2 %678 11.7 %630 13.4 %
Total International$528 26.8 %$514 26.1 %$457 24.6 %$516 26.7 %$499 28.3 %$1,499 25.9 %$1,409 30.0 %
Total$1,969 100.0 %$1,969 100.0 %$1,860 100.0 %$1,933 100.0 %$1,765 100.0 %$5,798 100.0 %$4,694 100.0 %
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,
 2025202520252024202420252024
Gross premiums written$2,515 $3,196 $3,494 $1,941 $2,763 $9,205 $9,171 
Premiums ceded(778)(1,137)(1,178)(353)(818)(3,093)(3,013)
Net premiums written1,737 2,059 2,316 1,588 1,945 6,112 6,158 
Change in unearned premiums278 28 (288)316 (53)18 (820)
Net premiums earned2,015 2,087 2,028 1,904 1,892 6,130 5,338 
Other underwriting income (1)38 46 39 4 2 123 5 
Losses and loss adjustment expenses(1,040)(1,128)(1,356)(1,121)(1,317)(3,524)(3,206)
Acquisition expenses(398)(436)(417)(382)(374)(1,251)(1,050)
Other operating expenses(133)(118)(127)(77)(54)(378)(193)
Underwriting income (loss)$482 $451 $167 $328 $149 $1,100 $894 
Underwriting Ratios
Loss ratio51.6 %54.1 %66.9 %58.9 %69.6 %57.5 %60.1 %
Acquisition expense ratio19.8 %20.9 %20.6 %20.0 %19.8 %20.4 %19.7 %
Other operating expense ratio (2)4.7 %3.5 %4.3 %4.1 %2.9 %4.2 %3.6 %
Combined ratio76.1 %78.5 %91.8 %83.0 %92.3 %82.1 %83.4 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums1.5 %4.6 %18.3 %12.2 %19.3 %8.1 %10.5 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(2.2)%(3.3)%(4.5)%(4.0)%(1.9)%(3.3)%(2.0)%
Combined ratio excluding catastrophic activity and prior year development (3)76.8 %77.2 %78.0 %74.8 %74.9 %77.3 %74.9 %
Net premiums written to gross premiums written69.1 %64.4 %66.3 %81.8 %70.4 %66.4 %67.1 %
 
(1)‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(2)The ‘Other operating expense ratio’ for the 2025 periods include ‘Other underwriting income.’
(3)See ‘Comments on Non-GAAP Financial Measures’ for further discussion.
15
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Reinsurance Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2025202520252024202420252024
Net Premiums Written by Line of Business
Specialty$633 36.4 %$729 35.4 %$594 25.6 %$701 44.1 %$769 39.5 %$1,956 32.0 %$2,148 34.9 %
Property excluding property catastrophe557 32.1 %430 20.9 %581 25.1 %441 27.8 %671 34.5 %1,568 25.7 %1,823 29.6 %
Casualty399 23.0 %308 15.0 %499 21.5 %279 17.6 %339 17.4 %1,206 19.7 %943 15.3 %
Property catastrophe64 3.7 %484 23.5 %477 20.6 %84 5.3 %52 2.7 %1,025 16.8 %874 14.2 %
Marine and aviation60 3.5 %68 3.3 %121 5.2 %43 2.7 %69 3.5 %249 4.1 %257 4.2 %
Other24 1.4 %40 1.9 %44 1.9 %40 2.5 %45 2.3 %108 1.8 %113 1.8 %
Total$1,737 100.0 %$2,059 100.0 %$2,316 100.0 %$1,588 100.0 %$1,945 100.0 %$6,112 100.0 %$6,158 100.0 %
Net Premiums Earned by Line of Business
Specialty$719 35.7 %$760 36.4 %$727 35.8 %$685 36.0 %$688 36.4 %$2,206 36.0 %$1,934 36.2 %
Property excluding property catastrophe581 28.8 %587 28.1 %548 27.0 %602 31.6 %540 28.5 %1,716 28.0 %1,546 29.0 %
Casualty360 17.9 %355 17.0 %325 16.0 %290 15.2 %282 14.9 %1,040 17.0 %798 14.9 %
Property catastrophe253 12.6 %260 12.5 %306 15.1 %223 11.7 %256 13.5 %819 13.4 %736 13.8 %
Marine and aviation77 3.8 %82 3.9 %80 3.9 %62 3.3 %80 4.2 %239 3.9 %214 4.0 %
Other25 1.2 %43 2.1 %42 2.1 %42 2.2 %46 2.4 %110 1.8 %110 2.1 %
Total$2,015 100.0 %$2,087 100.0 %$2,028 100.0 %$1,904 100.0 %$1,892 100.0 %$6,130 100.0 %$5,338 100.0 %
Net Premiums Written by Underwriting Location
Bermuda$761 43.8 %$1,060 51.5 %$1,154 49.8 %$672 42.3 %$671 34.5 %$2,975 48.7 %$2,753 44.7 %
United States488 28.1 %447 21.7 %477 20.6 %478 30.1 %744 38.3 %1,412 23.1 %1,657 26.9 %
Europe and other488 28.1 %552 26.8 %685 29.6 %438 27.6 %530 27.2 %1,725 28.2 %1,748 28.4 %
Total$1,737 100.0 %$2,059 100.0 %$2,316 100.0 %$1,588 100.0 %$1,945 100.0 %$6,112 100.0 %$6,158 100.0 %
                    
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,
2025202520252024202420252024
Gross premiums written$330 $323 $326 $331 $339 $979 $1,020 
Premiums ceded(56)(70)(60)(54)(57)(186)(185)
Net premiums written274 253 266 277 282 793 835 
Change in unearned premiums27 28 34 29 31 89 90 
Net premiums earned301 281 300 306 313 882 925 
Other underwriting income (1)3 3 11 2 3 17 15 
Losses and loss adjustment expenses2 3 (3)18 1 2 37 
Acquisition expenses(2)(1)(4)(3)1 (7)1 
Other operating expenses(44)(48)(52)(56)(49)(144)(151)
Underwriting income$260 $238 $252 $267 $269 $750 $827 
Underwriting Ratios
Loss ratio(0.5)%(1.2)%1.1 %(5.9)%(0.4)%(0.2)%(4.0)%
Acquisition expense ratio0.7 %0.4 %1.3 %1.0 %(0.4)%0.8 %(0.1)%
Other operating expense ratio (2)13.3 %16.0 %13.7 %18.3 %15.6 %14.3 %16.3 %
Combined ratio13.5 %15.2 %16.1 %13.4 %14.8 %14.9 %12.2 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(19.2)%(24.1)%(21.8)%(22.3)%(22.8)%(21.7)%(25.8)%
Combined ratio excluding prior year development (3)32.7 %39.3 %37.9 %35.7 %37.6 %36.6 %38.0 %
Net premiums written to gross premiums written83.0 %78.3 %81.6 %83.7 %83.2 %81.0 %81.9 %

(1)‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(2)The ‘Other operating expense ratio’ for the 2025 periods include ‘Other underwriting income.’
(3)    See ‘Comments on Non-GAAP Financial Measures’ for further discussion.

17
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Mortgage Segment
(U.S. Dollars in millions)Three Months EndedNine Months Ended
 September 30,June 30,March 31,December 31,September 30,September 30,September 30,
 2025202520252024202420252024
Net Premiums Written by Underwriting Unit
U.S. primary mortgage insurance$197 71.9 %$184 72.7 %$203 76.3 %$208 75.1 %$209 74.1 %$584 73.6 %$612 73.3 %
U.S. credit risk transfer (CRT) and other55 20.1 %51 20.2 %50 18.8 %51 18.4 %54 19.1 %156 19.7 %161 19.3 %
International mortgage insurance/reinsurance22 8.0 %18 7.1 %13 4.9 %18 6.5 %19 6.7 %53 6.7 %62 7.4 %
Total$274 100.0 %$253 100.0 %$266 100.0 %$277 100.0 %$282 100.0 %$793 100.0 %$835 100.0 %
Net Premiums Earned by Underwriting Unit
U.S. primary mortgage insurance$204 67.8 %$188 66.9 %$209 69.7 %$215 70.3 %$215 68.7 %$601 68.1 %$630 68.1 %
U.S. credit risk transfer (CRT) and other55 18.3 %51 18.1 %50 16.7 %51 16.7 %55 17.6 %156 17.7 %162 17.5 %
International mortgage insurance/reinsurance42 14.0 %42 14.9 %41 13.7 %40 13.1 %43 13.7 %125 14.2 %133 14.4 %
Total$301 100.0 %$281 100.0 %$300 100.0 %$306 100.0 %$313 100.0 %$882 100.0 %$925 100.0 %
Net Premiums Written by Underwriting Location
United States$197 71.9 %$184 72.7 %$203 76.3 %$208 75.1 %$210 74.5 %$584 73.6 %$615 73.7 %
Other77 28.1 %69 27.3 %63 23.7 %69 24.9 %72 25.5 %209 26.4 %220 26.3 %
Total$274 100.0 %$253 100.0 %$266 100.0 %$277 100.0 %$282 100.0 %$793 100.0 %$835 100.0 %
(U.S. Dollars in millions)
September 30, 2025June 30, 2025March 31, 2025December 31, 2024September 30, 2024
Insurance In Force (IIF) (1)
U.S. primary mortgage insurance$286,785 57.9 %$286,410 57.7 %$287,768 58.2 %$290,435 58.0 %$292,313 57.2 %
U.S. credit risk transfer (CRT) and other141,889 28.7 %145,883 29.4 %144,517 29.2 %145,892 29.1 %148,417 29.0 %
International mortgage insurance/reinsurance66,277 13.4 %64,374 13.0 %62,487 12.6 %64,822 12.9 %70,380 13.8 %
Total$494,951 100.0 %$496,667 100.0 %$494,772 100.0 %$501,149 100.0 %$511,110 100.0 %
Risk In Force (RIF) (2)
U.S. primary mortgage insurance$74,952 84.9 %$74,948 85.1 %$75,300 85.5 %$76,034 85.3 %$76,448 84.6 %
U.S. credit risk transfer and other5,688 6.4 %5,892 6.7 %5,842 6.6 %5,876 6.6 %6,011 6.7 %
International mortgage insurance/reinsurance7,633 8.6 %7,221 8.2 %6,896 7.8 %7,215 8.1 %7,887 8.7 %
Total$88,273 100.0 %$88,061 100.0 %$88,038 100.0 %$89,125 100.0 %$90,346 100.0 %
(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, 2025June 30, 2025March 31, 2025December 31, 2024September 30, 2024
Total RIF by credit quality:
>=740$47,575 63.5 %$47,261 63.1 %$47,130 62.6 %$47,360 62.3 %$47,414 62.0 %
680-73923,638 31.5 %23,880 31.9 %24,274 32.2 %24,688 32.5 %24,974 32.7 %
620-6793,419 4.6 %3,479 4.6 %3,558 4.7 %3,638 4.8 %3,701 4.8 %
<620320 0.4 %328 0.4 %338 0.4 %348 0.5 %359 0.5 %
Total$74,952 100.0 %$74,948 100.0 %$75,300 100.0 %$76,034 100.0 %$76,448 100.0 %
Weighted average credit score749 749 748 748 748 
Total RIF by Loan-To-Value (LTV):
95.01% and above$7,362 9.8 %$7,361 9.8 %$7,383 9.8 %$7,420 9.8 %$7,415 9.7 %
90.01% to 95.00%44,720 59.7 %44,711 59.7 %44,901 59.6 %45,311 59.6 %45,509 59.5 %
85.01% to 90.00%20,251 27.0 %20,293 27.1 %20,420 27.1 %20,637 27.1 %20,746 27.1 %
85.00% and below2,619 3.5 %2,583 3.4 %2,596 3.4 %2,666 3.5 %2,778 3.6 %
Total$74,952 100.0 %$74,948 100.0 %$75,300 100.0 %$76,034 100.0 %$76,448 100.0 %
Weighted average LTV93.2 %93.2 %93.2 %93.2 %93.1 %
Total RIF by State:
California$5,892 7.9 %$5,894 7.9 %$5,909 7.8 %$5,989 7.9 %$6,052 7.9 %
Texas5,393 7.2 %5,432 7.2 %5,506 7.3 %5,613 7.4 %5,699 7.5 %
North Carolina3,358 4.5 %3,347 4.5 %3,340 4.4 %3,355 4.4 %3,353 4.4 %
Minnesota3,137 4.2 %3,147 4.2 %3,085 4.1 %3,108 4.1 %3,111 4.1 %
Illinois3,046 4.1 %3,033 4.0 %3,025 4.0 %3,056 4.0 %3,085 4.0 %
Georgia3,043 4.1 %3,063 4.1 %3,104 4.1 %3,143 4.1 %3,145 4.1 %
Massachusetts2,829 3.8 %2,841 3.8 %2,853 3.8 %2,885 3.8 %2,896 3.8 %
Michigan2,822 3.8 %2,816 3.8 %2,838 3.8 %2,855 3.8 %2,876 3.8 %
Ohio2,697 3.6 %2,702 3.6 %2,701 3.6 %2,716 3.6 %2,717 3.6 %
Florida2,690 3.6 %2,714 3.6 %2,758 3.7 %2,824 3.7 %2,880 3.8 %
Other40,045 53.4 %39,959 53.3 %40,181 53.4 %40,490 53.3 %40,634 53.2 %
Total$74,952 100.0 %$74,948 100.0 %$75,300 100.0 %$76,034 100.0 %$76,448 100.0 %
Weighted average coverage (end of period RIF divided by IIF)26.1 %26.2 %26.2 %26.2 %26.2 %
U.S. mortgage insurance total RIF, net of reinsurance (1)$60,662 $60,436 $60,226 $60,085 $60,421 
Analysts’ persistency (2)82.3 %81.9 %81.9 %82.1 %82.9 %
Risk-to-capital ratio -- Arch MI U.S. (3)7.9:1 8.3:1 7.8:1 7.8:1 7.3:1
PMIER sufficiency ratio -- Arch MI U.S. (4)176 %168 %186 %186 %205 %
(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, 2025).
(4) On August 21, 2024, Fannie Mae and Freddie Mac (collectively the GSEs) each updated their Private Mortgage Insurer Eligibility Requirements (PMIERs) to incorporate new deductions to available assets for investment risk. This update became effective on March 31, 2025; but the impact will be phased in through September 30, 2026. If the GSEs had fully implemented this update to PMIERs as of September 30, 2025, the changes would have reduced the available assets by 5% and resulted in a pro-forma PMIERs Sufficiency Ratio of 172%.
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, 2025June 30, 2025March 31, 2025December 31, 2024September 30, 2024
Total new insurance written (NIW) (1)$12,965 $12,254 $9,190 $11,818 $13,526 
Total NIW by credit quality:
>=740$9,850 76.0 %$9,411 76.8 %$6,835 74.4 %$8,495 71.9 %$9,438 69.8 %
680-7392,753 21.2 %2,527 20.6 %2,103 22.9 %2,920 24.7 %3,584 26.5 %
620-679359 2.8 %313 2.6 %249 2.7 %401 3.4 %502 3.7 %
<6203 0.0 %3 0.0 %3 0.0 %2 0.0 %2 0.0 %
  Total$12,965 100.0 %$12,254 100.0 %$9,190 100.0 %$11,818 100.0 %$13,526 100.0 %
Total NIW by LTV:
95.01% and above$1,038 8.0 %$814 6.6 %$756 8.2 %$919 7.8 %$1,089 8.1 %
90.01% to 95.00%5,668 43.7 %5,632 46.0 %4,374 47.6 %5,743 48.6 %6,620 48.9 %
85.01% to 90.00%4,323 33.3 %3,945 32.2 %2,920 31.8 %3,771 31.9 %4,293 31.7 %
85.00% and below1,936 14.9 %1,863 15.2 %1,140 12.4 %1,385 11.7 %1,524 11.3 %
  Total$12,965 100.0 %$12,254 100.0 %$9,190 100.0 %$11,818 100.0 %$13,526 100.0 %
Total NIW monthly vs. single:
Monthly$12,267 94.6 %$11,779 96.1 %$8,497 92.5 %$11,328 95.9 %$12,581 93.0 %
Single698 5.4 %475 3.9 %693 7.5 %490 4.1 %945 7.0 %
  Total$12,965 100.0 %$12,254 100.0 %$9,190 100.0 %$11,818 100.0 %$13,526 100.0 %
Total NIW purchase vs. refinance:
Purchase$12,319 95.0 %$11,633 94.9 %$8,795 95.7 %$11,020 93.2 %$13,177 97.4 %
Refinance646 5.0 %621 5.1 %395 4.3 %798 6.8 %349 2.6 %
  Total$12,965 100.0 %$12,254 100.0 %$9,190 100.0 %$11,818 100.0 %$13,526 100.0 %
Ending number of policies in force (PIF) (2)1,067,147 1,073,477 1,085,927 1,100,653 1,114,251 
Rollforward of insured loans in default:
Beginning delinquent number of loans20,762 21,299 22,982 21,878 20,422 
Plus: new notices12,168 10,856 11,529 12,738 12,613 
Less: cures(10,715)(11,085)(12,920)(11,264)(10,819)
Less: paid claims(394)(308)(292)(370)(338)
Ending delinquent number of loans (2)21,821 20,762 21,299 22,982 21,878 
Ending percentage of loans in default (2)2.04 %1.93 %1.96 %2.09 %1.96 %
Losses:
Number of claims paid394 308 292 370 338 
Total paid claims (in thousands)$12,934 $12,703 $11,950 $12,679 $12,874 
Average paid per claim (in thousands)$32.8 $41.2 $40.9 $34.3 $38.1 
Severity (3)73.2 %75.3 %76.8 %77.7 %71.9 %
Average case reserve per default (in thousands)$16.1 $16.8 $16.7 $15.3 $15.9 
(1)    The original principal balance of all loans that received coverage during the period.
(2)    Includes first lien primary and pool policies.    
(3)    Represents total direct first lien paid claims divided by RIF of loans for which claims were paid, excluding paid claim settlements.
20
Arch Capital Group Ltd. and Subsidiaries
Segment Information — Mortgage Segment
The following table provides supplemental disclosures for the Company’s U.S. primary mortgage insurance operations:
(U.S. Dollars in millions)
September 30, 2025December 31, 2024
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:
2015 and prior27.6 %$16,567 5.8 %$4,221 5.6 %5.34 %36.1 %$18,329 6.3 %$4,670 6.1 %5.85 %
20162.4 %3,484 1.2 %870 1.2 %3.41 %3.4 %5,240 1.8 %1,371 1.8 %3.23 %
20174.2 %4,553 1.6 %1,212 1.6 %3.51 %4.7 %5,554 1.9 %1,489 2.0 %3.52 %
20186.4 %6,062 2.1 %1,579 2.1 %4.18 %7.0 %7,081 2.4 %1,843 2.4 %4.31 %
20197.5 %11,092 3.9 %2,911 3.9 %2.90 %7.6 %12,919 4.4 %3,386 4.5 %2.85 %
202011.7 %33,095 11.5 %9,049 12.1 %1.65 %10.9 %39,426 13.6 %10,718 14.1 %1.52 %
202116.3 %52,827 18.4 %14,425 19.2 %1.73 %14.2 %62,382 21.5 %16,620 21.9 %1.52 %
202213.8 %51,437 17.9 %13,712 18.3 %1.72 %10.8 %57,175 19.7 %15,113 19.9 %1.51 %
20236.5 %33,165 11.6 %8,548 11.4 %1.51 %4.4 %36,827 12.7 %9,479 12.5 %1.12 %
20243.7 %41,681 14.5 %10,418 13.9 %0.85 %0.9 %45,502 15.7 %11,345 14.9 %0.30 %
20250.2 %32,822 11.4 %8,007 10.7 %0.12 %
Total100.0 %$286,785 100.0 %$74,952 100.0 %2.04 %100.0 %$290,435 100.0 %$76,034 100.0 %2.09 %

(1)    Total reserves for losses and loss adjustment expenses, net of recoverables, was $322.1 million at September 30, 2025, compared to $332.6 million at December 31, 2024.
(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,
 2025202520252024202420252024
Gross premiums written$5,410 $6,196 $6,463 $4,756 $5,440 $18,069 $16,755 
Premiums ceded(1,446)(1,848)(1,948)(937)(1,393)(5,242)(4,842)
Net premiums written3,964 4,348 4,515 3,819 4,047 12,827 11,913 
Change in unearned premiums321 (11)(327)324 (77)(17)(956)
Net premiums earned4,285 4,337 4,188 4,143 3,970 12,810 10,957 
Other underwriting income50 62 53 6 5 165 20 
Losses and loss adjustment expenses(2,200)(2,303)(2,587)(2,384)(2,403)(7,090)(5,958)
Acquisition expenses(786)(824)(764)(730)(681)(2,374)(1,921)
Other operating expenses(478)(454)(473)(410)(353)(1,405)(1,062)
Underwriting income (loss) (1)$871 $818 $417 $625 $538 $2,106 $2,036 
Underwriting Ratios
Loss ratio51.4 %53.1 %61.8 %57.5 %60.5 %55.4 %54.4 %
Acquisition expense ratio18.4 %19.0 %18.3 %17.6 %17.2 %18.5 %17.5 %
Other operating expense ratio10.0 %9.1 %10.0 %9.9 %8.9 %9.7 %9.7 %
Combined ratio79.8 %81.2 %90.1 %85.0 %86.6 %83.6 %81.6 %
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums1.7 %3.5 %13.1 %9.5 %11.3 %6.0 %6.4 %
Net (favorable) adverse development in prior year loss reserves, net of related adjustments(2.4)%(3.2)%(4.0)%(3.5)%(3.0)%(3.2)%(3.4)%
Combined ratio excluding catastrophic activity and prior year development (1)80.5 %80.9 %81.0 %79.0 %78.3 %80.8 %78.6 %
Components of losses and loss adjustment expenses incurred
Paid losses and loss adjustment expenses$1,569 $1,744 $1,761 $1,554 $1,329 $5,074 $3,519 
Change in unpaid losses and loss adjustment expenses631 559 826 830 1,074 2,016 2,439 
Total losses and loss adjustment expenses$2,200 $2,303 $2,587 $2,384 $2,403 $7,090 $5,958 
Net premiums written to gross premiums written73.3 %70.2 %69.9 %80.3 %74.4 %71.0 %71.1 %
 
(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,
 2025202520252024202420252024
Estimated net (favorable) adverse development in prior year loss reserves, net of related adjustments
Net impact on underwriting results:
Insurance$(2)$(2)$(10)$(2)$(12)$(14)$(23)
Reinsurance(44)(69)(92)(76)(36)(205)(108)
Mortgage(57)(68)(65)(68)(71)(190)(238)
Total $(103)$(139)$(167)$(146)$(119)$(409)$(369)
Impact on losses and loss adjustment expenses:
Insurance$(14)$(8)$(17)$(6)$(16)$(39)$(31)
Reinsurance(53)(81)(119)(73)(41)(253)(115)
Mortgage(54)(64)(61)(62)(64)(179)(220)
Total$(121)$(153)$(197)$(141)$(121)$(471)$(366)
Impact on acquisition expenses:
Insurance$12 $6 $7 $4 $4 $25 $8 
Reinsurance9 12 27 (3)5 48 7 
Mortgage(3)(4)(4)(6)(7)(11)(18)
Total$18 $14 $30 $(5)$2 $62 $(3)
Impact on combined ratio:
Insurance(0.1)%(0.1)%(0.5)%(0.1)%(0.7)%(0.2)%(0.5)%
Reinsurance(2.2)%(3.3)%(4.5)%(4.0)%(1.9)%(3.3)%(2.0)%
Mortgage(19.2)%(24.1)%(21.8)%(22.3)%(22.8)%(21.7)%(25.8)%
Total (2.4)%(3.2)%(4.0)%(3.5)%(3.0)%(3.2)%(3.4)%
Impact on loss ratio:
Insurance(0.7)%(0.4)%(0.9)%(0.3)%(0.9)%(0.7)%(0.6)%
Reinsurance(2.6)%(3.9)%(5.9)%(3.8)%(2.2)%(4.1)%(2.2)%
Mortgage(18.1)%(22.8)%(20.4)%(20.2)%(20.5)%(20.4)%(23.9)%
Total(2.8)%(3.5)%(4.7)%(3.4)%(3.1)%(3.7)%(3.3)%
Impact on acquisition expense ratio:
Insurance0.6 %0.3 %0.4 %0.2 %0.2 %0.5 %0.1 %
Reinsurance0.4 %0.6 %1.4 %(0.2)%0.3 %0.8 %0.2 %
Mortgage(1.1)%(1.3)%(1.4)%(2.1)%(2.3)%(1.3)%(1.9)%
Total 0.4 %0.3 %0.7 %(0.1)%0.1 %0.5 %(0.1)%
Estimated net losses incurred from current accident year catastrophic events (1)
Insurance$43 $58 $177 $161 $86 $278 $143 
Reinsurance29 96 370 232 364 495 561 
Total$72 $154 $547 $393 $450 $773 $704 
Impact on combined ratio:
Insurance2.2 %2.9 %9.5 %8.3 %4.9 %4.8 %3.0 %
Reinsurance1.5 %4.6 %18.3 %12.2 %19.3 %8.1 %10.5 %
Total1.7 %3.5 %13.1 %9.5 %11.3 %6.0 %6.4 %
(1)Equals estimated losses from catastrophic events occurring in the current accident year (e.g. natural catastrophes, man-made events, pandemic events), net of reinsurance and reinstatement premiums. As regards the natural catastrophe estimates included within, amounts shown for the insurance and reinsurance segments generally include (i) North American events with a Property Claim Services ("PCS") code and (ii) named catastrophic events outside of North America. Amounts not applicable for the mortgage segment.
23
Arch Capital Group Ltd. and Subsidiaries
Investment Information — Investable Asset Summary and Investment Portfolio Metrics
The following table summarizes the Company’s investable assets and portfolio metrics:
(U.S. Dollars in millions)September 30,June 30,March 31,December 31,September 30,
20252025202520242024
Investable assets:
Fixed maturities available for sale, at fair value$31,908 68.3 %$30,332 67.5 %$28,798 66.9 %$27,035 65.3 %$28,434 66.5 %
Fixed maturities—fair value option (1)1,050 2.2 %1,009 2.2 %913 2.1 %854 2.1 %1,097 2.6 %
Total fixed maturities32,958 70.5 %31,341 69.7 %29,711 69.0 %27,889 67.4 %29,531 69.1 %
Equity securities, at fair value1,805 3.9 %1,715 3.8 %1,618 3.8 %1,675 4.0 %1,623 3.8 %
Equity securities—fair value option (1)5 0.0 %5 0.0 %5 0.0 %7 0.0 %7 0.0 %
Total equity securities1,810 3.9 %1,720 3.8 %1,623 3.8 %1,682 4.1 %1,630 3.8 %
Other investments—fair value option (1)1,911 4.1 %1,810 4.0 %1,866 4.3 %2,135 5.2 %2,096 4.9 %
Investments accounted for using the equity method (2)6,232 13.3 %6,566 14.6 %6,340 14.7 %5,980 14.4 %5,244 12.3 %
Short-term investments available for sale, at fair value2,351 5.0 %2,788 6.2 %2,477 5.8 %2,784 6.7 %3,341 7.8 %
Short-term investments—fair value option (1)61 0.1 %68 0.2 %104 0.2 %70 0.2 %61 0.1 %
Total short-term investments2,412 5.2 %2,856 6.4 %2,581 6.0 %2,854 6.9 %3,402 8.0 %
Cash1,063 2.3 %983 2.2 %1,187 2.8 %979 2.4 %1,025 2.4 %
Securities transactions entered into but not settled at the balance sheet date360 0.8 %(338)(0.8)%(254)(0.6)%(131)(0.3)%(177)(0.4)%
Total investable assets held by the Company$46,746 100.0 %$44,938 100.0 %$43,054 100.0 %$41,388 100.0 %$42,751 100.0 %
Average effective duration of fixed maturities (in years) (3)3.24 3.48 3.32 3.31  3.14
Average S&P/Moody’s credit ratings (4) AA-/Aa3  AA-/Aa3  AA-/Aa3  AA-/Aa3  AA-/Aa3  
(1)     Included in “other investments” on the balance sheet.
(2)    Changes in the carrying value of investments accounted for using the equity method are recorded as “equity in net income of investments accounted for using the equity method” rather than as                 an unrealized gain or loss component of accumulated other comprehensive income.
(3)     During the 2024 fourth quarter, the Company changed its presentation from a total portfolio duration to a duration on fixed maturities and short-term investments.
(4)    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,
 2025202520252024202420252024
Composition of pre-tax net investment income:       
Fixed maturities$379 $360 $342 $340 $340 $1,081 $926 
Short-term investments25 24 26 42 38 75 102 
Equity securities (dividends)10 10 11 13 9 31 27 
Other (1)19 35 28 33 35 82 103 
Gross investment income433 429 407 428 422 1,269 1,158 
Investment expenses(25)(24)(29)(23)(23)(78)(68)
Pre-tax net investment income$408 $405 $378 $405 $399 $1,191 $1,090 
Per share$1.08 $1.07 $0.99 $1.06 $1.04 $3.14 $2.86 
Pre-tax equity in net income of investments accounted for using the equity method134 162 53 143 171 349 437 
Per share$0.36 $0.43 $0.14 $0.37 $0.45 $0.92 $1.15 
Investment income yield, at amortized cost (2):
Pre-tax4.07 %4.25 %4.16 %4.32 %4.40 %4.16 %4.29 %
After-tax3.32 %3.43 %3.35 %3.83 %3.88 %3.37 %3.77 %
Total return on investments (3)1.80 %3.09 %2.02 %(1.05)%3.97 %7.07 %6.20 %
(1)Amounts include dividends and other distributions on investment funds, term loan investments, funds held balances, cash balances and other.
(2)Presented on an annualized basis and excluding the impact of investments for which returns are not included within investment income, such as investments accounted for using the equity method and certain equities.
(3)Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in allowance for credit losses on non-investment related financial assets) and the change in unrealized gains or losses and is calculated on a pre-tax basis and before investment expenses. See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of the presentation of total return on investments.

25
Arch Capital Group Ltd. and Subsidiaries
Investment Information — Composition of Fixed Maturities
 
The following table summarizes the Company’s fixed maturities:
(U.S. Dollars in millions)
Fair
Value		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Unrealized
Gains (Losses)		Allowance
for Credit Losses		Amortized
Cost		Fair Value /
Amortized Cost		Fair Value
% of Total
At September 30, 2025
Corporates$16,044 $301 $(173)$128 $(14)$15,930 100.7 %48.7 %
U.S. government and government agencies6,331 23 (31)(8)— 6,339 99.9 %19.2 %
Non-U.S. government securities3,245 59 (81)(22)(1)3,268 99.3 %9.8 %
Asset-backed securities3,149 22 (19)3 (6)3,152 99.9 %9.6 %
Residential mortgage-backed securities 2,766 30 (22)8 — 2,758 100.3 %8.4 %
Commercial mortgage-backed securities1,249 10 (6)4 — 1,245 100.3 %3.8 %
Municipal bonds174 — (5)(5)— 179 97.2 %0.5 %
Total$32,958 $445 $(337)$108 $(21)$32,871 100.3 %100.0 %
At December 31, 2024
Corporates$13,319 $110 $(346)$(236)$(12)$13,567 98.2 %47.8 %
U.S. government and government agencies6,724 8 (149)(141)— 6,865 97.9 %24.1 %
Non-U.S. government securities2,546 30 (107)(77)(1)2,624 97.0 %9.1 %
Asset-backed securities2,900 19 (32)(13)(8)2,921 99.3 %10.4 %
Residential mortgage-backed securities 1,079 6 (31)(25)— 1,104 97.7 %3.9 %
Commercial mortgage-backed securities1,058 6 (11)(5)(1)1,064 99.4 %3.8 %
Municipal bonds263 — (16)(16)— 279 94.3 %0.9 %
Total$27,889 $179 $(692)$(513)$(22)$28,424 98.1 %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,
20252025202520242024
Credit quality distribution of total fixed maturities (1):
U.S. government and government agencies (2)$8,409 25.5 %$8,355 26.7 %$7,827 26.3 %$7,498 26.9 %$6,725 22.8 %
AAA5,425 16.5 %4,745 15.1 %4,698 15.8 %4,330 15.5 %4,876 16.5 %
AA2,449 7.4 %2,491 7.9 %2,287 7.7 %2,285 8.2 %2,552 8.6 %
A6,904 20.9 %6,645 21.2 %5,931 20.0 %5,138 18.4 %5,664 19.2 %
BBB7,167 21.7 %6,673 21.3 %6,625 22.3 %6,467 23.2 %7,361 24.9 %
BB1,175 3.6 %1,110 3.5 %1,051 3.5 %978 3.5 %1,097 3.7 %
B685 2.1 %657 2.1 %605 2.0 %458 1.6 %534 1.8 %
Lower than B29 0.1 %30 0.1 %26 0.1 %28 0.1 %37 0.1 %
Not rated715 2.2 %635 2.0 %661 2.2 %707 2.5 %685 2.3 %
Total fixed maturities, at fair value$32,958 100.0 %$31,341 100.0 %$29,711 100.0 %$27,889 100.0 %$29,531 100.0 %
Maturity profile of total fixed maturities:
Due in one year or less$570 1.7 %$518 1.7 %$533 1.8 %$486 1.7 %$506 1.7 %
Due after one year through five years17,379 52.7 %17,632 56.3 %16,570 55.8 %15,880 56.9 %16,255 55.0 %
Due after five years through ten years7,047 21.4 %6,350 20.3 %6,179 20.8 %5,993 21.5 %6,760 22.9 %
Due after 10 years798 2.4 %847 2.7 %656 2.2 %493 1.8 %562 1.9 %
25,794 78.3 %25,347 80.9 %23,938 80.6 %22,852 81.9 %24,083 81.6 %
Residential mortgage-backed securities2,766 8.4 %2,386 7.6 %1,755 5.9 %1,079 3.9 %1,313 4.4 %
Commercial mortgage-backed securities1,249 3.8 %838 2.7 %931 3.1 %1,058 3.8 %1,146 3.9 %
Asset-backed securities3,149 9.6 %2,770 8.8 %3,087 10.4 %2,900 10.4 %2,989 10.1 %
Total fixed maturities, at fair value$32,958 100.0 %$31,341 100.0 %$29,711 100.0 %$27,889 100.0 %$29,531 100.0 %

(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,
20252025202520242024
Sector:
Industrials$8,262 51.5 %$7,974 51.7 %$7,157 49.1 %$6,673 50.1 %$8,145 54.0 %
Financials6,251 39.0 %5,939 38.5 %5,881 40.3 %5,207 39.1 %5,208 34.5 %
Utilities1,225 7.6 %1,201 7.8 %1,039 7.1 %951 7.1 %1,237 8.2 %
All other (1)306 1.9 %303 2.0 %512 3.5 %488 3.7 %491 3.3 %
Total$16,044 100.0 %$15,417 100.0 %$14,589 100.0 %$13,319 100.0 %$15,081 100.0 %
Credit quality distribution (2):
AAA$195 1.2 %$180 1.2 %$194 1.3 %$196 1.5 %$241 1.6 %
AA807 5.0 %953 6.2 %915 6.3 %918 6.9 %1,002 6.6 %
A5,882 36.7 %5,712 37.1 %5,092 34.9 %4,248 31.9 %4,771 31.6 %
BBB6,891 43.0 %6,392 41.5 %6,308 43.2 %6,119 45.9 %7,022 46.6 %
BB1,128 7.0 %1,054 6.8 %1,001 6.9 %900 6.8 %1,019 6.8 %
B676 4.2 %652 4.2 %604 4.1 %454 3.4 %529 3.5 %
Lower than B29 0.2 %30 0.2 %26 0.2 %28 0.2 %37 0.2 %
Not rated436 2.7 %444 2.9 %449 3.1 %456 3.4 %460 3.1 %
Total$16,044 100.0 %$15,417 100.0 %$14,589 100.0 %$13,319 100.0 %$15,081 100.0 %

(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, 2025:
(U.S. Dollars in millions)Fair
Value		% of Asset Class% of Investable AssetsCredit Quality (1)
Issuer:
JPMorgan Chase & Co.$415 2.6 %0.9 %A/A1
Morgan Stanley400 2.5 %0.9 %A/A1
Bank of America Corporation358 2.2 %0.8 %A-/A1
Wells Fargo & Company291 1.8 %0.6 %BBB+/A1
The Goldman Sachs Group, Inc.271 1.7 %0.6 %A-/A2
Citigroup Inc.241 1.5 %0.5 %A-/A2
Philip Morris International Inc.194 1.2 %0.4 %A-/A2
The Toronto-Dominion Bank181 1.1 %0.4 %A-/A2
Blue Owl Capital Inc.171 1.1 %0.4 %BBB-/Baa3
UBS Group AG164 1.0 %0.4 %A-/A2
Total$2,686 16.7 %5.7 %
 
(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, 2025      
Residential mortgage-backed securities$2,071 $648 $2 $— $— $45 $2,766 
Commercial mortgage-backed securities6 751 221 47 146 78 1,249 
Asset-backed securities— 1,736 315 772 122 204 3,149 
Total$2,077 $3,135 $538 $819 $268 $327 $7,164 
At December 31, 2024
Residential mortgage-backed securities$769 $309 $— $1 $— $— $1,079 
Commercial mortgage-backed securities7 556 193 63 147 92 1,058 
Asset-backed securities— 1,432 336 715 184 233 2,900 
Total$776 $2,297 $529 $779 $331 $325 $5,037 
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 investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on the following page.
The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization.
The use of the equity method on certain of the Company’s investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities and the timing of the recognition of equity in net income or loss of investments accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments.
Transaction costs and other include advisory, financing, legal, severance, incentive compensation and other transaction costs related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance.

The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company’s business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company’s financial information to analyze the Company’s performance in a manner similar to how the Company’s management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company’s financial information to compare the Company’s performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.
The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of the Company’s underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on pages 9 to 12.
In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. Effective in the 2025 first quarter, the ‘Other operating expense ratio’ includes ‘Other underwriting income.’
Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by the Company’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses, and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented.
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,
 2025202520252024202420252024
Net income available to Arch common shareholders$1,340 $1,227 $564 $925 $978 $3,131 $3,347 
Net realized (gains) losses (1)(210)(229)(3)161 (169)(442)(358)
Equity in net (income) of investments accounted for using the equity method(134)(162)(53)(143)(171)(349)(437)
Net foreign exchange (gains) losses7 88 27 (106)63 122 31 
Transaction costs and other21 18 10 26 30 49 55 
Income tax expense (benefit) (2)18 37 42 3 31 97 38 
After-tax operating income available to Arch common shareholders$1,042 $979 $587 $866 $762 $2,608 $2,676 
Diluted per common share results:
Net income available to Arch common shareholders$3.56 $3.23 $1.48 $2.42 $2.56 $8.26 $8.78 
Net realized (gains) losses (1)(0.56)(0.60)(0.01)0.41 (0.44)(1.17)(0.94)
Equity in net (income) of investments accounted for using the equity method(0.36)(0.43)(0.14)(0.37)(0.45)(0.93)(1.15)
Net foreign exchange (gains) losses0.02 0.23 0.07 (0.28)0.16 0.32 0.09 
Transaction costs and other0.06 0.05 0.03 0.07 0.08 0.14 0.15 
Income tax expense (benefit) (2)0.05 0.10 0.11 0.01 0.08 0.26 0.09 
After-tax operating income available to Arch common shareholders$2.77 $2.58 $1.54 $2.26 $1.99 $6.88 $7.02 
Weighted average common shares and common share equivalents outstanding - diluted376.1 379.9 381.9 382.8 382.3 379.1 381.3 
Beginning common shareholders’ equity$22,211 $20,715 $19,990 $21,444 $19,835 $19,990 $17,523 
Ending common shareholders’ equity22,889 22,211 20,715 19,990 21,444 22,889 21,444 
Average common shareholders’ equity$22,550 $21,463 $20,353 $20,717 $20,640 $21,440 $19,484 
Annualized net income return on average common equity23.8 %22.9 %11.1 %17.9 %19.0 %19.5 %22.9 %
Annualized operating return on average common equity18.5 %18.2 %11.5 %16.7 %14.8 %16.2 %18.3 %

(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 of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.

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,
 2025202520252024202420252024
Arch Operating Income Components:
Income (loss) before income taxes and income (loss) from operating affiliates$1,503 $1,411 $678 $937 $1,050 $3,592 $3,537 
Net realized (gains) losses(210)(229)(3)161 (169)(442)(358)
Equity in net (income) of investments accounted for using the equity method(134)(162)(53)(143)(171)(349)(437)
Net foreign exchange (gains) losses7 88 27 (106)63 122 32 
Transaction costs and other21 18 10 26 30 49 55 
Income (loss) from operating affiliates
62 40 17 64 36 119 136 
Pre-tax operating income available to Arch (b)1,249 1,166 676 939 839 3,091 2,965 
Income tax (expense) benefit (a)(197)(177)(79)(63)(67)(453)(259)
After-tax operating income available to Arch1,052 989 597 876 772 2,638 2,706 
Preferred dividends(10)(10)(10)(10)(10)(30)(30)
After-tax operating income available to Arch common shareholders$1,042 $979 $587 $866 $762 $2,608 $2,676 
Effective tax rate on pre-tax operating income (loss) available to Arch (a)/(b)15.8 %15.2 %11.7 %6.7 %8.0 %14.7 %8.7 %

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,
20252025202520242024
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(22)(22)(22)(22)(23)
Revolving credit agreement borrowings, due August 23, 2028— — — — — 
Total debt$2,728 $2,728 $2,728 $2,728 $2,727 
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)22,889 22,211 20,715 19,990 21,444 
Total shareholders’ equity available to Arch$23,719 $23,041 $21,545 $20,820 $22,274 
Total capital available to Arch$26,447 $25,769 $24,273 $23,548 $25,001 
Common shares outstanding, net of treasury shares (b)367.3 375.4 375.6 376.4 376.2 
Book value per common share (3) (a)/(b)$62.32 $59.17 $55.15 $53.11 $57.00 
Leverage ratios:
Senior notes/total capital available to Arch10.3 %10.6 %11.2 %11.6 %10.9 %
Revolving credit agreement borrowings/total capital available to Arch— %— %— %— %— %
Debt/total capital available to Arch10.3 %10.6 %11.2 %11.6 %10.9 %
Preferred/total capital available to Arch3.1 %3.2 %3.4 %3.5 %3.3 %
Debt and preferred/total capital available to Arch13.5 %13.8 %14.7 %15.1 %14.2 %

(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,
 202520252025202420242025
Effect of share repurchases:
Aggregate cost of shares repurchased$732.3 $163.2 $196.4 $24 $— $6,985.1 
Shares repurchased8.2 1.9 2.2 0.3 — 446.1 
Average price per share repurchased$88.82 $87.94 $88.89 $89.63 $— $15.66 
Remaining share repurchase authorization (1)$1,904.9 
(1)    Repurchases under the share repurchase authorization may be effected from time to time in open market or privately negotiated transactions. On September 4, 2025, the Company increased its authorization for its existing share repurchase program by $2.0 billion.
33