Arch Capital Group Ltd

Latest Results (01.09.2026):

Arch Capital Group Ltd — Q2 2026: Arch reported net income available to common shareholders of $1.0 billion ($3.00 diluted EPS) for the second quarter of 2026, and after‑tax operating income available to common shareholders of $893 million ($2.56 per share). The quarter included $201 million of pre‑tax current accident year catastrophe losses (net), $165 million of favorable prior‑year loss reserve development (net), combined ratio excluding catastrophe and prior‑year development of 82.5%, and $1.2 billion of share repurchases; book value per common share was $68.04 at June 30, 2026 (up 2.8% from March 31, 2026).

Net income and operating income

Net income available to Arch common shareholders: $1,047 million (diluted EPS $3.00). After‑tax operating income available to common shareholders: $893 million (operating EPS $2.56). Annualized net income return on average common equity: 18.0%; annualized operating return on average common equity: 15.3%.

Underwriting performance (consolidated)

Consolidated underwriting income declined to $657 million (three months ended June 30, 2026) from $818 million a year earlier. Combined ratio was 83.5% (up 2.3 points YoY); combined ratio excluding catastrophic activity and prior‑year development was 82.5% (up 1.6 points YoY). Net premiums earned fell 8.1% to $3,985 million.

Segment highlights

Insurance: underwriting income of $27 million (vs. $129M prior year) and combined ratio 98.5% (current‑year catastrophe impact 8.0%); combined ratio excluding catastrophe/prior‑year development 91.6%. Reinsurance: underwriting income $410 million, combined ratio 77.5% (excluding catastrophe/prior‑year development 79.9%). Mortgage: underwriting income $220 million, combined ratio 22.8% with substantial favorable prior‑year development (loss ratio reduced ~15.7 points).

Catastrophe and prior‑year reserve activity

Pre‑tax current accident year catastrophic losses (net of reinsurance & reinstatement premiums) totaled $201 million for the company. Favorable development in prior year loss reserves (net of related adjustments) was $165 million, which reduced reported loss ratios in the quarter.

Investments and other corporate items

Pre‑tax net investment income was $417 million. Net realized losses were $17 million in Q2 2026 (vs. $229 million net gain in Q2 2025). Equity in net income of equity‑method investments was $196 million. Pre‑tax total return on investments was 1.62% for the quarter.

Capital actions and balance sheet

Arch repurchased $1.2 billion of common stock in the quarter. On June 9, 2026 the company issued $2.0 billion of senior notes (2036 and 2056 maturities) and completed tender offers that generated a pre‑tax realized gain of $16 million. Ending common shareholders’ equity was $23.20 billion and book value per common share $68.04 at June 30, 2026.