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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2025
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 001-16209

 archlogorgbsolida36.jpg
ARCH CAPITAL GROUP LTD.
(Exact name of registrant as specified in its charter)
Bermuda 98-0374481
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
Waterloo House, Ground Floor
100 Pitts Bay Road, Pembroke HM 08, Bermuda (441) 278-9250
(Address of principal executive offices) (Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class Trading Symbol (s) Name of each exchange on which registered
Common shares, $0.0011 par value per share ACGL NASDAQ  Stock Market
Depositary shares, each representing a 1/1000th interest in a 5.45% Series F preferred share
ACGLO
NASDAQ  Stock Market
Depositary shares, each representing a 1/1000th interest in a 4.55% Series G preferred share
ACGLN
NASDAQ  Stock Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑     No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☑ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller reporting company ☐ 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. ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of November 5, 2025, there were 362,625,938 common shares, $0.0011 par value per share, of the registrant outstanding.


ARCH CAPITAL GROUP LTD.
 
INDEX TO FORM 10-Q
 
    Page No.
 
 2
Item 1.
 4
Item 2.
Item 3.
Item 4.
   
 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.  
Item 6.  
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

PART I. FINANCIAL INFORMATION
Cautionary Note Regarding Forward-Looking Statements 
The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This report or any other written or oral statements made by or on behalf of us may include forward-looking statements, which reflect our 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 report 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 our 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 report and in our periodic reports filed with the Securities and Exchange Commission (“SEC”), and include:
•our ability to successfully implement our business strategy during “soft” as well as “hard” markets;
•acceptance of our business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and our insureds and reinsureds;
•our ability to consummate acquisitions and integrate the business we have acquired or may acquire into our existing operations;
•our ability to maintain or improve our ratings, which may be affected by our ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein;
•general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which we operate;
•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 our access to such markets;
•our ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support our 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 our financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred income tax assets, contingencies and litigation, and any determination to use the deposit method of accounting;
•greater than expected loss ratios on business written by us and adverse development on claim and/or claim expense liabilities related to business written by our insurance, reinsurance and mortgage subsidiaries;
•the adequacy of the Company’s loss reserves;
•severity and/or frequency of losses;
•greater frequency or severity of unpredictable natural and man-made catastrophic events;
•claims for natural or man-made catastrophic events or severe economic events in our insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in our results of operations;
•availability to us of reinsurance to manage our net exposure and the cost of such reinsurance;
•the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to us;
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

•the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by us;
•our investment performance, including legislative or regulatory developments that may adversely affect the fair value of our investments;
•changes in general economic conditions, including sovereign debt concerns or downgrades of U.S. securities by credit rating agencies, which could affect our business, financial condition and results of operations;
•an incident, disruption in operations or other cyber event caused by a cyber attack, inadvertent error, the use of artificial intelligence technologies or other technology on our systems or those of our business partners and service providers, which could negatively impact our business and/or expose us to litigation;
•the effect of climate change on our business;
•the effect of contagious diseases on our business;
•acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events;
•the volatility of our shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching portions of our projected liabilities in foreign currencies with investments in the same currencies;
•changes in accounting principles or policies or in our application of such accounting principles or policies;
•changes in the political environment of certain countries in which we operate or underwrite business;
•statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to us, our subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development (“OECD”) Pillar I and Pillar II initiatives and the enactment of 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 our 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 us or persons acting on our 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 report or as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 

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2025 THIRD QUARTER FORM 10-Q

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
  Page No.
   
September 30, 2025 and December 31, 2024 (unaudited)
For the three and nine month periods ended September 30, 2025 and 2024 (unaudited)
For the three and nine month periods ended September 30, 2025 and 2024 (unaudited)
For the three and nine month periods ended September 30, 2025 and 2024 (unaudited)
For the nine month periods ended September 30, 2025 and 2024 (unaudited)
Notes to Consolidated Financial Statements (unaudited)

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2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars and shares in millions)
(Unaudited)
September 30,
2025
December 31,
2024
Assets    
Investments:    
Fixed maturities available for sale, at fair value (amortized cost: $31,821 and $27,570; net of allowance for credit losses: $21 and $22)
$ 31,908  $ 27,035 
Short-term investments available for sale, at fair value (amortized cost: $2,350 and $2,784; net of allowance for credit losses: $0 and $0)
2,351  2,784 
Equity securities, at fair value 1,805  1,675 
Other investments, at fair value 3,027  3,066 
Investments accounted for using the equity method 6,232  5,980 
Total investments 45,323  40,540 
Cash 1,063  979 
Accrued investment income 307  298 
Investment in operating affiliates 1,417  1,240 
Premiums receivable (net of allowance for credit losses: $54 and $45)
6,450  5,634 
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses (net of allowance for credit losses: $19 and $17)
9,070  8,260 
Contractholder receivables (net of allowance for credit losses: $6 and $5)
2,287  2,161 
Ceded unearned premiums 3,079  2,428 
Deferred acquisition costs 1,786  1,734 
Receivable for securities sold 695  50 
Goodwill and intangible assets 1,268  1,351 
Other assets 6,440  6,231 
Total assets $ 79,185  $ 70,906 
Liabilities
Reserve for losses and loss adjustment expenses $ 32,822  $ 29,369 
Unearned premiums 11,124  10,218 
Reinsurance balances payable 2,638  2,137 
Contractholder payables 2,293  2,165 
Collateral held for insured obligations 239  249 
Senior notes 2,728  2,728 
Payable for securities purchased 335  181 
Other liabilities 3,287  3,039 
Total liabilities 55,466  50,086 
Commitments and contingencies (refer to Note 11)
Shareholders' Equity
Non-cumulative preferred shares 830  830 
Common shares ($0.0011 par, shares issued: 599.2 and 595.6)
Additional paid-in capital 2,682  2,510 
Retained earnings 25,817  22,686 
Accumulated other comprehensive income (loss), net of deferred income tax —  (720)
Common shares held in treasury, at cost (shares: 231.9 and 219.2)
(5,611) (4,487)
Total shareholders' equity available to Arch 23,719  20,820 
Total liabilities and shareholders' equity $ 79,185  $ 70,906 
See Notes to Consolidated Financial Statements

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2025 THIRD QUARTER FORM 10-Q


ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars and shares in millions, except per share data)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
  2025 2024 2025 2024
Revenues        
Net premiums earned $ 4,285  $ 3,970  12,810  10,957 
Net investment income 408  399  1,191  1,090 
Net realized gains (losses) 210  169  442  358 
Other underwriting income 50  165  20 
Equity in net income of investments accounted for using the equity method 134  171  349  437 
Other income (loss) 22  38  30 
Total revenues 5,109  4,722  14,995  12,892 
Expenses
Losses and loss adjustment expenses 2,200  2,403  7,090  5,958 
Acquisition expenses 786  681  2,374  1,921 
Other operating expenses 478  353  1,405  1,062 
Corporate expenses 49  49  156  143 
Amortization of intangible assets 49  88  146  136 
Interest expense 37  35  110  104 
Net foreign exchange (gains) losses 63  122  31 
Total expenses 3,606  3,672  11,403  9,355 
Income (loss) before income taxes and income (loss) from operating affiliates 1,503  1,050  3,592  3,537 
Income tax (expense) benefit (215) (98) (550) (296)
Income (loss) from operating affiliates 62  36  119  136 
Net income (loss) available to Arch 1,350  988  3,161  3,377 
Preferred dividends (10) (10) (30) (30)
Net income (loss) available to Arch common shareholders $ 1,340  $ 978  $ 3,131  $ 3,347 
Net income per common share and common share equivalent        
Basic $ 3.63  $ 2.62  $ 8.43  $ 8.99 
Diluted $ 3.56  $ 2.56  $ 8.26  $ 8.78 
Weighted average common shares and common share equivalents outstanding    
Basic 369.0  373.2  371.4  372.3 
Diluted 376.1  382.3  379.1  381.3 



See Notes to Consolidated Financial Statements

ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q


ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(U.S. dollars in millions)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
  2025 2024 2025 2024
Comprehensive Income    
Net income (loss) $ 1,350  $ 988  $ 3,161  $ 3,377 
Other comprehensive income (loss), net of deferred income tax
Unrealized appreciation (decline) in value of available-for-sale investments:
Unrealized holding gains (losses) arising during period 88  645  625  478 
Reclassification of net realized (gains) losses, included in net income (loss) (41) (60) 22 
Foreign currency translation adjustments 25  91  (24)
Comprehensive income (loss) available to Arch $ 1,398  $ 1,598  $ 3,881  $ 3,853 
See Notes to Consolidated Financial Statements

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2025 THIRD QUARTER FORM 10-Q


ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(U.S. dollars in millions)

(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
  2025 2024 2025 2024
Non-cumulative preferred shares    
Balance at beginning and end of period $ 830  $ 830  $ 830  $ 830 
Common shares
Balance at beginning and end of period
Additional paid-in capital    
Balance at beginning of period 2,660  2,443  2,510  2,327 
Amortization of share-based compensation 25  16  124  100 
Other changes (3) 48  38 
Balance at end of period 2,682  2,465  2,682  2,465 
Retained earnings    
Balance at beginning of period 24,477  22,664  22,686  20,295 
Net income (loss) 1,350  988  3,161  3,377 
Preferred share dividends (10) (10) (30) (30)
Balance at end of period 25,817  23,642  25,817  23,642 
Accumulated other comprehensive income (loss), net of deferred income tax
Balance at beginning of period (48) (810) (720) (676)
Unrealized appreciation (decline) in value of available-for-sale investments, net of deferred income tax:
Balance at beginning of period 75  (650) (507) (565)
Unrealized holding gains (losses) during period, net of reclassification adjustment 47  585  629  500 
Balance at end of period 122  (65) 122  (65)
Foreign currency translation adjustments, net of deferred income tax:
Balance at beginning of period (123) (160) (213) (111)
Foreign currency translation adjustments 25  91  (24)
Balance at end of period (122) (135) (122) (135)
Balance at end of period —  (200) —  (200)
Common shares held in treasury, at cost
Balance at beginning of period (4,879) (4,463) (4,487) (4,424)
Shares repurchased for treasury (732) (1) (1,124) (40)
Balance at end of period (5,611) (4,464) (5,611) (4,464)
Total shareholders’ equity $ 23,719  $ 22,274  $ 23,719  $ 22,274 
See Notes to Consolidated Financial Statements

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2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in millions)
(Unaudited)
Nine Months Ended
September 30,
  2025 2024
Operating Activities    
Net income (loss) $ 3,161  $ 3,377 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net realized (gains) losses (433) (361)
Equity in net (income) or loss of investments accounted for using the equity method and other income or loss (265) (336)
Amortization of intangible assets 146  136 
Share-based compensation 124  100 
Changes in:
Reserve for losses and loss adjustment expenses, net of unpaid losses and loss adjustment expenses recoverable 2,020  2,447 
Unearned premiums, net of ceded unearned premiums 17  956 
Premiums receivable (693) (1,504)
Deferred acquisition costs 33  (166)
Reinsurance balances payable 456  589 
Deferred income tax assets, net 155  61 
Other items, net 47  (199)
Net cash provided by operating activities 4,768  5,100 
Investing Activities    
Purchases of fixed maturity investments (28,187) (21,559)
Purchases of equity securities (1,264) (932)
Purchases of other investments (1,745) (1,898)
Proceeds from sales of fixed maturity investments 22,258  16,447 
Proceeds from sales of equity securities 1,324  673 
Proceeds from sales, redemptions and maturities of other investments 1,427  1,024 
Proceeds from redemptions and maturities of fixed maturity investments 1,801  1,270 
Net settlements of derivative instruments 275  127 
Net (purchases) sales of short-term investments 530  (818)
Acquisitions, net of cash —  852 
Purchases of fixed assets (33) (38)
Other (5) (29)
Net cash used for investing activities (3,619) (4,881)
Financing Activities    
Purchases of common shares under share repurchase program (1,091) — 
Proceeds from common shares issued, net 20  (2)
Common dividends paid (7) — 
Preferred dividends paid (30) (30)
Other (4) (3)
Net cash used for financing activities (1,112) (35)
Effects of exchange rate changes on foreign currency cash and restricted cash 57  30 
Increase (decrease) in cash and restricted cash 94  214 
Cash and restricted cash, beginning of year 1,760  1,498 
Cash and restricted cash, end of period $ 1,854  $ 1,712 
Income taxes paid (received) 315  221 
Interest paid 64  63 

See Notes to Consolidated Financial Statements

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2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.    Basis of Presentation and Recent Accounting Pronouncements
General
Arch Capital Group Ltd. (“Arch Capital”) is a publicly listed Bermuda exempted company which provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly-owned subsidiaries. As used herein, the “Company” and/or “Arch” means Arch Capital and its subsidiaries.
Basis of Presentation
The interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of results on an interim basis. The results of any interim period are not necessarily indicative of the results for a full year or any future periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted; however, management believes that the disclosures are adequate to make the information presented not misleading. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”), including the Company’s audited consolidated financial statements and related notes.
The Company has reclassified the presentation of certain prior year information to conform to the current presentation. Such reclassifications had no effect on the Company’s net income, comprehensive income, shareholders’ equity or cash flows. All amounts are in millions, except per share amounts, unless otherwise noted.
Recent Accounting Pronouncements
Recently Issued Accounting Standards Not Yet Adopted
ASU 2025-06, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software,” was issued in September 2025. The new guidance amends the accounting for the internal-use software by eliminating references to software development project stages. Under the revised standard, entities must capitalize software costs when (i) management has authorized and committed funding for the project, and (ii) it is probable that the project will be completed and the software will function as intended. The update also clarifies that both internal and external training costs, as well as maintenance costs, must be expensed as incurred. The ASU is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. The requirements may be applied prospectively, with options for modified retrospective or full retrospective application. Early adoption is permitted as of the beginning of an annual period. The Company is currently evaluating the impact of this standard on the Company’s consolidated financial statements and related disclosures.
For information regarding additional accounting standards that the Company has not yet adopted, see note 3(t), “Significant Accounting Policies—Recent Accounting Pronouncements,” of the notes to consolidated financial statements in the Company’s 2024 Form 10-K.
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2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2.    Acquisition
On August 1, 2024, the Company completed the acquisition of the U.S MidCorp and Entertainment insurance business from Allianz (“MCE Acquisition”). This business is written by Fireman’s Fund Insurance Company, an affiliate of Allianz, and its subsidiaries (collectively, the “Business Entities”), in each case, relating to relevant policies with accident years 2016 and onwards (collectively, the “Business”), as well as certain assets of Allianz and its affiliates related to the Business. In connection with the acquisition of the Business, the Company also entered into certain reinsurance agreements relating to the Business and the Business Entities and other agreements providing for administration and other services for the Business Entities by the Company for the applicable policies being reinsured following the closing. The acquisition of the Business is an important part of the Company’s growth strategy, and provides a ballast to our existing insurance business. It further enhances the Company’s capabilities in the U.S. middle markets and represents an attractive way to enter a new niche entertainment insurance market.
Aggregate cash consideration for the transaction was $450 million. Direct costs related to the acquisition are immaterial, and were expensed as incurred. These include one-time costs that are directly attributable to third party consulting fees and other professional and legal fees related to the acquisition. Such costs are included within ‘corporate expenses’ in the consolidated statement of income. The Business acquired is included within the Company’s insurance segment beginning from the acquisition date.
The MCE Acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations (“Topic 805”). Pursuant to Topic 805, the Company allocated the MCE Acquisition purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values was recorded to goodwill. During the measurement period, the Company adjusted the provisional amounts to reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, which, if known, would have affected the measurement of the amounts recognized as of that date. Such adjustments impacted certain identifiable assets acquired and liabilities assumed, resulting in a decrease to net assets acquired and a corresponding increase to goodwill of $10 million. The Company completed the analysis of the fair value of the assets, liabilities assumed and the related allocation of the purchase price during the 2025 second quarter.

The following table summarizes the Company’s allocation of the purchase price to the acquired assets and liabilities assumed based on estimated fair values on August 1, 2024.
Total Useful Life
Purchase price
Cash paid (a) $ 450 
Assets Acquired
Cash and investments, at fair value $ 2,332 
Premiums receivable, net of commissions 224
Intangible asset -- distribution relationships 220 10 years
Intangible asset -- value of business acquired 165
1-2 years
Intangible asset -- other (1) 180
5-7 years
Other assets acquired 175
Total assets acquired $ 3,296 
Liabilities Acquired
Reserves for losses and loss adjustment expenses $ 2,468 
Unearned premiums 636
Other liabilities acquired 18
Total liabilities acquired 3,122 
Identifiable net assets acquired (b) $ 174 
Goodwill (a) - (b) $ 276 
(1)    Includes $130 million related to the net fair value adjustment to reserves for loss and loss adjustment expenses on August 1, 2024.
The Company recognized goodwill of $276 million that is primarily attributed to the expanded presence and long-term growth opportunities in the insurance market provided by this strategic acquisition. Approximately $555 million of the acquired goodwill and intangibles is expected to be deductible for income tax purposes. At the date of the acquisition, the Company established a net deferred tax asset of $24 million related to the estimated fair value of reserves for losses and loss adjustment expenses and unearned premiums.
Intangible assets resulting from the acquisition are amortized as part of ‘amortization of intangible assets’ in the Company’s consolidated statements of income. The significant fair value adjustments and related future amortization are as follows:
Value of business acquired (“VOBA”)— which represents the present value of the expected underwriting profit within the unearned premium liability, less costs to service the related policies and a risk premium. The fair value of VOBA was determined after taking into consideration certain key assumptions, including the estimated cost of capital, investment yield, loss ratio and related expenses.
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2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Reserves for losses and loss adjustment expenses—to reflect a decrease related to the present value of the reserve for losses and loss adjustment expenses based on the estimated payout patterns, partially offset by an increase in losses and loss adjustment expenses related to the estimated market based risk margin. The risk margin represents the estimated costs of capital required by a market participant to assume the losses and loss adjustment expenses. The fair value of the reserve for losses and loss adjustment expenses was determined after taking into consideration certain key assumptions, including the estimated cost of capital, and investment yield.
Distribution relationships—the value of the distribution relationships was determined after taking into consideration certain key assumptions, including the estimated cost of capital, investment yield, retention rates, loss ratios, related expenses and effective tax rates that would impact the expected cash flows from Business policies written on a go forward basis.
The results of the acquired Business have been included in the Company’s consolidated financial statements beginning as of their acquisition date. It is impracticable to provide historical supplemental pro forma financial information along with revenue and earnings subsequent to the acquisition due to a variety of factors, including access to historical information and the operations of acquirees being integrated within the Company shortly after closing and not operating as discrete operations within the Company’s organizational structure.
3.    Share Transactions
Share Repurchases
The Board of Directors of Arch Capital has authorized the investment in Arch Capital’s common shares through a share repurchase program. Since the inception of the share repurchase program, Arch Capital has repurchased 446.1 million common shares for an aggregate purchase price of $7.0 billion. For the nine months ended September 30, 2025, Arch Capital repurchased 12.3 million common shares under the share repurchase program with an aggregate purchase price of approximately $1.1 billion. Arch Capital did not repurchase any shares under the share repurchase program during the nine months ended September 30, 2024. At September 30, 2025, $1.9 billion of share repurchases were available under the program, which may be effected from time to time in open market or privately negotiated transactions. The timing and amount of the repurchase transactions under this program will depend on a variety of factors, including market conditions and corporate and regulatory considerations. From October 1 through November 5, 2025, the Company repurchased approximately 4.7 million common shares for an aggregate purchase price of $411 million. At November 5, 2025, approximately $1.5 billion of repurchases were available under the Company’s share repurchase program.

4.    Earnings Per Common Share
The following table sets forth the computation of basic and diluted earnings per common share:
Three Months Ended Nine Months Ended
September 30, September 30,
  2025 2024 2025 2024
Numerator:
Net income (loss) available to Arch $ 1,350  $ 988  $ 3,161  $ 3,377 
Preferred dividends (10) (10) (30) (30)
Net income (loss) available to Arch common shareholders $ 1,340  $ 978  $ 3,131  $ 3,347 
Denominator:
Weighted average common shares and common share equivalents outstanding — basic 369.0  373.2  371.4  372.3 
Effect of dilutive common share equivalents:
Nonvested restricted shares 1.7  2.0  1.6  1.8 
Stock options (1) 5.4  7.1  6.1  7.2 
Weighted average common shares and common share equivalents outstanding — diluted 376.1  382.3  379.1  381.3 
Earnings per common share:
Basic $ 3.63  $ 2.62  $ 8.43  $ 8.99 
Diluted $ 3.56  $ 2.56  $ 8.26  $ 8.78 
(1)    Certain stock options were not included in the computation of diluted earnings per share where the exercise price of the stock options exceeded the average market price and would have been anti-dilutive or where, when applying the treasury stock method to in-the-money options, the sum of the proceeds, including unrecognized compensation, exceeded the average market price and would have been anti-dilutive. For the 2025 third quarter and 2024 third quarter, the number of stock options excluded were 2.4 million and 0.2 million, respectively. For the nine months ended September 30, 2025 and 2024, the number of stock options excluded were 2.4 million and 0.4 million, respectively.
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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
5.    Segment Information
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 (“CODM”). The Chief Executive Officer and the Chief Financial Officer and Treasurer are the Company’s CODMs. CODMs 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 reportable segments based on underwriting income or loss. The Company does not manage its assets by segment, with the exception of goodwill and intangible assets, and accordingly, investment income is not allocated to each segment.
The Company has determined its 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.
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.
The Company’s reinsurance segment offers reinsurance products on a worldwide basis. Product lines of business include: casualty; marine and aviation; specialty; property catastrophe; property excluding property catastrophe; and other.
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 or losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains or losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate 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.
ARCH CAPITAL
 13
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following tables summarize the Company’s underwriting income or loss by segment, together with a reconciliation of underwriting income or loss to net income available to Arch common shareholders:
Three Months Ended
September 30, 2025
  Insurance Reinsurance Mortgage Total
Gross premiums written (1) $ 2,567  $ 2,515  $ 330  $ 5,410 
Premiums ceded (1) (614) (778) (56) (1,446)
Net premiums written 1,953  1,737  274  3,964 
Change in unearned premiums 16  278  27  321 
Net premiums earned 1,969  2,015  301  4,285 
Other underwriting income (2) 38  50 
Losses and loss adjustment expenses (1,162) (1,040) (2,200)
Acquisition expenses (386) (398) (2) (786)
Other operating expenses (3) (301) (133) (44) (478)
Underwriting income (loss) $ 129  $ 482  $ 260  871 
Net investment income 408 
Net realized gains (losses) 210 
Equity in net income of investments accounted for using the equity method 134 
Other income (loss) 22 
Corporate expenses (4) (28)
Transaction costs and other (4) (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 affiliates 1,503 
Income tax (expense) benefit (215)
Income (loss) from operating affiliates 62 
Net income (loss) available to Arch 1,350 
Preferred dividends (10)
Net income (loss) available to Arch common shareholders $ 1,340 
Underwriting Ratios
Loss ratio 59.0  % 51.6  % (0.5) % 51.4  %
Acquisition expense ratio 19.6  % 19.8  % 0.7  % 18.4  %
Other operating expense ratio (5) 14.8  % 4.7  % 13.3  % 10.0  %
Combined ratio 93.4  % 76.1  % 13.5  % 79.8  %
Goodwill and intangible assets $ 833  $ 100  $ 335  $ 1,268 
(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)    ‘Other operating expenses’ primarily include expenses that are related to compensation and employee benefits, information technology and professional fees.
(4)    Certain expenses have been excluded from ‘Corporate expenses’ and reflected in ‘Transaction costs and other.’
(5)    The ‘Other operating expense ratio’ for the 2025 period includes ‘Other underwriting income.’

ARCH CAPITAL
 14
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Three Months Ended
September 30, 2024
  Insurance Reinsurance Mortgage Total
Gross premiums written (1) $ 2,341  $ 2,763  $ 339  $ 5,440 
Premiums ceded (1) (521) (818) (57) (1,393)
Net premiums written 1,820  1,945  282  4,047 
Change in unearned premiums (55) (53) 31  (77)
Net premiums earned 1,765  1,892  313  3,970 
Other underwriting income — 
Losses and loss adjustment expenses (1,087) (1,317) (2,403)
Acquisition expenses (308) (374) (681)
Other operating expenses (2) (250) (54) (49) (353)
Underwriting income (loss) $ 120  $ 149  $ 269  538 
Net investment income 399 
Net realized gains (losses) 169 
Equity in net income of investments accounted for using the equity method 171 
Other income (loss)
Corporate expenses (3) (19)
Transaction costs and other (3) (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 affiliates 1,050 
Income tax (expense) benefit (98)
Income (loss) from operating affiliates 36 
Net income (loss) available to Arch 988 
Preferred dividends (10)
Net income (loss) available to Arch common shareholders $ 978 
Underwriting Ratios        
Loss ratio 61.6  % 69.6  % (0.4) % 60.5  %
Acquisition expense ratio 17.4  % 19.8  % (0.4) % 17.2  %
Other operating expense ratio 14.1  % 2.9  % 15.6  % 8.9  %
Combined ratio 93.1  % 92.3  % 14.8  % 86.6  %
Goodwill and intangible assets $ 1,025  $ 113  $ 348  $ 1,486 

(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 operating expenses’ primarily include expenses that are related to compensation and employee benefits, information technology and professional fees.
(3)    Certain expenses have been excluded from ‘Corporate expenses’ and reflected in ‘Transaction costs and other.’

ARCH CAPITAL
 15
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Nine Months Ended
September 30, 2025
  Insurance Reinsurance Mortgage Total
Gross premiums written (1) $ 7,893  $ 9,205  $ 979  $ 18,069 
Premiums ceded (1) (1,971) (3,093) (186) (5,242)
Net premiums written 5,922  6,112  793  12,827 
Change in unearned premiums (124) 18  89  (17)
Net premiums earned 5,798  6,130  882  12,810 
Other underwriting income (2) 25  123  17  165 
Losses and loss adjustment expenses (3,568) (3,524) (7,090)
Acquisition expenses (1,116) (1,251) (7) (2,374)
Other operating expenses (3) (883) (378) (144) (1,405)
Underwriting income (loss) $ 256  $ 1,100  $ 750  2,106 
Net investment income 1,191 
Net realized gains (losses) 442 
Equity in net income of investments accounted for using the equity method 349 
Other income (loss) 38 
Corporate expenses (4) (107)
Transaction costs and other (4) (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 affiliates 3,592 
Income tax (expense) benefit (550)
Income (loss) from operating affiliates 119 
Net income (loss) available to Arch 3,161 
Preferred dividends (30)
Net income (loss) available to Arch common shareholders $ 3,131 
Underwriting Ratios
Loss ratio 61.5  % 57.5  % (0.2) % 55.4  %
Acquisition expense ratio 19.3  % 20.4  % 0.8  % 18.5  %
Other operating expense ratio (5) 14.8  % 4.2  % 14.3  % 9.7  %
Combined ratio 95.6  % 82.1  % 14.9  % 83.6  %
(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)    ‘Other operating expenses’ primarily include expenses that are related to compensation and employee benefits, information technology and professional fees.
(4)    Certain expenses have been excluded from ‘Corporate expenses’ and reflected in ‘Transaction costs and other.’
(5)    The ‘Other operating expense ratio’ for the 2025 period includes ‘Other underwriting income.’

ARCH CAPITAL
 16
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Nine Months Ended
September 30, 2024
  Insurance Reinsurance Mortgage Total
Gross premiums written (1) $ 6,569  $ 9,171  $ 1,020  $ 16,755 
Premiums ceded (1) (1,649) (3,013) (185) (4,842)
Net premiums written 4,920  6,158  835  11,913 
Change in unearned premiums (226) (820) 90  (956)
Net premiums earned 4,694  5,338  925  10,957 
Other underwriting income —  15  20 
Losses and loss adjustment expenses (2,789) (3,206) 37  (5,958)
Acquisition expenses (872) (1,050) (1,921)
Other operating expenses (2) (718) (193) (151) (1,062)
Underwriting income (loss) $ 315  $ 894  $ 827  2,036 
Net investment income 1,090 
Net realized gains (losses) 358 
Equity in net income of investments accounted for using the equity method 437 
Other income (loss) 30 
Corporate expenses (3) (88)
Transaction costs and other (3) (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 affiliates 3,537 
Income tax (expense) benefit (296)
Income (loss) from operating affiliates 136 
Net income (loss) available to Arch 3,377 
Preferred dividends (30)
Net income (loss) available to Arch common shareholders $ 3,347 
Underwriting Ratios
Loss ratio 59.4  % 60.1  % (4.0) % 54.4  %
Acquisition expense ratio 18.6  % 19.7  % (0.1) % 17.5  %
Other operating expense ratio 15.3  % 3.6  % 16.3  % 9.7  %
Combined ratio 93.3  % 83.4  % 12.2  % 81.6  %
(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 operating expenses’ primarily include expenses that are related to compensation and employee benefits, information technology and professional fees.
(3)    Certain expenses have been excluded from ‘Corporate expenses’ and reflected in ‘Transaction costs and other.’

ARCH CAPITAL
 17
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
6.    Reserve for Losses and Loss Adjustment Expenses
The following table represents an analysis of losses and loss adjustment expenses and a reconciliation of the beginning and ending reserve for losses and loss adjustment expenses:
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
Reserve for losses and loss adjustment expenses at beginning of period
$ 32,089  $ 24,466  $ 29,369  $ 22,752 
Unpaid losses and loss adjustment expenses recoverable
8,513  7,083  7,821  6,690 
Net reserve for losses and loss adjustment expenses at beginning of period
23,576  17,383  21,548  16,062 
Net incurred losses and loss adjustment expenses relating to losses occurring in:
Current year
2,321  2,524  7,561  6,324 
Prior years
(121) (121) (471) (366)
Total net incurred losses and loss adjustment expenses
2,200  2,403  7,090  5,958 
Net losses and loss adjustment expense reserves of acquired businesses (1) —  2,413  50  2,463 
Net foreign exchange (gains) losses and other
(52) 246  541  152 
Net paid losses and loss adjustment expenses relating to losses occurring in:
Current year
(422) (362) (1,287) (647)
Prior years
(1,147) (967) (3,787) (2,872)
Total net paid losses and loss adjustment expenses
(1,569) (1,329) (5,074) (3,519)
Net reserve for losses and loss adjustment expenses at end of period
24,155  21,116  24,155  21,116 
Unpaid losses and loss adjustment expenses recoverable
8,667  7,563  8,667  7,563 
Reserve for losses and loss adjustment expenses at end of period
$ 32,822  $ 28,679  $ 32,822  $ 28,679 
(1)     Activity primarily related to the MCE Acquisition (see note 2).
Prior year development (“PYD”) arises from changes in loss estimates during the current period related to events occurring in prior calendar years. Long-tailed lines include lines of business that typically take many years for claims to settle, such as third-party liability, while short-tailed lines are those that settle more quickly, such as property. The table below summarizes (favorable) and adverse net PYD by segment and tail length:
Three Months Ended Nine Months Ended
(Favorable) Adverse September 30, September 30,
2025 Short-tailed Long-tailed Total Short-tailed Long-tailed Total
Insurance $ (27) $ 13  $ (14) $ (55) $ 16  $ (39)
Reinsurance (75) 22  (53) (277) 24  (253)
Mortgage (54) —  (54) (179) —  (179)
Total $ (156) $ 35  $ (121) $ (511) $ 40  $ (471)
2024
Insurance $ (31) $ 15  $ (16) $ (61) $ 30  $ (31)
Reinsurance (68) 27  (41) (158) 43  (115)
Mortgage (64) —  (64) (220) —  (220)
Total $ (163) $ 42  $ (121) $ (439) $ 73  $ (366)

ARCH CAPITAL
 18
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2025 Third Quarter
The insurance segment’s short-tailed lines included $11 million of favorable development in property, energy, marine and aviation, primarily from the 2023 and 2024 accident years (i.e., the year in which a loss occurred), and $8 million of favorable development in travel and accident, primarily from the 2024 accident year. Long-tailed lines primarily included adverse development in programs business, mainly from the 2021 to 2023 accident years.
The reinsurance segment’s short-tailed lines included $28 million of favorable development from property other than property catastrophe business, primarily from the 2023 and 2024 underwriting years (i.e., all premiums and losses attributable to contracts having an inception or renewal date within the given 12 month period), and $28 million of favorable development from property catastrophe business, primarily from the 2021 to 2024 underwriting years. Long-tailed lines included $22 million of adverse development in casualty, primarily from the 2021 and 2024 underwriting years.
The mortgage segment’s favorable development was driven by reductions on reserves for delinquent loans associated with the U.S. first lien portfolio primarily from the 2024 accident year, with the credit risk transfer and international businesses also contributing.
2024 Third Quarter
The insurance segment’s short-tailed lines included $15 million of favorable development in property, energy, marine and aviation, primarily from the 2012 and 2023 accident years, and $11 million of favorable development in travel and accident, primarily from the 2023 accident year. Long-tailed lines primarily included adverse development in programs, mainly from the 2023 accident year.
The reinsurance segment’s short-tailed lines included $35 million of favorable development from specialty lines, primarily from the 2012 and subsequent underwriting years and $20 million of favorable development from property other than property catastrophe, primarily from the 2022 and 2023 underwriting years. Long-tailed lines included $27 million of adverse development in casualty, primarily from the 2020 and 2022 underwriting years.
The mortgage segment’s favorable development was driven by reductions on reserves for delinquent loans associated with the U.S. first lien portfolio primarily from the 2023 accident year. The Company’s credit risk transfer and international businesses also contributed to the favorable development.
Nine Months Ended September 30, 2025
The insurance segment’s short-tailed lines included $23 million of favorable development in travel and accident, primarily from the 2023 and 2024 accident years, and $21 million of favorable development in in property, energy, marine and aviation, primarily from the 2023 and 2024 accident years. Long-tailed lines primarily included adverse development in programs business, mainly from the 2020 to 2024 accident years.
The reinsurance segment’s short-tailed lines included $117 million of favorable development from property other than property catastrophe, primarily from the 2023 and 2024 underwriting years, and $114 million of favorable development from property catastrophe, primarily from the 2023 and 2024 underwriting years. Long-tailed lines included $24 million of adverse development in casualty, primarily from the 2021 and 2024 underwriting years.
The mortgage segment’s favorable development was driven by reserve releases associated with the U.S. first lien portfolio primarily from the 2023 and 2024 accident years. The Company’s credit risk transfer and international businesses also contributed to the favorable development.
Nine Months Ended September 30, 2024
The insurance segment’s short-tailed lines included $31 million of favorable development in surety business, primarily from the 2007 and 2022 accident years, and $29 million of favorable development in travel and accident, primarily from the 2023 accident year. Long-tailed lines primarily included adverse development in programs business, mainly from the 2023 accident year.
The reinsurance segment’s short-tailed lines included $72 million of favorable development from specialty lines, primarily from the 2015 and subsequent underwriting years and $71 million of favorable development from property other than property catastrophe, primarily from the 2022 and 2023 underwriting years. Long-tailed lines included $43 million of adverse development in casualty, primarily from the 2017 and 2020 underwriting years.
The mortgage segment’s favorable development was driven by reserve releases associated with the U.S. first lien portfolio primarily from the 2022 to 2023 accident years, with the credit risk transfer and international businesses also contributing to the favorable development.
ARCH CAPITAL
 19
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
7.    Allowance for Expected Credit Losses
Premiums Receivable
The following table provides a roll forward of the allowance for expected credit losses of the Company’s premium receivables:
Premium Receivables, Net of Allowance Allowance for Expected Credit Losses
Three Months Ended September 30, 2025
Balance at beginning of period $ 7,067  $ 46 
Change for provision of expected credit losses (1)
Balance at end of period $ 6,450  $ 54 
Three Months Ended September 30, 2024
Balance at beginning of period $ 6,268  $ 36 
Provision on business acquired (2) 16 
Change for provision of expected credit losses (1) — 
Balance at end of period $ 6,364  $ 52 
Nine Months Ended September 30, 2025
Balance at beginning of year $ 5,634  $ 45 
Change for provision of expected credit losses (1)
Balance at end of period $ 6,450  $ 54 
Nine Months Ended September 30, 2024
Balance at beginning of year $ 4,644  $ 34 
Provision on business acquired (2) 16 
Change for provision of expected credit losses (1)
Balance at end of period $ 6,364  $ 52 

(1)    Amounts deemed uncollectible are written-off in operating expenses. For the 2025 third quarter and 2024 third quarter, amounts written off were nil and $1 million, respectively. For the nine months ended September 30, 2025 and 2024 period, amounts written off were $1 million and $1 million, respectively.
(2)    Represents MCE’s provision for current expected credit losses on premiums receivable. See note 2.

Reinsurance Recoverables
The following table provides a roll forward of the allowance for expected credit losses of the Company’s reinsurance recoverables:
Reinsurance Recoverables, Net of Allowance Allowance for Expected Credit Losses
Three Months Ended September 30, 2025
Balance at beginning of period $ 9,044  $ 19 
Change for provision of expected credit losses — 
Balance at end of period $ 9,070  $ 19 
Three Months Ended September 30, 2024
Balance at beginning of period $ 7,473  $ 20 
Change for provision of expected credit losses (3)
Balance at end of period $ 7,948  $ 17 
Nine Months Ended September 30, 2025
Balance at beginning of year $ 8,260  $ 17 
Change for provision of expected credit losses
Balance at end of period $ 9,070  $ 19 
Nine Months Ended September 30, 2024
Balance at beginning of year $ 7,064  $ 21 
Change for provision of expected credit losses (4)
Balance at end of period $ 7,948  $ 17 
ARCH CAPITAL
 20
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table summarizes the Company’s reinsurance recoverables on paid and unpaid losses (not including ceded unearned premiums):
September 30,
December 31,
2025 2024
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses $ 9,070 $ 8,260
% due from carriers with A.M. Best rating of “A-” or better 63.8  % 63.8  %
% due from all other rated carriers 0.1  % —  %
% due from all other carriers with no A.M. Best rating (1) 36.1  % 36.2  %
Largest balance due from any one carrier as % of total shareholders’ equity 7.8  % 7.8  %
(1)    At September 30, 2025 and December 31, 2024 over 95% of such amount were collateralized through reinsurance trusts, funds withheld arrangements, letters of credit or other.

Contractholder Receivables
The following table provides a roll forward of the allowance for expected credit losses of the Company’s contractholder receivables:
Contract-holder Receivables, Net of Allowance Allowance for Expected Credit Losses
Three Months Ended September 30, 2025
Balance at beginning of period $ 2,280  $
Change for provision of expected credit losses — 
Balance at end of period $ 2,287  $
Three Months Ended September 30, 2024
Balance at beginning of period $ 2,016  $
Change for provision of expected credit losses — 
Balance at end of period 2,078  $
Nine Months Ended September 30, 2025
Balance at beginning of year $ 2,161  $
Change for provision of expected credit losses
Balance at end of period $ 2,287  $
Nine Months Ended September 30, 2024
Balance at beginning of year $ 1,814  $
Change for provision of expected credit losses
Balance at end of period 2,078  $

ARCH CAPITAL
 21
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
8.    Investment Information

Available For Sale Investments
The following table summarizes the fair value and cost or amortized cost of the Company’s securities classified as available for sale:
Estimated
Fair
Value
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Allowance for Expected Credit Losses Cost or
Amortized
Cost
September 30, 2025
Fixed maturities:
Corporate bonds $ 15,005  $ 301  $ (173) $ (14) $ 14,891 
U.S. government and government agencies 6,324  23  (31) —  6,332 
Asset backed securities 3,149  22  (19) (6) 3,152 
Non-U.S. government securities 3,241  59  (81) (1) 3,264 
Commercial mortgage backed securities 1,249  10  (6) —  1,245 
Residential mortgage backed securities 2,766  30  (22) —  2,758 
Municipal bonds 174  —  (5) —  179 
Total 31,908  445  (337) (21) 31,821 
Short-term investments 2,351  (1) —  2,350 
Total $ 34,259  $ 447  $ (338) $ (21) $ 34,171 
December 31, 2024
Fixed maturities:
Corporate bonds $ 12,487  $ 110  $ (346) $ (12) $ 12,735 
U.S. government and government agencies 6,710  (149) —  6,851 
Asset backed securities 2,900  19  (32) (8) 2,921 
Non-U.S. government securities 2,538  30  (107) (1) 2,616 
Commercial mortgage backed securities 1,058  (11) (1) 1,064 
Residential mortgage backed securities 1,079  (31) —  1,104 
Municipal bonds 263  —  (16) —  279 
Total 27,035  179  (692) (22) 27,570 
Short-term investments 2,784  (2) —  2,784 
Total $ 29,819  $ 181  $ (694) $ (22) $ 30,354 

ARCH CAPITAL
 22
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:
  Less than 12 Months 12 Months or More Total
Estimated
Fair
Value
Gross
Unrealized
Losses
Estimated
Fair
Value
Gross
Unrealized
Losses
Estimated
Fair
Value
Gross
Unrealized
Losses
September 30, 2025
Fixed maturities:
Corporate bonds $ 2,489  $ (73) $ 1,714  $ (100) $ 4,203  $ (173)
U.S. government and government agencies 3,205  (18) 359  (13) 3,564  (31)
Non-U.S. government securities 1,671  (36) 343  (45) 2,014  (81)
Residential mortgage backed securities 193  (2) 168  (20) 361  (22)
Asset backed securities 461  (2) 339  (17) 800  (19)
Commercial mortgage backed securities 336  (1) 84  (5) 420  (6)
Municipal bonds 13  —  146  (5) 159  (5)
Total 8,368  (132) 3,153  (205) 11,521  (337)
Short-term investments 616  (1) —  —  616  (1)
Total $ 8,984  $ (133) $ 3,153  $ (205) $ 12,137  $ (338)
December 31, 2024
Fixed maturities:
Corporate bonds $ 4,582  $ (114) $ 2,924  $ (232) $ 7,506  $ (346)
U.S. government and government agencies 5,130  (100) 516  (49) 5,646  (149)
Non-U.S. government securities 1,650  (58) 418  (49) 2,068  (107)
Residential mortgage backed securities 571  (6) 186  (25) 757  (31)
Asset backed securities 236  (8) 426  (24) 662  (32)
Commercial mortgage backed securities 180  (1) 434  (10) 614  (11)
Municipal bonds 48  (1) 176  (15) 224  (16)
Total 12,397  (288) 5,080  (404) 17,477  (692)
Short-term investments 97  (2) —  —  97  (2)
Total $ 12,494  $ (290) $ 5,080  $ (404) $ 17,574  $ (694)
At September 30, 2025, on a lot level basis, approximately 7,730 security lots out of a total of approximately 25,020 security lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity portfolio was $5 million. At December 31, 2024, on a lot level basis, approximately 9,980 security lots out of a total of approximately 20,930 security lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity portfolio was $8 million.
The contractual maturities of the Company’s fixed maturities are shown in the following table. Expected maturities, which are management’s best estimates, will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
September 30, 2025 December 31, 2024
Maturity Estimated
Fair
Value
Amortized
Cost
Estimated
Fair
Value
Amortized
Cost
Due in one year or less $ 527  $ 525  $ 438  $ 451 
Due after one year through five years 16,764  16,710  15,364  15,590 
Due after five years through 10 years 6,808  6,792  5,811  6,039 
Due after 10 years 645  639  385  401 
  24,744  24,666  21,998  22,481 
Residential mortgage backed securities 2,766  2,758  1,079  1,104 
Commercial mortgage backed securities 1,249  1,245  1,058  1,064 
Asset backed securities 3,149  3,152  2,900  2,921 
Total $ 31,908  $ 31,821  $ 27,035  $ 27,570 

ARCH CAPITAL
 23
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Equity Securities, at Fair Value
At September 30, 2025, the Company held $1.8 billion of equity securities, at fair value, compared to $1.7 billion at December 31, 2024. Such holdings include publicly traded common stocks, primarily in the consumer cyclical and non-cyclical, technology, communication and financial sectors, and exchange-traded funds in fixed income, equity and other sectors.
Other Investments, at Fair Value
The following table summarizes the Company’s other investments:
September 30,
2025
December 31,
2024
Other investments $ 1,911  $ 2,135 
Fixed maturities 1,050  854 
Short term investments 61  70 
Equity securities
Total $ 3,027  $ 3,066 
The following table summarizes the Company’s other investments, as detailed in the previous table, by strategy:
September 30,
2025
December 31,
2024
Investment grade fixed income $ 1,148  $ 1,055 
Private equity 268  229 
Lending 212  303 
Term loan investments 201  430 
Credit related funds 80  99 
Energy 19 
Total $ 1,911  $ 2,135 
Net Investment Income
The components of net investment income were derived from the following sources:
September 30,
  2025 2024
Three Months Ended
Fixed maturities $ 379  $ 340 
Short term investments 25  38 
Equity securities (dividends) 10 
Other (1) 19  35 
Gross investment income 433  422 
Investment expenses (25) (23)
Net investment income $ 408  $ 399 
Nine Months Ended
Fixed maturities $ 1,081  $ 926 
Short term investments 75  102 
Equity securities (dividends) 31  27 
Other (1) 82  103 
Gross investment income 1,269  1,158 
Investment expenses (78) (68)
Net investment income $ 1,191  $ 1,090 
(1)    Amounts include dividends and other distributions on investment funds, term loan investments, funds held balances, cash balances and other items.

ARCH CAPITAL
 24
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Net Realized Gains (Losses)
Net realized gains (losses), which include changes in the allowance for credit losses on financial assets and net impairment losses recognized in earnings were as follows:
September 30,
  2025 2024
Three Months Ended
Available for sale securities:    
Gross gains on investment sales $ 103  $ 104 
Gross losses on investment sales (59) (50)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities 11  25 
Other investments 29  (120)
Short-term investments —  — 
Equity securities, at fair value:
Net realized gains (losses) on sales during the period 15  15 
Net unrealized gains (losses) on equity securities still held at reporting date 79  58 
Allowance for credit losses:
Investments related
Underwriting related (9)
Derivative instruments (1) 30  125 
Other (2)
Net realized gains (losses) $ 210  $ 169 
Nine Months Ended
Available for sale securities:
Gross gains on investment sales $ 223  $ 167 
Gross losses on investment sales (228) (205)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities 33  23 
Other investments 31  (150)
Short-term investments — 
Equity securities, at fair value:
Net realized gains (losses) on sales during the period 69  31 
Net unrealized gains (losses) on equity securities still held at reporting date 113  147 
Allowance for credit losses:
Investments related (4)
Underwriting related (10) — 
Derivative instruments (1) 292  116 
Other (2) (80) 225 
Net realized gains (losses) $ 442  $ 358 
(1)    See note 10 for information on the Company’s derivative instruments.
(2)    Amounts in the 2025 periods primarily include losses related to the sale of certain alternative investments accounted for under the equity method.
Investments Accounted For Using the Equity Method
The following table summarizes the Company’s investments accounted for using the equity method, by strategy:
September 30,
2025
December 31,
2024
Private equity $ 2,270  $ 1,915 
Credit related funds 1,588  1,487 
Lending 505  616 
Real estate 753  869 
Fixed income 471  384 
Infrastructure 411  425 
Equities 191  217 
Energy 43  67 
Total $ 6,232  $ 5,980 
Certain of the Company’s other investments are in investment funds for which the Company has the option to redeem at agreed upon values as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investments in investment funds may be redeemed daily, monthly, quarterly or on other terms. Two common redemption restrictions that may impact the Company’s ability to redeem these investment funds are gates and lockups. A gate is a suspension of redemptions that may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the investment fund’s net assets and which may otherwise hinder the general partner or investment manager’s ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. If the investment funds are eligible to be redeemed, the time to redeem such fund can take weeks or months following the notification.
Limited Partnership Interests
In the normal course of its activities, the Company invests in limited partnerships as part of its overall investment strategy. Such amounts are included in ‘investments accounted for using the equity method’ and ‘investments accounted for using the fair value option.’ The Company has determined that it is not required to consolidate these investments because it is not the primary beneficiary of the funds. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company’s consolidated balance sheet and any unfunded commitment.
ARCH CAPITAL
 25
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table summarizes investments in limited partnership interests where the Company has a variable interest by balance sheet line item:
September 30,
2025
December 31,
2024
Investments accounted for using the equity method (1) $ 6,232  $ 5,980 
Investments accounted for using the fair value option (2) —  48 
Total $ 6,232  $ 6,028 
(1)    Aggregate unfunded commitments were $3.7 billion at September 30, 2025, compared to $4.3 billion at December 31, 2024.
(2)    Aggregate unfunded commitments were $15 million at September 30, 2025, compared to $21 million at December 31, 2024.
Equity in Net Income (Loss) of Investments Accounted for Using the Equity Method
Income from investment funds accounted for using the equity method for the 2025 third quarter was $134 million, compared to $171 million for the 2024 third quarter and an income of $349 million for the nine months ended September 30, 2025, compared to income of $437 million for the nine months ended September 30, 2024. In applying the equity method, 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 market value of the underlying securities in the funds). Such investments are generally recorded on a one to three month lag based on the availability of reports from the investment funds.
Investments in Operating Affiliates
Investments in which the Company has significant influence over the operating and financial policies are classified as ‘investments in operating affiliates’ on the Company’s balance sheets and are accounted for under the equity method. Such investments primarily include the Company’s investment in Coface SA (“Coface”), Greysbridge Holdings Ltd. (“Greysbridge”), and Premia Holdings Ltd. Investments in Coface and Premia Holdings Ltd. are generally recorded on a three month lag, while the Company’s investment in Greysbridge is not recorded on a lag.
As of September 30, 2025, the Company owned approximately 29.9% of the issued shares of Coface, or 30% excluding treasury shares, with a carrying value of $683 million, compared to $592 million at December 31, 2024.
As of September 30, 2025, the Company owned 40% of Greysbridge with a carrying value of $613 million, compared to $523 million at December 31, 2024.
Income from operating affiliates for the 2025 third quarter was $62 million, compared to $36 million for the 2024 third quarter and income of $119 million for the nine months ended September 30, 2025, compared to income of $136 million for nine months ended September 30, 2024.
See note 16 for information on Company’s transactions with related parties.

ARCH CAPITAL
 26
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Allowance for Expected Credit Losses
The following table provides a roll forward of the allowance for expected credit losses of the Company’s securities classified as available for sale:
Structured Securities (1) Corporate
Bonds
Non-U.S.
Government
Securities
Total
Three Months Ended September 30, 2025
Balance at beginning of period $ 10  $ 16  $ $ 28 
Additions for current-period provision for expected credit losses —  —  —  — 
Additions (reductions) for previously recognized expected credit losses (4) —  (1) (5)
Reductions due to disposals —  (2) —  (2)
Balance at end of period $ $ 14  $ $ 21 
Three Months Ended September 30, 2024
Balance at beginning of period $ 10  $ 16  $ $ 27 
Additions for current-period provision for expected credit losses —  —  —  — 
Additions (reductions) for previously recognized expected credit losses (3) (3) —  (6)
Reductions due to disposals (1) (1) —  (2)
Balance at end of period $ $ 12  $ $ 19 
Nine Months Ended September 30, 2025
Balance at beginning of year $ $ 12  $ $ 22 
Additions for current-period provision for expected credit losses — 
Additions (reductions) for previously recognized expected credit losses (6) —  (1)
Reductions due to disposals —  (5) —  (5)
Balance at end of period $ $ 14  $ $ 21 
Nine Months Ended September 30, 2024
Balance at beginning of year $ $ 20  $ $ 28 
Additions for current-period provision for expected credit losses —  —  —  — 
Additions (reductions) for previously recognized expected credit losses —  (4) —  (4)
Reductions due to disposals (1) (4) —  (5)
Balance at end of period $ $ 12  $ $ 19 
(1)    Includes asset backed securities, residential mortgage backed securities and commercial mortgage backed securities.
Restricted Assets
The Company is required to maintain assets on deposit, which primarily consist of fixed maturities, with various regulatory authorities to support its underwriting operations. The Company’s subsidiaries maintain assets in trust accounts as collateral for transactions with affiliated companies and also have investments in segregated portfolios primarily to provide collateral or guarantees for letters of credit to third parties. See note 18, “Commitments and Contingencies,” of the notes to consolidated financial statements in the Company’s 2024 Form 10-K.
The following table details the value of the Company’s restricted assets:
September 30,
2025
December 31,
2024
Assets used for collateral or guarantees:    
Affiliated transactions $ 5,292  $ 4,730 
Third party agreements 6,636  5,999 
Deposits with U.S. regulatory authorities 952  882 
Other (1) 1,559  1,437 
Total restricted assets $ 14,439  $ 13,048 
(1)    Primarily includes Funds at Lloyds, deposits with non-U.S. regulatory authorities and other restricted assets.
ARCH CAPITAL
 27
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Reconciliation of Cash and Restricted Cash
The following table details reconciliation of cash and restricted cash within the Consolidated Balance Sheets:
September 30,
2025
December 31,
2024
Cash $ 1,063  $ 979 
Restricted cash (included in ‘other assets’) 791  781 
Cash and restricted cash $ 1,854  $ 1,760 
9.    Fair Value
Accounting guidance regarding fair value measurements addresses how companies should measure fair value when they are required to use a fair value measure for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement (Level 1 being the highest priority and Level 3 being the lowest priority).
The levels in the hierarchy are defined as follows:
Level 1:
Inputs to the valuation methodology are observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2:
Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument
Level 3:
Inputs to the valuation methodology are unobservable and significant to the fair value measurement
The following is a description of the valuation methodologies used for securities measured at fair value, as well as the general classification of such securities pursuant to the valuation hierarchy. The Company reviews its securities measured at fair value and discusses the proper classification of such investments with investment advisers and others.
The Company determines the existence of an active market based on its judgment as to whether transactions for the financial instrument occur in such market with sufficient frequency and volume to provide reliable pricing information. The independent pricing sources obtain market quotations and actual transaction prices for securities that have quoted prices in active markets. The Company uses quoted values and other data provided by nationally recognized independent pricing sources as inputs into its process for determining fair values of its fixed maturity investments. To validate the techniques or models used by pricing sources, the Company's review process includes, but is not limited to: (i) quantitative analysis (e.g., comparing the quarterly return for each managed portfolio to its target benchmark, with significant differences identified and investigated); (ii) a review of the average number of prices obtained in the pricing process and the range of resulting fair values; (iii) initial and ongoing evaluation of methodologies used by outside parties to calculate fair value; (iv) a comparison of the fair value estimates to the Company’s knowledge of the current market; (v) a comparison of the pricing services' fair values to other pricing services' fair values for the same investments; and (vi) periodic back-testing, which includes randomly selecting purchased or sold securities and comparing the executed prices to the fair value estimates from the pricing service. A price source hierarchy was maintained in order to determine which price source would be used (i.e., a price obtained from a pricing service with more seniority in the hierarchy will be used over a less senior one in all cases). The hierarchy prioritizes pricing services based on availability and reliability and assigns the highest priority to index providers. Based on the above review, the Company will challenge any prices for a security or portfolio which are considered not to be representative of fair value. The Company did not adjust any of the prices obtained from the independent pricing sources at September 30, 2025.
In certain circumstances, when fair values are unavailable from these independent pricing sources, quotes are obtained directly from broker-dealers who are active in the corresponding markets. Such quotes are subject to the validation procedures noted above. Where quotes are unavailable, fair value is determined by the investment manager using quantitative and qualitative assessments such as internally modeled values. Of the $39.4 billion of financial assets and liabilities measured at fair value at September 30, 2025, approximately $266 million, or 0.7%, were priced using non-binding broker-dealer quotes or modeled valuations. Of the $35.0 billion of financial assets and liabilities measured at fair value at December 31, 2024, approximately $185 million, or 0.5%, were priced using non-binding broker-dealer quotes or modeled valuations.
ARCH CAPITAL
 28
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Fixed maturities
The Company uses the market approach valuation technique to estimate the fair value of its fixed maturity securities, when possible. The market approach includes obtaining prices from independent pricing services, such as index providers and pricing vendors, as well as to a lesser extent quotes from broker-dealers. The independent pricing sources obtain market quotations and actual transaction prices for securities that have quoted prices in active markets. Each source has its own proprietary method for determining the fair value of securities that are not actively traded. In general, these methods involve the use of “matrix pricing” in which the independent pricing source uses observable market inputs including, but not limited to, investment yields, credit risks and spreads, benchmarking of like securities, broker-dealer quotes, reported trades and sector groupings to determine a reasonable fair value.
The following describes the significant inputs generally used to determine the fair value of the Company’s fixed maturity securities by asset class:
U.S. government and government agencies – valuations provided by independent pricing services, with all prices provided through index providers and pricing vendors. The Company determined that all U.S. Treasuries would be classified as Level 1 securities due to observed levels of trading activity, the high number of strongly correlated pricing quotes received on U.S. Treasuries and other factors. The fair values of U.S. government agency securities are generally determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. government agency securities are classified within Level 2.
Corporate bonds – valuations provided by independent pricing services, substantially all through index providers and pricing vendors with a small amount through broker-dealers. The fair values of these securities are generally determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and from broker-dealers who trade in the relevant security market. As the significant inputs used in the pricing process for corporate bonds are observable market inputs, the fair value of these securities are classified within Level 2. A small number of securities are included in Level 3 due to a low level of transparency on the inputs used in the pricing process.
Municipal bonds – valuations provided by independent pricing services, with all prices provided through index providers and pricing vendors. The fair values of these securities are generally determined using spreads obtained from broker-dealers who trade in the relevant security market, trade prices and the new issue market. As the
significant inputs used in the pricing process for municipal bonds are observable market inputs, the fair value of these securities are classified within Level 2.
Residential mortgage-backed securities – valuations provided by independent pricing services, substantially all through pricing vendors and index providers with a small amount through broker-dealers. The fair values of these securities are generally determined through the use of pricing models (including Option Adjusted Spread) which use spreads to determine the expected average life of the securities. These spreads are generally obtained from the new issue market, secondary trading and from broker-dealers who trade in the relevant security market. The pricing services also review prepayment speeds and other indicators, when applicable. As the significant inputs used in the pricing process for mortgage-backed securities are observable market inputs, the fair value of these securities are classified within Level 2. A small number of securities are included in Level 3 due to a low level of transparency on the inputs used in the pricing process.
Commercial mortgage-backed securities – valuations provided by independent pricing services, substantially all through index providers and pricing vendors with a small amount through broker-dealers. The fair values of these securities are generally determined through the use of pricing models which use spreads to determine the appropriate average life of the securities. These spreads are generally obtained from the new issue market, secondary trading and from broker-dealers who trade in the relevant security market. The pricing services also review prepayment speeds and other indicators, when applicable. As the significant inputs used in the pricing process for commercial mortgage-backed securities are observable market inputs, the fair value of these securities are classified within Level 2.
Non-U.S. government securities – valuations provided by independent pricing services, with all prices provided through index providers and pricing vendors. The fair values of these securities are generally based on international indices or valuation models which include daily observed yield curves, cross-currency basis index spreads and country credit spreads. As the significant inputs used in the pricing process for non-U.S. government securities are observable market inputs, the fair value of these securities are classified within Level 2.
Asset-backed securities – valuations provided by independent pricing services, substantially all through index providers and pricing vendors with a small amount through broker-dealers. The fair values of these securities are generally determined through the use of pricing models (including Option Adjusted Spread) which use spreads to determine the appropriate average life of the securities. These spreads are generally obtained from the new issue
ARCH CAPITAL
 29
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
market, secondary trading and from broker-dealers who trade in the relevant security market. The pricing services also review prepayment speeds and other indicators, when applicable. As the significant inputs used in the pricing process for asset-backed securities are observable market inputs, the fair value of these securities are classified within Level 2.
Equity securities
The Company determined that exchange-traded equity securities would be included in Level 1 as their fair values are based on quoted market prices in active markets. Certain equity securities are included in Level 2 of the valuation hierarchy as the significant inputs used in the pricing process for such securities are observable market inputs. Other equity securities are included in Level 3 due to the lack of an available independent price source for such securities. As the significant inputs used to price these securities are unobservable, the fair value of such securities are classified as Level 3.
Other investments
The Company’s other investments include term loan investments for which fair values are estimated by using quoted prices of term loan investments with similar characteristics, pricing models or matrix pricing. Such investments are generally classified within Level 2. The fair values for certain of the Company’s other investments are determined using net asset values as advised by external fund managers. The net asset value is based on the fund manager’s valuation of the underlying holdings in accordance with the fund’s governing documents. In accordance with applicable accounting guidance, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. A small number of securities are included in Level 3 due to the lack of an available independent price source for such securities.
Derivative instruments
The Company’s futures contracts, foreign currency forward contracts, interest rate swaps and other derivatives trade in the over-the-counter derivative market. The Company uses the market approach valuation technique to estimate the fair value for these derivatives based on significant observable market inputs from third party pricing vendors, non-binding broker-dealer quotes and/or recent trading activity. As the significant inputs used in the pricing process for these derivative instruments are observable market inputs, the fair value of these securities are classified within Level 2.

Short-term investments
The Company determined that certain of its short-term investments held in highly liquid money market-type funds, U.S. Treasury bills and commercial paper would be included in Level 1 as their fair values are based on quoted market prices in active markets. The fair values of certain short-term investments are generally determined using the spread above the risk-free yield curve and are classified within Level 2. Other short-term investments are included in Level 3 due to the lack of an available independent price source for such securities. As the significant inputs used to price these short-term securities are unobservable, the fair value of such securities are classified as Level 3.
Residential mortgage loans
The Company’s residential mortgage loans (included in ‘other assets’ in the consolidated balance sheets) include amounts related to the Company’s whole mortgage loan purchase and sell program. Fair values of residential mortgage loans are generally determined based on market prices. As significant inputs used in the pricing process for these residential mortgage loans are observable market inputs, the fair value of these securities are classified within Level 2.
Other liabilities
The Company’s other liabilities include contingent and deferred consideration liabilities related to the Company’s acquisitions. Contingent consideration liabilities are remeasured at fair value at each balance sheet date with changes in fair value recognized in ‘net realized gains (losses’). To determine the fair value of contingent consideration liabilities, the Company estimates the future payments using an income approach based on modeled inputs which include a weighted average cost of capital. Deferred consideration liabilities are measured at fair value on the transaction date. The Company determined that contingent and deferred consideration liabilities would be included within Level 3.

ARCH CAPITAL
 30
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table presents the Company’s financial assets and liabilities measured at fair value by level at September 30, 2025:
    Estimated Fair Value Measurements Using:
  Estimated
Fair
Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets measured at fair value:        
Available for sale securities:        
Fixed maturities:        
Corporate bonds $ 15,005  $ —  $ 14,894  $ 111 
U.S. government and government agencies 6,324  6,324  —  — 
Asset backed securities 3,149  —  3,132  17 
Non-U.S. government securities 3,241  —  3,241  — 
Commercial mortgage backed securities 1,249  —  1,249  — 
Residential mortgage backed securities 2,766  —  2,766  — 
Municipal bonds 174  —  174  — 
Total 31,908  6,324  25,456  128 
Short-term investments 2,351  2,269  82  — 
Equity securities, at fair value 1,805  1,769  27 
Derivative instruments (2) 179  —  179  — 
Residential mortgage loans 21  —  21  — 
Fair value option:
Corporate bonds 1,039  —  1,039  — 
Non-U.S. government securities —  — 
U.S. government and government agencies —  — 
Short-term investments 61  17  38 
Equity securities —  — 
Other investments 418  —  200  218 
Other investments measured at net asset value (1) 1,493 
Total 3,027  13  1,260  261 
Total assets measured at fair value $ 39,291  $ 10,375  $ 27,025  $ 398 
Liabilities measured at fair value:        
Other liabilities $ (18) $ —  $ —  $ (18)
Derivative instruments (2) (71) —  (71) — 
Total liabilities measured at fair value $ (89) $ —  $ (71) $ (18)

(1)    In accordance with applicable accounting guidance, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.
(2)    See note 10.

ARCH CAPITAL
 31
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table presents the Company’s financial assets and liabilities measured at fair value by level at December 31, 2024:
    Estimated Fair Value Measurements Using:
  Estimated
Fair
Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets measured at fair value:
Available for sale securities:
Fixed maturities:
Corporate bonds $ 12,487  $ —  $ 12,390  $ 97 
U.S. government and government agencies 6,710  6,709  — 
Asset backed securities 2,900  —  2,900  — 
Non-U.S. government securities 2,538  —  2,538  — 
Commercial mortgage backed securities 1,058  —  1,058  — 
Residential mortgage backed securities 1,079  —  1,079  — 
Municipal bonds 263  —  263  — 
Total 27,035  6,709  20,229  97 
Short-term investments 2,784  2,704  80  — 
Equity securities, at fair value 1,675  1,640  28 
Derivative instruments (2) 206  —  206  — 
Residential mortgage loans 15  —  15  — 
Fair value option:
Corporate bonds 832  —  832  — 
Non-U.S. government securities —  — 
Asset backed securities —  —  —  — 
U.S. government and government agencies 14  14  —  — 
Short-term investments 70  —  37  33 
Equity securities — 
Other investments 752  —  563  189 
Other investments measured at net asset value (1) 1,383 
Total 3,065  16  1,440  226 
Total assets measured at fair value $ 34,780  $ 11,069  $ 21,998  $ 330 
Liabilities measured at fair value:
Other liabilities $ (73) $ —  $ —  $ (73)
Derivative instruments (2) (115) —  (115) — 
Total liabilities measured at fair value $ (188) $ —  $ (115) $ (73)

(1)    In accordance with applicable accounting guidance, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.
(2)    See note 10.

ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table presents a reconciliation of the beginning and ending balances for all financial assets and liabilities measured at fair value on a recurring basis using Level 3 inputs:
Assets Liabilities
s Available For Sale Fair Value Option Fair Value
  Structured Securities (1) Corporate
Bonds
Short-term
Investments
Other
Investments
Short-term
Investments
Equity
Securities
Equity
Securities
Other Liabilities
Three Months Ended September 30, 2025    
Balance at beginning of period $ 17  $ 145  $ —  $ 208  $ 45  $ $ $ (20)
Total gains or (losses) (realized/unrealized)
Included in earnings (2) —  —  —  —  —  —  — 
Included in other comprehensive income —  —  —  —  —  —  — 
Purchases, issuances, sales and settlements
Purchases —  —  —  45  14  —  — 
Issuances —  —  —  —  —  —  —  — 
Sales —  —  —  (2) —  —  —  — 
Settlements —  (36) —  (33) (21) —  — 
Transfers in and/or out of Level 3 —  —  —  —  —  —  —  — 
Balance at end of period $ 17  $ 111  $ —  $ 218  $ 38  $ $ $ (18)
Three Months Ended September 30, 2024    
Balance at beginning of period $ —  $ 160  $ 97  $ 144  $ 14  $ $ $ (35)
Total gains or (losses) (realized/unrealized)
Included in earnings (2) —  —  —  —  —  —  —  (1)
Included in other comprehensive income —  —  —  —  —  —  —  — 
Purchases, issuances, sales and settlements
Purchases —  —  —  39  —  —  — 
Issuances —  —  —  —  —  —  —  (9)
Sales —  —  —  (2) —  —  —  — 
Settlements —  (19) —  (14) (4) —  — 
Transfers in and/or out of Level 3 —  —  —  123  —  —  —  — 
Balance at end of period $ —  $ 141  $ 97  $ 290  $ 15  $ $ $ (43)
Nine Months Ended September 30, 2025    
Balance at beginning of year $ —  $ 97  $ —  $ 189  $ 33  $ $ $ (73)
Total gains or (losses) (realized/unrealized)
Included in earnings (2) —  —  —  —  — 
Included in other comprehensive income —  —  —  —  —  —  (2)
Purchases, issuances, sales and settlements
Purchases 14  —  —  141  38  —  — 
Issuances —  —  —  —  —  —  —  — 
Sales —  —  —  (5) —  —  —  — 
Settlements (2) (58) —  (107) (33) —  —  55 
Transfers in and/or out of Level 3 70  —  —  —  —  —  — 
Balance at end of period $ 17  $ 111  $ —  $ 218  $ 38  $ $ $ (18)
Nine Months Ended September 30, 2024    
Balance at beginning of year $ —  $ 147  $ 84  $ 106  $ 10  $ $ $ (22)
Total gains or (losses) (realized/unrealized)
Included in earnings (2) —  —  —  (4) —  —  —  (1)
Included in other comprehensive income —  —  —  —  —  — 
Purchases, issuances, sales and settlements
Purchases —  98  12  99  15  —  — 
Issuances —  —  —  —  —  —  —  (22)
Sales —  —  —  (4) —  —  —  — 
Settlements —  (106) —  (30) (10) —  — 
Transfers in and/or out of Level 3 —  —  —  123  —  —  —  — 
Balance at end of period $ —  $ 141  $ 97  $ 290  $ 15  $ $ $ (43)
(1)     Includes asset backed securities, mortgage backed securities and commercial mortgage backed securities.
(2)     Gains or losses were included in net realized gains (losses).
ARCH CAPITAL
 33
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Financial Instruments Disclosed, But Not Carried, At Fair Value
The Company uses various financial instruments in the normal course of its business. The carrying values of cash, accrued investment income, receivable for securities sold, certain other assets, payable for securities purchased and certain other liabilities approximated their fair values at September 30, 2025, due to their respective short maturities. As these financial instruments are not actively traded, their respective fair values are classified within Level 2.
At September 30, 2025, the Company’s senior notes were carried at their cost, net of debt issuance costs, of $2.7 billion and had a fair value of $2.5 billion. At December 31, 2024, the Company’s senior notes were carried at their cost, net of debt issuance costs, of $2.7 billion and had a fair value of $2.4 billion. The fair values of the senior notes were obtained from a third party pricing service and are based on observable market inputs. As such, the fair values of the senior notes are classified within Level 2.
10.    Derivative Instruments
The Company’s investment strategy allows for the use of derivative instruments. The Company’s derivative instruments are recorded on its consolidated balance sheets at fair value. The Company utilizes exchange traded U.S. Treasury notes, Eurodollar and other futures contracts and commodity futures to manage portfolio duration or replicate investment positions in its portfolios and the Company routinely utilizes foreign currency forward contracts, currency options, index futures contracts and other derivatives as part of its total return objective. In addition, certain of the Company’s investments are managed in portfolios which incorporate the use of foreign currency forward contracts which are intended to provide an economic hedge against foreign currency movements. 
From time to time, the Company purchases to-be-announced mortgage backed securities (“TBAs”) as part of its investment strategy. TBAs represent commitments to purchase a future issuance of agency mortgage backed securities. For the period between purchase of a TBA and issuance of the underlying security, the Company’s position is accounted for as a derivative. The Company purchases TBAs in both long and short positions to enhance investment performance and as part of its overall investment strategy.
The following table summarizes information on the fair values and notional values of the Company’s derivative instruments:
  Estimated Fair Value
  Asset Derivatives (1) Liability Derivatives (1) Notional
Value (2)
September 30, 2025
Futures contracts $ 98  $ (39) $ 5,749 
Foreign currency forward contracts 54  (20) 1,945 
Other (3) 27  (12) 89 
Total $ 179  $ (71)
December 31, 2024
Futures contracts $ 78  $ (46) $ 4,781 
Foreign currency forward contracts 90  (48) 1,698 
Other (3) 38  (21) 236 
Total $ 206  $ (115)
(1)    The fair value of asset derivatives are included in ‘other assets’ and the fair value of liability derivatives are included in ‘other liabilities.’
(2)    Represents the absolute notional value of all outstanding contracts, consisting of long and short positions.
(3)    Includes swaps, options and other derivatives contracts.

The Company did not hold any derivatives that were designated as hedging instruments at September 30, 2025 or December 31, 2024.
The Company’s derivative instruments can be traded under master netting agreements, which establish terms that apply to all derivative transactions with a counterparty. In the event of a bankruptcy or other stipulated event of default, such agreements provide that the non-defaulting party may elect to terminate all outstanding derivative transactions, in which case all individual derivative positions (loss or gain) with a counterparty are closed out and netted and replaced with a single amount, usually referred to as the termination amount, which is expressed in a single currency. The resulting single net amount, where positive, is payable to the party “in-the-money” regardless of whether or not it is the defaulting party, unless the parties have agreed that only the non-defaulting party is entitled to receive a termination payment where the net amount is positive and is in its favor. Contractual close-out netting reduces derivative credit exposure from gross to net exposure.
At September 30, 2025, asset derivatives and liability derivatives of $179 million and $71 million, respectively, were subject to a master netting agreement, compared to $206 million and $115 million, respectively, at December 31, 2024.
ARCH CAPITAL
 34
2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Realized and unrealized contract gains or losses on the Company’s derivative instruments are reflected in ‘net realized gains (losses)’ in the consolidated statements of income, as summarized in the following table:
Derivatives not designated as September 30,
hedging instruments: 2025 2024
Three Months Ended
Net realized gains (losses):
Futures contracts $ 37  $ 86 
Foreign currency forward contracts (12) 31 
Other (1)
Total $ 30  $ 125 
Nine Months Ended
Net realized gains (losses):
Futures contracts $ 176  $ 69 
Foreign currency forward contracts 71  32 
Other (1) 45  15 
Total $ 292  $ 116 
(1)    Includes realized gains or losses on swaps, options and other derivatives contracts.
11.    Commitments and Contingencies
Investment Commitments
The Company’s investment commitments, which are primarily related to agreements entered into by the Company to invest in funds and separately managed accounts when called upon, were approximately $3.7 billion at September 30, 2025, compared to $4.4 billion at December 31, 2024.
Interest Paid
Interest paid on the Company’s senior notes and other borrowings was $64 million for the nine months ended September 30, 2025, compared to $63 million for the 2024 period.
12.    Variable Interest Entities
Bellemeade Re
The Company has entered into aggregate excess of loss mortgage reinsurance agreements with various special purpose reinsurance companies domiciled in Bermuda (the “Bellemeade Agreements”). At the time the Bellemeade Agreements were entered into, the applicability of the accounting guidance that addresses VIEs was evaluated. As a result of the evaluation of the Bellemeade Agreements, the Company concluded that these entities are VIEs. However, given that the ceding insurers do not have the unilateral power to direct those activities that are significant to their economic performance, the Company does not consolidate such entities in its consolidated financial statements. The reinsurance premium paid in regard to the Bellemeade Agreements is calculated by multiplying the outstanding reinsurance coverage amount at the beginning of the period by the coupon rate, which is the SOFR plus a contractual risk margin, less the actual investment income collected during the preceding month on the assets included in the underlying reinsurance trusts. In the event the assets included in the underlying reinsurance trusts became severely impaired or worthless and the special purpose reinsurance companies were unable to meet their future obligations, the Company’s mortgage insurance subsidiaries would be liable to fulfill claim payments to policyholders. The Company’s maximum exposure to loss associated with these VIEs is determined as the amount of mortgage insurance claim payments on the insured policies, net of aggregate reinsurance payments previously received, up to the full aggregate excess of loss reinsurance coverage amounts.
The following table summarizes the total assets of the Bellemeade entities:
September 30,
2025
December 31, 2024
Bellemeade Entities
(Issue Date)
Total VIE Assets Coverage Remaining from Reinsurers (1) Total VIE
Assets
2021-3 Ltd. (Sep-21) 21  16  363 
2022-1 Ltd. (Jan-22) 44  12  202 
2022-2 Ltd. (Sep-22) 43  94  180 
2023-1 Ltd. (Oct-23) 164  41  186 
2024-1 Ltd. (Aug-24) 154  38  163 
Total $ 426  $ 201  $ 1,094 
(1)    Coverage from a separate panel of reinsurers remaining at September 30, 2025.
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
13.    Other Comprehensive Income (Loss)
The following tables present details about amounts reclassified from accumulated other comprehensive income and the tax effects allocated to each component of other comprehensive income (loss):
Amounts Reclassified from AOCI
Consolidated Statement of Income Three Months Ended Nine Months Ended
Details About Line Item That Includes September 30, September 30,
AOCI Components Reclassification 2025 2024 2025 2024
Unrealized appreciation (decline) on available-for-sale investments
Net realized gains (losses) $ 44  $ 54  $ (5) $ (38)
Provision for credit losses (4)
Total before tax 48  60  (9) (34)
Income tax (expense) benefit (7) —  12 
Net of tax $ 41  $ 60  $ (4) $ (22)
Before Tax Amount Tax Expense (Benefit) Net of Tax Amount
Three Months Ended September 30, 2025
Unrealized appreciation (decline) in value of investments:
Unrealized holding gains (losses) arising during period $ 118  $ 30  $ 88 
Less reclassification of net realized gains (losses) included in net income 48  41 
Foreign currency translation adjustments —  (1)
Other comprehensive income (loss) $ 70  $ 22  $ 48 
Three Months Ended September 30, 2024
Unrealized appreciation (decline) in value of investments:
Unrealized holding gains (losses) arising during period $ 736  $ 91  $ 645 
Less reclassification of net realized gains (losses) included in net income 60  —  60 
Foreign currency translation adjustments 25  —  25 
Other comprehensive income (loss) $ 701  $ 91  $ 610 
Nine Months Ended September 30, 2025
Unrealized appreciation (decline) in value of investments:
Unrealized holding gains (losses) arising during period $ 667  $ 42  $ 625 
Less reclassification of net realized gains (losses) included in net income (9) (5) (4)
Foreign currency translation adjustments 88  (3) 91 
Other comprehensive income (loss) $ 764  $ 44  $ 720 
Nine Months Ended September 30, 2024
Unrealized appreciation (decline) in value of investments:
Unrealized holding gains (losses) arising during period $ 549  $ 71  $ 478 
Less reclassification of net realized gains (losses) included in net income (34) (12) (22)
Foreign currency translation adjustments (24) —  (24)
Other comprehensive income (loss) $ 559  $ 83  $ 476 
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
14.    Income Taxes
The Company’s income tax provision on income before income taxes, including income (loss) from operating affiliates, resulted in an effective tax rate of 14.8% for the nine months ended September 30, 2025, compared to 8.1% for the nine months ended September 30, 2024. The year-over-year increase is primarily attributed to the Government of Bermuda enacting the Corporate Income Tax Act 2023, which established a 15% corporate income tax effective January 1, 2025. The Company’s effective tax rate, which is based upon the expected annual effective tax rate, may fluctuate from period to period based on the relative mix of income or loss reported by jurisdiction and the varying tax rates in each jurisdiction.
The Company had a net deferred tax asset of $1.4 billion at September 30, 2025, compared to a net deferred tax asset of $1.6 billion at December 31, 2024. In addition, the Company paid $315 million of income taxes for the nine months ended September 30, 2025, compared to $221 million of income taxes paid for the nine months ended September 30, 2024.
15.    Legal Proceedings
The Company, in common with the insurance industry in general, is subject to litigation and arbitration in the normal course of its business. As of September 30, 2025, the Company was not a party to any litigation or arbitration which is expected by management to have a material adverse effect on the Company’s results of operations and financial condition and liquidity.
16.    Transactions with Related Parties
Premia Reinsurance Ltd. is a multi-line Bermuda reinsurance company (and its affiliates together with Premia Holdings Ltd., “Premia”). The Company has entered into certain reinsurance transactions with Premia. During the nine months ended September 30, 2025 and 2024, the Company did not enter into any new reinsurance transactions with Premia. At September 30, 2025, the Company recorded a funds held asset from Premia of $130 million, compared to $137 million at December 31, 2024.
Somers Group Holdings Ltd. and its wholly owned subsidiaries (collectively, “Somers”) are wholly owned by Greysbridge. For the nine months ended September 30, 2025, the Company’s net premiums written was reduced by $557 million, compared to $581 million for the nine months ended September 30, 2024, as a result of certain reinsurance transactions with Somers. In addition, Somers paid certain acquisition costs and administrative fees to the Company. At September 30, 2025, the Company recorded a reinsurance recoverable on unpaid and paid losses from Somers of $1.9 billion and a reinsurance balance payable to Somers of $594 million, compared to $1.6 billion and $489 million, respectively, at December 31, 2024.
Under the terms of the Greysbridge equity financing, beginning January 1, 2024, the Company has a call right (but not the obligation) and Warburg and Kelso each have a put right (but not the obligation) to buy/sell a certain amount of their initial shares annually at the current year-end book value per share of Greysbridge. In 2024, Warburg and Kelso both delivered a put option notice to sell a certain amount of their initial shares. This transaction, which will involve third-party purchasers of such shares, is expected to close in the 2025 calendar year, subject to any required regulatory approvals and other closing conditions. In 2025, Warburg and Kelso both delivered a second put option notice to sell a certain amount of their initial shares. The transaction for the shares in the second put option is expected to occur in the first half of the 2026 calendar year, subject to any required regulatory approvals. In association with the put option notices, the Company’s balance sheet reflected $242 million in both other assets and other liabilities at September 30, 2025.
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

ITEM 2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is a discussion and analysis of our financial condition and results of operations. This should be read in conjunction with our consolidated financial statements included in Item 1 of this report and also our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”). In addition, readers should review “Risk Factors” set forth in Item 1A of Part I of our 2024 Form 10-K and “ITEM 1A—Risk Factors” of this Form 10-Q. All amounts are in millions, except per share amounts, unless otherwise noted.
Arch Capital Group Ltd. (“Arch Capital” and, together with its subsidiaries, “Arch”, “the Company”, “we”, “our” or “us”) is a publicly listed Bermuda exempted company with approximately $26.4 billion in capital at September 30, 2025 and, through operations in Bermuda, the United States, Europe, Canada and Australia, writes insurance, reinsurance and mortgage insurance on a worldwide basis.
  Page No.
   
Current Outlook
Financial Measures
Comment on Non-GAAP Financial Measures
Results of Operations
Insurance Segment
Reinsurance Segment
Mortgage Segment
Corporate
Critical Accounting Policies, Estimates and Recent Accounting Pronouncements
Financial Condition
Liquidity
Capital Resources
Catastrophic and Severe Economic Events
Market Sensitive Instruments and Risk Management
ARCH CAPITAL
 38
2025 THIRD QUARTER FORM 10-Q

CURRENT OUTLOOK
As we near the end of 2025 and look ahead to 2026, our core objective to deliver long term value for our shareholders remains unchanged. We reported solid results for the 2025 third quarter, with an annualized net income return on average common equity and operating return on average common equity of 23.8% and 18.5%, respectively. See “Comment on Non-GAAP Financial Measures.” Meaningful contributions from all three segments along with solid investment returns pushed our year to date book value growth to 17.3%.
We continue to execute our cycle management strategy by actively allocating capital to the segments with the best risk-adjusted returns, while retaining the flexibility to invest in our platform when we find attractive opportunities. This approach, combined with a diversified global platform and strong distribution relationships, allows us to adapt dynamically to shifting market conditions. Our strong balance sheet and capital-generating capabilities, permit us to both invest in our business, and return capital to investors. During the 2025 third quarter, we repurchased $732 million of Arch shares in the quarter.
As competition in the overall property and casualty market is increasing, some sectors are seeing increased pressure while others continue to experience rate improvements. We continue to believe the property and casualty market presents meaningful opportunities, as we lean into the strength of our brand, including underwriting discipline, a longer term view of risk, and use risk-based pricing tools to generate profitable business.
Our insurance segment reported $129 million of underwriting income for the 2025 third quarter, with net premium written nearly $2 billion, which is an increase of 7.3% from the 2024 third quarter. Growth in net premiums written primarily resulted from the U.S MidCorp and Entertainment Insurance businesses acquired from Allianz on August 1, 2024 (“MCE Acquisition”). The acquired business provides a significant platform from which we intend to build further scale in the middle market sector. We saw selective growth in our North American other liability occurrence business of 17%, supported by middle market and double-digit rate increases in E&S casualty.
Net premiums written in our North American property and short-tail book increased 15%, where growth in middle market admitted property more than offset declines in E&S property. International premium volume remained stable, as the Lloyd’s and London market businesses are experiencing increased, but rational, competition. Our long-term investment in establishing a leadership position at Lloyd’s continues to yield strong results reflected in favorable signings and our ability to attract top-tier underwriting talent.
Our reinsurance segment contributed $482 million of underwriting income in the 2025 third quarter. Net premiums written were $1.7 billion, down roughly 11% when compared to 2024 third quarter, reflecting current pricing conditions in short-tail and property catastrophe lines and increased retentions by cedants. We are growing selectively and focusing on areas where margins are attractive. We continue to like our prospects in most lines of business and, with improving conditions in casualty lines, our agility and ability to create opportunities is an advantage for us in this market. Our diversified reinsurance platform, supported by strong partnerships with our brokers and ceding companies across multiple lines and geographies, further enhances our ability to navigate a competitive environment.
Our mortgage segment continued to deliver a steady level of earnings, generating $260 million of underwriting income in the 2025 third quarter. While new originations remained modest due to affordability challenges, underlying fundamentals remained strong and our U.S. market share was stable as industry pricing discipline held. The persistency of our in force U.S. primary mortgage insurance portfolio remained a healthy 82.3% and our delinquency rate remained low. We continue to expect the mortgage segment to serve as a steady diversifying contributor to our overall earnings and generate attractive underwriting income given the high credit quality and embedded equity of our in-force portfolio.
ARCH CAPITAL
 39
2025 THIRD QUARTER FORM 10-Q

FINANCIAL MEASURES
Management uses the following three key financial indicators in evaluating our performance and measuring the overall growth in value generated for Arch Capital’s common shareholders:
Book Value per Share
Book value per share represents total common shareholders’ equity available to Arch divided by the number of common shares outstanding. Management uses growth in book value per share as a key measure of the value generated for our common shareholders each period and believes that book value per share is the key driver of Arch Capital’s share price over time. Book value per share is impacted by, among other factors, our underwriting results, investment returns and share repurchase activity, which has an accretive or dilutive impact on book value per share depending on the purchase price. Book value per share was $62.32 at September 30, 2025, compared to $59.17 at June 30, 2025, and $57.00 at September 30, 2024. The 5.3% increase in book value per share for the 2025 third quarter primarily reflected strong underwriting and investment returns.
Operating Return on Average Common Equity
Operating return on average common equity (“Operating ROAE”) represents annualized after-tax operating income available to Arch common shareholders divided by the average of beginning and ending common shareholders’ equity available to Arch during the period. After-tax operating income available to Arch common shareholders, a non-GAAP financial measure as defined in Regulation G, represents 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 or losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains or 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 and income taxes. Management uses Operating ROAE as a key measure of the return generated to common shareholders. See “Comment on Non-GAAP Financial Measures.”
Our annualized net income return on average common equity was 23.8% for the 2025 third quarter, compared to 19.0% for the 2024 third quarter, and 19.5% for the nine months ended September 30, 2025, compared to 22.9% for the 2024 period. Our Operating ROAE was 18.5% for the 2025 third quarter, compared to 14.8% for the 2024 third quarter and 16.2% for the nine months ended September 30, 2025, compared to 18.3% for the 2024 period. Returns for the 2025 periods reflected strong underwriting and investment returns.
Total Return on Investments
Total return on investments, a non-GAAP financial measure as defined in Regulation G, includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains or losses attributable to the investment portfolio and the change in unrealized gains or 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. In addition, total return incorporates the timing of investment returns during the periods. The following table summarizes our total return compared to the benchmark return against which we measured our portfolio during the periods. See “Comment on Non-GAAP Financial Measures.”
Arch
Portfolio
Benchmark
Return
Pre-tax total return (before investment expenses):
2025 Third Quarter 1.80  % 1.81  %
2024 Third Quarter 3.97  % 4.24  %
Nine Months Ended September 30, 2025 7.07  % 7.27  %
Nine Months Ended September 30, 2024 6.20  % 6.40  %
Total return for the 2025 periods reflected the effects of lower bond yields, a weaker U.S. dollar and equity market returns. The portfolio slightly underperformed their benchmark returns, primarily due to the sale of certain alternative investments accounted for using the equity method. The allocation of our portfolio remained neutral relative to our targeted benchmark. We continue to maintain a relatively short duration on our fixed income portfolio of 3.24 years at September 30, 2025, compared to 3.31 years at December 31, 2024.
The benchmark return index is a customized combination of indices intended to approximate a target portfolio by asset mix and average credit quality with a fixed income component matching the approximate estimated duration and currency mix of our insurance and reinsurance liabilities. It is recalibrated annually. Although the estimated fixed income duration and average credit quality of this index will move as the duration and rating of its constituent securities
ARCH CAPITAL
 40
2025 THIRD QUARTER FORM 10-Q

change, generally we do not adjust the composition of the benchmark return index during the year except to incorporate changes to the mix of liability currencies and durations noted above. The benchmark return index should not be interpreted as expressing a preference for or aversion to any particular sector or sector weight. At September 30, 2025, the fixed income portion of the benchmark had an average credit quality of “A1” by Moody’s and an estimated fixed income duration of 3.18 years.
The benchmark return index included weightings to the following indices:
%
ICE BofA 1-10 Year U.S. Corporate Index
26.70 
Yield on 3-5 Year U.S. Treasury Index plus 6% 17.00 
ICE BofA 1-10 Year U.S. Treasury Index 15.00 
ICE BofA 0-3 Month U.S. Treasury Index 3.00 
JPM CLOIE Investment Grade 6.00 
ICE BofA 1-5 Year U.K. Gilt Index 5.25 
ICE BofA U.S. High Yield Constrained Index 5.00 
ICE BofA U.S. ABS & CMBS Index 4.70 
S&P 500 Total Return Index 4.50 
ICE BofA 3-5 Year US Agency CMO Excluding IO & PO Index 3.50 
ICE BofA German Government 1-5 Year Index 3.25 
ICE BofA German Government 5-7 Year Index 0.60 
ICE BofA 1-5 Year Canada Government Index 2.60 
ICE BofA 15+ Year Canada Government Index 0.30 
ICE BofA 1-5 Year Australia Government Index 1.90 
ICE BofA 5-10 Year Australia Government Index 0.45 
ICE BofA 1-5 Year Japan Government Index 0.25 
Total
100.00  %
COMMENT ON NON-GAAP FINANCIAL MEASURES
Throughout this filing, we present our operations in the way we believe will be the most meaningful and useful to investors, analysts, rating agencies and others who use our financial information in evaluating the performance of our 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 or losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains or 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, 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 under “Results of Operations” below.
We believe 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, our 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 our 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 our 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 our investments represent other-than-temporary declines in expected recovery values on securities without actual realization. Furthermore, we exclude net realized gains or losses from the acquisition or disposition of subsidiaries, due to their non-recurring nature, such items are not indicative of the performance of, or trends in, our business performance.
The use of the equity method on certain of our investments 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 our proportionate share of the net income or loss of the funds (which include changes in the market value of the underlying securities in the funds). This method of accounting is different from the way in which we account for our other investments; and, the timing of the recognition of equity in net income or loss of investments accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments.
Transaction costs and other include integration, advisory, financing, legal, severance, incentive compensation and all other transaction costs directly related to acquisitions. We believe that transaction costs and other, due to their nonrecurring nature, are not indicative of the performance of, or trends in, our business performance.
ARCH CAPITAL
 41
2025 THIRD QUARTER FORM 10-Q

We believe that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of our business since we evaluate the performance of and manage our business to produce an underwriting profit. In addition to presenting the net income available to Arch common shareholders, we believe that this presentation enables investors and other users of our financial information to analyze our performance in a manner similar to how management analyzes performance. We also believe that this measure follows industry practice and, therefore, allows the users of financial information to compare our performance with our industry peer group. We believe that the equity analysts and certain rating agencies that follow us and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.
Our segment information includes the presentation of consolidated underwriting income or loss. Such measures represent the pre-tax profitability of our 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 our individual underwriting operations. Underwriting income or loss does not incorporate certain income and expense items which are included in corporate. While these measures are presented in note 5, “Segment Information,” to our 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 in note 5, “Segment Information” to our consolidated financial statements.
We measure segment performance for our three underwriting segments based on underwriting income or loss. We do not manage our assets by underwriting segment, with the exception of goodwill and intangible assets, and, accordingly, investment income, income from operating affiliates and other non-underwriting related items are not allocated to each underwriting segment.
Our presentation of segment information includes the use of a current year loss ratio which excludes favorable or adverse development in prior year loss reserves. This ratio is a non-GAAP financial measure as defined in Regulation G. The reconciliation of such measure to the loss ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G is shown on the individual segment pages. Management utilizes the current year loss ratio in its analysis of the underwriting performance of each of our 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 or losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains or 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. In addition, total return incorporates the timing of investment returns during the periods. There is no directly comparable GAAP financial measure for total return. Management uses total return on investments as a key measure of the return generated to Arch common shareholders on the capital held in the business, and compares the return generated by our investment portfolio against benchmark returns which we measured our portfolio against during the periods.
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2025 THIRD QUARTER FORM 10-Q

RESULTS OF OPERATIONS
The following table summarizes our 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. See “Comment on Non-GAAP Financial Measures.”
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
Net income available to Arch common shareholders $ 1,340  $ 978  $ 3,131  $ 3,347 
Net realized (gains) losses (1) (210) (169) (442) (358)
Equity in net (income) loss of investments accounted for using the equity method (134) (171) (349) (437)
Net foreign exchange (gains) losses 63  122  31 
Transaction costs and other 21  30  49  55 
Income tax expense (benefit) (2) 18  31  97  38 
After-tax operating income available to Arch common shareholders $ 1,042  $ 762  $ 2,608  $ 2,676 
Beginning common shareholders’ equity $ 22,211  $ 19,835  $ 19,990  $ 17,523 
Ending common shareholders’ equity 22,889  21,444  22,889  21,444 
Average common shareholders’ equity $ 22,550  $ 20,640  $ 21,440  $ 19,484 
Annualized net income return on average common equity % 23.8  19.0  19.5  22.9 
Annualized operating return on average common equity % 18.5  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 or losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains or losses realized from the acquisition or disposition of subsidiaries.
(2)    Income tax expense on 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 reflects the relative mix reported by jurisdiction and the varying tax rates in each jurisdiction.
Segment Information
We classify our businesses into three underwriting segments: insurance, reinsurance and mortgage. Our 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 our chief operating decision makers. The Chief Executive Officer and the Chief Financial Officer and Treasurer are the Company’s chief operating decision makers. They do not assess performance, measure return on equity or make resource allocation decisions on a line of business basis. Management measures segment performance for our three underwriting segments based on underwriting income or loss. We do not manage our assets by underwriting segment, with the exception of goodwill and intangible assets, and accordingly, investment income is not allocated to each underwriting segment.
We determined our reportable 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 our 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.
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2025 THIRD QUARTER FORM 10-Q

The following tables set forth our insurance segment’s underwriting results:
  Three Months Ended September 30,
  2025 2024 % Change
Gross premiums written $ 2,567  $ 2,341  9.7 
Premiums ceded (614) (521)
Net premiums written 1,953  1,820  7.3 
Change in unearned premiums 16  (55)
Net premiums earned 1,969  1,765  11.6 
Other underwriting income (1) —   
Losses and loss adjustment expenses (1,162) (1,087)
Acquisition expenses (386) (308)
Other operating expenses (301) (250)
Underwriting income (loss) $ 129  $ 120  7.5 
Underwriting Ratios     % Point
Change
Loss ratio 59.0  % 61.6  % (2.6)
Acquisition expense ratio 19.6  % 17.4  % 2.2 
Other operating expense ratio (2) 14.8  % 14.1  % 0.7 
Combined ratio 93.4  % 93.1  % 0.3 
(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 period includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
  Nine Months Ended September 30,
  2025 2024 % Change
Gross premiums written $ 7,893  $ 6,569  20.2 
Premiums ceded (1,971) (1,649)
Net premiums written 5,922  4,920  20.4 
Change in unearned premiums (124) (226)
Net premiums earned 5,798  4,694  23.5 
Other underwriting income (1) 25  — 
Losses and loss adjustment expenses (3,568) (2,789)
Acquisition expenses (1,116) (872)
Other operating expenses (883) (718)
Underwriting income (loss) $ 256  $ 315  (18.7)
Underwriting Ratios     % Point
Change
Loss ratio 61.5  % 59.4  % 2.1 
Acquisition expense ratio 19.3  % 18.6  % 0.7 
Other operating expense ratio (2) 14.8  % 15.3  % (0.5)
Combined ratio 95.6  % 93.3  % 2.3 
(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 period includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
Premiums Written.
The following tables set forth our insurance segment’s net premiums written by major line of business:
  Three Months Ended September 30,
  2025 2024
  Amount % Amount %
North America
Property and short-tail specialty $ 339  17.4  $ 296  16.3 
Other liability - occurrence 297  15.2  253  13.9 
Other liability - claims made 209  10.7  228  12.5 
Commercial multi-peril 194  9.9  163  9.0 
Workers compensation 151  7.7  147  8.1 
Commercial automobile 150  7.7  134  7.4 
Other 86  4.4  81  4.5 
Total North America 1,426  73.0  1,302  71.5 
International
Property and short-tail specialty $ 287  14.7  $ 287  15.8 
Casualty and other 240  12.3  231  12.7 
Total International 527  27.0  518  28.5 
Total $ 1,953  100.0  $ 1,820  100.0 
2025 Third Quarter versus 2024 Period. Gross premiums written by the insurance segment in the 2025 third quarter were 9.7% higher than in the 2024 third quarter, while net premiums written were 7.3% higher than in the 2024 third quarter. Growth in net premiums written primarily reflected business related to the MCE Acquisition.
Nine Months Ended September 30,
2025 2024
Amount % Amount %
North America
Property and short-tail specialty $ 1,056  17.8  $ 856  17.4 
Other liability - occurrence 993  16.8  660  13.4 
Other liability - claims made 564  9.5  643  13.1 
Commercial multi-peril 597  10.1  266  5.4 
Workers compensation 434  7.3  402  8.2 
Commercial automobile 476  8.0  369  7.5 
Other 251  4.2  225  4.6 
Total North America 4,371  73.8  3,421  69.5 
International
Property and short-tail specialty $ 860  14.5  $ 830  16.9 
Casualty and other 691  11.7  669  13.6 
Total International 1,551  26.2  1,499  30.5 
Total $ 5,922  100.0  $ 4,920  100.0 
Nine Months Ended September 30, 2025 versus 2024 period. Gross premiums written by the insurance segment for the nine months ended September 30, 2025 were 20.2% higher than in the 2024 period, while net premiums written were 20.4% higher than in the 2024 period. Growth in net premiums written primarily reflected business related to the MCE Acquisition.
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2025 THIRD QUARTER FORM 10-Q

Net Premiums Earned.
The following tables set forth our insurance segment’s net premiums earned by major line of business:
  Three Months Ended September 30,
  2025 2024
  Amount % Amount %
North America
Property and short-tail specialty $ 339  17.2  $ 306  17.3 
Other liability - occurrence 329  16.7  265  15.0 
Other liability - claims made 205  10.4  213  12.1 
Commercial multi-peril 195  9.9  146  8.3 
Workers compensation 160  8.1  135  7.6 
Commercial automobile 143  7.3  122  6.9 
Other 70  3.6  79  4.5 
Total North America 1,441  73.2  1,266  71.7 
International
Property and short-tail specialty $ 296  15.0  $ 283  16.0 
Casualty and other 232  11.8  216  12.2 
Total International 528  26.8  499  28.3 
Total $ 1,969  100.0  $ 1,765  100.0 
Nine Months Ended September 30,
2025 2024
Amount % Amount %
North America
Property and short-tail specialty $ 1,035  17.9  833  17.7 
Other liability - occurrence 996  17.2  615  13.1 
Other liability - claims made 583  10.1  633  13.5 
Commercial multi-peril 599  10.3  246  5.2 
Workers compensation 438  7.6  394  8.4 
Commercial automobile 435  7.5  329  7.0 
Other 213  3.7  235  5.0 
Total North America 4,299  74.1  3,285  70.0 
International
Property and short-tail specialty $ 821  14.2  779  16.6 
Casualty and other 678  11.7  630  13.4 
Total International 1,499  25.9  1,409  30.0 
Total $ 5,798  100.0  $ 4,694  100.0 
Net premiums written are primarily earned on a pro rata basis over the terms of the policies for all products, usually 12 months. Net premiums earned reflect changes in net premiums written over the previous five quarters. Net premiums earned for the 2025 third quarter were 11.6% higher than in the 2024 third quarter, while net premiums earned for the nine months ended September 30, 2025 were 23.5% higher than in the 2024 period.
Other Underwriting Income.
Other underwriting income, which includes revenue earned from underwriting-related activities covered under existing service contracts, was $9 million for the 2025 third quarter, compared to nil for the 2024 third quarter, and $25 million for the nine months ended September 30, 2025, compared to nil for the 2024 period.
Losses and Loss Adjustment Expenses.
The table below shows the components of the insurance segment’s loss ratio:
Three Months Ended Nine Months Ended
September 30, September 30,
  2025 2024 2025 2024
Current year 59.7  % 62.5  % 62.2  % 60.0  %
Prior period reserve development (0.7) % (0.9) % (0.7) % (0.6) %
Loss ratio 59.0  % 61.6  % 61.5  % 59.4  %
Current Year Loss Ratio.
2025 Third Quarter versus 2024 Period. The insurance segment’s current year loss ratio in the 2025 third quarter was 2.8 points lower than in the 2024 third quarter. The 2025 third quarter loss ratio reflected 2.2 points of current year catastrophic activity, compared to 4.9 points of current year catastrophic activity in the 2024 third quarter.
Nine Months Ended September 30, 2025 versus 2024 Period. The insurance segment’s current year loss ratio for the nine months ended September 30, 2025 was 2.2 points higher than in the 2024 period and reflected 4.8 points of current year catastrophic activity, primarily related to the California wildfires, compared to 3.0 points in the 2024 period. The current year loss ratio for the 2025 period also reflected the impact of the MCE Acquisition and changes in mix of business.
Prior Period Reserve Development.
The insurance segment’s net favorable development was $14 million, or 0.7 points, for the 2025 third quarter, compared to $16 million, or 0.9 points, for the 2024 third quarter, and $39 million, or 0.7 points, for the nine months ended September 30, 2025, compared to $31 million, or 0.6 points, for the 2024 period. See note 6, “Reserve for Losses and Loss Adjustment Expenses,” to our consolidated financial statements for information about the insurance segment’s prior year reserve development.
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2025 THIRD QUARTER FORM 10-Q

Underwriting Expenses.
2025 Third Quarter versus 2024 Period. The insurance segment’s underwriting expense ratio was 34.4% in the 2025 third quarter, compared to 31.5% in the 2024 third quarter. In the 2024 third quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 250 basis 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 2025 third quarter underwriting expense ratio also included 0.6 points related to net favorable development of prior year loss reserves, compared to 0.2 points in the 2024 third quarter.
Nine Months Ended September 30, 2025 versus 2024 period. The insurance segment’s underwriting expense ratio was 34.1% for the nine months ended September 30, 2025, compared to 33.9% for the 2024 period.
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.
The following tables set forth our reinsurance segment’s underwriting results:
  Three Months Ended September 30,
  2025 2024 % Change
Gross premiums written $ 2,515  $ 2,763  (9.0)
Premiums ceded (778) (818)
Net premiums written 1,737  1,945  (10.7)
Change in unearned premiums 278  (53)
Net premiums earned 2,015  1,892  6.5 
Other underwriting income (1) 38   
Losses and loss adjustment expenses (1,040) (1,317)  
Acquisition expenses (398) (374)  
Other operating expenses (133) (54)  
Underwriting income $ 482  $ 149  223.5 
Underwriting Ratios % Point
Change
Loss ratio 51.6  % 69.6  % (18.0)
Acquisition expense ratio 19.8  % 19.8  % — 
Other operating expense ratio (2) 4.7  % 2.9  % 1.8 
Combined ratio 76.1  % 92.3  % (16.2)
(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 period includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
  Nine Months Ended September 30,
  2025 2024 % Change
Gross premiums written $ 9,205  $ 9,171  0.4 
Premiums ceded (3,093) (3,013)
Net premiums written 6,112  6,158  (0.7)
Change in unearned premiums 18  (820)
Net premiums earned 6,130  5,338  14.8 
Other underwriting income (1) 123   
Losses and loss adjustment expenses (3,524) (3,206)  
Acquisition expenses (1,251) (1,050)  
Other operating expenses (378) (193)  
Underwriting income (loss) $ 1,100  $ 894  23.0 
Underwriting Ratios % Point
Change
Loss ratio 57.5  % 60.1  % (2.6)
Acquisition expense ratio 20.4  % 19.7  % 0.7 
Other operating expense ratio (2) 4.2  % 3.6  % 0.6 
Combined ratio 82.1  % 83.4  % (1.3)
(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 period includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
Premiums Written.
The following tables set forth our reinsurance segment’s net premiums written by major line of business:
  Three Months Ended September 30,
  2025 2024
  Amount % Amount %
Specialty $ 633  36.4  $ 769  39.5 
Property excluding property catastrophe 557  32.1  671  34.5 
Casualty 399  23.0  339  17.4 
Property catastrophe 64  3.7  52  2.7 
Marine and aviation 60  3.5  69  3.5 
Other 24  1.4  45  2.3 
Total $ 1,737  100.0  $ 1,945  100.0 
2025 Third Quarter versus 2024 Period. Gross premiums written by the reinsurance segment in the 2025 third quarter were 9.0% lower than in the 2024 third quarter, while net premiums written were 10.7% lower than in the 2024 third quarter. The lower level of net premiums written this quarter was primarily due to the impact of two transactions in the 2024 third quarter in the specialty line of business and the lower level of reinstatement premiums in the 2025 third quarter.
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2025 THIRD QUARTER FORM 10-Q

Nine Months Ended September 30,
2025 2024
Amount % Amount %
Specialty $ 1,956  32.0  $ 2,148  34.9 
Property excluding property catastrophe 1,568  25.7  1,823  29.6 
Casualty 1,206  19.7  943  15.3 
Property catastrophe 1,025  16.8  874  14.2 
Marine and aviation 249  4.1  257  4.2 
Other 108  1.8  113  1.8 
Total $ 6,112  100.0  $ 6,158  100.0 
Nine Months Ended September 30, 2025 versus 2024 period. Gross premiums written by the reinsurance segment for the nine months ended September 30, 2025 were 0.4% higher than in the 2024 period, while net premiums written were 0.7% lower than in the 2024 period.
Net Premiums Earned.
The following tables set forth our reinsurance segment’s net premiums earned by major line of business:
  Three Months Ended September 30,
  2025 2024
  Amount % Amount %
Specialty $ 719  35.7  $ 688  36.4 
Property excluding property catastrophe 581  28.8  540  28.5 
Casualty 360  17.9  282  14.9 
Property catastrophe 253  12.6  256  13.5 
Marine and aviation 77  3.8  80  4.2 
Other 25  1.2  46  2.4 
Total $ 2,015  100.0  $ 1,892  100.0 
Nine Months Ended September 30,
2025 2024
Amount % Amount %
Specialty $ 2,206  36.0  $ 1,934  36.2 
Property excluding property catastrophe 1,716  28.0  1,546  29.0 
Casualty 1,040  17.0  798  14.9 
Property catastrophe 819  13.4  736  13.8 
Marine and aviation 239  3.9  214  4.0 
Other 110  1.8  110  2.1 
Total $ 6,130  100.0  $ 5,338  100.0 
Net premiums written, irrespective of the class of business, are generally earned on a pro rata basis over the terms of the underlying policies or reinsurance contracts. Net premiums earned reflect changes in net premiums written over the previous five quarters. Net premiums earned for the 2025 third quarter were 6.5% higher than in the 2024 third quarter, while net premiums earned for the nine months ended September 30, 2025 were 14.8% higher than in the 2024 period.
Other Underwriting Income.
Other underwriting income, which includes revenue earned from underwriting-related activities covered under existing service contracts, was $38 million for the 2025 third quarter, compared to $2 million for the 2024 third quarter, and $123 million for the nine months ended September 30, 2025, compared to $5 million for the 2024 period.
Losses and Loss Adjustment Expenses.
The table below shows the components of the reinsurance segment’s loss ratio:
Three Months Ended Nine Months Ended
September 30, September 30,
  2025 2024 2025 2024
Current year 54.2  % 71.8  % 61.6  % 62.3  %
Prior period reserve development (2.6) % (2.2) % (4.1) % (2.2) %
Loss ratio 51.6  % 69.6  % 57.5  % 60.1  %
Current Year Loss Ratio.
2025 Third Quarter versus 2024 Period. The reinsurance segment’s current year loss ratio in the 2025 third quarter was 17.6 points lower than in the 2024 third quarter. The 2025 third quarter loss ratio reflected 1.3 points of current year catastrophic activity, compared to 21.3 points of current year catastrophic activity in the 2024 third quarter. The balance of the change in the loss ratio resulted, in part, from changes in mix of business.
Nine Months Ended September 30, 2025 versus 2024 Period. The reinsurance segment’s current year loss ratio for the nine months ended September 30, 2025 was 0.7 points lower than in the 2024 period and reflected 9.5 points of current year catastrophic activity primarily related to the California wildfires, compared to 11.5 points in the 2024 period. The current year loss ratio for the 2025 period also reflected changes in mix of business.
Prior Period Reserve Development.
The reinsurance segment’s net favorable development was $53 million, or 2.6 points, for the 2025 third quarter, compared to $41 million, or 2.2 points, for the 2024 third quarter, and $253 million, or 4.1 points, for the nine months ended September 30, 2025, compared to $115 million, or 2.2 points, for the 2024 period. See note 6, “Reserve for Losses and Loss Adjustment Expenses,” to our consolidated financial statements for information about the reinsurance segment’s prior year reserve development.
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2025 THIRD QUARTER FORM 10-Q

Underwriting Expenses.
2025 Third Quarter versus 2024 Period. The underwriting expense ratio for the reinsurance segment was 24.5% in the 2025 third quarter, compared to 22.7% in the 2024 third quarter, with the increase primarily reflecting a higher level of incentive compensation expenses in the 2025 third quarter.
Nine Months Ended September 30, 2025 versus 2024 period. The underwriting expense ratio for the reinsurance segment was 24.6% for the nine months ended September 30, 2025, compared to 23.3% for the 2024 period. The increase in the 2025 period primarily reflected lower profit and sliding scale commissions on ceded business, along with a higher level of incentive compensation expenses in the 2025 third quarter.
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 following tables set forth our mortgage segment’s underwriting results:
  Three Months Ended September 30,
  2025 2024 % Change
Gross premiums written $ 330  $ 339  (2.7)
Premiums ceded (56) (57)
Net premiums written 274  282  (2.8)
Change in unearned premiums 27  31 
Net premiums earned 301  313  (3.8)
Other underwriting income (1)
Losses and loss adjustment expenses
Acquisition expenses (2)
Other operating expenses (44) (49)
Underwriting income $ 260  $ 269  (3.3)
Underwriting Ratios % Point
Change
Loss ratio (0.5) % (0.4) % (0.1)
Acquisition expense ratio 0.7  % (0.4) % 1.1 
Other operating expense ratio (2) 13.3  % 15.6  % (2.3)
Combined ratio 13.5  % 14.8  % (1.3)
(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 period includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
Nine Months Ended September 30,
2025 2024 % Change
Gross premiums written $ 979  $ 1,020  (4.0)
Premiums ceded (186) (185)
Net premiums written 793  835  (5.0)
Change in unearned premiums 89  90 
Net premiums earned 882  925  (4.6)
Other underwriting income (1) 17  15 
Losses and loss adjustment expenses 37 
Acquisition expenses (7)
Other operating expenses (144) (151)
Underwriting income $ 750  $ 827  (9.3)
Underwriting Ratios % Point
Change
Loss ratio (0.2) % (4.0) % 3.8 
Acquisition expense ratio 0.8  % (0.1) % 0.9 
Other operating expense ratio (2) 14.3  % 16.3  % (2.0)
Combined ratio 14.9  % 12.2  % 2.7 
(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 period includes ‘Other underwriting income.’ See ‘Comments on Non-GAAP Financial Measures’ for further details.
Premiums Written.
The following tables set forth our mortgage segment’s net premiums written by major line of business:
  Three Months Ended September 30,
  2025 2024
  Amount % Amount %
U.S. primary mortgage insurance $ 197  71.9  $ 209  74.1 
U.S. credit risk transfer (CRT) and other 55  20.1  54  19.1 
International mortgage insurance/
reinsurance
22  8.0  19  6.7 
Total $ 274  100.0  $ 282  100.0 
2025 Third Quarter versus 2024 Period. Gross premiums written by the mortgage segment in the 2025 third quarter were 2.7% lower than in the 2024 third quarter, while net premiums written were 2.8% lower than in the 2024 third quarter. The reduction in net premiums written in the 2025 third quarter primarily reflected lower U.S. monthly and single premium volume.
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2025 THIRD QUARTER FORM 10-Q

Nine Months Ended September 30,
2025 2024
Amount % Amount %
U.S. primary mortgage insurance $ 584  73.6  $ 612  73.3 
U.S. credit risk transfer (CRT) and other 156  19.7  161  19.3 
International mortgage insurance/
reinsurance
53  6.7  62  7.4 
Total $ 793  100.0  $ 835  100.0 
Nine Months Ended September 30, 2025 versus 2024 Period. Gross premiums written by the mortgage segment for the nine months ended September 30, 2025 were 4.0% lower than in the 2024 period, while net premiums written for the nine months ended September 30, 2025 were 5.0% lower than in the 2024 period. The reduction in net premiums written in the 2025 period primarily reflected a one-time expense related to the tender offer of certain Bellemeade Re mortgage insurance linked notes, along with a lower U.S. monthly and single premium volume.
The persistency rate was 82.3% for the Arch MI U.S. portfolio of primary mortgage insurance policies at September 30, 2025, compared to 82.9% at September 30, 2024. The persistency rate represents the percentage of mortgage insurance in force at the beginning of a 12 month period that remains in force at the end of such period.
The following tables provide details on the new insurance written (“NIW”) generated by Arch MI U.S. NIW represents the original principal balance of all loans that received coverage during the period.

Three Months Ended September 30,
2025 2024
Amount % Amount %
Total new insurance written (NIW) $ 12,965  $ 13,526 
Credit quality:
>=740 $ 9,850  76.0  $ 9,438  69.8 
680-739 2,753  21.2  3,584  26.5 
620-679 359  2.8  502  3.7 
<620 0.0  0.0 
Total $ 12,965  100.0  $ 13,526  100.0 
Loan-to-value (LTV):
95.01% and above $ 1,038  8.0  $ 1,089  8.1 
90.01% to 95.00% 5,668  43.7  6,620  48.9 
85.01% to 90.00% 4,323  33.3  4,293  31.7 
85.00% and below 1,936  14.9  1,524  11.3 
Total $ 12,965  100.0  $ 13,526  100.0 
Monthly vs. single:
Monthly $ 12,267  94.6  $ 12,581  93.0 
Single 698  5.4  945  7.0 
Total $ 12,965  100.0  $ 13,526  100.0 
Purchase vs. refinance:
Purchase $ 12,319  95.0  $ 13,177  97.4 
Refinance 646  5.0  349  2.6 
Total $ 12,965  100.0  $ 13,526  100.0 
Nine Months Ended September 30,
2025 2024
Amount % Amount %
Total new insurance written (NIW) $ 34,409  $ 36,661 
Credit quality:
>=740 $ 26,096  75.8  $ 25,528  69.6 
680-739 7,383  21.5  9,885  27.0 
620-679 921  2.7  1,243  3.4 
<620 0.0  0.0 
Total $ 34,409  100.0  $ 36,661  100.0 
Loan-to-value (LTV):
95.01% and above $ 2,608  7.6  $ 2,645  7.2 
90.01% to 95.00% 15,674  45.6  19,094  52.1 
85.01% to 90.00% 11,188  32.5  10,964  29.9 
85.01% and below 4,939  14.4  3,958  10.8 
Total $ 34,409  100.0  $ 36,661  100.0 
Monthly vs. single:
Monthly $ 32,543  94.6  $ 34,261  93.5 
Single 1,866  5.4  2,400  6.5 
Total $ 34,409  100.0  $ 36,661  100.0 
Purchase vs. refinance:
Purchase $ 32,747  95.2  $ 35,932  98.0 
Refinance 1,662  4.8  729  2.0 
Total $ 34,409  100.0  $ 36,661  100.0 
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

Net Premiums Earned.
The following tables set forth our mortgage segment’s net premiums earned by major line of business:
  Three Months Ended September 30,
  2025 2024
  Amount % Amount %
U.S. primary mortgage insurance $ 204  67.8  $ 215  68.7 
U.S. credit risk transfer (CRT) and other 55  18.3  55  17.6 
International mortgage insurance/
reinsurance
42  14.0  43  13.7 
Total $ 301  100.0  $ 313  100.0 
2025 Third Quarter versus 2024 Period. Net premiums earned for the 2025 third quarter were 3.8% lower than in the 2024 third quarter, reflecting changes in net premiums written over the previous five quarters. The decrease in net premiums earned in the 2025 period primarily reflected a lower level of U.S. monthly premium volume.
Nine Months Ended September 30,
2025 2024
Amount % Amount %
U.S. primary mortgage insurance $ 601  68.1  $ 630  68.1 
U.S. credit risk transfer (CRT) and other 156  17.7  162  17.5 
International mortgage insurance/
reinsurance
125  14.2  133  14.4 
Total $ 882  100.0  $ 925  100.0 
Nine Months Ended September 30, 2025 versus 2024 Period. For the nine months ended September 30, 2025, net premiums earned were 4.6% lower than in the 2024 period. The decrease in net premiums earned in the 2025 period primarily reflected a one-time expense related to the tender offer of certain Bellemeade Re mortgage insurance linked notes and a lower level of U.S. monthly premium volume.
Other Underwriting Income.
Other underwriting income, which is primarily related to GSE credit risk-sharing transactions, was $3 million for the 2025 third quarter, consistent with $3 million for the 2024 third quarter, and $17 million for the nine months ended September 30, 2025, compared to $15 million for the 2024 period.
Losses and Loss Adjustment Expenses.
The table below shows the components of the mortgage segment’s loss ratio:
Three Months Ended Nine Months Ended
September 30, September 30,
  2025 2024 2025 2024
Current year 17.6  % 20.1  % 20.2  % 19.9  %
Prior period reserve development (18.1) % (20.5) % (20.4) % (23.9) %
Loss ratio (0.5) % (0.4) % (0.2) % (4.0) %
Current Year Loss Ratio.
2025 Third Quarter versus 2024 Period. The mortgage segment’s current year loss ratio was 2.5 points lower in the 2025 third quarter than in the 2024 third quarter. The lower current year loss ratio for the 2025 third quarter reflected a decline in new notices of default.
Nine Months Ended September 30, 2025 versus 2024 Period. The mortgage segment’s current year loss ratio was 0.3 points higher for the nine months ended September 30, 2025 than for the 2024 period. The higher current year loss ratio for the 2025 period reflected slightly higher new delinquencies and the impact of the Bellemeade Re tender offers noted above.
Prior Period Reserve Development.
The mortgage segment’s net favorable development was $54 million, or 18.1 points, for the 2025 third quarter, compared to $64 million, or 20.5 points, for the 2024 third quarter, and $179 million, or 20.4 points, for the nine months ended September 30, 2025, compared to $220 million, or 23.9 points, for the 2024 period. See note 6, “Reserve for Losses and Loss Adjustment Expenses,” to our consolidated financial statements for information about the mortgage segment’s prior year reserve development.
Underwriting Expenses.
2025 Third Quarter versus 2024 Period. The underwriting expense ratio for the mortgage segment was 14.0% in the 2025 third quarter, compared to 15.2% in the 2024 third quarter.
Nine Months Ended September 30, 2025 versus 2024 period. The underwriting expense ratio for the mortgage segment was 15.1% for the nine months ended September 30, 2025, compared to 16.2% for the 2024 period.
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

Corporate
The Company’s corporate 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 or losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains or losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income or loss, corporate expenses, transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income taxes, income from operating affiliates and items related to our non-cumulative preferred shares.
Net Investment Income.
The components of net investment income were derived from the following sources:
Three Months Ended Nine Months Ended
September 30, September 30,
  2025 2024 2025 2024
Fixed maturities $ 379  $ 340  $ 1,081  $ 926 
Short-term investments 25  38  75  102 
Equity securities (dividends) 10  31  27 
Other (1) 19  35  82  103 
Gross investment income 433  422  1,269  1,158 
Investment expenses (2) (25) (23) (78) (68)
Net investment income $ 408  $ 399  $ 1,191  1,090 
(1)    Amounts include dividends and other distributions on investment funds, term loan investments, funds held balances, cash balances and other items.
(2)        Investment expenses were approximately 0.25% of average invested assets for the 2025 third quarter, compared to 0.29% for the 2024 third quarter, and 0.27% for the nine months ended September 30, 2025, consistent with 0.27% for the 2024 period.
The higher level of net investment income for the 2025 periods primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net cash flow from operating activities contributed $4.8 billion for the nine months ended September 30, 2025. The pre-tax investment income yield, calculated based on amortized cost and on an annualized basis, was 4.07% for the 2025 third quarter, compared to 4.40% for the 2024 third quarter, and 4.16% for the nine months ended September 30, 2025, compared to 4.29% for the 2024 period.

Corporate Expenses.
Corporate expenses were $28 million for the 2025 third quarter, compared to $19 million for the 2024 third quarter, and $107 million for the nine months ended September 30, 2025, compared to $88 million for the 2024 period. Such amounts primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The increase in corporate expenses was primarily due to higher incentive compensation costs.
Transaction Costs and Other.
Transaction costs and other for the 2025 third quarter was $21 million, compared to $30 million for the 2024 third quarter, and $49 million for the nine months ended September 30, 2025, compared to $55 million for the 2024 period. Amounts in both periods primarily includes direct costs related to the MCE Acquisition.
Other Income or Losses.
Other income for the 2025 third quarter was $22 million, compared to $8 million for the 2024 third quarter, and $38 million for the nine months ended September 30, 2025, compared to $30 million for the 2024 period. Amounts in both periods primarily reflect changes in the cash surrender value of our investment in corporate-owned life insurance.
Amortization of Intangible Assets.
Amortization of intangible assets for the 2025 third quarter was $49 million, compared to $88 million for the 2024 third quarter, and $146 million for the nine months ended September 30, 2025, compared to $136 million for the 2024 period. Amounts in both periods primarily related to the MCE Acquisition.
Interest Expense.
Interest expense was $37 million for the 2025 third quarter, compared to $35 million for the 2024 third quarter, and $110 million for the nine months ended September 30, 2025, compared to $104 million for the 2024 period. Interest expense primarily reflects amounts related to our outstanding senior notes.
ARCH CAPITAL
 51
2025 THIRD QUARTER FORM 10-Q

Net Realized Gains or Losses.
Net realized gains for the 2025 third quarter were $210 million, compared to net realized gains of $169 million for the 2024 third quarter. Net realized gains were $442 million for the nine months ended September 30, 2025, compared to net realized gains of $358 million for the 2024 period. Amounts in both periods reflected sales of investments as well as the impact of financial market movements on the Company’s equity securities and investments accounted for under the fair value option method. Amounts in the 2025 periods also include losses related to the sale of certain alternative investments accounted for under the equity method. Currently, our portfolio is actively managed to maximize total return within certain guidelines. The effect of financial market movements on the investment portfolio will directly impact net realized gains or losses as the portfolio is adjusted and rebalanced. Net realized gains or losses from the sale of fixed maturities primarily results from our decisions to reduce credit exposure, to change duration targets, to rebalance our portfolios or due to relative value determinations.
Net realized gains or losses also 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 or losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains or losses realized from the acquisition or disposition of subsidiaries See note 8, “Investment Information—Net Realized Gains (Losses)” and note 8, “Investment Information—Allowance for Expected Credit Losses,” to our consolidated financial statements for additional information.
Equity in Net Income or Losses of Investments Accounted for Using the Equity Method.
Equity in net income of investments accounted for using the equity method was $134 million in the 2025 third quarter, compared to $171 million for the 2024 third quarter, and $349 million for the nine months ended September 30, 2025, compared to $437 million for the 2024 period. Such investments are generally recorded on a one to three month lag based on the availability of reports from the investment funds. Investment funds accounted for using the equity method totaled $6.2 billion at September 30, 2025, compared to $6.0 billion at December 31, 2024. See note 8, “Investment Information—Investments Accounted For Using the Equity Method,” to our consolidated financial statements for additional information.
Net Foreign Exchange Gains or Losses.
Net foreign exchange losses for the 2025 third quarter were $7 million, compared to losses of $63 million for the 2024 third quarter. Net foreign exchange losses for the nine months ended September 30, 2025 were $122 million, compared to losses of $31 million for the 2024 period. Amounts in both periods were primarily unrealized and resulted from the effects of revaluing our net insurance liabilities required to be settled in foreign currencies at each balance sheet date.
Income Tax Expense.
Our income tax provision on income or loss before income taxes, including income or loss from operating affiliates, resulted in an expense of 13.7% for the 2025 third quarter, compared to an expense of 9.0% for the 2024 third quarter, and an expense of 14.8% for the nine months ended September 30, 2025, compared to an expense of 8.1% for the 2024 period. The increase in the 2025 period is primarily attributed to the Government of Bermuda enacting the Corporate Income Tax Act 2023, which established a 15% corporate income tax effective January 1, 2025. See note 14, “Income Taxes” to our consolidated financial statements for additional information.
Income or Losses from Operating Affiliates.
Income from operating affiliates for the 2025 third quarter was $62 million, compared to income of $36 million for the 2024 third quarter, and income of $119 million for the nine months ended September 30, 2025, compared to income of $136 million for the 2024 period. Such amounts primarily related to the Company’s investment in Somers Group Holdings Ltd. (“Somers”) and Coface SA. The decrease in income from operating affiliates for the nine months ended September 30, 2025 was primarily driven by lower level of affiliated income from Somers, partly due to the impact of California wildfires. See note 8, “Investment Information—Investments in Operating Affiliates,” to our consolidated financial statements for additional information.
CRITICAL ACCOUNTING POLICIES,
ESTIMATES AND RECENT ACCOUNTING PRONOUNCEMENTS
Critical accounting policies, estimates and recent accounting pronouncements are discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our 2024 Form 10-K, updated where applicable in the notes accompanying our consolidated financial statements, including note 1, “Basis of Presentation and Recent Accounting Pronouncements.”
ARCH CAPITAL
 52
2025 THIRD QUARTER FORM 10-Q

FINANCIAL CONDITION
Investable Assets Held by Arch 
At September 30, 2025, approximately $29.1 billion, or 62.3%, of total investable assets held by Arch were internally managed, compared to $25.6 billion, or 61.9%, at December 31, 2024. See note 8, “Investment Information” to our consolidated financial statements for additional information.
The following table summarizes the duration and average credit quality of fixed income assets held by Arch:
September 30,
2025
December 31, 2024
Average effective fixed maturities duration (in years) 3.24  3.31 
Average S&P/Moody’s credit ratings (1) AA-/Aa3 AA-/Aa3
(1)Average credit ratings on our investment portfolio on securities with ratings assigned by S&P and Moody’s.
The following table provides the credit quality distribution of our fixed maturities. 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.
Estimated Fair Value % of
Total
September 30, 2025
U.S. government and gov’t agencies (1) $ 8,409  25.5 
AAA 5,425  16.5 
AA 2,449  7.4 
A 6,904  20.9 
BBB 7,167  21.7 
BB 1,175  3.6 
B 685  2.1 
Lower than B 29  0.1 
Not rated 715  2.2 
Total $ 32,958  100.0 
December 31, 2024
U.S. government and gov’t agencies (1) $ 7,498  26.9 
AAA 4,330  15.5 
AA 2,285  8.2 
A 5,138  18.4 
BBB 6,467  23.2 
BB 978  3.5 
B 458  1.6 
Lower than B 28  0.1 
Not rated 707  2.5 
Total $ 27,889  100.0 
(1)Includes U.S. government-sponsored agency residential mortgage-backed securities and agency commercial mortgage-backed securities.
The following table provides information on the severity of the unrealized loss position as a percentage of amortized cost for all fixed maturities which were in an unrealized loss position:
Severity of gross unrealized losses: Estimated Fair Value Gross
Unrealized
Losses
% of
Total Gross
Unrealized
Losses
September 30, 2025
0-10% $ 10,881  $ (236) 70.0 
10-20% 610  (91) 27.0 
20-30% 28  (9) 2.7 
Greater than 30% (1) 0.3 
Total $ 11,521  $ (337) 100.0 
December 31, 2024
0-10% $ 16,044  $ (453) 65.5 
10-20% 1,357  (216) 31.2 
20-30% 70  (20) 2.9 
Greater than 30% (3) 0.4 
Total $ 17,477  $ (692) 100.0 
The following table summarizes our top ten exposures to fixed income corporate issuers by fair value at September 30, 2025, excluding guaranteed amounts and covered bonds:
  Estimated Fair Value Credit
Rating (1)
JPMorgan Chase & Co. $ 415  A/A1
Morgan Stanley 400  A/A1
Bank of America Corporation 358  A-/A1
Wells Fargo & Company 291  BBB+/A1
The Goldman Sachs Group, Inc. 271  A-/A2
Citigroup Inc. 241  A-/A2
Philip Morris International Inc. 194  A-/A2
The Toronto-Dominion Bank 181  A-/A2
Blue Owl Capital Inc. 171  BBB-/Baa3
UBS Group AG 164  A-/A2
Total $ 2,686 
(1)Average credit ratings as assigned by S&P and Moody’s, respectively.
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

The following table provides information on our structured securities, which includes residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”):
Agencies Investment Grade Below Investment Grade Total
September 30, 2025
RMBS $ 2,071  $ 650  $ 45  $ 2,766 
CMBS 1,165  78  1,249 
ABS —  2,945  204  3,149 
Total $ 2,077  $ 4,760  $ 327  $ 7,164 
December 31, 2024
RMBS $ 769  $ 310  $ —  $ 1,079 
CMBS 959  92  1,058 
ABS —  2,667  233  2,900 
Total $ 776  $ 3,936  $ 325  $ 5,037 
The following table summarizes our equity securities, which include investments in exchange traded funds:
September 30,
2025
December 31,
2024
Equities (1) $ 1,263  $ 1,041 
Exchange traded funds
Fixed income (2) 309  428 
Equity and other (3) 238  213 
Total $ 1,810  $ 1,682 
(1)Primarily in technology, communications, consumer non-cyclical, financial and industrial sectors at September 30, 2025.
(2)Primarily in structured and corporate exposures at September 30, 2025.
(3)Primarily in technology, financials, consumer cyclical, communications and healthcare sectors at September 30, 2025.

For details on our other investments and other investable assets, see note 8, “Investment Information—Other Investments” to our consolidated financial statements.
For details on our investments accounted for using the equity method, see note 8, “Investment Information—Investments Accounted For Using the Equity Method,” to our consolidated financial statements.
Our investment strategy allows for the use of derivative instruments. We utilize various derivative instruments such as futures contracts to enhance investment performance, replicate investment positions or manage market exposures and duration risk that would be allowed under our investment guidelines if implemented in other ways. See note 10, “Derivative Instruments,” to our consolidated financial statements for additional disclosures related to derivatives.
Accounting guidance regarding fair value measurements addresses how companies should measure fair value when they are required to use a fair value measure for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. See note 9, “Fair Value,” to our consolidated financial statements for a summary of our financial assets and liabilities measured at fair value, segregated by level in the fair value hierarchy.
Reinsurance
The effects of reinsurance on written and earned premiums and losses and loss adjustment expenses (“LAE”) with unaffiliated reinsurers were as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
Premiums written:
Direct $ 2,516  $ 2,547  $ 7,689  $ 7,554 
Assumed 2,894  2,893  10,380  9,201 
Ceded (1,446) (1,393) (5,242) (4,842)
Net $ 3,964  $ 4,047  $ 12,827  $ 11,913 
Premiums earned:
Direct $ 2,576  $ 2,470  $ 7,596  $ 7,228 
Assumed 3,300  2,967  9,859  7,825 
Ceded (1,591) (1,467) (4,645) (4,096)
Net $ 4,285  $ 3,970  $ 12,810  $ 10,957 
Losses and LAE:
Direct $ 1,480  $ 1,405  $ 4,221  $ 4,004 
Assumed 1,500  1,909  5,695  4,369 
Ceded (780) (911) (2,826) (2,415)
Net $ 2,200  $ 2,403  $ 7,090  $ 5,958 
See note 7, “Allowance for Expected Credit Losses,” to our consolidated financial statements for information about our reinsurance recoverables and related allowance for credit losses.
Bellemeade Re
We have entered into aggregate excess of loss mortgage reinsurance agreements with various special purpose reinsurance companies domiciled in Bermuda (the “Bellemeade Agreements”). For the respective coverage periods, we will retain the first layer of the respective aggregate losses and the special purpose reinsurance companies will provide second layer coverage up to the outstanding coverage amount. We will then retain losses in excess of the outstanding coverage limit. The aggregate excess of loss reinsurance coverage generally decreases over a ten-year period as the underlying covered mortgages amortize, unless provisional call options embedded within certain of the Bellemeade Agreements are executed or if pre-defined delinquency triggering events occur.
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

The following table summarizes the respective coverages and retentions at September 30, 2025:
Bellemeade Entities
(Issue Date)
Initial Coverage at Issuance Current Coverage Remaining Retention, Net
2021-3 Ltd. (1) 639  37  130 
2022-1 Ltd. (2) 317  56  136 
2022-2 Ltd. (3) 327  137  190 
2023-1 Ltd. (4) 233  205  168 
2024-1 Ltd. (5) 204  192  164 
Total $ 1,720  $ 627  $ 788 
(1) Issued in September 2021, covering in-force policies issued between April 1, 2021 and June 30, 2021. $508 million was directly funded by Bellemeade Re 2021-3 Ltd. via insurance-linked notes, with an additional $131 million capacity provided directly to Arch MI U.S. by a separate panel of reinsurers.
(2)    Issued in January 2022, covering in-force policies issued between July 1, 2021 and November 30, 2021. $284 million was directly funded by Bellemeade Re 2022-1 Ltd. via insurance-linked notes, with an additional $33 million capacity provided directly to Arch MI U.S. by a separate panel of reinsurers.
(3) Issued in September 2022, covering in-force policies issued between November 1, 2021 and June 30, 2022. $201 million was directly funded by Bellemeade Re 2022-2 Ltd. via insurance-linked notes, with an additional $126 million capacity provided directly to Arch MI U.S. by a separate panel of reinsurers.
(4) Issued in October 2023, covering in-force policies issued between January 1, 2023 and September 30, 2023. $186 million was directly funded by Bellemeade Re 2023-1 Ltd. via insurance-linked notes, with an additional $47 million capacity provided directly to Arch MI U.S. by a separate panel of reinsurers.
(5)    Issued in August 2024, covering in-force policies issued between September 1, 2023 and July 31, 2024. $163 million was directly funded by Bellemeade Re 2024-1 Ltd. via insurance-linked notes, with an additional $41 million capacity provided directly to Arch MI U.S. by a separate panel of reinsurers.
Reserve for Losses and Loss Adjustment Expenses 
We establish reserve for losses and loss adjustment expenses (“Loss Reserves”) which represent estimates involving actuarial and statistical projections, at a given point in time, of our expectations of the ultimate settlement and administration costs of losses incurred. Estimating Loss Reserves is inherently difficult. We utilize actuarial models as well as available historical insurance industry loss ratio experience and loss development patterns to assist in the establishment of Loss Reserves. Actual losses and loss adjustment expenses paid will deviate, perhaps substantially, from the reserve estimates reflected in our financial statements.
At September 30, 2025 and December 31, 2024, our Loss Reserves, net of unpaid losses and loss adjustment expenses recoverable, by type and by operating segment were as follows:
September 30,
2025
December 31,
2024
Insurance segment:    
Case reserves $ 3,729  $ 3,730 
IBNR reserves 9,003  8,238 
Total net reserves 12,732  11,968 
Reinsurance segment:
Case reserves 2,884  2,721 
Additional case reserves 943  806 
IBNR reserves 7,143  5,580 
Total net reserves 10,970  9,107 
Mortgage segment:
Case reserves 328  331 
IBNR reserves 125  142 
Total net reserves 453  473 
Total:    
Case reserves 6,941  6,782 
Additional case reserves 943  806 
IBNR reserves 16,271  13,960 
Total net reserves $ 24,155  $ 21,548 
At September 30, 2025 and December 31, 2024, the insurance segment’s Loss Reserves by major line of business, net of unpaid losses and loss adjustment expenses recoverable, were as follows:
September 30,
2025
December 31,
2024
Insurance segment:
Third party occurrence business $ 4,488  $ 4,104 
Multi-line and other specialty 4,433  4,105 
Third party claims-made business 2,883  2,630 
Property, energy, marine and aviation 928  1,129 
Total net reserves $ 12,732  $ 11,968 
At September 30, 2025 and December 31, 2024, the reinsurance segment’s Loss Reserves by major line of business, net of unpaid losses and loss adjustment expenses recoverable, were as follows:
September 30,
2025
December 31,
2024
Reinsurance segment:
Casualty $ 3,624  $ 3,089 
Specialty 3,553  2,791 
Property excluding property catastrophe 2,104  1,778 
Property catastrophe 949  845 
Marine and aviation 554  461 
Other 186  143 
Total net reserves $ 10,970  $ 9,107 
ARCH CAPITAL
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2025 THIRD QUARTER FORM 10-Q

At September 30, 2025 and December 31, 2024, the mortgage segment’s Loss Reserves by major line of business, net of unpaid losses and loss adjustment expenses recoverable, were as follows:
September 30,
2025
December 31,
2024
Mortgage segment:
U.S. primary mortgage insurance (1) $ 322  $ 333 
U.S. credit risk transfer (CRT) and other 72  85 
International mortgage insurance/
reinsurance
59  55 
Total net reserves $ 453  $ 473 
(1)    At September 30, 2025, 27.6% of total net reserves represents policy years 2015 and prior and the remainder from later policy years. At December 31, 2024, 36.1% of total net reserves represent policy years 2015 and prior and the remainder from later policy years.
Mortgage Operations Supplemental Information
The mortgage segment’s insurance in force (“IIF”) and risk in force (“RIF”) were as follows at September 30, 2025 and December 31, 2024:
September 30, 2025 December 31, 2024
Amount % Amount %
Insurance In Force (IIF) (1):
U.S. primary mortgage insurance $ 286,785  57.9  $ 290,435  58.0 
U.S. credit risk transfer (CRT) and other 141,889  28.7  145,892  29.1 
International mortgage insurance/reinsurance 66,277  13.4  64,822  12.9 
Total $ 494,951  100.0  $ 501,149  100.0 
Risk In Force (RIF) (2):
U.S. primary mortgage insurance $ 74,952  84.9  $ 76,034  85.3 
U.S. credit risk transfer (CRT) and other 5,688  6.4  5,876  6.6 
International mortgage insurance/reinsurance 7,633  8.6  7,215  8.1 
Total $ 88,273  100.0  $ 89,125  100.0 
(1)Represents 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. Such amounts are shown before external reinsurance.

The IIF and RIF for our U.S. primary mortgage insurance business by policy year were as follows at September 30, 2025:
IIF RIF Delinquency
Amount % Amount % Rate (1)
Policy year:
2015 and prior $ 16,567  5.8  $ 4,221  5.6  5.34  %
2016 3,484  1.2  870  1.2  3.41  %
2017 4,553  1.6  1,212  1.6  3.51  %
2018 6,062  2.1  1,579  2.1  4.18  %
2019 11,092  3.9  2,911  3.9  2.90  %
2020 33,095  11.5  9,049  12.1  1.65  %
2021 52,827  18.4  14,425  19.2  1.73  %
2022 51,437  17.9  13,712  18.3  1.72  %
2023 33,165  11.6  8,548  11.4  1.51  %
2024 41,681  14.5  10,418  13.9  0.85  %
2025 32,822  11.4  8,007  10.7  0.12  %
Total $ 286,785  100.0  $ 74,952  100.0  2.04  %
(1)Represents the ending percentage of loans in default.
The IIF and RIF for our U.S. primary mortgage insurance business by policy year were as follows at December 31, 2024:
IIF RIF Delinquency
Amount % Amount % Rate (1)
Policy year:
2015 and prior $ 18,329  6.3  $ 4,670  6.1  5.85  %
2016 5,240  1.8  1,371  1.8  3.23  %
2017 5,554  1.9  1,489  2.0  3.52  %
2018 7,081  2.4  1,843  2.4  4.31  %
2019 12,919  4.4  3,386  4.5  2.85  %
2020 39,426  13.6  10,718  14.1  1.52  %
2021 62,382  21.5  16,620  21.9  1.52  %
2022 57,175  19.7  15,113  19.9  1.51  %
2023 36,827  12.7  9,479  12.5  1.12  %
2024 45,502  15.7  11,345  14.9  0.30  %
Total $ 290,435  100.0  $ 76,034  100.0  2.09  %
(1)Represents the ending percentage of loans in default.
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The following tables provide supplemental disclosures on risk in force for our U.S. primary mortgage insurance business at September 30, 2025 and December 31, 2024:
September 30, 2025 December 31, 2024
Amount % Amount %
Credit quality:
>=740 $ 47,575  63.5  $ 47,360  62.3 
680-739 23,638  31.5  24,688  32.5 
620-679 3,419  4.6  3,638  4.8 
<620 320  0.4  348  0.5 
Total $ 74,952  100.0  $ 76,034  100.0 
Weighted average credit score 749  748 
Loan-to-value (LTV):
95.01% and above $ 7,362  9.8  $ 7,420  9.8 
90.01% to 95.00% 44,720  59.7  45,311  59.6 
85.01% to 90.00% 20,251  27.0  20,637  27.1 
85.00% and below 2,619  3.5  2,666  3.5 
Total $ 74,952  100.0  $ 76,034  100.0 
Weighted average LTV 93.2  % 93.2  %
Total RIF, net of external reinsurance $ 60,662  $ 60,085 
September 30, 2025 December 31, 2024
Amount % Amount %
Total RIF by State:
California $ 5,892  7.9  $ 5,989  7.9 
Texas 5,393  7.2  5,613  7.4 
North Carolina 3,358  4.5  3,355  4.4 
Minnesota 3,137  4.2  3,108  4.1 
Illinois 3,046  4.1  3,056  4.0 
Georgia 3,043  4.1  3,143  4.1 
Massachusetts 2,829  3.8  2,885  3.8 
Michigan 2,822  3.8  2,855  3.8 
Ohio 2,697  3.6  2,716  3.6 
Florida 2,690  3.6  2,824  3.7 
Other 40,045  53.4  40,490  53.3 
Total $ 74,952  100.0  $ 76,034  100.0 
The following table provides supplemental disclosures for our U.S. primary mortgage insurance business related to insured loans and loss metrics:
(U.S. Dollars in thousands, except policy, loan and claim count) Nine Months Ended
September 30,
2025 2024
Roll-forward of insured loans in default:
Beginning delinquent number of loans 22,982  19,457 
New notices
34,553  33,047 
Cures
(34,720) (32,242)
Paid claims
(994) (909)
Acquired delinquent loans (1) —  2,525 
Ending delinquent number of loans (2) 21,821  21,878 
Ending number of policies in force (2) 1,067,147  1,114,251 
Ending percentage of loans in default (2) 2.04  % 1.96  %
Losses:
Number of claims paid 994  909 
Total paid claims $ 37,587  $ 31,216 
Average per claim $ 37.8  $ 34.3 
Severity (3) 75.1  % 69.5  %
Average case reserve per default (2) $ 16.1  $ 15.9 
(1)Represents delinquent loans related to the acquisition of RMIC Companies, Inc.
(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.
The risk to capital ratio, which represents total current (non-delinquent) risk in force, net of reinsurance, divided by total statutory capital, for Arch MI U.S. was approximately 7.9 to 1 at September 30, 2025, compared to 7.8 to 1 at December 31, 2024.
Shareholders’ Equity and Book Value per Share
The following table presents the calculation of book value per share:
September 30,
2025
December 31,
2024
Total shareholders’ equity available to Arch $ 23,719  $ 20,820 
Less preferred shareholders’ equity 830  830 
Common shareholders’ equity available to Arch $ 22,889  $ 19,990 
Common shares and common share equivalents outstanding, net of treasury shares (1) 367.3  376.4 
Book value per share $ 62.32  $ 53.11 
(1)Excludes the effects of 10.7 million and 12.4 million stock options and 0.3 million and 0.3 million restricted and performance share units outstanding at September 30, 2025 and December 31, 2024, respectively.
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LIQUIDITY
Liquidity is a measure of our ability to access sufficient cash flows to meet the short-term and long-term cash requirements of our business operations.
Arch Capital is a holding company whose assets primarily consist of the shares in its subsidiaries. Generally, Arch Capital depends on its available cash resources, liquid investments and dividends or other distributions from its subsidiaries to make payments, including the payment of debt service obligations and operating expenses it may incur and any dividends or liquidation amounts with respect to our preferred and common shares.
For the nine months ended September 30, 2025, Arch Capital received dividends of $1.2 billion from Arch Reinsurance Ltd. (“Arch Re Bermuda”), our Bermuda based reinsurer and insurer, which can pay approximately $4.0 billion to Arch Capital during the remainder of 2025 without providing an affidavit to the Bermuda Monetary Authority.
We expect that our liquidity needs, including our anticipated (re)insurance obligations and operating and capital expenditure needs, for the next 12 months and for the foreseeable future thereafter, will be met by funds generated from underwriting activities and investment income, as well as by our balance of cash, short-term investments, proceeds on the sale or maturity of our investments, and our credit facilities.
Cash Flows
The following table summarizes our cash flows from operating, investing and financing activities:
Nine Months Ended
September 30,
  2025 2024
Total cash provided by (used for):    
Operating activities $ 4,768  $ 5,100 
Investing activities (3,619) (4,881)
Financing activities (1,112) (35)
Effects of exchange rate changes on foreign currency cash and restricted cash 57  30 
Increase (decrease) in cash and restricted cash $ 94  $ 214 
Cash provided by operating activities for the nine months ended September 30, 2025 was lower than in the 2024 period. Activity for the nine months ended September 30, 2025 primarily reflected a higher level of losses paid than in the 2024 period.
Cash used for investing activities for the nine months ended September 30, 2025 was lower than in the 2024 period. Activity for the nine months ended September 30, 2025 reflected lower net purchases of investments than in the 2024 period, due in part to a higher level of repurchases under our share repurchase program and a higher level of losses paid than in the 2024 period.
Cash used for financing activities for the nine months ended September 30, 2025 was higher than in the 2024 period, primarily due to the higher level of repurchases under our share repurchase program. We repurchased approximately $1.1 billion of our common shares in the 2025 period, compared to nil in the 2024 period.
CAPITAL RESOURCES
The following table provides an analysis of our capital structure:
September 30,
2025
December 31,
2024
Senior notes $ 2,728  $ 2,728 
Shareholders’ equity available to Arch:
Series F non-cumulative preferred shares $ 330  $ 330 
Series G non-cumulative preferred shares 500  500 
Common shareholders’ equity 22,889  19,990 
Total $ 23,719  $ 20,820 
Total capital available to Arch $ 26,447  $ 23,548 
Debt to total capital (%) 10.3  11.6 
Preferred to total capital (%) 3.1  3.5 
Debt and preferred to total capital (%) 13.5  15.1 
Arch MI U.S. is required to maintain compliance with the GSEs requirements, known as the Private Mortgage Insurer Eligibility Requirements or “PMIERs.” The financial requirements require an eligible mortgage insurer’s available assets, which generally include only the most liquid assets of an insurer, to meet or exceed “minimum required assets” as of each quarter end. Minimum required assets are calculated from PMIERs tables with several risk dimensions (including origination year, original loan-to-value and original credit score of performing loans, and the delinquency status of non-performing loans) and are subject to a minimum amount. Arch MI U.S. satisfied the PMIERs’ financial requirements with an estimated PMIER sufficiency ratio of 176% at September 30, 2025, compared to 186% at December 31, 2024. On August 21, 2024, Fannie Mae and Freddie Mac each updated their 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%.
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Arch Capital, through its subsidiaries, provides financial support to certain of its insurance subsidiaries and affiliates, through certain reinsurance arrangements beneficial to the ratings of such subsidiaries. Historically, our insurance, reinsurance and mortgage insurance subsidiaries have entered into separate reinsurance arrangements with Arch Re Bermuda covering individual lines of business.
GUARANTOR INFORMATION
The below table provides a description of our senior notes payable at September 30, 2025:
Interest
Principal
Carrying
Issuer/Due
(Fixed)
Amount
Amount
Arch Capital:
May 1, 2034
7.350  % $ 300  $ 298 
June 30, 2050
3.635  % 1,000 990
Arch-U.S.:
Nov. 1, 2043 (1)
5.144  % 500 495
Arch Finance:
Dec. 15, 2026 (1)
4.011  % 500 499
Dec. 15, 2046 (1)
5.031  % 450 446
Total
$ 2,750  $ 2,728 
(1)Fully and unconditionally guaranteed by Arch Capital.
Our senior notes were issued by Arch Capital, Arch Capital Group (U.S.) Inc. (“Arch-U.S.”) and Arch Capital Finance LLC (“Arch Finance”). Arch-U.S. is a wholly-owned subsidiary of Arch Capital and Arch Finance is a wholly-owned finance subsidiary of Arch-U.S. Our 2034 senior notes and 2050 senior notes issued by Arch Capital are unsecured and unsubordinated obligations of Arch Capital and ranked equally with all of its existing and future unsecured and unsubordinated indebtedness. The 2043 senior notes issued by Arch-U.S. are unsecured and unsubordinated obligations of Arch-U.S. and Arch Capital and rank equally and ratably with the other unsecured and unsubordinated indebtedness of Arch-U.S. and Arch Capital. The 2026 senior notes and 2046 senior notes issued by Arch Finance are unsecured and unsubordinated obligations of Arch Finance and Arch Capital and rank equally and ratably with the other unsecured and unsubordinated indebtedness of Arch Finance and Arch Capital.
Arch-U.S. and Arch Finance depend on their available cash resources, liquid investments and dividends or other distributions from their subsidiaries or affiliates to make payments, including the payment of debt service obligations and operating expenses they may incur.
The following tables present condensed financial information for Arch Capital (parent guarantor) and Arch-U.S. (subsidiary issuer):
September 30, 2025 December 31, 2024
Arch Capital Arch-U.S. Arch Capital Arch-U.S.
Assets
Total investments $ 48  $ 518  $ 43  $ 549 
Cash 10  13 
Investment in operating affiliates —  — 
Due from subsidiaries and affiliates —  10 
Other assets 116  117  66  101 
Total assets $ 182  $ 639  $ 131  $ 665 
Liabilities
Senior notes 1,288  495  1,287  495 
Due to subsidiaries and affiliates 1,022  11  994 
Other liabilities 50  64  48  50 
Total liabilities $ 1,345  $ 1,581  $ 1,346  $ 1,539 
Non-cumulative preferred shares $ 830  —  $ 830  — 
Nine Months Ended
September 30, 2025
Arch Capital Arch-U.S.
Revenues
Net investment income $ $ 20 
Net realized gains (losses) (10) — 
Total revenues (7) 20 
Expenses
Corporate expenses 107 
Interest expense 44  20 
Interest expense (intercompany) —  42 
Total expenses 151  67 
Income (loss) before income taxes and income (loss) from operating affiliates (158) (47)
Income tax (expense) benefit 57 
Income (loss) before income (loss) from operating affiliates (1) — 
Net income available to Arch (102) (42)
Preferred dividends (30) — 
Net income (loss) available to Arch common shareholders $ (132) $ (42)
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CATASTROPHIC AND SEVERE ECONOMIC EVENTS
We have large aggregate exposures to natural and man-made catastrophic events, pandemic events and severe economic events. Natural catastrophes can be caused by various events, including hurricanes, floods, windstorms, earthquakes, hailstorms, tornadoes, explosions, severe winter weather, fires, droughts and other natural disasters. Man-made catastrophic events may include acts of war, acts of terrorism and political instability. Catastrophes can also cause losses in non-property business such as mortgage insurance, workers’ compensation or general liability. In addition to the nature of property business, we believe that economic and geographic trends affecting insured property, including inflation, property value appreciation and geographic concentration, tend to generally increase the size of losses from catastrophic events over time.
Our models employ both proprietary and vendor-based systems and include cross-line correlations for property, marine, offshore energy, aviation, workers compensation and personal accident. We seek to limit the probable maximum pre-tax loss to a specific level for severe catastrophic events. Currently, we seek to limit our 1-in-250 year return period net probable maximum loss from a severe catastrophic event in any geographic zone to approximately 25% of tangible shareholders’ equity available to Arch (total shareholders’ equity available to Arch less goodwill and intangible assets). We reserve the right to change this threshold at any time.
Based on in-force exposure estimated as of October 1, 2025, our modeled peak zone catastrophe exposure was a windstorm affecting the Florida Tri-County regions, with a net probable maximum pre-tax loss of $1.9 billion, or 8.4% of tangible shareholders’ equity available to Arch, followed by windstorms affecting the Northeastern U.S. and the Gulf of Mexico regions with net probable maximum pre-tax losses of $1.7 billion and $1.5 billion, respectively. Our exposures to other perils, such as U.S. earthquake and international events, were less than the exposures arising from U.S. windstorms and hurricanes. As of October 1, 2025, our modeled peak zone earthquake exposure (San Francisco earthquake) represented approximately 60% of our peak zone catastrophe exposure, and our modeled peak zone international exposure (Germany windstorm) was substantially less than both our peak zone windstorm and earthquake exposures.
We also have significant exposure to losses due to mortgage defaults resulting from severe economic events in the future. For our U.S. mortgage insurance business, we have developed a proprietary risk model (“Realistic Disaster Scenario” or “RDS”) that simulates the maximum loss resulting from a severe economic downturn impacting the housing market. The RDS models the collective impact of
adverse conditions for key economic indicators, the most significant of which is a decline in home prices. The RDS model projects paths of future home prices, unemployment rates, income levels and interest rates and assumes correlation across states and geographic regions. The resulting future performance of our in-force portfolio is then estimated under the economic stress scenario, reflecting loan and borrower information.
Currently, we seek to limit our modeled RDS loss from a severe economic event to approximately 25% of tangible shareholders’ equity available to Arch. We reserve the right to change this threshold at any time. Based on in-force exposure estimated as of October 1, 2025, our modeled RDS loss was approximately $0.9 billion, or 4.0% of tangible shareholders’ equity available to Arch.
Net probable maximum loss estimates are net of expected reinsurance recoveries, before income tax and before excess reinsurance reinstatement premiums. RDS loss estimates are net of expected reinsurance recoveries and before income tax. Catastrophe loss estimates are reflective of the zone indicated and not the entire portfolio. Since hurricanes and windstorms can affect more than one zone and make multiple landfalls, our catastrophe loss estimates include clash estimates from other zones. Our catastrophe loss estimates and RDS loss estimates do not represent our maximum exposures and it is highly likely that our actual incurred losses would vary materially from the modeled estimates. There can be no assurances that we will not suffer pre-tax losses greater than 25% of our tangible shareholders’ equity from one or more catastrophic events or severe economic events due to several factors. These factors include the inherent uncertainties in estimating the frequency and severity of such events and the margin of error in making such determinations resulting from potential inaccuracies and inadequacies in the data provided by clients and brokers, the modeling techniques and the application of such techniques or as a result of a decision to change the percentage of shareholders' equity exposed to a single catastrophic event or severe economic event. In addition, actual losses may increase if our reinsurers fail to meet their obligations to us or the reinsurance protections purchased by us are exhausted or are otherwise unavailable. See “Risk Factors—Risks Relating to Our Industry” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Catastrophic Events and Severe Economic Events” in our 2024 Form 10-K.
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MARKET SENSITIVE INSTRUMENTS AND RISK MANAGEMENT
In accordance with the SEC’s Financial Reporting Release No. 48, we performed a sensitivity analysis to determine the effects that market risk exposures could have on the future earnings, fair values or cash flows of our financial instruments as of September 30, 2025. Market risk represents the risk of changes in the fair value of a financial instrument and is comprised of several components, including liquidity, basis and price risks.
An analysis of material changes in market risk exposures at September 30, 2025 that affect the quantitative and qualitative disclosures presented in our 2024 Form 10-K (see section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Market Sensitive Instruments and Risk Management”) were as follows: 
Investment Market Risk
Fixed Income Securities. We invest in interest rate sensitive securities, which are primarily debt securities. We consider the effect of interest rate movements on the fair value of our fixed maturities, short-term investments and certain of our other investments, equity securities and investments accounted for using the equity method which invest in fixed income securities (collectively, “Fixed Income Securities”) and the corresponding change in unrealized appreciation. As interest rates rise, the fair value of our Fixed Income Securities falls, and the converse is also true. Based on historical observations, there is a low probability that all interest rate yield curves would shift in the same direction at the same time. Furthermore, at times interest rate movements in certain credit sectors exhibit a much lower correlation to changes in U.S. Treasury yields. Accordingly, the actual effect of interest rate movements may differ materially from the amounts set forth in the following tables.
The following table summarizes the effect that an immediate, parallel shift in the interest rate yield curve would have had on our Fixed Income Securities:
(U.S. dollars in 
billions)
Interest Rate Shift in Basis Points
-100 -50 +50 +100
September 30, 2025
       
Total fair value $ 45.2  $ 44.6  $ 44.0  $ 43.4  $ 42.8 
Change from base 2.8  % 1.4  % (1.4) % (2.8) %
Change in unrealized value $ 1.2  $ 0.6  $ (0.6) $ (1.2)
December 31, 2024
Total fair value $ 40.0  $ 39.5  $ 38.9  $ 38.4  $ 37.9 
Change from base 2.8  % 1.4  % (1.4) % (2.7) %
Change in unrealized value $ 1.1  $ 0.5  $ (0.5) $ (1.1)
In addition, we consider the effect of credit spread movements on the market value of our Fixed Income Securities and the corresponding change in unrealized value. As credit spreads widen, the fair value of our Fixed Income Securities falls, and the converse is also true. In periods where the spreads on our Fixed Income Securities are much higher than their historical average due to short-term market dislocations, a parallel shift in credit spread levels would result in a much more pronounced change in unrealized value.
The following table summarizes the effect that an immediate, parallel shift in credit spreads in a static interest rate environment would have had on our Fixed Income Securities:
(U.S. dollars in 
billions)
Credit Spread Shift in Percentage Points
-100 -50 +50 +100
September 30, 2025
Total fair value $ 45.2  $ 44.6  $ 44.0  $ 43.4  $ 42.8 
Change from base 2.7  % 1.4  % (1.4) % (2.7) %
Change in unrealized value $ 1.2  $ 0.6  $ (0.6) $ (1.2)
December 31, 2024
Total fair value $ 40.0  $ 39.5  $ 38.9  $ 38.4  $ 37.8 
Change from base 2.8  % 1.4  % (1.4) % (2.8) %
Change in unrealized value $ 1.1  $ 0.5  $ (0.5) $ (1.1)
Another method that attempts to measure portfolio risk is Value-at-Risk (“VaR”). VaR measures the worst expected loss under normal market conditions over a specific time interval at a given confidence level. The 1-year 95th percentile parametric VaR reported herein estimates that 95% of the time, the portfolio loss in a one-year horizon would be less than or equal to the calculated number, stated as a percentage of the measured portfolio’s initial value. The VaR is a variance-covariance based estimate, based on linear sensitivities of a portfolio to a broad set of systematic market risk factors and idiosyncratic risk factors mapped to the portfolio exposures. The relationships between the risk
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2025 THIRD QUARTER FORM 10-Q

factors are estimated using historical data, and the most recent data points are generally given more weight. As of September 30, 2025, our portfolio’s 95th percentile VaR was estimated to be 6.2%, compared to an estimated 5.6% at December 31, 2024. In periods where the volatility of the risk factors mapped to our portfolio’s exposures is higher due to market conditions, the resulting VaR is higher than in other periods.
Equity Securities. At September 30, 2025 and December 31, 2024, the fair value of our investments in equity securities and certain investments accounted for using the equity method with underlying equity strategies totaled $1.7 billion and $1.5 billion, respectively. These investments are exposed to price risk, which is the potential loss arising from decreases in fair value. An immediate hypothetical 10% decline in the value of each position would reduce the fair value of such investments by approximately $169 million and $149 million at September 30, 2025 and December 31, 2024, respectively, and would have decreased book value per share by approximately $0.46 and $0.40, respectively. An immediate hypothetical 10% increase in the value of each position would increase the fair value of such investments by approximately $169 million and $149 million at September 30, 2025 and December 31, 2024, respectively, and would have increased book value per share by approximately $0.46 and $0.40, respectively.
Investment-Related Derivatives. At September 30, 2025, the notional value of all derivative instruments (excluding foreign currency forward contracts which are included in the foreign currency exchange risk analysis below) was $5.8 billion, compared to $5.0 billion at December 31, 2024. If the underlying exposure of each investment-related derivative held at September 30, 2025 depreciated by 100 basis points, it would have resulted in a reduction in net income of approximately $58 million, and a decrease in book value per share of approximately $0.16 per share, compared to $50 million and $0.13 per share, respectively, on investment-related derivatives held at December 31, 2024. If the underlying exposure of each investment-related derivative held at September 30, 2025 appreciated by 100 basis points, it would have resulted in an increase in net income of approximately $58 million, and an increase in book value per share of approximately $0.16 per share, compared to $50 million and $0.13 per share, respectively, on investment-related derivatives held at December 31, 2024. See note 10, “Derivative Instruments,” to our consolidated financial statements for additional disclosures concerning derivatives.
For further discussion on investment activity, please refer to “Financial Condition—Investable Assets.”
Foreign Currency Exchange Risk
Foreign currency rate risk is the potential change in value, income and cash flow arising from adverse changes in foreign currency exchange rates. Through our subsidiaries and branches located in various foreign countries, we conduct our insurance and reinsurance operations in a variety of local currencies other than the U.S. Dollar. We generally hold investments in foreign currencies which are intended to mitigate our exposure to foreign currency fluctuations in our net insurance liabilities. We may also utilize foreign currency forward contracts and currency options as part of our investment strategy. See note 10, “Derivative Instruments,” to our consolidated financial statements for additional information.
The following table provides a summary of our net foreign currency exchange exposures, as well as foreign currency derivatives in place to manage these exposures:
September 30,
2025
December 31,
2024
Net assets (liabilities), denominated in foreign currencies, excluding shareholders’ equity and derivatives $ (531) $ (815)
Shareholders’ equity denominated in foreign currencies (1) 1,201  1,120 
Net foreign currency forward contracts outstanding (2) 294  453 
Net exposures denominated in foreign currencies $ 964  $ 758 
Pre-tax impact of a hypothetical 10% appreciation of the U.S. Dollar against foreign currencies:    
Shareholders’ equity $ (96) $ (76)
Book value per share $ (0.26) $ (0.20)
Pre-tax impact of a hypothetical 10% decline of the U.S. Dollar against foreign currencies:    
Shareholders’ equity $ 96  $ 76 
Book value per share $ 0.26  $ 0.20 
(1)    Represents capital contributions held in the foreign currencies of our operating units.
(2)    Represents the net notional value of outstanding foreign currency forward contracts.
Although we generally attempt to match the currency of our projected liabilities with investments in the same currencies, from time to time we may elect to over or underweight one or more currencies, which could increase our exposure to foreign currency fluctuations and increase the volatility of our shareholders’ equity. Historical observations indicate a low probability that all foreign currency exchange rates would shift against the U.S. Dollar in the same direction and at the same time and, accordingly, the actual effect of foreign currency rate movements may differ materially from the amounts set forth above. For further discussion on foreign exchange activity, please refer to “Results of Operations.”
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Effects of Inflation
General economic inflation has increased in recent quarters and may continue to remain at elevated levels for an extended period of time. The potential also exists, after a catastrophe loss or pandemic events, for the development of inflationary pressures in a local economy. This risk may be heightened from time to time by geopolitical tensions, global supply chain disruptions, tariffs, and other contributing factors. This may have a material effect on the adequacy of our reserves for losses and loss adjustment expenses, especially in longer-tailed lines of business, and on the market value of our investment portfolio through rising interest rates. The anticipated effects of inflation are considered in our pricing models, reserving processes and exposure management, across all lines of business and types of loss including natural catastrophe events. The actual effects of inflation on our results cannot be accurately known until claims are ultimately settled and will vary by the specific type of inflation affecting each line of business.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Reference is made to the information appearing above under the subheading “Market Sensitive Instruments and Risk Management” under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which information is hereby incorporated by reference.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
In connection with the filing of this Form 10-Q, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the Company’s disclosure controls and procedures, as of the end of the period covered by this report, for the purposes set forth in the applicable rules under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation and subject to the below, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report. Disclosure controls and procedures are the controls and other procedures designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
On August 1, 2024, we completed the MCE Acquisition. As of September 30, 2025 MCE’s financial reporting systems have been fully integrated into our financial reporting systems.
Changes in Internal Control Over Financial Reporting
There have been no changes in internal control over financial reporting that occurred during the quarter ended September 30, 2025, other than the inclusion of the MCE Acquisition noted above, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We, in common with the insurance industry in general, are subject to litigation and arbitration in the normal course of our business. As of September 30, 2025, we were not a party to any litigation or arbitration which is expected by management to have a material adverse effect on our results of operations and financial condition and liquidity.
ITEM 1A. RISK FACTORS
There were no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.
ARCH CAPITAL
 63
2025 THIRD QUARTER FORM 10-Q

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer’s Repurchases of Equity Securities
The following table summarizes our purchases of common shares for the 2025 third quarter:
Period Total Number of Shares
Purchased (1)
Average Price Paid per Share Total Number of Shares Purchased as Part of
Publicly Announced
Plans or Programs
Approximate Dollar
Value of Shares that
 May Yet be Purchased
Under the Plan or
Programs ($000’s) (2)
7/1/2025-7/31/2025 1,875,018  $ 88.41  1,874,805  $ 471,434 
8/1/2025-8/31/2025 2,197,629  $ 88.21  2,196,830  $ 277,688 
9/1/2025-9/30/2025 4,173,235  $ 89.36  4,173,049  $ 1,904,855 
Total 8,245,882  $ 88.84  8,244,684 
(1)This column represents (in whole shares) open market share repurchases, including an aggregate of 213 shares, 799 shares and 186 shares repurchased by Arch Capital during July, August and September, respectively, other than through publicly announced plans or programs. We repurchased these shares from employees in order to facilitate the payment of withholding taxes on restricted and performance shares granted and the exercise of stock appreciation rights, in each case at their fair value as determined by reference to the closing price of our common shares on the day the restricted shares vested or the stock appreciation rights were exercised.
(2)This column represents the remaining approximate dollar amount available at the end of each applicable period under Arch Capital’s repurchase authorization. On September 4, 2025, the Company increased its authorization for its existing $1.0 billion share repurchase program by $2.0 billion, and having no expiration date. Repurchases may be effected from time to time in open market or privately negotiated transactions.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the three months ended September 30, 2025, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933).


ARCH CAPITAL
 64
2025 THIRD QUARTER FORM 10-Q

ITEM 6. EXHIBITS
Incorporated by Reference
Exhibit Number Exhibit Description Form Original Number Date Filed Filed Herewith
10.1 X
10.2 (1)
8-K 10.1 November 3, 2025
31.1 X
31.2 X
32.1 X
32.2 X
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
(1) Portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K. The Company hereby undertakes to furnish supplementally to the SEC a copy of any omitted items upon request.

ARCH CAPITAL
 65
2025 THIRD QUARTER FORM 10-Q

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
    ARCH CAPITAL GROUP LTD.
    (REGISTRANT)
     
    /s/ Nicolas Papadopoulo
Date: November 6, 2025   Nicolas Papadopoulo
    Chief Executive Officer (Principal Executive Officer)
     
    /s/ François Morin
Date: November 6, 2025   François Morin
    Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) and Treasurer
ARCH CAPITAL
 66
2025 THIRD QUARTER FORM 10-Q
EX-10.1 2 exhibit101_10q.htm EX-10.1 exhibit101_10q
Execution Version 1 CONSENT AND FIRST AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT This CONSENT AND FIRST AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT, dated as of August 1, 2025 (this “Amendment”), is entered into by and among ARCH CAPITAL GROUP LTD., a Bermuda exempted company (the “Parent Borrower”), the other Loan Parties party hereto, the Lenders party hereto (constituting Required Lenders and Majority Tranche A Lenders, as applicable), the Fronting Banks party hereto and BANK OF AMERICA, N.A. (“Bank of America”), as Administrative Agent. WHEREAS, the Parent Borrower, the other Loan Parties, the Lenders party thereto and the Administrative Agent, among others, have previously entered into that certain Fourth Amended and Restated Credit Agreement, dated as of August 23, 2023 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”; capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Credit Agreement), pursuant to which the Lenders have made certain loans and financial accommodations available to the Borrowers; WHEREAS, pursuant to the terms of the Credit Agreement (as amended by this Amendment) the written consent of the Parent Borrower and Bank of America is required for any Lender to become a Fronting Bank; WHEREAS, the Loan Parties have requested that (i) the Administrative Agent, the Lenders and the Fronting Banks agree to amend certain provisions of the Credit Agreement, as set forth herein and (ii) the Parent Borrower and Bank of America consent to the addition of Royal Bank of Canada as a Fronting Bank; and WHEREAS, (i) the undersigned Lenders (constituting Required Lenders and Majority Tranche A Lenders, as applicable), the Fronting Banks and the Administrative Agent are prepared to amend the Credit Agreement and (ii) the Parent Borrower and Bank of America are prepared to consent to the addition of Royal Bank of Canada as a Fronting Bank, in each case, on the terms and subject to the conditions set forth herein. NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the parties hereto hereby agree as follows: SECTION 1. Amendments to Credit Agreement. Subject to the satisfaction of the conditions precedent set forth in Section 3 below, the Credit Agreement is hereby amended as follows: (a) Section 1.01 of the Credit Agreement is hereby amended to delete the definition of “Advance Rate” set forth therein and to insert the following in place thereof: ““Advance Rate” means, for Cash or any category of obligation or investment specified below in the column entitled “Cash and Eligible Securities” (other than Cash, the “Eligible Securities”), the percentage set forth opposite such category of Cash or Eligible Securities below in the column entitled “Advance Rate” and, in each case, subject to the term to maturity criteria set forth therein: Exhibit 10.1 2 Cash and Eligible Securities: Advance Rate: Cash: Dollars and any overnight or other investment money market funds of the Financial Institution (or an Affiliate of such Financial Institution) at which a Collateral Account is held. 100% Time Deposits, CDs, Money Market Deposits and Money Market Mutual Funds: Time deposits, certificates of deposit and money market deposits, denominated in Dollars, of any commercial bank incorporated in the United States with a rating of at least (i) AA- from S&P, (ii) Aa3 from Moody’s or (iii) AA- from Fitch and maturing within two years from the date of determination. Money market mutual funds with institutions not affiliated with the Lenders with same-day liquidity and with a rating of (i) AAA from S&P, (ii) Aaa from Moody’s, (iii) AAA from Fitch or (iv) 1 by the NAIC Securities Valuation Office. 90% U.S. Government Securities: Securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof). With maturities of (x) two years or less from the date of determination, 95%, (y) more than two years and ten years or less from the date of determination, 90% and (z) more than ten years from the date of determination, 85% Investment Grade Municipal Bonds Level I: Municipal bonds maturing within eleven years from the date of determination rated at least (i) AAA from S&P, (ii) Aaa from Moody’s or (iii) AAA from Fitch. 90% Investment Grade Municipal Bonds Level II: Municipal bonds maturing within eleven years from the date of determination rated (a) at least (i) A- from S&P, (ii) A3 from Moody’s or (iii) A- from Fitch. 85% 3 Cash and Eligible Securities: Advance Rate: Investment Grade Nonconvertible Corporate Bonds Level I: Nonconvertible corporate bonds denominated in Dollars or Alternative Currencies which are traded publicly maturing within eleven years from the date of determination rated (a) at least (i) A from S&P, (ii) A2 from Moody’s or (iii) A from Fitch, or (b) in the case of corporate bonds rated solely by DBRS, at least A from DBRS. With maturities of (x) two years or less from the date of determination, 90% and (y) more than two years and eleven years or less from the date of determination, 85% Investment Grade Nonconvertible Corporate Bonds Level II: Nonconvertible corporate bonds denominated in Dollars or Alternative Currencies which are traded publicly, maturing within eleven years from the date of determination rated (a) at least (i) BBB from S&P, (ii) Baa2 from Moody’s or (iii) BBB from Fitch, or (b) in the case of corporate bonds rated solely by DBRS, at least BBB from DBRS. 80% Commercial Paper: Commercial paper issued by any entity organized in the United States and denominated in Dollars and maturing not more than one year after the date of determination rated at least (i) A-1 or the equivalent thereof by S&P, (ii) P-1 or the equivalent thereof by Moody’s or (iii) F-1 or the equivalent thereof by Fitch. 90% 4 Cash and Eligible Securities: Advance Rate: Agency Securities: (i) Single-class mortgage participation certificates in book-entry form and denominated in Dollars backed by single-family residential mortgage loans, the full and timely payment of interest at the applicable certificate rate and the ultimate collection of principal of which are guaranteed by the Federal Home Loan Mortgage Corporation (excluding REMIC or other multi-class pass-through certificates, collateralized mortgage obligations, pass-through certificates backed by adjustable rate mortgages, securities paying interest or principal only and similar derivative securities); (ii) single-class mortgage pass-through certificates in book-entry form and denominated in Dollars backed by single-family residential mortgage loans, the full and timely payment of interest at the applicable certificate rate and ultimate collection of principal of which are guaranteed by the Federal National Mortgage Association (excluding REMIC or other multi- class pass-through certificates, pass-through certificates backed by adjustable rate mortgages, collateralized mortgage obligations, securities paying interest or principal only and similar derivative securities); and (iii) single-class fully modified pass-through certificates in book-entry form and denominated in Dollars backed by single-family residential mortgage loans, the full and timely payment of principal and interest of which is guaranteed by the Government National Mortgage Association (excluding REMIC or other multi-class pass-through certificates, collateralized mortgage obligations, pass-through certificates backed by adjustable rate mortgages, securities paying interest or principal only and similar derivatives securities), in each case rated at least (i) AA- by S&P, (ii) Aa3 by Moody’s or (iii) AA- by Fitch. With a weighted average life from the date of determination of (x) two years or less from the date of determination, 95%, (y) more than two years and ten years or less from the date of determination, 90% and (z) more than ten years from the date of determination, 85% Asset-Backed Securities: Asset-backed securities denominated in Dollars rated at least (i) AAA by S&P, (ii) Aaa by Moody’s or (iii) AAA by Fitch; provided that (x) such 85% securities are backed by credit card receivables, automobile loans, senior secured term loans in the case of collateralized loan obligations managed by a recognized US-domiciled CLO Manager (“Corporate Loans”), commercial mortgages or utility charges (as in rate reduction bonds) and have a weighted average life from the date of determination of 10 years or less and (y) asset-backed securities will not constitute Eligible Securities if they are certificated securities that cannot be paid or delivered by book entry (and all asset-backed securities issued by an issuer incorporated in the United States of America must be capable of settlement through DTC).


 
5 Cash and Eligible Securities: Advance Rate: Supranational Securities: Securities issued or backed by the International Bank for Reconstruction & Development, European Bank for Reconstruction & Development, Inter American Development Bank, International Monetary Fund, European Investment Bank, Asian Development Bank, African Development Bank and Nordic Development Bank as long as the credit ratings are at or above (i) AAA by S&P, (ii) Aaa by Moody’s or (iii) AAA by Fitch. With maturities of (x) two years or less from the date of determination, 95 %, (y) more than two years and ten years or less from the date of determination, 90% and (z) more than ten years from the date of determination, 80% OECD Government Securities: Securities issued or backed by the Government of any member of the Organization for Economic Cooperation and Development which has the credit ratings of at least (i) AA- by S&P, (ii) Aa3 by Moody’s or (iii) AA- by Fitch. With maturities of (x) two years or less from the date of determination, 95%, (y) more than two years and ten years or less from the date of determination, 90% and (z) more than ten years from the date of determination, 80% Other Securities: All other cash, investments, obligations or securities 0% Notwithstanding the foregoing, (A) the value of Eligible Securities at any time shall be determined based on the Borrowing Base Certificate then most recently delivered, (B) if any single corporate issuer (or any Affiliate thereof) represents more than 10% of the aggregate market value of all Cash and Eligible Securities comprising the aggregate amount of all Borrowing Bases, the excess over 10% shall be excluded (with such exclusion being allocated in equal parts to each Borrowing Base at such time), (C) the weighted average rating of all Agency Securities (as described above) constituting Eligible Securities shall at all times be at least (x) AA+ from S&P, (y) Aa1 from Moody’s or (z) AA+ by Fitch, (D) if Investment Grade Nonconvertible Corporate Bonds with a rating lower than (x)(i) A- from S&P, (ii) A3 from Moody’s, or (iii) A- from Fitch or (y) in the case of corporate bonds rated solely by DBRS, A low from DBRS represent more than 30% of the aggregate 6 market value of all Cash and Eligible Securities comprising the aggregate amount of all Borrowing Bases, the excess over 30% shall be excluded (with such exclusion being allocated in equal parts to each Borrowing Base at such time), (E) if Asset-Backed Securities (as described above) (including CMBS and Corporate Loans) represent more than 20% of the aggregate market value of all Cash and Eligible Securities comprising the aggregate amount of all Borrowing Bases, the excess over 20% shall be excluded (with such exclusion being allocated in equal parts to each Borrowing Base at such time), (F) if Asset-Backed Securities constituting CMBS represent more than 10% of the aggregate market value of all Cash and Eligible Securities comprising the aggregate amount of all Borrowing Bases, the excess over 10% shall be excluded (with such exclusion being allocated in equal parts to each Borrowing Base at such time), (G) if Asset-Backed Securities constituting Corporate Loans represent more than 10% of the aggregate market value of all Cash and Eligible Securities comprising the aggregate amount of all Borrowing Bases, the excess over 10% shall be excluded (with such exclusion being allocated in equal parts to each Borrowing Base at such time), (H) if OECD Government Securities (as described above) represent more than 20% of the aggregate market value of all Cash and Eligible Securities comprising the aggregate amount of all Borrowing Bases, the excess over 20% shall be excluded (with such exclusion being allocated in equal parts to each Borrowing Base at such time), (I) if Supranational Securities (as described above) represent more than 20% of the aggregate market value of all Cash and Eligible Securities comprising the aggregate amount of all Borrowing Bases, the excess over 20% shall be excluded (with such exclusion being allocated in equal parts to each Borrowing Base at such time) and (J) any Eligible Securities issued by Bank of America or any other Lender, or any of their respective Affiliates, shall be excluded. With respect to any Eligible Securities denominated in a currency other than Dollars, the Dollar equivalent thereof (using a method agreed upon by the Parent Borrower and the Administrative Agent) shall be used for purposes of determining the value of such Eligible Securities.” (b) Section 1.01 of the Credit Agreement is hereby amended to delete the definition of “Fronting Bank” set forth therein and to insert the following in place thereof: ““Fronting Bank” means (a) in the case of Fronted Letters of Credit, Bank of America and any other Lender that, with the written consent of the Parent Borrower and Bank of America, is a fronting bank; provided that such Lender has agreed to be a Fronting Bank and (b) in the case of Several Letters of Credit, any Person described in clause (a) who has agreed to act as fronting bank on behalf of any Participating Bank.” (c) Section 1.01 of the Credit Agreement is hereby amended to insert the following additional definitions in applicable alphabetical order: ““First Amendment” means that certain Consent and First Amendment to Fourth Amended and Restated Credit Agreement dated as of August 1, 2025 7 by and among the Parent Borrower, the other Loan Parties party thereto, the Lenders party thereto, the Fronting Banks and the Administrative Agent. “First Amendment Effective Date” has the meaning specified in the First Amendment.” (d) Section 2.01(a)(D) of the Credit Agreement is hereby deleted in its entirety and replaced with the following: “(D) the total outstanding stated amount of Fronted Letters of Credit, inclusive of Tranche A Fronted Letters of Credit and Tranche B Fronted Letters of Credit, shall not exceed the Fronted Letter of Credit Sublimit and” (e) Section 2.01(b)(D) of the Credit Agreement is hereby deleted in its entirety and replaced with the following: “(D) the total outstanding stated amount of Fronted Letters of Credit, inclusive of Tranche A Fronted Letters of Credit and Tranche B Fronted Letters of Credit, shall not exceed the Fronted Letter of Credit Sublimit.” (f) Section 2.03(b)(i)(K) of the Credit Agreement is hereby deleted in its entirety and replaced with the following: “(K) whether such Letter of Credit is to be a Fronted Letter of Credit or a Several Letter of Credit; and, in the case of Several Letters of Credit, in the event a Lender advises the applicable L/C Administrator that such Lender is a Participating Bank, such Participating Bank’s Applicable Percentage of such Several Letter of Credit will be issued by the applicable Fronting Bank);” (g) Schedule 2.01 to the Credit Agreement is hereby deleted in its entirety and replaced with Schedule 2.01 attached at Annex A hereto. SECTION 2. Consent. Subject to the satisfaction of the conditions precedent set forth in Section 3 below, each of Bank of America and the Parent Borrower hereby consents to the addition of Royal Bank of Canada as a Fronting Bank for all purposes under the Credit Agreement and the other Credit Documents and, by its execution of this Amendment, Royal Bank of Canada hereby agrees to become a Fronting Bank under the Credit Agreement and the other Credit Documents, effective as of the First Amendment Effective Date (as defined below). SECTION 3. Conditions Precedent. This Amendment shall become effective (such date, the “First Amendment Effective Date”) upon receipt by the Administrative Agent of counterparts of this Amendment, duly executed by (i) with respect to the amendments contemplated by Section 1(a) hereof, Lenders constituting Majority Tranche A Lenders, (ii) with respect to the amendments contemplated by Sections 1(b) through 1(g) hereof, Lenders constituting Required Lenders, which, for the avoidance of doubt, shall include Royal Bank of Canada, (iii) the Fronting Banks, (iv) the Parent Borrower and (v) each of the other Loan Parties party hereto. 8 SECTION 4. Representations and Warranties. Each of the Loan Parties hereby represents and warrants to the Administrative Agent and the Lenders as follows: (a) The representations and warranties of each Loan Party contained in Article V of the Credit Agreement or any other Credit Document are true and correct in all material respects (or with respect to representations and warranties qualified by materiality, in all respects) on and as of the First Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they were true and correct in all material respects as of such earlier date (or with respect to representations and warranties qualified by materiality, in all respects). (b) Each Loan Party has the corporate power and authority to execute, deliver and carry out the terms and provisions of this Amendment, and has taken all necessary corporate action to authorize the execution, delivery and performance of this Amendment. (c) Each Loan Party has duly executed and delivered this Amendment and this Amendment and the Amended Credit Agreement constitute the legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with their terms, except to the extent that enforceability thereof may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally and general principles of equity regardless of whether enforcement is sought in a proceeding in equity or at law. (d) On the First Amendment Effective Date, after giving effect to this Amendment and the transactions contemplated hereby, no Default or Event of Default has occurred and is continuing. (e) Neither the execution, delivery and performance by any Loan Party of this Amendment nor compliance with the terms and provisions hereof, nor the consummation of the transactions contemplated herein, (i) will contravene any applicable provision of any law, statute, rule, regulation, order, writ, injunction or decree of any court or governmental instrumentality, except as would not have a Material Adverse Effect, (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of any Loan Party or any of its Subsidiaries pursuant to the terms of, any material indenture, mortgage, deed of trust, loan agreement, credit agreement or any other material instrument to which such Loan Party or any of its Subsidiaries is a party or by which it or any of its property or assets are bound or to which it may be subject, except as would not have a Material Adverse Effect, or (iii) will violate any provision of the Organization Documents of any Loan Party or any of its Subsidiaries. SECTION 5. Continued Validity of Credit Documents; Reaffirmations and Acknowledgements. (a) Other than as amended by the amendments contemplated in Section 1 hereof and the consent contemplated in Section 2 hereof, this Amendment shall not, by


 
9 implication or otherwise, limit, impair, constitute a waiver of or otherwise affect any rights or remedies of the Administrative Agent or any Lender under the Credit Agreement or any of the other Credit Documents, nor alter, modify, amend or in any way affect any of the rights, remedies, terms and conditions, obligations or any covenant of any Loan Party contained in the Credit Agreement or any of the other Credit Documents, all of which are ratified and confirmed in all respects and shall continue unchanged and in full force and effect. (b) Each of the Security Documents to which a Loan Party is a party and all of the Collateral described therein do and shall continue to secure the payment of the Tranche A L/C Obligations of each Tranche A Designated Subsidiary Borrower, as set forth in such respective Security Documents. Each Loan Party that is a party to any of the Security Documents hereby reaffirms its grant of a security interest in the applicable Collateral to the Administrative Agent for the ratable benefit of the Secured Parties (as defined in the Security Agreement), as collateral security for the prompt and complete payment and performance when due of the Tranche A L/C Obligations of each Tranche A Designated Subsidiary Borrower. Upon the effectiveness hereof, all references to the Credit Agreement set forth in any other agreement or instrument shall, unless otherwise specifically provided, be references to the Credit Agreement as amended hereby. SECTION 6. Amendment as Credit Document. This Amendment constitutes a “Credit Document” under the Credit Agreement. SECTION 7. Costs and Expenses. The Borrowers shall promptly pay all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent (including the reasonable fees, costs and expenses of counsel to the Administrative Agent) incurred in connection with the preparation, execution and delivery of this Amendment. SECTION 8. Ratification by Guarantors. Each of the guarantors agrees and acknowledges that (i) notwithstanding the effectiveness of this Amendment, such guarantor’s Guarantee of the applicable Obligations shall remain in full force and effect without modification thereto and (ii) nothing herein shall in any way limit any of the terms or provisions of such guarantor’s Guarantee of the applicable Obligations or any other Credit Document executed by such guarantor (as the same may be amended from time to time), all of which are hereby ratified, confirmed and affirmed in all respects. SECTION 9. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. The other provisions of Sections 10.14 and 10.15 of the Credit Agreement are incorporated herein as if expressly set forth herein, mutatis mutandis. SECTION 10. This Amendment may be in the form of an Electronic Record and may be executed using Electronic Signatures (including, without limitation, facsimile and .pdf) and shall be considered an original, and shall have the same legal effect, validity and enforceability as a paper record. This Amendment may be executed in one or more counterparts (both paper and electronic counterparts), each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery by facsimile or other electronic means of an executed counterpart of a signature page to this Amendment shall be effective as 10 delivery of a manually executed counterpart of this Amendment. For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Administrative Agent of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format), or an electronically signed Communication converted into another format, for transmission, delivery and/or retention. For purposes hereof, “Electronic Record” and “Electronic Signature” shall have the meanings assigned to them, respectively, by 15 USC §7006, as it may be amended from time to time and “Communication” shall mean, any document, amendment, approval, consent, information, notice, certificate, request, statement, disclosure or authorization related to this Amendment. [Signature Pages Follow] [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date first above written. PARENT BORROWER: ARCH CAPITAL GROUP LTD. By: /s/ François Morin_______ Name: François Morin Title: Executive Vice President, Chief Financial Officer and Treasurer [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] LOAN PARTIES: ARCH REINSURANCE COMPANY By: /s/ Barry Golub Name: Barry Golub Title: Chief Financial Officer


 
[Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] ARCH REINSURANCE LTD. By: /s/ Jim Paugh Name: Jim Paugh Title: General Counsel [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] ARCH INSURANCE (UK) LIMITED By: /s/ Marie Penberthy Name: Marie Penberthy Title: Chief Financial Officer [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] ARCH REINSURANCE EUROPE UNDERWRITING DESIGNATED ACTIVITY COMPANY By: /s/ Deirdre Casey Name: Deirdre Casey Title: Director, Finance Director [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] ARCH CAPITAL GROUP (U.S.) INC. By: /s/ Elizabeth DiChiara Name: Elizabeth DiChiara Title: Vice President, Financial Compliance


 
[Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] ARCH U.S. MI HOLDINGS INC. By: /s/ Thomas Jeter Name: Thomas Jeter Title: EVP, Chief Financial Officer [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] ARCH GROUP REINSURANCE LTD. By: /s/ Jim Paugh Name: Jim Paugh Title: General Counsel [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] ADMINISTRATIVE AGENT: BANK OF AMERICA, N.A. By: /s/ Angela Larkin Name: Angela Larkin Title: Vice President [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] LENDERS: BANK OF AMERICA, N.A., as a Fronting Bank and a Lender By: /s/ Sidhima Daruka Name: Sidhima Daruka Title: Director


 
[Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] ROYAL BANK OF CANADA, as a Fronting Bank and a Lender By: Name: Title: Kevin Bemben Authorized Signatory /s/ Kevin Bemben [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] BARCLAYS BANK PLC, as a Lender By: /s/ Stephanie Fried Name: Stephanie Fried Title: Authorized Signatory [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] HSBC BANK USA, N.A., as a Lender By: /s/ Mrudul Kotia Name: Mrudul Kotia Title: Vice President [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] LLOYDS BANK CORPORATE MARKETS PLC, as a Lender By: Name: Kamala Basdeo Title: Vice President By: Name: Catherine Lim Title: Assistant Vice President ~~ 7 /s/ Kamala Basdeo /s/ Catherine Lim


 
[Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] JPMORGAN CHASE BANK, N.A., as a Lender By: /s/ Barbara Ingrassia Name: Barbara Ingrassia Title: Vice President [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] THE BANK OF NEW YORK MELLON, as a Lender By: /s/ Yadilsa Fernandez Name: Yadilsa Fernandez Title: Director [Signature Page to Consent and First Amendment to Fourth Amended and Restated Credit Agreement] WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender By: /s/ Charles Mentkowski Name: Charles Mentkowski Title: Vice President


 
EX-31.1 3 ex31193025.htm EX-31.1 Document
Exhibit 31.1

Certification
of Chief Executive Officer
Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
I, Nicolas Papadopoulo, certify that:
1.    I have reviewed this quarterly report on Form 10-Q of Arch Capital Group Ltd.;
2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in the report;
4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 6, 2025
By: /s/ Nicolas Papadopoulo
Name: Nicolas Papadopoulo
Title: Chief Executive Officer



EX-31.2 4 ex31293025.htm EX-31.2 Document
Exhibit 31.2

Certification
of Chief Financial Officer
Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
I, François Morin, certify that:
1.     I have reviewed this quarterly report on Form 10-Q of Arch Capital Group Ltd.;
2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in the report;
4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 6, 2025
By: /s/ François Morin
Name: François Morin
Title: Executive Vice President, Chief Financial Officer and Treasurer

EX-32.1 5 ex32193025.htm EX-32.1 Document
Exhibit 32.1
Certification Pursuant to Chapter 63, Title 18 United States Code §1350
As Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    In connection with the Quarterly Report of Arch Capital Group Ltd. (the “Company”) on Form 10-Q for the period ending September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Nicolas Papadopoulo, as Chief Executive Officer of the Company, certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1)    the Report fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and
(2)    the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: November 6, 2025
By: /s/ Nicolas Papadopoulo
Name: Nicolas Papadopoulo
Title: Chief Executive Officer
A signed original of this written statement required by Section 906 or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Arch Capital Group Ltd. and will be retained by Arch Capital Group Ltd. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2 6 ex32293025.htm EX-32.2 Document
Exhibit 32.2

Certification Pursuant to Chapter 63, Title 18 United States Code §1350
As Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    In connection with the Quarterly Report of Arch Capital Group Ltd. (the “Company”) on Form 10-Q for the period ending September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), François Morin, as Executive Vice President, Chief Financial Officer and Treasurer of the Company, certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1)    the Report fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and
(2)    the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: November 6, 2025
By: /s/ François Morin
Name: François Morin
Title: Executive Vice President, Chief Financial Officer and Treasurer
A signed original of this written statement required by Section 906 or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Arch Capital Group Ltd. and will be retained by Arch Capital Group Ltd. and furnished to the Securities and Exchange Commission or its staff upon request.