$ACGL

ARCH CAPITAL GROUP LTD.

CIK:0000947484|SEC Filings

Unaudited Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Net premiums earned	$ 3,985	$ 4,337	$ 7,971	$ 8,525
Net investment income	417	405	825	783
Net realized gains (losses)	(17)	229	(104)	232
Other underwriting income	57	62	116	115
Equity in net income of investments accounted for using the equity method	196	162	356	215
Other income (loss)	30	18	25	16
Total revenues	4,668	5,213	9,189	9,886
Expenses
Losses and loss adjustment expenses	2,196	2,303	4,285	4,890
Acquisition expenses	718	824	1,448	1,588
Other operating expenses	471	454	969	927
Corporate expenses	44	47	93	107
Amortization of intangible assets	30	48	60	97
Interest expense	44	38	81	73
Net foreign exchange (gains) losses	(10)	88	(31)	115
Total expenses	3,493	3,802	6,905	7,797
Income (loss) before income taxes and income (loss) from operating affiliates	1,175	1,411	2,284	2,089
Income tax (expense) benefit	(164)	(214)	(262)	(335)
Income (loss) from operating affiliates	46	40	82	57
Net income (loss) available to Arch	1,057	1,237	2,104	1,811
Preferred dividends	(10)	(10)	(20)	(20)
Net income (loss) available to Arch common shareholders	$ 1,047	$ 1,227	$ 2,084	$ 1,791
Net income per common share and common share equivalent
Basic (per share)	$ 3.05	$ 3.30	$ 5.99	$ 4.81
Diluted (per share)	$ 3.00	$ 3.23	$ 5.88	$ 4.70
Weighted average common shares and common share equivalents outstanding
Basic (shares)	343.2	372.2	348.2	372.6
Diluted (shares)	348.8	379.9	354.2	380.8

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities
Net income (loss)	$ 2,104	$ 1,811
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net realized (gains) losses	(43)	(231)
Equity in net (income) or loss of investments accounted for using the equity method and other income or loss	(263)	(107)
Amortization of intangible assets	60	97
Share-based compensation	97	99
Changes in:
Reserve for losses and loss adjustment expenses, net of unpaid losses and loss adjustment expenses recoverable	1,039	1,386
Unearned premiums, net of ceded unearned premiums	426	338
Premiums receivable	(1,450)	(1,294)
Deferred acquisition costs	(44)	19
Reinsurance balances payable	915	663
Deferred income tax assets, net	79	109
Other items, net	(410)	(308)
Net cash provided by operating activities	2,510	2,582
Investing Activities
Purchases of fixed maturity investments	(19,163)	(17,568)
Purchases of equity securities	(657)	(987)
Purchases of other investments	(952)	(1,232)
Proceeds from sales of fixed maturity investments	16,367	13,823
Proceeds from sales of equity securities	455	1,043
Proceeds from sales, redemptions and maturities of other investments	546	1,091
Proceeds from redemptions and maturities of fixed maturity investments	2,039	1,326
Net settlements of derivative instruments	(106)	240
Net (purchases) sales of short-term investments	(655)	52
Purchases of fixed assets	(22)	(21)
Other	(26)	(3)
Net cash used for investing activities	(2,174)	(2,236)
Financing Activities
Purchases of common shares under share repurchase program	(1,949)	(359)
Proceeds from common shares issued, net	9	19
Proceeds from borrowings	1,977	0
Repayments of borrowings	(398)	0
Common dividends paid	(5)	(7)
Preferred dividends paid	(20)	(20)
Other	(12)	(2)
Net cash used for financing activities	(398)	(369)
Effects of exchange rate changes on foreign currency cash and restricted cash	1	71
Increase (decrease) in cash and restricted cash	(61)	48
Cash and restricted cash, beginning of year	2,067	1,760
Cash and restricted cash, end of period	2,006	1,808
Income taxes paid (received)	191	149
Interest paid	$ 65	$ 64

Unaudited Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Investments:
Debt securities available for sale, at fair value	$ 36,453	$ 35,051
Equity securities, at fair value	2,280	1,864
Other investments, at fair value	3,381	3,136
Investments accounted for using the equity method	6,852	6,453
Total investments	48,966	46,504
Cash	1,109	993
Accrued investment income	325	338
Investment in operating affiliates	1,323	1,313
Premiums receivable (net of allowance for credit losses: $41 and $43)	7,160	5,723
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses (net of allowance for credit losses: $18 and $17)	9,964	9,526
Contractholder receivables (net of allowance for credit losses: $7 and $7)	2,264	2,270
Ceded unearned premiums	3,669	2,659
Deferred acquisition costs	1,794	1,717
Receivable for securities sold	564	180
Goodwill and intangible assets	1,163	1,222
Other assets	6,878	6,796
Total assets	85,179	79,241
Liabilities
Reserve for losses and loss adjustment expenses	34,775	33,547
Unearned premiums	11,493	10,100
Reinsurance balances payable	3,234	2,320
Contractholder payables	2,270	2,277
Collateral held for insured obligations	240	237
Senior notes	4,286	2,729
Payable for securities purchased	1,136	308
Other liabilities	3,715	3,517
Total liabilities	61,149	55,035
Commitments and contingencies (refer to Note 11)
Shareholders' Equity
Non-cumulative preferred shares	830	830
Common shares ($0.0011 par, shares issued: 602.7 and 599.8)	1	1
Additional paid-in capital	2,873	2,735
Retained earnings	29,129	27,045
Accumulated other comprehensive income (loss), net of deferred income tax	(413)	5
Common shares held in treasury, at cost (shares: 261.8 and 240.8)	(8,390)	(6,410)
Total shareholders' equity available to Arch	24,030	24,206
Total liabilities and shareholders' equity	85,179	79,241
Fixed maturities available for sale, at fair value (amortized cost: $33,427 and $32,329; net of allowance for credit losses: $16 and $20)
Investments:
Debt securities available for sale, at fair value	33,155	32,426
Short-term investments available for sale, at fair value (amortized cost: $3,298 and $2,624; net of allowance for credit losses: $0 and $0)
Investments:
Debt securities available for sale, at fair value	$ 3,298	$ 2,625