Arch Capital Group Ltd. · NASDAQ:ACGL
Arch Capital — Q4 2022 Earnings Presentation
18 slides from Arch Capital's earnings presentation, Feb 14, 2023
Slide 1: Investor Presentation 2022 Fourth Quarter
Investor Presentation 2022 Fourth Quarter © 2023 Arch Capital Group Ltd. All rights reserved.
Slide 2: Informational Statements
Informational Click Statements to edit Master title style The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries
Slide 3: Specialty Insurance
Specialty Click Insurance to edit Master title style Arch operates leading specialty insurance businesses across a wide range of geographies and products Total Net Premiums Written $11.1B Line of Business FY 2022 FY 2022 Construction and Other (inc lenders)2, 6% 10% national Casualty & Mortgage acco
Slide 4: Creating Shareholder Value Throughout The Cycle
Creating Click to editShareholder Value Throughout The Cycle Master title style Generate Superior Focus on Conservative Risk Adjusted Underwriting Balance Sheet Returns Thorough risk Talent intensive, assessment of Minimize not people underlying investment risk intensive exposures Align executive co
Slide 5: Property Casualty Segments
Property Casualty Segments Diversified mix of business Insurance Net Premiums Written $5.0B1 Reinsurance Net Premiums Written $4.9B2 FY2022 FY 2022 Other, 10% Professional Other, 3% Warranty and Marine, aviation and lines, 30% lenders space, 3% solutions, 3% Construction Property Specialty, 40% and
Slide 6: Insurance Segment
Insurance Click Segment to edit Master title style Building on market opportunities Calendar Year Net Premiums Written by Line ($M) 6.000 $5,021 5.000 Other 4.000 Warranty and lenders solutions Travel, accident and health 3.000 Excess and surplus casualty Construction and national accounts $2,212 Pr
Slide 7: Reinsurance Segment
Reinsurance Click Segment to edit Master title style Flexing into a hard market Calendar Year Net Premiums Written by Line ($M) 6.000 5.000 $4,924 4.000 Other Marine, aviation and space 3.000 Specialty Property catastrophe Property excl. property catastrophe 2.000 Casualty $1,373 1.000 - 2018 2022 R
Slide 8: Managed Catastrophe Risk
Managed Click Catastrophe to edit Master Risk title style ACGL Peak Zone 1:250 PML 1.200 25% 1:250 as a % of Tangible shareholders' equity available to Arch* 1.000 19.1% 20% 16.9% $970 $881 $888 $867 14.3% $860 $851 800 15% 1:250 PML $M $801 $768 $748 600 9.0% 10% 8.0% $612 7.7% 7.7% 8.0% $544 6.6%
Slide 9: Mortgage Segment
Mortgage Segment Differentiated business model © 2023 Arch Capital Group Ltd. All rights reserved. 9
Slide 10: Mortgage Segment
Mortgage Segment Stable growth Insurance In Force ($B) © 2023 Arch Capital Group Ltd. All rights reserved. 10
Slide 11: Mortgage Segment
Mortgage Segment Low U.S. delinquency rate: Credit quality remains high Arch MI U.S. Delinquency Rate 5.5% March 18, 2020 GSEs announce COVID related 5.14% 5.0% “Eviction Moratorium” 4.69% 4.5% 4.19% 3.86% 4.0% 3.5% 3.11% 3.0% 2.67% 2.57% 2.36% 2.5% 2.25% 2.23% 2.02% 1.98% 2.09% 1.98% 1.70% 1.77% 1.
Slide 12: Mortgage Segment
Mortgage Segment Strong earnings power Underwriting Income ($M) $1.400 $1.200 $1.256 $1.000 $1.041 $953 $800 $858 $691 $600 $594 $400 $200 $0 2017 2018 2019 2020 2021 2022 © 2023 Arch Capital Group Ltd. All rights reserved. 12
Slide 13: Our Investment Strategy
Our Investment Strategy Conservative portfolio focused on total return Invested Assets - $28.1B Fixed Maturity by Rating - $20.2B Lower than B, 0.1% Not Rated, Equity method funds & other, 16.9% U.S. B, 1.9% 1.5% government, U.S. 18.4% BB, 2.8% government Equity and securities, government 3.1% agenc
Slide 14: Investment Income
Investment Income Net Investment Income + Equity Method Investments ($M) $300.0 $250.0 $226.6 $221.5 $211.6 $193.6 $40.4 $200.0 $177.3 $164.5 $157.6 $126.7 $150.4 $150.0 $122.2 $105.4 $109.7 $89.3 $116.7 $58.1 $67.1 $71.7 $100.0 $36.3 $181.1 $128.6 $50.0 $99.9 $106.4 $88.0 $78.7 $89.4 $88.2 $90.5 $8
Slide 15: Arch's Annual ESG Reporting
OurtoESG Click edit Strategy Master title style Arch’s Annual ESG Reporting We believe in the value of transparency of our ESG initiatives, and we are committed to communicating our progress to interested stakeholders on an annual basis through the following three reports: Annual Sustainability Repo
Slide 16: Value Creation
Value Click Creation to edit Master title style Book value per common share1 $40.00 $35.00 $30.00 $25.00 $20.00 $33.56 $32.62 $15.00 $30.31 $26.42 $10.00 $20.30 $21.52 $18.40 $15.09 $15.88 $11.98 $13.18 $5.00 $8.04 $9.91 $10.51 $6.12 $5.71 $4.89 $2.36 $2.84 $3.45 $3.76 $2.03 $0.00 Dec-01 Dec-02 Dec-
Slide 17: Superior Risk-Adjusted Returns
Superior Click to editRisk-Adjusted Master title styleReturns Strong track record of generating higher, more consistent risk-adjusted returns Total Value Creation vs. Coefficient of Variation – Total Composite 12/31/2002 – 9/30/2022 Lower Volatility, Higher Returns Higher Volatility, Higher Returns
Slide 18: Contact
Contact Click to edit Master title style Investor Inquiries: Donald Watson Vinay Misquith Executive Vice President, Senior Vice President, Financial Services Financial Services (914) 872 3616 (914) 872 3666 DWatson@archgroup.com VMisquith@archgroup.com ©©2017 Arch Capital Group Ltd. All rights reser