Arch Capital Group Ltd. · NASDAQ:ACGL

Arch Capital — Q4 2023 Earnings Presentation

17 slides from Arch Capital's earnings presentation, Feb 15, 2024

  1. Slide 1: Investor Presentation 2023 Fourth Quarter

    Investor Presentation 2023 Fourth Quarter © 2024 Arch Capital Group Ltd. All rights reserved.

  2. 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

  3. Slide 3: Specialty Insurance Businesses

    Specialty Click Insurance to edit Master title Businesses style Arch operates leading specialty insurance lines across a wide range of geographies and products Total Gross Premiums Written $18.4B Gross Premiums Written by Segment 1 FY 2023 From 2018 to 2023 ($M) $18,403 1,387 8% Mortgage $15,327 49%

  4. 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

  5. Slide 5: Consistently Superior Risk-Adjusted Returns

    Click to edit Master Consistently Superiortitle style Risk-Adjusted Returns Strong track record of generating higher, more consistent risk-adjusted returns Total Value Creation vs. Coefficient of Variation – Total Composite 12/31/2003 – 12/31/2023 Lower Volatility, Higher Returns Higher Volatility,

  6. Slide 6: Property Casualty Segments

    Property Casualty Segments Diversification reduces earnings volatility Insurance Net Premiums Written $5.9B1 Reinsurance Net Premiums Written $6.6B2 FY 2023 FY 2023 Warranty and Professional Other, 8% lenders Lines, 24% Other, 2% Marine, Aviation solutions, 4% and Space, 4% Specialty, Excess and Pro

  7. Slide 7: Managed Catastrophe Risk

    Managed Click Catastrophe to edit Master Risk title style ACGL Peak Zone 1:250 PML 2,000 30% 1:250 as a % of Tangible shareholders' equity available to Arch* 25% 1,650 $1,627 19.4% $1,457 $1,468 20% 17.0% 1,300 1:250 PML $M 14.4% 15% $1,069 950 10.5% 10.1% 9.1% $970 9.2% $881 $867 8.1% 8.0% 8.1% 10%

  8. Slide 8: Mortgage Segment: Differentiated business model

    Mortgage Segment Differentiated business model © 2024 Arch Capital Group Ltd. All rights reserved. 8

  9. Slide 9: Mortgage Segment: Stable growth

    Mortgage Segment Stable growth Insurance In Force ($B) © 2024 Arch Capital Group Ltd. All rights reserved. 9

  10. Slide 10: Mortgage Segment: Credit quality remains high

    Mortgage Segment Credit quality remains high Arch MI U.S. Delinquency Rate March 18, 2020 5.5% GSEs announce COVID related 5.14% “Eviction Moratorium” 5.0% 4.69% 4.5% 4.19% 3.86% 4.0% 3.5% 3.11% 3.0% 2.67% 2.36% 2.5% 2.09% 2.0% 1.77% 1.77% 1.60% 1.54% 1.73% 1.65% 1.65%1.74% 1.54% 1.48% 1.42% 1.61% 1

  11. Slide 11: Mortgage Segment: Strong earnings not correlated to P&C cycle

    Mortgage Segment Strong earnings not correlated to Property & Casualty insurance cycle Underwriting Income ($M) $1,400 $1,200 $1,257 $1,000 $1,041 $1,064 $953 $800 $858 $600 $594 $400 $200 $0 2018 2019 2020 2021 2022 2023 © 2024 Arch Capital Group Ltd. All rights reserved. 11

  12. Slide 12: Our Investment Strategy

    Our Investment Strategy Conservative portfolio focused on total return Invested Assets - $34.6B Fixed Maturity by Rating - $24.2B 12/31/23 12/31/23 Lower than B, 0.1% Not Rated, Equity method funds & other, U.S. B, 1.6% 1.9% U.S. 17.9% government, government BB, 2.9% and 16.8% government Equity agen

  13. Slide 13: Investment Income

    Investment Income Net Investment Income + Equity Method Investments ($M) $500 $415 $400 $102 $328 $311 $300 $59 $247 $69 $221 $48 $200 $40 $158 $164 $110 $313 $116 $58 $269 $67 $242 $100 $36 $199 $181 $129 $91 $106 $80 $0 $(19) 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 -$100 Total Investable $27,

  14. Slide 14: Strong Net Income Growth

    Net to Click Income edit Master title style Strong Net Income Growth Net Income Available to Arch Common Shareholder ($M) $5,000 $4,403 $4,000 $768 $3,000 $1,023 Other 2 $2,000 $1,064 $714 Net investment income Mortgage underwriting income 1 Reinsurance underrwriting income $438 $1,000 $1,098 Insura

  15. Slide 15: Our ESG Focus Areas and Sustainability Highlights

    OurtoESG Click editFocus Areas Master titleand Sustainability Highlights style 1. Our Business 2. Our Operations 3. Our Investing 4. Our People 5. Our Communities ■ Strategic approach to ■ Maintaining data privacy and ■ Implementing a Responsible ■ Advancing our D&I strategy ■ Corporate giving of $5

  16. Slide 16: Value Creation

    Value Click Creation to edit Master title style Book value per common share1 $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $46.94 $20.00 $33.56 $32.62 $15.00 $30.31 $26.42 $10.00 $20.30 $21.52 $18.40 $15.09 $15.88 $5.00 $9.91 $10.51 $11.98 $13.18 $6.12 $5.71 $8.04 $3.45 $3.76 $4.89 $2.03 $2.36 $2.84 $0.

  17. Slide 17: 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

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