Arch Capital Group Ltd. · NASDAQ:ACGL
Arch Capital — Q1 2025 Earnings Presentation
15 slides from Arch Capital's earnings presentation, Apr 30, 2025
Slide 1: Investor Presentation 2025 First Quarter
INVESTOR PRESENTATION 2025 First Quarter ©2025 Arch Capital Group Ltd. All rights reserved. ©2025 Arch Capital Group Ltd. All rights reserved. 1
Slide 2: Informational Statements
Informational Statements 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 may include forward-looking state
Slide 3: Specialty Insurance Business
Specialty Insurance Business Arch Operates Leading Specialty Insurance Lines Across a Wide Range of Geographies and Products Gross Premiums Written Gross Premiums Written by Segment 12 Months Ending 3/31/25 ($B) From 2020 to 12 Months Ending 3/31/25 ($M)1 51% Reinsurance $21,511 $22,041 6% 1,336 $11
Slide 4: Creating Shareholder Value Throughout the Cycle
Creating Shareholder Value Throughout the Cycle Generate Superior Focus on Conservative Risk-Adjusted Underwriting Balance Sheet Returns Thorough risk assessment of Talent intensive, not Minimize investment underlying exposures people intensive risk Align executive compensation with Specialty lines
Slide 5: Consistently Superior Risk-Adjusted Returns with Less Volatility
Consistently Superior Risk-Adjusted Returns with Less Volatility Total Value Creation vs. Coefficient of Variation 12/31/2004 – 12/31/2024 Lower Volatility, Higher Returns Higher Volatility, Higher Returns Arch has 2x the average 16% value creation of the Arch Capital Composite industry and 82% of t
Slide 6: Diversification Reduces Earnings Volatility
Diversification Reduces Earnings Volatility Property and Casualty Segments Insurance Net Premiums Written Reinsurance Net Premiums Written 12 Months Ending 3/31/25 ($B) 12 Months Ending 3/31/25 ($B) Casualty and other Property and (Int), 13% short-tail Other, 2% specialty (Int), Marine and aviation,
Slide 7: Managed Catastrophe Risk
Managed Catastrophe Risk Property and Casualty Segments ACGL Peak Zone 1:250 PML 1:250 as a % of tangible shareholders' equity available to Arch* 30% Soft Market Hard Market 2,000 25% $1,788 $1,823 1,650 $1,627 20% 1:250 PML $M 1,300 15% 950 9.1% 9.2% 9.2% 9.0% 8.1% $970 10% 6.6% 5.8% $860 5.7% $748
Slide 8: Consistent Source of Globally Diversified Earnings
Consistent Source of Globally Diversified Earnings Mortgage Insurance In Force ($B) Underwriting Income ($M) 12 Months Ending 3/31/25 $513 $509 $501 $495 $461 $424 42% 43% 42% 38% 42% 39% 34% $1,075M 66% 61% 58% 57% 58% 58% 62% 2020 2021 2022 2023 2024 As of 3/31/25 U.S. Primary Mortgage Insurance I
Slide 9: Our Investment Strategy
Our Investment Strategy Investments Conservative Portfolio Focused on Total Return Invested Assets ($B) Fixed Maturity by Rating ($B) March 31, 2025 March 31, 2025 Lower than B, 0.1% Not Rated, 2.3% Equity method funds & U.S. government, B, 2.0% U.S. government other, 18.3% 15.2% and government BB,
Slide 10: Investment Income a Steady Contributor to Book Value Growth
Investment Income a Steady Contributor to Book Value Growth Investments Net Investment Income + Equity Method Investments ($M) $600 $570 Equity Method Income or Loss $548 $531 Net Investment Income $500 $171 $143 $426 $167 $431 $415 $400 $53 $99 $328 $102 $311 $300 $59 $247 $69 $48 $200 $399 $405 $3
Slide 11: Diversified Net Income Growth
Diversified Net Income Growth Net Income Available to Arch Common Shareholder ($M) $3,726 173% $1,546 Growth Other 2 Net investment income Mortgage underwriting income $1,364 $1,075 Reinsurance underrwriting income 1 Insurance underwriting income $481 $402 $1,010 $594 $16 $257 $(129) $(162) 12 Month
Slide 12: Our Sustainability Framework
Our Sustainability Framework ▪ Our strategy is structured around five core impact areas that drive our sustainability initiatives. By organizing our strategy under these pillars, we seek to encompass Arch’s achievements and sustainability progress across our operations. BUSINESS OPERATIONS INVESTMEN
Slide 13: Links to Sustainability Documents
Links to Sustainability Documents ▪ We believe in the value of transparency around our sustainability initiatives, and we are committed to sharing our progress to relevant stakeholders on an annual basis across the following three reports: Annual Sustainability Report Sustainability Accounting Stand
Slide 14: Superior Value Creation
Superior Value Creation Book Value per Common Share1 + Cumulative Common Dividends $70 Book Value Cumulative Common Dividends $60 3 $5.00 15.7% $5.00 $50 Compound Annual $40 Growth Rate $30 $53.11 $55.15 $46.94 $20 $33.56 $32.62 $30.31 $26.42 $10 $21.52 $18.40 $20.30 $15.09 $15.88 $9.91 $10.51 $11.9
Slide 15: Contact
Contact Investor Inquiries: Donald Watson Vinay Misquith Executive Vice President, Senior Vice President, Financial Services Finance _________ _________ (914) 872 3616 (914) 872 3666 DWatson@archgroup.com VMisquith@archgroup.com Jordan Arnold Maureen Kitson Director, Executive Assistant, Financial S