Arch Capital Group Ltd. · NASDAQ:ACGL
Arch Capital — Q4 2024 Earnings Presentation
14 slides from Arch Capital's earnings presentation, Feb 11, 2025
Slide 1: Investor Presentation 2024 Fourth Quarter
INVESTOR PRESENTATION 2024 Fourth 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 FY 2024 ($B) From 2019 to 2024 ($M)2 52% Reinsurance $21,511 6% $11.1B Mortgage 1,351 $1.4B $18,403 1,387 $15,327 1,45
Slide 4: Creating Shareholder Value Throughout the Cycle
Creating Shareholder Value Throughout the Cycle Generate Superior Focus on Conservative Risk-Adjusted Underwriting Balance Sheet Returns Thorough risk assessment of Talent intensive, not Minimize investment underlying exposures people intensive risk Align executive compensation with Specialty lines
Slide 5: Diversification Reduces Earnings Volatility
Diversification Reduces Earnings Volatility Property and Casualty Segments Insurance Net Premiums Written Reinsurance Net Premiums Written FY 2024 ($B) FY 2024 ($B) Casualty and other Other, 2% (Int), 14% Property and Marine and aviation, 4% short-tail specialty (Int), Specialty, 37% 15% Other, 4% I
Slide 6: 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* 2,000 30% Hard Market Soft Market $1,788 25% 1,650 $1,627 19.4% 20% 1:250 PML $M 17.0% 1,300 14.4% 15% 950 9.1% $970 9.2% 9.2% $881 8.1% 8.0% 10% $867 $86
Slide 7: Consistent Source of Globally Diversified Earnings
Consistent Source of Globally Diversified Earnings Mortgage Insurance In Force ($B) Underwriting Income ($M) FY2024 $513 $509 $501 $461 14% 14% 13% $418 $424 15% 8% 9% 42% 43% 42% 39% 28% 29% 30% 31% 34% 23% 25% 24% 38% $1,094M 69% 69% 66% 66% 61% 61% 58% 58% 57% 57% 57% 58% 62% 2019 2020 2021 2022
Slide 8: Our Investment Strategy
Our Investment Strategy Investments Conservative Portfolio Focused on Total Return Invested Assets ($B) Fixed Maturity by Rating ($B) December 31, 2024 December 31, 2024 Lower than B, 0.1% Not Rated, 2.6% U.S. government, U.S. government Equity method funds & B, 1.6% 16.2% and government other, 19.2
Slide 9: Growing Investment Income
Growing Investment Income Investments Net Investment Income + Equity Method Investments ($M) $600 Equity Method Income or Loss $570 $531 $548 Net Investment Income $500 $171 $143 $426 $167 $415 $400 $99 $102 $328 $311 $300 $59 $247 $69 $221 $48 $200 $40 $399 $405 $364 $313 $327 $269 $242 $100 $199 $
Slide 10: Diversified Net Income Growth
Diversified Net Income Growth Net Income Available to Arch Common Shareholder ($M) $4,272 $116 168% $1,495 Growth Other 2 Net investment income $1,594 $1,094 Mortgage underwriting income $16 Reinsurance underrwriting income $491 1 Insurance underwriting income $1,222 $1,041 $81 $345 $(35) 2019 2024
Slide 11: Our ESG Focus Areas and 2023 Sustainability Highlights
Our ESG Focus Areas and 2023 Sustainability Highlights Our Environmental, Social and Governance (ESG) strategy is structured around five core impact areas that drive our ESG initiatives. By organizing our strategy under these pillars, we seek to encompass Arch’s collective ESG progress and achieveme
Slide 12: Links to ESG Documents
Links to ESG Documents 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 though the following three reports: Annual Sustainability Report Sustainability Accounting Standards Task Force on C
Slide 13: Superior Value Creation
Superior Value Creation Book Value per Common Share1 + Common Dividends $70 Book Value Common Dividends $60 3 15.7% $5.00 $50 Compound Annual Growth Rate $40 $30 $53.11 $46.94 $20 $33.56 $32.62 $30.31 $26.42 $10 $21.52 $18.40 $20.30 $15.88 $13.18 $15.09 $8.04 $9.91 $10.51 $11.98 $3.76 $4.89 $6.12 $5
Slide 14: 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