Arch Capital Group Ltd. Reports 2023 Second Quarter Results

About this update from Arch Capital Group Ltd.

PEMBROKE, Bermuda--(BUSINESS WIRE)-- Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch” or “the Company”) announces its 2023 second quarter results. The results included: Net income available to Arch common shareholders of $661 million, or $1.75 per share, a 19.6% annualized net income return on average common equity, compared to $394 million, or $1.04 per share, for the 2022 second quarter. After-tax operating income available to Arch common shareholders(1) of $726 million, or $1.92 per share, a 21.5% annualized operating return on average common equity, compared to $506 million, or $1.34 per share, for the 2022 second quarter. Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums (1), of $119 million. Favorable development in prior year loss reserves, net of related adjustments(1) of $116 million. Combined ratio excluding catastrophic activity and prior year development(1) of 79.7%, compared to 80.8% for the 2022 second quarter. Book value per common share of $37.04 at June 30, 2023, a 4.8% increase from March 31, 2023. All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results: (U.S. Dollars in millions) Three Months Ended June 30, 2023 2022 % Change Gross premiums written $ 4,845 $ 3,870 25.2 Net premiums written 3,428 2,685 27.7 Net premiums earned 2,965 2,326 27.5 Underwriting income 606 536 13.1 Underwriting Ratios % Point Change Loss ratio 50.3 % 47.4 % 2.9 Underwriting expense ratio 29.5 % 29.7 % (0.2 ) Combined ratio 79.8 % 77.1 % 2.7 Combined ratio excluding catastrophic activity and prior year development (1) 79.7 % 80.8 % (1.1 ) (1) Presentation represents a “non-GAAP” financial measure as defined in Regulation G. See ‘Comments on Regulation G’ for further details. The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see ‘Comments on Regulation G’ for a discussion of non-GAAP financial measures): (U.S. Dollars in millions, except per share data) Three Months Ended June 30, 2023 2022 Net income available to Arch common shareholders $ 661 $ 394 Net r...

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