On this page of StockholderLetter.com we present the latest annual shareholder letter from ARCH CAPITAL GROUP LTD. — ticker symbol ACGL. Reading current and past ACGL letters to shareholders can bring important insights into the investment thesis.

 •  3/25/2025 Letter Continued (Full PDF)
 •  3/23/2023 ACGL Stockholder Letter
 •  3/28/2024 ACGL Stockholder Letter
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 •  ACGL Benford's Law Stock Score = 98

ACGL Shareholder/Stockholder Letter Transcript:

Arch Capital Group Ltd.
2024 ANNUAL REPORT

FINANCIAL HIGHLIGHTS
GROSS PREMIUMS WRITTEN
NET LOSS RESERVES
TOTAL ASSETS
TOTAL CAPITALIZATION
$21.5B
$70.9B
(Amounts in U.S. $ million, except percentages and per share data)
Book value per common share at year end
Net income available to common shareholders
Per share
$21.5B
$23.5B
2024
$53.11
2023
Change
$4,403
-3.0%
$46.94
$4,272
13.1%
$11.19
$11.62
-3.7%
$21,511
$18,403
16.9%
After-tax operating income*
$3,542
$3,201
10.7%
Annualized operating return on average common equity*
18.9%
21.6%
Annualized net income return on average common equity
Gross premiums written
Underwriting income*
Per share*
22.8%
$2,661
$9.28
29.7%
$2,612
$8.45
1.9%
9.8%
Growth in Book Value per Common Share + Common Dividends
* We use non-GAAP financial measures in this report. The first mention of each non-GAAP financial measure is referenced by an asterisk (*). See Additional Information for a reconciliation to the most
comparable GAAP financial measures.
    Annualized growth rate from Dec. 31, 2001 to Dec. 31, 2024. Excludes the effects of stock options, restricted and performance stock units outstanding.
  2025 Arch Capital Group Ltd. All rights reserved.

TO OUR SHAREHOLDERS
2024 was a year of growth and transformation for Arch.
We set new company records for underwriting income,
investment income and after-tax operating income available to
Arch common shareholders, and our strong capital position led
the Board to approve our first special dividend of $5 per common
share, directly returning capital back to you, our shareholders.
In addition to the special dividend, investors experienced a
13% increase in book value per common share (BVPS) and an
annualized net income return on average common equity of
NICOLAS PAPADOPOULO
CEO, ARCH CAPITAL GROUP LTD.
nearly 23% for the year.
Our three main business segments and the investment group all contributed to our
2024 results, once again demonstrating the strength of our diversified platform.
Arch   s Insurance and Reinsurance property and casualty (P&C) underwriting teams
wrote $14.6 billion of net premium, generating nearly $1.6 billion of underwriting
income. Our Mortgage segment, which operates within a different underwriting
cycle, delivered more than $1 billion of underwriting income for the third
consecutive year, while our investment group generated a record $1.5 billion of net
investment income.
We believe Arch's long track record of success is a product of our strong culture and
a well-established set of operating principles that guide our decision-making. Both
of these traits are critically important to our ongoing success.
The resiliency of our management team and experience of our leaders are hallmarks
of our success. Our deep bench of executives helped facilitate a smooth leadership
transition last year upon the retirement of former CEO Marc Grandisson, whose
dedicated service helped establish Arch as an industry leader.
I'm grateful for the opportunity to lead this outstanding company, and I am
focused on fostering our unique culture to continue delivering exceptional value
to our shareholders. Last year, we also promoted two longtime Arch executives,
David Gansberg and Maamoun Rajeh, to be Presidents of Arch Capital Group. We
are fortunate to have Maamoun and David   s leadership experience, insights and
institutional knowledge to help guide the company.
Arch Capital Group Ltd. 2024 Annual Report | 1

UNDERWRITING INCOME ($M)
NET PREMIUMS WRITTEN ($M)
$1,400
$8,000
$1,200
$7,000
$6,000
$1,000
$800
$600
CHANGE
-23%
CHANGE
11%
CHANGE
3%
$400
$200
$0
$5,000
$4,000
$3,000
CHANGE
17%
CHANGE
18%
CHANGE
6%
$2,000
2024
2023
Insurance
2024
2023
Reinsurance
2024
2023
Mortgage
Underwriting Strategy
Our focus is on underwriting specialty lines, which benefit from the
knowledge and expertise of skilled underwriters. By combining our
deep specialty experience with the power of data, we drive insights
that inform profitable underwriting decisions. The compensation of
our senior underwriters is linked to long-term profitability to ensure
alignment with shareholder results.
At the enterprise level, we prioritize expected profitability over
market share and allocate capital to the lines of business with the
most attractive risk-adjusted returns. Throughout the current hard
market, we have deployed capital into our P&C segments that offer
the best opportunity for growth and solid risk-adjusted returns.
Insurance
The Insurance group wrote $6.9 billion of net premium in 2024,
a 17% increase from 2023, while delivering $345 million of
underwriting income in a year when catastrophic activity weighed
on profitability. Our acquisition of Allianz's U.S. MidCorp and
Entertainment insurance businesses in North America meaningfully
expanded our presence in the U.S. middle market, a key area of
expected future growth.
Reinsurance
2024 marked another year of excellent performance for the
Reinsurance segment, which delivered $1.2 billion of underwriting
income, a new high for Arch Re. The team also wrote a record
$7.7 billion of net premium, an 18% increase from 2023. Arch
Re has established itself as a top 10 global reinsurance provider
by becoming the first choice for our distribution partners
and cedants and consistently providing creative solutions to
challenging problems.
$1,000
$0
2024
2023
Insurance
2024
2023
Reinsurance
2024
2023
Mortgage
Mortgage
The Mortgage segment provides profitable diversification that
differentiates Arch from our peers by producing a steady stream of
reliable earnings. In 2024, the segment generated $1.1 billion of
underwriting income while writing $1.1 billion of net premium. High
mortgage interest rates compared to the last decade, combined
with tight housing supply, limited new origination activity. However,
persistency of our in-force portfolio remains strong, and the credit
quality of homebuyers with loans we insure continues to be excellent.
Investment Results
The substantial growth of our P&C units during this hard market
increased our investable assets to $41.4 billion at the end of 2024,
a 20% increase from the end of 2023. This    float    is a material
contributor to our net income and should serve as a tailwind for
future earnings generation.
Capital Management
One of Arch's core operating principles is being prudent and
disciplined stewards of the capital entrusted to us. In 2024, strong
earnings provided an opportunity to deploy capital across the
Company organically and strategically while also returning capital
directly to you, our shareholders.
    Organic: Capital was directed toward growth efforts in our P&C
units, where we grew existing and new accounts in an attractive
market that should continue to deliver solid risk-adjusted returns.
    Strategic: Our strategic acquisition of the MidCorp and
Entertainment insurance businesses provides an effective
platform and means of building scale in the U.S. middle market
while further diversifying our overall business portfolio.
    Direct: In December 2024, we paid a special dividend of
$1.9 billion to common shareholders, representing $5 per
common share.
2 | Arch Capital Group Ltd. 2024 Annual Report

Arch   s People
At Arch, we have an entrepreneurial and collaborative culture
where our people are a key differentiator. Maintaining a
high degree of talented individuals through retention and
recruitment is crucial to our long-term success.
In 2024, we welcomed nearly 1,500 employees to the
Company, including nearly 500 new colleagues who joined
through the MidCorp and Entertainment acquisition.
Additionally, more than 700 individuals across the enterprise
took on new roles or responsibilities, demonstrating our
emphasis on fostering an environment where individuals can
build a rewarding career.
We have a culture worth celebrating, but in 2024, we
unfortunately said a final goodbye to one of Arch's key
architects, former Chair and CEO Dinos Iordanou. He passed
away unexpectedly last June, and his vision and leadership
are deeply missed.
Outlook
2024 was a year where Arch delivered significant value to our
shareholders while positioning the Company for future success.
As I look ahead, I   m filled with optimism for Arch, its
shareholders, clients and employees. Our ability to manage
the cycle has been on display throughout this hard market as
we   ve grown     profitably     at an exceptional clip. We believe
we are well positioned to navigate the many underwriting
cycles that will ultimately define our success in the years ahead.
INVESTMENTS BY TYPE
4.1%
Equity Securities
16.2%
U.S. Gov't
9.3%
Cash & Short-term
6.2%
Non-U.S.
Gov't
7.0%
Asset Backed
Securities
0.6%
Municipal 2.6%
CMBS1
2.6%
MBS2
1
2
32.2%
Corporates
CMBS = Commercial mortgage-backed securities.
MBS = Mortgage-backed securities.
FIXED MATURITIES BY RATING
I want to thank Arch employees for their work in 2024 and their
commitment to helping our clients, employees, investors and
communities achieve their greatest potential. I also want to
thank our distributors, clients and other partners for choosing
to do business with Arch. And, finally, thank you to our
shareholders for your continued confidence and support.
Nicolas Papadopoulo
CEO
Arch Capital Group Ltd.
19.2%
Equity Method Funds & Other
1.6%
B
3.5%
BB
0.1%
Under B
2.6%
Not Rated
26.9%
U.S. Gov   t and
Gov   t Agencies3
23.2%
BBB
18.4%
A
3
15.5%
AAA
8.2%
AA
Includes U.S. government-sponsored agency MBS and agency CMBS.
Arch Capital Group Ltd. 2024 Annual Report | 3



 3/25/2025 Letter Continued (Full PDF)