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.

 •  3/24/2026 Letter Continued (Full PDF)
 •  3/23/2023 ACGL Stockholder Letter
 •  3/28/2024 ACGL Stockholder Letter
 •  3/25/2025 ACGL Stockholder Letter
 •  More "Insurance Brokers" Category Stockholder Letters
 •  ACGL Benford's Law Stock Score = 88

ACGL Shareholder/Stockholder Letter Transcript:

Arch Capital Group Ltd.
2025 ANNUAL REPORT

FINANCIAL HIGHLIGHTS
GROSS PREMIUMS WRITTEN
NET LOSS RESERVES
TOTAL ASSETS
TOTAL CAPITALIZATION
$22.9B
$79.2B
(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
Annualized net income return on average common equity
Gross premiums written
Underwriting income*
After-tax operating income*
Per share*
Annualized operating return on average common equity*
$24.5B
$26.9B
2025
$4,272
2.0%
$53.11
$11.60
$11.19
$4,359
20.1%
22.8%
$22,878
$21,511
$3,700
$3,542
$2,933
$9.84
17.1%
* 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, 2025, including all accumulated special cash dividends paid to common shareholders.
Excludes the effects of stock options, restricted and performance share units outstanding.
  2026 Arch Capital Group Ltd. All rights reserved.
Change
$65.11
Growth in Book Value per Common Share + Accumulated Common Dividends

2024
22.6%
3.7%
6.4%
$2,661
10.2%
$9.28
6.0%
18.9%
4.5%

To Our Shareholders,
2025 was another record year for Arch.
The strength of our global enterprise and adaptability of our teams
enabled us to deliver outstanding full   year results, including $3.7 billion
of after   tax operating income     the highest in our history     and a
22.6% increase in book value per share. This performance was especially
noteworthy given the significant adverse impact of the California wildfires
at the beginning of 2025.
Our ability to apply disciplined cycle management and adapt quickly to
changing market conditions across our diversified platform produced
outstanding results. Our Property and Casualty (P&C) Insurance and
Reinsurance segments wrote a record $15.4 billion of net premiums and
generated more than $1.9 billion in underwriting income. Our Mortgage
segment     unique among our peer group     delivered an additional
$1.0 billion of underwriting income. Investments contributed $1.6 billion
of net investment income, further strengthening our overall performance.
NICOLAS PAPADOPOULO
CEO, ARCH CAPITAL GROUP LTD.
Our 2025 results stand on their own and, viewed over the long term,
reinforce the consistency of our strategy and the value disciplined
execution across market cycles provides for our shareholders. As
competition intensifies and artificial intelligence (AI) reshapes the industry,
our deep bench of talent, performance-driven culture and enduring
operating principles provide the foundation for continued
strong performance.
Arch Capital Group Ltd. 2025 Annual Report | 1

UNDERWRITING INCOME ($M)
NET PREMIUMS WRITTEN ($M)
$1,600
$8,000
$1,400
$7,000
$1,200
$6,000
$1,000
$5,000
$800
$600
$400
CHANGE
CHANGE
9%
27%
$4,000
CHANGE
-9%
$3,000
$2,000
13%
CHANGE
-2%
CHANGE
Insurance
Reinsurance
Mortgage
-5%
$1,000
$200
$0
CHANGE
Insurance
Reinsurance
$0
Mortgage
2025
Underwriting Segments
Arch writes specialty P&C (re)insurance and mortgage insurance
on a worldwide basis through its wholly owned subsidiaries. We
pride ourselves on our nimbleness and creativity, and we seek out
opportunities where we can use our capital to serve our clients and
achieve superior results.
2024
and cedants, combined with our reputation for providing creative
solutions to challenging problems, further enhance our ability to
operate effectively across market cycles.
Insurance
The Insurance segment delivered solid performance in 2025, writing
$7.8 billion of net premiums, a 13% increase from 2024, while
delivering $375 million of underwriting income.
Mortgage
Our Mortgage segment produced $1.0 billion of underwriting income,
reinforcing its role as a reliable contributor to Arch   s results. Growing
new insurance written remains challenging because of limited new
housing supply and elevated mortgage interest rates, but stable
persistency     and the exceptionally strong credit profile of our
in   force book     continued to generate steady returns.
The integration of the U.S. Middle Market Commercial and
Entertainment business, acquired in 2024, progressed as planned.
The expansion of our middle market business is core to our growth
strategy and should generate long-term benefits for our shareholders.
Investments
Supported by robust operating cash flows, our investment portfolio
reached more than $47 billion at year-end, an increase of $6.0
billion from 2024.
Throughout the year, our underwriters prioritized insuring lines
where pricing kept pace with loss trends and exercised restraint
in more competitive areas. This selective approach is designed to
preserve healthy margins and reflects the disciplined execution that
defines how our underwriting teams approach the market.
Our investments team effectively managed market volatility,
balancing risk and return while maintaining liquidity and capital
strength. We expect our growing investment base to continue
supporting strong earnings and long   term value creation.
Reinsurance
2025 was another record year for our Reinsurance segment with
$1.6 billion of underwriting income and $7.6 billion of net premiums
written. The team continued to manage exposures carefully while
capturing attractive opportunities, a cycle-aware approach that
resulted in an 80.8% combined ratio, an improvement of 240 basis
points from 2024.
Arch Re is well-established as a leading global reinsurer, and
the diversity of our reinsurance portfolio allows us to act on
opportunities as they emerge. Strong relationships with brokers
2 | Arch Capital Group Ltd. 2025 Annual Report
Capital Management
Prudent capital stewardship remains central to our strategy. In 2025,
we deployed capital organically through our underwriting operations
while repurchasing $1.9 billion of common shares (representing 5.6%
of common shares outstanding at the start of 2025), reflecting our
confidence in the long   term value of Arch stock.
Our capital management philosophy remains unchanged:
deploy capital into opportunities that meet our return thresholds,
maintain a strong balance sheet, and return capital when organic
opportunities do not meet our standards.

Strategic Priorities
We are operating in a time of rapid change. Competition is robust and AI
is transforming both the insurance industry and the global economy. We
recognize the scale of this change, and we are focused on ensuring Arch
is positioned to meet the opportunities ahead.
Our 2030 Strategic Vision     to be the first   choice global specialty
(re)insurer by providing our customers the valuable insights and
innovative solutions that enable their unique ambitions     is our North
Star. The work we accomplished in 2025 is foundational to achieving our
ambitions and Vision and, combined with our enterprise-wide strategic
priorities, ensures we remain focused on building a stronger and more
agile Arch.
Our People
Our achievements reflect the expertise and commitment of our
employees. Their ability to adapt, collaborate and execute is
fundamental to how we serve our customers, partners and shareholders.
Our 2025 employee survey showed high engagement and strong
alignment with our Values. Arch remains an employer of choice for
motivated individuals looking to make meaningful contributions and
build their careers.
INVESTMENTS BY TYPE
Equity Method
Funds and Other
17.6%
Equity
Securities
3.9%
Cash and
Short-Term
7.8%
Non-U.S. Gov   t
6.9%
Corporates
32.0%
Asset Backed
Securities
7.5%
Municipal
0.3%
1
2
Investing in leadership development and acquiring top talent are
essential to helping our employees grow and our company succeed.
CMBS1
2.6%
MBS2
5.7%
CMBS = Commercial mortgage-backed securities.
MBS = Mortgage-backed securities.
Outlook
From the beginning, Arch   s commitment to maximize long-term
shareholder value has been unwavering. Since our recapitalization in
2001, book value per share has grown at a compound annual growth
rate in excess of 15%, placing us at the top of our peer group and
establishing Arch as one of the best investment opportunities in the
P&C sector.
FIXED MATURITIES BY RATING
B
2.2%
BB
4.0%
As we enter our 25th year, we do so with measured confidence. Market
conditions are evolving, but our diversified specialty platform, strong
balance sheet and disciplined approach have us well-positioned
to continue creating long-term value. We will invest in attractive
opportunities, remain selective where conditions are competitive and
continue advancing the capabilities     from underwriting insight to
data, analytics and AI     that strengthen our advantage.
Under B
0.1% Not Rated
2.0%
U.S. Gov   t and
Gov   t Agencies3
28.5%
BBB
19.5%
Thank you to our employees for their dedication, to our distributors
and clients for their trust, and to you, our shareholders, for your
continued confidence and support.
Nicolas Papadopoulo
Chief Executive Officer
Arch Capital Group Ltd.
U.S. Gov   t
15.7%
A
19.2%
3
AAA
16.9%
AA
7.6%
Includes U.S. government-sponsored agency MBS and agency CMBS.
Arch Capital Group Ltd. 2025 Annual Report | 3

3/24/2026 Letter Continued (Full PDF)

 

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.