Morin highlighted an overall ex-cat accident year combined ratio of 79.5% for the quarter, down 100 basis points from the prior quarter. Results benefited from $118 million of favorable prior development (pre-tax), which he said represented 2.8 points on the overall combined ratio. He said favorable development was recognized across all three segments, with the most significant improvements again seen in short-tail P&C lines and in mortgage due to strong cure activity.Chief Financial Officer François Morin ...

Key Takeaways Arch Capital posted Q4 operating income of $2.98, beating estimates by 19.7% and up 31.9%.ACGL benefited from higher insurance premiums, underwriting gains, and a 7.2% jump in net investment income.Arch Capital's underwriting income rose 32.3% to $827 million, with the combined ratio improving to 80.6.Arch Capital Group Ltd. (ACGL) reported fourth-quarter 2025 operating income of $2.98 per share, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 31.9% year over year.A ...

Bermuda-based Arch Capital Group Ltd.’s reinsurance arm delivered record underwriting income of $1.6 billion for the full year 2025, and while the firm saw property catastrophe rate declines between 10% and 20% at the January renewals, with additional pressure expected throughout 2026, CEO Nicolas Papadopoulo has emphasised that Arch still likes the business.Arch’s reinsurance arm had a strong 2025, contributing more than 50% of the firm’s total underwriting profit in the final quarter of the year.Speaking ...

Underwriting performance was solid, with an underlying ex-cat combined ratio of 90.8% in the quarter, similar to the fourth quarter last year. Gross premium return increased 2% from 2024. In North America, we continue to grow in specialty casualty lines including alternative markets, construction, and E&S casualty. As for our international units, we increased writings through our Bermuda platform and in Continental Europe. I will note that we experienced a year-over-year decline in net premium return which ...

Arch Capital Group (NasdaqGS:ACGL) Q4 2025 Earnings call February 10, 2026 10:00 AM ET Company ParticipantsAndrew Andersen - Equity Research Vice PresidentFrançois Morin - CFO and TreasurerMeyer Shields - Managing DirectorNicolas Papadopoulo - CEOTracy Benguigui - Director and Head of Insurance Equity ResearchYaron Kinar - Managing DirectorConference Call ParticipantsCave Montazeri - Research AnalystDavid Motemaden - Senior Managing Director and Senior Equity Research AnalystElyse Greenspan - Equity Researc ...

Arch Capital Group (NasdaqGS:ACGL) Q4 2025 Earnings call February 10, 2026 10:00 AM ET Company ParticipantsAndrew Andersen - Equity Research Vice PresidentFrançois Morin - CFO and TreasurerMeyer Shields - Managing DirectorNicolas Papadopoulo - CEOTracy Benguigui - Director and Head of Insurance Equity ResearchYaron Kinar - Managing DirectorConference Call ParticipantsCave Montazeri - Research AnalystDavid Motemaden - Senior Managing Director and Senior Equity Research AnalystElyse Greenspan - Equity Researc ...

Financial Data and Key Metrics Changes - The company generated $1.1 billion of after-tax operating income in Q4 2025, a 26% increase from Q4 2024 [4] - The full year 2025 produced $3.7 billion of after-tax operating income, resulting in after-tax operating earnings per share of $9.84 and a 17.1% annualized operating return on average common equity [4] - Book value per share increased by 22.6% in 2025, with a compound annual growth rate exceeding 15% since inception [5] Business Line Data and Key Metrics Changes - The insurance group delivered $119 million of underwriting income in Q4 2025, with a combined ratio of 90.8% [6] - Gross premiums written in the insurance segment increased by 2% from Q4 2024, while net premiums written declined year-over-year [6][14] - The reinsurance segment achieved a record $1.6 billion of underwriting income for the year, with a combined ratio of 74.9% in Q4 2025 [9] - The mortgage segment produced $1 billion of underwriting income for the year, maintaining strong performance [10][16] Market Data and Key Metrics Changes - In North America, the company continues to grow in specialty casualty lines, while international pricing is tracking slightly below loss trends [8] - The rate environment in North America is largely keeping pace with loss-cost trends, while competition is increasing in several lines of business [5][8] Company Strategy and Development Direction - The company emphasizes a diversified business model and disciplined risk selection as key differentiators in a competitive market [5] - The Arch Playbook remains a valid strategy for navigating the evolving market conditions [5] - The company aims to maximize long-term shareholder value through share buybacks and disciplined capital management [4][20] Management's Comments on Operating Environment and Future Outlook - Management expressed measured optimism heading into 2026, acknowledging increased competition but confidence in the company's ability to deliver strong returns [5] - The company is focused on maintaining underwriting discipline and adapting to changing market conditions [11] - Management highlighted the importance of leveraging data and analytics for improved risk selection [11] Other Important Information - The company recognized a full-year effect of the Bermuda Tax Credits Act 2025, impacting financial results positively [17][18] - The effective tax rate for 2025 was 14.9%, with expectations to return to the 16%-18% range in 2026 [19] Q&A Session Summary Question: Opportunities in property cat reinsurance - Management clarified that opportunities mentioned were not in property cat but in other geographies and specialty lines [23] Question: Capital management and buyback pace - Management indicated that share buybacks would depend on market conditions and stock price, with expectations to remain active throughout the year [24] Question: MCE re-underwriting impact - Management noted that the re-underwriting would impact top line in 2026, with no significant seasonality expected [25] Question: Casualty reinsurance market conditions - Management acknowledged that margins are under pressure but expressed optimism about the business due to a diversified platform [42][44] Question: Demand for casualty reinsurance - Management indicated that while there is stable demand, the willingness of cedents to retain more business has added to competition [52] Question: Impact of Bermuda tax credits on expenses - Management stated that the Bermuda tax credits would benefit the expense ratio but did not expect significant changes in other expense items [93]

INVESTOR PRESENTATION 2025 Fourth Quarter ©2026 Arch Capital Group Ltd. All rights reserved. ©2026 Arch Capital Group Ltd. All rights reserved. 1 Informational Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This release or any other written or oral statements made by or on behalf of Arch and its subsidiaries may include forward-looking statements, which reflect the Company's current views with respect to future events and financial pe ...

Core Insights - Baron Asset Fund outperformed the Russell Midcap Growth Index by 11.59 percentage points in Q4 2025, returning 7.89% [1] - The Fund's strong performance was attributed to favorable stock selection, particularly in the financial sector with Arch Capital Group Ltd. [1][3] Fund Performance - The Russell Midcap Growth Index ended Q4 2025 down 3.70% [1] - Baron Asset Fund held 53 positions, with the top 10 holdings representing 52.8% of net assets and the top 20 holdings representing 73.3% [1] Arch Capital Group Ltd. Overview - Arch Capital Group Ltd. (NASDAQ:ACGL) is an insurance company with a market capitalization of $35.852 billion [2] - The stock closed at $96.06 on February 9, 2026, with a one-month return of 5.83% and a twelve-month return of 7.21% [2] Financial Performance of Arch Capital Group Ltd. - Arch Capital's stock rose due to strong earnings results, with Q3 earnings per share exceeding expectations [3] - The company achieved an 18% return on equity and 9% growth in book value per share, with 18% growth when adjusted for a special dividend [3] - Share repurchases reduced the share count by 4% year to date, indicating management's confidence in the company's valuation [3] Hedge Fund Interest - Arch Capital Group Ltd. was held by 40 hedge fund portfolios at the end of Q3 2025, down from 46 in the previous quarter [4] - While the company has potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Arch Capital Group Ltd., the Bermuda-based insurer and reinsurer, has reported a 32.3% year-on-year rise in underwriting income to $827 million for the fourth quarter of 2025, with a strong performance in both insurance and reinsurance.Group-wide, the combined ratio improved by 4.4 percentage points to 80.6%, down from 85% in Q4’24, as the loss ratio decreased to 53.6%, down from 57.5% in 2024. Overall gross premiums written (GPW) remained relatively flat at $4.8 billion, compared to $4.76 billion in Q4’24. ...