UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-16209 ARCH CAPITAL GROUP LTD. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended Septe ...

Core Insights - Arch Global Services India, a subsidiary of Arch Capital Group Ltd., has opened a new office in Hyderabad as part of its strategic expansion into India [1][3] Group 1: Office Details - The Hyderabad office will focus on delivering innovative and technology-driven services across Arch Capital Group's affiliates and will accommodate approximately 100 employees with potential for future expansion [2] - The office is located in Hyderabad's Financial District, recognized as a thriving business and technology hub [2] Group 2: Design and Purpose - The office space is designed to encourage creativity and innovation, featuring cutting-edge workspaces and collaborative areas to foster engagement and teamwork [3] - This opening is part of a broader strategy that includes another business-service focused office opening in Trivandrum next week [3] Group 3: Workforce and Ecosystem - Hyderabad is noted for its deep pool of IT professionals and vibrant tech ecosystem, which will support Arch Capital Group's digital transformation and delivery of cutting-edge solutions [4]

Financial Performance - Gross premiums written for Q3 2025 were $5,410 million, a decrease of 0.6% compared to $5,440 million in Q3 2024[13] - Net premiums earned increased by 7.9% to $4,285 million in Q3 2025 from $3,970 million in Q3 2024[13] - Underwriting income rose by 61.9% to $871 million in Q3 2025, compared to $538 million in Q3 2024[13] - Net income available to Arch common shareholders increased by 37.0% to $1,340 million in Q3 2025, compared to $978 million in Q3 2024[13] - After-tax operating income available to Arch common shareholders rose by 36.7% to $1,042 million in Q3 2025 from $762 million in Q3 2024[13] - Total revenues for Q3 2025 reached $5,109 million, up from $4,722 million in Q3 2024, representing an 8.2% year-over-year growth[18] - Net income attributable to Arch for Q3 2025 was $1,350 million, compared to $988 million in Q3 2024, reflecting a 36.7% increase[18] Ratios and Efficiency - The loss ratio improved to 51.4% in Q3 2025 from 60.5% in Q3 2024, a decrease of 9.1 percentage points[13] - The combined ratio decreased to 79.8% in Q3 2025 from 86.6% in Q3 2024, reflecting a 6.8 percentage point improvement[13] - Annualized net income return on average common equity improved to 23.8% in Q3 2025 from 19.0% in Q3 2024, an increase of 4.8 percentage points[13] - The combined ratio for the insurance segment was 93.4%, indicating a slight improvement in underwriting performance[35] - The loss ratio for the insurance segment was 59.0%, showing effective management of claims[35] Assets and Equity - The company reported total assets of $79,185 million as of September 30, 2025, an increase from $73,656 million a year earlier[21] - Shareholders' equity rose to $23,719 million at the end of Q3 2025, up from $22,274 million in Q3 2024, indicating a 6.5% increase[21] - The book value per common share increased to $62.32 in Q3 2025, compared to $57.00 in Q3 2024, marking a 9.9% rise[21] - Total investable assets reached $46,746 million, reflecting the company's strong asset base[35] Cash Flow and Investment - Net cash provided by operating activities increased by 8.3% to $2,186 million in Q3 2025, compared to $2,018 million in Q3 2024[13] - The company reported net investment income of $408 million for Q3 2025, slightly up from $399 million in Q3 2024[18] - Total cash holdings increased to $1,063 million, representing 2.3% of total investable assets, up from $983 million and 2.2% in the previous quarter[83] - The yield on pre-tax investment income at amortized cost was 4.07% for the three months ended September 30, 2025, compared to 4.25% in the previous quarter[88] Acquisition and Expenses - Acquisition expenses for Q3 2025 totaled $786 million, compared to $681 million in Q3 2024, reflecting a 15.4% increase[18] - The acquisition expense ratio for Q3 2025 was 19.6%, unchanged from Q2 2025, indicating stable cost management[47] - Transaction costs and other expenses related to acquisitions were $21 million in Q3 2025, reflecting their non-recurring nature[108] Market and Risk Management - The risk-to-capital ratio for Arch MI U.S. is 7.9:1 as of September 30, 2025, indicating a strong capital position relative to risk[66] - The PMIER sufficiency ratio for Arch MI U.S. is 176%, reflecting compliance with the GSEs' requirements[66] - The total RIF, net of reinsurance, is $60,662 million, demonstrating the company's effective risk management[65] Shareholder Actions - The company repurchased shares at an aggregate cost of $732.3 million in the three months ended September 30, 2025, with an average price per share of $88.82[121] - Cumulative shares repurchased reached 446.1 million, with a total cost of $6.985 billion as of September 30, 2025[121] - Remaining share repurchase authorization stands at $1.905 billion following an increase of $2.0 billion on September 4, 2025[121]

Core Viewpoint - The composite of seven reinsurance groups in the US and Bermuda has shown favorable performance in 2024, achieving its fourth consecutive year of underwriting profitability despite a slight increase in the combined ratio compared to 2023 [1][3]. Group 1: Financial Performance - The composite achieved a combined ratio of 89.5 in 2024, reflecting a 4.4-point increase from 2023 but still showing strong improvement compared to years prior to 2023 [3][4]. - Overall profitability in 2024 was lower than the exceptional outcomes of 2023, which included historically strong underwriting margins and significant investment gains [5]. - Total net premiums written (NPW) rose by 13.2% in 2024, up from 5.3% in 2023, with growth in 2023 previously constrained by increased reinsurance cessions [6]. Group 2: Premium Growth - Property and casualty (P/C) gross written premiums increased by 12.3% in 2024, compared to 10.5% in 2023, primarily driven by RenaissanceRe following the Validus transaction [7]. - Excluding RenaissanceRe, P/C premium growth moderated to 9.5% in 2024 from 12.9% in 2023 [7]. - A broader trend of slowing top-line growth is noted, particularly in property exposures where pricing began to soften in 2025 [8]. Group 3: Catastrophe and Losses - Natural catastrophe activity remained high in 2024, with estimated global insured losses reaching approximately USD 140 billion, the third-highest on record [10]. - Catastrophe events added 6.7 points to the composite's combined ratio, compared to 4.0 points in 2023 [10]. - Loss reserve development was less favorable in 2024, contributing only 0.3 points of favorable development versus 3.7 points in 2023 [11]. Group 4: Investment Performance - Strong investment performance continued to support earnings, with net investment income more than doubling over two years to reach USD 8.8 billion in 2024 [12]. - The composite posted a return on equity (ROE) of 16.8% in 2024, down from 23.0% in 2023 due to one-time accounting gains [12]. Group 5: Market Dynamics - The composite's GAAP equity grew by 9.6% in 2024, slightly lagging behind NPW and loss reserve increases [13]. - New company formation in the US and Bermuda reinsurance market has remained limited due to an abundance of capital and investor caution [14]. - Future capital flows are expected to favor established reinsurers with proven track records, while opportunities for new entrants are likely to remain constrained [14].

Financial Performance - Net premiums earned for Q2 2025 reached $4,337 million, a 21.6% increase from $3,565 million in Q2 2024[19] - Total revenues for the first half of 2025 were $9,886 million, up 21.0% from $8,170 million in the same period of 2024[19] - Net income available to Arch common shareholders for Q2 2025 was $1,227 million, compared to $1,259 million in Q2 2024, reflecting a slight decrease of 2.5%[19] - Comprehensive income for Q2 2025 was $1,597 million, compared to $1,280 million in Q2 2024, indicating a growth of 24.8%[22] - Net income for the six months ended June 30, 2025, was $1,811 million, compared to $2,389 million for the same period in 2024, representing a decrease of 24%[28] - After-tax operating income available to Arch common shareholders for the first half of 2025 was $1,566 million, down 18.2% from $1,914 million in the same period of 2024[208] Assets and Liabilities - Total assets increased to $78,788 million as of June 30, 2025, up from $70,906 million at the end of 2024, representing an increase of 11.5%[15] - Total liabilities increased to $55,747 million as of June 30, 2025, compared to $50,086 million at the end of 2024, reflecting an increase of 11.3%[15] - The company’s retained earnings grew to $24,477 million as of June 30, 2025, up from $22,686 million at the end of 2024, representing an increase of 7.9%[15] - Total shareholders' equity at the end of the period was $23,041 million, up from $20,665 million year-over-year, indicating a growth of 11%[25] Investment Income - Net investment income for Q2 2025 was $405 million, a 11.3% increase from $364 million in Q2 2024[19] - The company reported net realized gains of $229 million in Q2 2025, up from $122 million in Q2 2024, marking an increase of 87.7%[19] - The gross investment income for the six months ended June 30, 2025, is $836 million, compared to $736 million for the same period in 2024[102] - The company reported a net investment income of $783 million for the six months ended June 30, 2025, up from $691 million in the prior year[102] Underwriting Performance - The insurance segment reported $129 million of underwriting income for Q2 2025, with net premiums written exceeding $2 billion, a 30.7% increase from Q2 2024[187] - The reinsurance segment contributed $451 million of underwriting income in Q2 2025, with over $2 billion of net premiums written, focusing on selective growth in casualty lines[189] - The mortgage segment generated $238 million of underwriting income in Q2 2025, with a persistency rate of 81.9% in the U.S. primary mortgage insurance portfolio[190] Shareholder Actions - The company repurchased $359 million worth of common shares under its share repurchase program during the six months ended June 30, 2025[28] - Arch Capital repurchased 437.9 million common shares for an aggregate purchase price of $6.3 billion since the inception of the share repurchase program[45] - The company repurchased approximately 2.8 million common shares for an aggregate purchase price of $244 million from July 1 to August 5, 2025[179] Market Conditions - The property and casualty market conditions remain largely consistent, with some sectors experiencing increased price competition while others see rate improvements[186] - Competitive pressure persists in E&S property, excess D&O, and cyber lines, with a cautious stance maintained on pricing[187] Tax and Regulatory - The effective tax rate for the six months ended June 30, 2025, was 15.6%, up from 7.7% for the same period in 2024, primarily due to the Corporate Income Tax Act 2023 in Bermuda[173] - The company paid $149 million in income taxes for the six months ended June 30, 2025, compared to $145 million for the same period in 2024[174] Acquisitions - The acquisition of the U.S. MidCorp and Entertainment insurance business from Allianz was completed for $450 million, enhancing the company's capabilities in the U.S. middle markets[34][35] - The total assets acquired in the Allianz transaction amounted to $3,296 million, while total liabilities acquired were $3,122 million, resulting in identifiable net assets of $174 million[39] - Goodwill recognized from the acquisition was $276 million, primarily attributed to long-term growth opportunities in the insurance market[40] Cash Flow - The company provided $2,582 million in net cash from operating activities for the six months ended June 30, 2025, down from $3,082 million in 2024, a decline of 16%[28] - The company experienced a net cash used for investing activities of $2,236 million, compared to $2,918 million in the previous year, a decrease of 23%[28] Risk Management - The allowance for expected credit losses for premium receivables increased to $7,067 million at the end of the second quarter of 2025, up from $6,268 million at the end of the second quarter of 2024, a rise of 12.7%[85] - The reinsurance recoverables on unpaid and paid losses increased to $9,044 million as of June 30, 2025, compared to $8,260 million at December 31, 2024, marking a 9.5% increase[89]

Premiums and Revenues - Gross premiums written increased by 15.1% to $6,196 million for the three months ended June 30, 2025, compared to $5,382 million in the same period of 2024[14] - Net premiums earned rose by 21.7% to $4,337 million for the three months ended June 30, 2025, up from $3,565 million in the prior year[14] - Net premiums earned for Q2 2025 increased to $4,337 million, up 3.6% from $4,188 million in Q1 2025[18] - Total revenues for Q2 2025 reached $5,213 million, a 11.6% increase compared to $4,673 million in Q1 2025[18] - Gross premiums written totaled $6,196 million, with the insurance segment contributing $2,681 million, reinsurance segment $3,196 million, and mortgage segment $323 million[35] - For the six months ended June 30, 2025, gross premiums written reached $12,659 million, with net premiums written at $8,863 million, maintaining a net to gross ratio of 70.0%[41] Income and Profitability - Net income available to Arch common shareholders decreased by 2.5% to $1,227 million for the three months ended June 30, 2025, compared to $1,259 million in 2024[14] - Comprehensive income available to Arch increased by 24.8% to $1,597 million for the three months ended June 30, 2025, compared to $1,280 million in 2024[14] - Net income attributable to Arch for Q2 2025 was $1,227 million, a significant rise from $564 million in Q1 2025, representing a 117.5% increase[18] - Net income for the three months ended June 30, 2025, was $1,237 million, an increase from $574 million in the previous quarter[25] - The annualized net income return on average common equity was 22.9% for the three months ended June 30, 2025, down from 26.3% in 2024[14] Underwriting Performance - Underwriting income decreased by 7.3% to $818 million for the three months ended June 30, 2025, compared to $762 million in 2024[14] - The combined ratio increased to 81.2% for the three months ended June 30, 2025, from 78.7% in the same period of 2024[14] - The combined ratio improved to 81.2%, with a loss ratio of 53.1% and an acquisition expense ratio of 19.0%[35] - The loss ratio improved to 59.8% in Q2 2025 from 66.0% in Q1 2025, indicating better underwriting performance[47] - The combined ratio for Q2 2025 was 93.4%, down from 100.1% in Q1 2025, reflecting improved operational efficiency[47] Investment Performance - Pre-tax net investment income rose by 11.3% to $405 million for the three months ended June 30, 2025, compared to $364 million in the same period of 2024[14] - Total return on investments increased to 3.09% for the three months ended June 30, 2025, compared to 1.33% in the same period of 2024[14] - The company reported net investment income of $405 million and net realized gains of $229 million for the quarter[35] - Total investable assets reached $44,938 million, while total assets amounted to $78,788 million[35] - The investment income yield at amortized cost was 4.25% for the three months ended June 30, 2025, compared to 4.16% in the previous quarter, indicating a slight improvement[88] Assets and Liabilities - Total assets as of June 30, 2025, amounted to $78,788 million, up from $75,176 million at the end of Q1 2025, reflecting a growth of 3.5%[21] - Total liabilities increased to $55,747 million as of June 30, 2025, from $53,631 million at the end of Q1 2025, an increase of 3.9%[21] - Total shareholders' equity as of June 30, 2025, was $23,041 million, up from $21,545 million at the end of Q1 2025, reflecting an increase of 6.9%[21] - Common shareholders' equity increased to $22,211 million as of June 30, 2025, up from $20,715 million in the previous quarter, representing an increase of 7.2%[120] Shareholder Returns - The company repurchased shares at an aggregate cost of $163.2 million during the three months ended June 30, 2025, with 1.9 million shares repurchased[122] - The average price per share repurchased was $87.94 during the three months ended June 30, 2025[122] - The remaining share repurchase authorization is $637.1 million as of June 30, 2025[122] - Cumulative shares repurchased since the program's inception total 437.9 million shares[122] Mortgage Insurance Operations - U.S. primary mortgage insurance net premiums written were $184 million in Q2 2025, representing 72.7% of total net premiums written[61] - Total insurance in force (IIF) as of June 30, 2025, was $496.67 billion, a slight increase from $494.77 billion at the end of Q1 2025[61] - The risk-to-capital ratio for Arch MI U.S. is 8.3:1 as of June 30, 2025, up from 7.8:1 on March 31, 2025[66] - The total RIF by credit quality shows that 63.1% is from borrowers with a FICO score of 740 and above, totaling $47,261 million[65] - The ending percentage of loans in default was 1.93% in Q2 2025, slightly down from 1.96% in Q1 2025[70]

Revenue and Income - Total revenues for Q1 2025 increased to $4,673 million, up 18.6% from $3,941 million in Q1 2024[19] - Net premiums earned rose to $4,188 million, a 22.4% increase compared to $3,422 million in the same period last year[19] - Net income available to Arch common shareholders decreased to $564 million, down 49.2% from $1,110 million in Q1 2024[19] - Comprehensive income for Q1 2025 was $886 million, compared to $975 million in Q1 2024, reflecting a decrease of 9.1%[22] - Basic net income per common share was $1.51, down from $2.99 in Q1 2024, reflecting a decline of 49.7%[19] - Net income for the three months ended March 31, 2025, was $574 million, a decrease of 48.8% compared to $1,120 million in the same period of 2024[29] - After-tax operating income available to Arch common shareholders was $587 million for Q1 2025, down from $933 million in Q1 2024[190] - The annualized net income return on average common equity was 11.1% for Q1 2025, compared to 24.6% for Q1 2024[190] Assets and Equity - Total assets increased to $75,176 million, up 6.0% from $70,906 million at the end of 2024[15] - Shareholders' equity available to Arch increased to $21,545 million, up 3.5% from $20,820 million at the end of 2024[15] - Cash and restricted cash at the end of the period was $1,985 million, an increase from $1,600 million at the end of the first quarter of 2024[29] - Total restricted assets increased to $13.769 billion as of March 31, 2025, compared to $13.048 billion at December 31, 2024[105] Investment Performance - The company reported net investment income of $378 million, an increase of 15.6% from $327 million in the same quarter last year[19] - The company reported net realized gains of $3 million in Q1 2025, a decrease from $67 million in Q1 2024, indicating a decline in investment performance[60] - The total fair value of available-for-sale investments was $31,275 million as of March 31, 2025, with gross unrealized losses of $475 million[81] - The total value of equity securities held at fair value decreased to $1.6 billion as of March 31, 2025, down from $1.7 billion at December 31, 2024[87] - The company's total investments in limited partnership interests amounted to $6.371 billion as of March 31, 2025, compared to $6.028 billion at December 31, 2024[95] Underwriting and Loss Ratios - Underwriting income for the insurance segment was a loss of $2 million in Q1 2025, while the reinsurance segment generated an income of $167 million, and the mortgage segment contributed $252 million[60] - The combined ratio for the total segments improved to 90.1% in Q1 2025 from 78.8% in Q1 2024, indicating a decline in underwriting profitability[60] - The loss ratio for the insurance segment was 66.0% in Q1 2025, compared to 58.9% in Q1 2024, indicating a deterioration in loss experience[60] - The reinsurance segment's current year loss ratio for Q1 2025 was 66.9%, significantly higher than 53.0% in Q1 2024, marking a 13.9-point increase[210] Acquisition and Expenses - Acquisition expenses increased to $764 million, up 25.8% from $607 million in Q1 2024[19] - The company completed the acquisition of the U.S. MidCorp and Entertainment insurance business from Allianz for $450 million on August 1, 2024, enhancing its capabilities in the U.S. middle markets[35][36] - The company recognized $246 million in goodwill primarily attributed to long-term growth opportunities in the insurance market from the recent acquisition[40] Share Repurchase and Stock Performance - The company repurchased 2.2 million shares for an aggregate purchase price of $196.4 million during the first quarter of 2025, with $800.4 million remaining available under the share repurchase program[49] - Book value per share increased to $55.15 at March 31, 2025, up 3.8% from $53.11 at December 31, 2024, driven by strong investment and underwriting returns[174] Tax and Regulatory - The company's effective tax rate rose to 17.4% for Q1 2025, up from 8.3% in Q1 2024, primarily due to the enactment of a 15% corporate income tax in Bermuda[158] - The company had a net deferred tax asset of $1.6 billion as of March 31, 2025, consistent with the previous quarter[159]

Premiums and Income - Gross premiums written increased by 8.9% to $6,463 million compared to $5,933 million in the same period last year[12] - Net premiums written rose by 10.5% to $4,515 million from $4,085 million year-over-year[12] - Net premiums earned surged by 22.4% to $4,188 million, up from $3,422 million in the previous year[12] - Net income available to Arch common shareholders fell by 49.2% to $564 million, down from $1,110 million year-over-year[12] - After-tax operating income available to Arch common shareholders decreased by 37.1% to $587 million from $933 million in the same period last year[12] - Comprehensive income available to Arch declined by 9.1% to $886 million, compared to $975 million in the previous year[12] Underwriting Performance - Underwriting income decreased by 43.3% to $417 million, down from $736 million in the same quarter last year[12] - The combined ratio worsened to 90.1%, compared to 78.8% in the prior year, reflecting an increase of 11.3 percentage points[12] - The loss ratio for Q1 2025 was 61.8%, compared to 57.5% in Q4 2024, indicating a rise in losses[74] - The combined ratio for Q1 2025 was 90.1%, up from 85.0% in Q4 2024, reflecting increased underwriting expenses[74] Assets and Liabilities - Total assets increased to $75,176 million as of March 31, 2025, up from $62,768 million a year earlier, representing a growth of 19.8%[20] - Total liabilities increased to $53,631 million, up from $43,411 million a year ago, representing a growth of 23.6%[20] - Shareholders' equity reached $21,545 million, an increase from $19,355 million in the same quarter last year, representing an 11.1% growth[23] Investment Performance - Total return on investments improved to 2.02%, an increase of 122 basis points from 0.80% in the prior year[12] - Net investment income for the company totaled $378 million, contributing positively to overall financial performance[35] - Pre-tax net investment income for the three months ended March 31, 2025, was $378 million, a decrease from $405 million in the previous quarter[84] - The investment income yield at amortized cost was 4.16% for the three months ended March 31, 2025, down from 4.32% in the previous quarter[84] Shareholder Actions - The company repurchased $196 million of common shares under its share repurchase program during the quarter[25] - Aggregate cost of shares repurchased in the three months ended March 31, 2025, was $196.4 million, with 2.2 million shares repurchased[117] - Remaining share repurchase authorization stands at $800.4 million, indicating potential for future buybacks[117] Mortgage Segment Performance - The mortgage segment generated net premiums written of $266 million, a slight decrease from $277 million in the previous year[35] - The underwriting income for the Mortgage Segment was $252 million in Q1 2025, down from $271 million in Q1 2024, indicating a decline of 7.0%[53] - The U.S. primary mortgage insurance segment accounted for $203 million, representing 76.3% of net premiums written in Q1 2025[57] Risk and Capital Management - The risk-to-capital ratio for Arch MI U.S. is 7.8:1 as of March 31, 2025, unchanged from the previous quarter[62] - The PMIER sufficiency ratio for Arch MI U.S. is reported at 186%, indicating strong compliance with the updated requirements[63] - The total RIF, net of reinsurance, is $60,226 million, reflecting a slight increase from $60,085 million[61] Financial Ratios and Returns - The annualized net income return on average common equity dropped to 11.1%, down from 24.6% year-over-year, a decline of 13.5 percentage points[12] - The annualized operating return on average common equity was 11.5% for Q1 2025, compared to 20.7% in Q1 2024[109] - The effective tax rate on pre-tax operating income available to Arch was 11.7% in Q1 2025, up from 8.5% in Q1 2024[113]

Financial Performance - Arch Capital reported net premiums of $15.7 billion for 2024, with a net income of $4.3 billion available to common shareholders[16] - Book value per share increased to $53.11 at December 31, 2024, up from $46.94 at the end of 2023, representing a growth of 4.5%[16] - Total investable assets held by the company were $41.4 billion as of December 31, 2024, emphasizing a focus on capital preservation and market liquidity[87] Acquisitions and Expansions - The company expanded its U.S. insurance middle market presence by acquiring Allianz's U.S. Middle Market Property and Casualty insurance business on August 1, 2024[20] - The acquisition of Watford Insurance Company in 2024 added to Arch Capital's capabilities, as WIC is an admitted insurer in all 50 states[29] - Arch Capital's mortgage operations include participation in GSE credit risk-sharing transactions and direct mortgage insurance, with significant expansion in Australia through the acquisition of Westpac Lenders Mortgage Insurance Limited in August 2021[24] - The company established a managing agency and syndicate at Lloyd's of London in 2009, enhancing its U.K. presence with the acquisition of Barbican Group Holdings Limited in 2019[19] - Arch Insurance (EU) expanded its presence across Europe in 2023 with new branch offices in Spain and France, following the establishment of its Ireland-based carrier[19] Underwriting and Claims Management - Arch Capital's strategy focuses on specialty lines of insurance and reinsurance, targeting areas where it can apply specialized underwriting expertise[25] - The insurance group aims to capitalize on profitable underwriting opportunities by expanding its product portfolio and adding professionals with expertise in specialty lines[36] - Centralized underwriting responsibility is maintained across product lines, enhancing accountability and management of marketing and distribution[36] - The insurance group adheres to disciplined underwriting standards, focusing on risk selection and proper pricing to generate underwriting profit[36] - Claims management is emphasized as a key component of market credibility, with a focus on expeditious and satisfactory claims handling[36] Employee Engagement and Talent Acquisition - As of February 20, 2025, the company had over 7,200 employees globally, an increase from approximately 6,400 the previous year, indicating strong talent retention and growth[77] - The company launched a new talent acquisition model in 2023 to enhance its ability to attract top talent across multiple talent pools[79] - Over 65,000 awards were received by employees in 2024 through the global recognition program, supporting employee engagement and retention[82] Risk Management and Compliance - The company employs an Enterprise Risk Management framework that includes various risk categories, ensuring comprehensive risk assessment and management[96] - The Own Risk and Solvency Assessment (ORSA) process is integral to Arch Capital's risk management framework, linking risk profile, risk appetite, business strategy, and solvency requirements[103] - The ORSA report is produced at least annually, with results reported to the Board, which actively participates in the assessment process[104] - Arch Re Bermuda and AGRL must maintain a minimum liquidity ratio of 75% of relevant liabilities, ensuring compliance with solvency and liquidity standards[110] Regulatory Environment - The Bermuda Monetary Authority (BMA) has established a target capital level for Class 3A and Class 4 insurers equal to 120% of their Enhanced Capital Requirement (ECR)[111] - Arch Capital was designated as an Internationally Active Insurance Group (IAIG) by the BMA in 2024, subjecting it to international oversight[121] - The SEC Cybersecurity Rules require public companies to report material cybersecurity incidents within four days and disclose risk management processes in their annual reports[142] - The California Consumer Privacy Act, effective January 1, 2023, grants consumers rights to access, correct, and delete their data, along with a private right of action for cybersecurity breaches[145] Climate Change and Sustainability - Arch is taking steps to mitigate climate change effects in underwriting segments, adopting a thermal coal policy and providing environmentally sustainable insurance solutions[75] - U.S. state insurance regulators are increasing oversight of climate change risks, requiring insurers with over $100 million in premiums to disclose their climate risk management annually[160] - The U.K. government aims to align its financial system with the 2050 "Net Zero" target, implementing mandatory climate-related financial disclosures for large companies starting from April 6, 2022[188] Technology and Innovation - The company’s generative AI technologies are closely monitored, with approval required for new implementations, highlighting a commitment to data-driven decision-making[76] - The NAIC adopted a model bulletin on the use of AI systems by insurers, with at least 20 states expected to adopt it by February 1, 2025[148] - California passed several AI statutes in 2024 that may impact U.S. underwriting entities, with comprehensive requirements effective from January 1, 2026[151]

Arch Capital Group Ltd. Waterloo House, Ground Floor 100 Pitts Bay Road Pembroke HM 08 Bermuda EXHIBIT 99.2 Financial Supplement December 31, 2024 The following financial supplement is provided to assist in your understanding of Arch Capital Group Ltd. ("Arch") and its subsidiaries (collectively, the "Company"). This report is for informational purposes only. It should be read in conjunction with documents filed by Arch with the U.S. Securities and Exchange Commission, including the most recent Annual Repor ...