Arch Capital .(ACGL) - 2024 Q4 - Annual Results

Premiums and Revenues - Gross premiums written increased by 11.9% to $4,756 million for the three months ended December 31, 2024, compared to$ 4,251 million in the same period of 2023[12]. - Net premiums written rose by 17.1% to $3,819 million for the three months ended December 31, 2024, up from$ 3,261 million in the prior year[12]. - Net premiums earned for Q4 2024 reached $4,143 million, up 23.9% from$ 3,344 million in Q4 2023[17]. - Total revenues for Q4 2024 were $4,548 million, an increase of 14.4% compared to$ 3,975 million in Q4 2023[17]. - Gross premiums written totaled $4,756 million, with the insurance segment contributing$ 2,484 million, reinsurance $1,941 million, and mortgage$ 331 million[34]. - Net premiums earned for the year ended December 31, 2024, reached $15,100 million, a significant increase from$ 12,440 million in 2023, reflecting a growth of 21.3%[75]. - Total net premiums written for the year ended December 31, 2024, reached $7,746 million, a 17.9% increase from$ 6,554 million in 2023[51]. Income and Profitability - Net income available to Arch common shareholders decreased by 60.2% to $925 million for the three months ended December 31, 2024, down from$ 2,324 million in the prior year[12]. - After-tax operating income available to Arch common shareholders was $866 million for the three months ended December 31, 2024, an 8.4% decrease from$ 945 million in the same period of 2023[12]. - Comprehensive income available to Arch decreased by 86.7% to $415 million for the three months ended December 31, 2024, compared to$ 3,111 million in the prior year[12]. - Net income attributable to Arch for Q4 2024 was $925 million, a decrease of 60.3% from$ 2,324 million in Q4 2023[17]. - The company reported a net income available to common shareholders of $4,403 million for the year ended December 31, 2023[42]. Ratios and Performance Metrics - The combined ratio increased to 85.0% for the three months ended December 31, 2024, compared to 78.9% in the same period of 2023[12]. - The annualized net income return on average common equity was 17.9% for the three months ended December 31, 2024, down from 58.2% in the same period of 2023[12]. - The total return on investments was -1.05% for the three months ended December 31, 2024, a decrease of 581 basis points compared to 4.76% in the prior year[12]. - The combined ratio for the insurance segment was 98.5%, while the reinsurance segment reported a combined ratio of 83.0%[34]. - The loss ratio for the insurance segment was 66.3%, while the reinsurance segment had a loss ratio of 58.9%[34]. - The combined ratio for Q4 2024 was 85.0%, a decrease from 86.6% in Q3 2024 and 78.9% in Q4 2023, indicating improved underwriting performance[75]. Investment Income and Assets - Net investment income grew by 29.4% to$ 405 million for the three months ended December 31, 2024, compared to $313 million in the same period of 2023[12]. - The company reported net realized losses of$ 161 million during the same period[34]. - Total investable assets amounted to $41,388 million, with total assets at$ 70,906 million and total liabilities at $50,086 million[34]. - The company reported gross investment income of$ 428 million for the three months ended December 31, 2024, compared to $332 million for the same period in 2023, reflecting a year-over-year increase of 28.9%[86]. - Total fixed maturities as of December 31, 2024, were$ 27,889 million, a decrease from $29,531 million on September 30, 2024[89]. Liabilities and Equity - The company reported total assets of$ 70,906 million as of December 31, 2024, up from $58,906 million a year earlier, representing a 20.4% increase[19]. - The company’s total liabilities were$ 50,086 million as of December 31, 2024, compared to $40,551 million a year earlier, marking a 23.5% increase[19]. - Common shareholders' equity decreased to$ 19.990 billion from $21.444 billion in September 2024[121]. - Total capital available to Arch is$ 23.548 billion, down from $25.001 billion in September 2024[121]. Mortgage Insurance Metrics - U.S. primary mortgage insurance net premiums written were$ 208 million for the three months ended December 31, 2024, representing 75.1% of total net premiums written[59]. - Insurance in force (IIF) for U.S. primary mortgage insurance was $290,435 million as of December 31, 2024, accounting for 58.0% of total IIF[59]. - The persistency rate for analysts is reported at 82.1% for December 31, 2024, down from 83.6% in the previous quarter[63]. - The risk-to-capital ratio for Arch MI U.S. is 7.8:1 as of December 31, 2024, indicating a slight increase in risk exposure compared to 7.3:1 in the previous quarter[63]. - The total Risk in Force (RIF) for U.S. mortgage insurance operations as of December 31, 2024, is$ 76,034 million, a slight decrease from $76,448 million on September 30, 2024[62]. Share Repurchase and Capital Management - Aggregate cost of shares repurchased in the quarter is$ 23.5 million, with 0.3 million shares repurchased at an average price of $89.65 per share[123]. - Remaining share repurchase authorization is$ 976.5 million[123]. - Cumulative shares repurchased since the program's inception total 433.8 million[123].