Premiums and Revenue - 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[13] - 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[13] - Net premiums earned grew by 23.9% to $4,143 million for the three months ended December 31, 2024, compared to $3,344 million in 2023[13] - Total revenues for Q4 2024 were $4,548 million, an increase of 14.4% compared to $3,975 million in Q4 2023[18] - Net premiums earned for the year ended December 31, 2024, reached $15,100 million, up from $12,440 million in 2023, indicating a growth of 21.3%[74] Underwriting Performance - Underwriting income decreased by 12.6% to $625 million for the three months ended December 31, 2024, from $715 million in the same period of 2023[13] - The loss ratio increased to 57.5% for the three months ended December 31, 2024, compared to 49.0% in the prior year[13] - The combined ratio for the total business was 85.0%, with the insurance segment at 98.5% and the reinsurance segment at 83.0%[35] - The combined ratio for Q4 2024 was 98.5%, up from 93.1% in Q3 2024, reflecting higher underwriting expenses[47] - The loss ratio for Q4 2024 was 66.3%, compared to 61.6% in Q3 2024, indicating an increase in claims relative to premiums[47] Investment Income - Net investment income rose by 29.4% to $405 million for the three months ended December 31, 2024, compared to $313 million in 2023[13] - The company reported net investment income of $405 million for Q4 2024, up from $313 million in Q4 2023, reflecting a growth of 29.4%[18] - The Company’s gross investment income for the year ended December 31, 2024, was $1,586 million, up from $1,100 million in 2023[84] - The Company reported a total return on investments of (1.05)% for the three months ended December 31, 2024, compared to 3.97% in the previous quarter[84] Net Income and Shareholder Equity - 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 same period of 2023[13] - Comprehensive income available to Arch fell by 86.7% to $415 million for the three months ended December 31, 2024, compared to $3,111 million in 2023[13] - Common shareholders' equity decreased to $19.990 billion from $21.444 billion in the previous quarter, reflecting a decline of approximately 6.8%[118] - Book value per common share decreased to $53.11 from $57.00 in the previous quarter, indicating a decrease of about 12.7%[118] Assets and Liabilities - Total assets as of December 31, 2024, were $70,906 million, up from $58,906 million a year earlier, reflecting a growth of 20.4%[20] - Total liabilities as of December 31, 2024, were $50,086 million, an increase from $40,551 million in 2023, marking a growth of 23.5%[20] - Total investable assets reached $41,388 million, while total assets amounted to $70,906 million[35] Claims and Reserves - The reserve for losses and loss adjustment expenses increased to $29,369 million, compared to $22,752 million at the end of 2023, representing a rise of 29.1%[20] - Total losses and loss adjustment expenses for the year ended December 31, 2024, were $8,342 million, compared to $6,246 million in 2023, representing a 33.6% increase[74] - The company reported a net favorable development in prior year loss reserves of 22.3% for Q4 2024[56] Market and Segment Performance - North America accounted for 74.1% of net premiums written in Q4 2024, with total North America premiums reaching $1,448 million[49] - The international segment contributed 25.9% to total net premiums written in Q4 2024, with $506 million reported[50] - The property and short-tail specialty line in North America saw a 23.5% increase in net premiums written, totaling $364 million in Q4 2024[49] Share Repurchase and Capital Management - The aggregate cost of shares repurchased in the last quarter was $23.5 million, with 0.3 million shares repurchased at an average price of $89.65 per share[120] - The cumulative cost of shares repurchased since the program's inception is $5.895 billion, with 433.8 million shares repurchased[120] - Remaining share repurchase authorization stands at $976.5 million, indicating potential for future buybacks[120] Risk and Credit Quality - The risk-to-capital ratio for Arch MI U.S. is reported at 7.8:1 as of December 31, 2024, indicating a stable capital position relative to risk[62] - The percentage of RIF by credit quality shows that 62.3% of the total RIF is from borrowers with a FICO score of 740 and above[61] - The weighted average FICO score remains stable at 748 across the reporting periods, indicating consistent credit quality among insured loans[61]
ARCH CAP GROUP R(ACGLN) - 2024 Q4 - Annual Results