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]
ARCH CAP GROUP R(ACGLN) - 2025 Q1 - Quarterly Results