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